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diff --git a/old/sumck10.txt b/old/sumck10.txt new file mode 100644 index 0000000..068565a --- /dev/null +++ b/old/sumck10.txt @@ -0,0 +1,7021 @@ +The Project Gutenberg EBook of State of the Union Addresses +by William McKinley +(#22 in our series of US Presidential State of the Union Addresses) + +Copyright laws are changing all over the world. Be sure to check the +copyright laws for your country before downloading or redistributing +this or any other Project Gutenberg eBook. + +This header should be the first thing seen when viewing this Project +Gutenberg file. Please do not remove it. Do not change or edit the +header without written permission. + +Please read the "legal small print," and other information about the +eBook and Project Gutenberg at the bottom of this file. Included is +important information about your specific rights and restrictions in +how the file may be used. You can also find out about how to make a +donation to Project Gutenberg, and how to get involved. + + +**Welcome To The World of Free Plain Vanilla Electronic Texts** + +**eBooks Readable By Both Humans and By Computers, Since 1971** + +*****These eBooks Were Prepared By Thousands of Volunteers!***** + + +Title: State of the Union Addresses of William McKinley + +Author: William McKinley + +Release Date: February, 2004 [EBook #5031] +[Yes, we are more than one year ahead of schedule] +[This file was first posted on April 11, 2002] + +Edition: 10 + +Language: English + +Character set encoding: ASCII + +*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY WILLIAM MCKINLEY *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by William McKinley in this eBook: + December 6, 1897 + December 5, 1898 + December 5, 1899 + December 3, 1900 + + + +*** + +State of the Union Address +William McKinley +December 6, 1897 + +To the Senate and House of Representatives: + +It gives me pleasure to extend greeting to the Fifty-fifth Congress, +assembled in regular session at the seat of Government, with many of whose +Senators and Representatives I have been associated in the legislative +service. Their meeting occurs under felicitous conditions, justifying +sincere congratulation and calling for our grateful acknowledgment to a +beneficent Providence which has so signally blessed and prospered us as a +nation. Peace and good will with all the nations of the earth continue +unbroken. + +A matter of genuine satisfaction is the growing feeling of fraternal regard +and unification of all sections of our country, the incompleteness of which +has too long delayed realization of the highest blessings of the Union. The +spirit of patriotism is universal and is ever increasing in fervor. The +public questions which now most engross us are lifted far above either +partisanship, prejudice, or former sectional differences. They affect every +part of our common country alike and permit of no division on ancient +lines. Questions of foreign policy, of revenue, the soundness of the +currency, the inviolability of national obligations, the improvement of the +public service, appeal to the individual conscience of every earnest +citizen to whatever party he belongs or in whatever section of the country +he may reside. + +The extra session of this Congress which closed during July last enacted +important legislation, and while its full effect has not yet been realized, +what it has already accomplished assures us of its timeliness and wisdom. +To test its permanent value further time will be required, and the people, +satisfied with its operation and results thus far, are in no mind to +withhold from it a fair trial. + +Tariff legislation having been settled by the extra session of Congress, +the question next pressing for consideration is that of the currency. + +The work of putting our finances upon a sound basis, difficult as it may +seem, will appear easier when we recall the financial operations of the +Government since 1866. On the 30th day of June of that year we had +outstanding demand liabilities in the sum of $728,868,447.41. On the 1st of +January, 1879, these liabilities had been reduced to$443,889,495.88. Of our +interest-bearing obligations, the figures are even more striking. On July +1, 1866, the principal of the interest-bearing debt of the Government was +$2,332,331,208. On the 1st day of July, 1893, this sum had been reduced to +$585,137,100, or an aggregate reduction of $1,747,294,108. The +interest-bearing debt of the United States on the 1st day of December, +1897, was $847,365,620. The Government money now outstanding (December 1) +consists of $346,681,016 of United States notes, $107,793,280 of Treasury +notes issued by authority of the law of 1890, $384,963,504 of silver +certificates, and $61,280,761 of standard silver dollars. + +With the great resources of the Government, and with the honorable example +of the past before us, we ought not to hesitate to enter upon a currency +revision which will make our demand obligations less onerous to the +Government and relieve our financial laws from ambiguity and doubt. + +The brief review of what was accomplished from the close of the war to +1893, makes unreasonable and groundless any distrust either of our +financial ability or soundness; while the situation from 1893 to 1897 must +admonish Congress of the immediate necessity of so legislating as to make +the return of the conditions then prevailing impossible. + +There are many plans proposed as a remedy for the evil. Before we can find +the true remedy we must appreciate the real evil. It is not that our +currency of every kind is not good, for every dollar of it is good; good +because the Government's pledge is out to keep it so, and that pledge will +not be broken. However, the guaranty of our purpose to keep the pledge will +be best shown by advancing toward its fulfillment. + +The evil of the present system is found in the great cost to the Government +of maintaining the parity of our different forms of money, that is, keeping +all of them at par with gold. We surely cannot be longer heedless of the +burden this imposes upon the people, even under fairly prosperous +conditions, while the past four years have demonstrated that it is not only +an expensive charge upon the Government, but a dangerous menace to the +National credit. + +It is manifest that we must devise some plan to protect the Government +against bond issues for repeated redemptions. We must either curtail the +opportunity for speculation, made easy by the multiplied redemptions of our +demand obligations, or increase the gold reserve for their redemption. We +have $900,000,000 of currency which the Government by solemn enactment has +undertaken to keep at par with gold. Nobody is obliged to redeem in gold +but the Government. The banks are not required to redeem in gold. The +Government is obliged to keep equal with gold all its outstanding currency +and coin obligations, while its receipts are not required to be paid in +gold. They are paid in every kind of money but gold, and the only means by +which the Government can with certainty get gold is by borrowing. It can +get it in no other way when it most needs it. The Government without any +fixed gold revenue is pledged to maintain gold redemption, which it has +steadily and faithfully done, and which, under the authority now given, it +will continue to do. + +The law which requires the Government, after having redeemed its United +States notes, to pay them out again as current funds, demands a constant +replenishment of the gold reserve. This is especially so in times of +business panic and when the revenues are insufficient to meet the expenses +of the Government. At such times the Government has no other way to supply +its deficit and maintain redemption but through the increase of its bonded +debt, as during the Administration of my predecessor, when $262,315,400 of +four-and-a-half per cent bonds were issued and sold and the proceeds used +to pay the expenses of the Government in excess of the revenues and sustain +the gold reserve. While it is true that the greater part of the proceeds of +these bonds were used to supply deficient revenues, a considerable portion +was required to maintain the gold reserve. + +With our revenues equal to our expenses, there would be no deficit +requiring the issuance of bonds. But if the gold reserve falls below +$100,000,000, how will it be replenished except by selling more bonds? Is +there any other way practicable under existing law? The serious question +then is, Shall we continue the policy that has been pursued in the past; +that is, when the gold reserve reaches the point of danger, issue more +bonds and supply the needed gold, or shall we provide other means to +prevent these recurring drains upon the gold reserve? If no further +legislation is had and the policy of selling bonds is to be continued, then +Congress should give the Secretary of the Treasury authority to sell bonds +at long or short periods, bearing a less rate of interest than is now +authorized by law. + +I earnestly recommend, as soon as the receipts of the Government are quite +sufficient to pay all the expenses of the Government, that when any of the +United States notes are presented for redemption in gold and are redeemed +in gold, such notes shall be kept and set apart, and only paid out in +exchange for gold. This is an obvious duty. If the holder of the United +States note prefers the gold and gets it from the Government, he should not +receive back from the Government a United States note without paying gold +in exchange for it. The reason for this is made all the more apparent when +the Government issues an interest-bearing debt to provide gold for the +redemption of United States notes--a non-interest-bearing debt. Surely it +should not pay them out again except on demand and for gold. If they are +put out in any other way, they may return again to be followed by another +bond issue to redeem them--another interest-bearing debt to redeem a +non-interest-bearing debt. + +In my view, it is of the utmost importance that the Government should be +relieved from the burden of providing all the gold required for exchanges +and export. This responsibility is alone borne by the Government, without +any of the usual and necessary banking powers to help itself. The banks do +not feel the strain of gold redemption. The whole strain rests upon the +Government, and the size of the gold reserve in the Treasury has come to +be, with or without reason, the signal of danger or of security. This ought +to be stopped. + +If we are to have an era of prosperity in the country, with sufficient +receipts for the expenses of the Government, we may feel no immediate +embarrassment from our present currency; but the danger still exists, and +will be ever present, menacing us so long as the existing system continues. +And, besides, it is in times of adequate revenues and business tranquillity +that the Government should prepare for the worst. We cannot avoid, without +serious consequences, the wise consideration and prompt solution of this +question. + +The Secretary of the Treasury has outlined a plan, in great detail, for the +purpose of removing the threatened recurrence of a depleted gold reserve +and save us from future embarrassment on that account. To this plan I +invite your careful consideration. + +I concur with the Secretary of the Treasury in his recommendation that +National banks be allowed to issue notes to the face value of the bonds +which they have deposited for circulation, and that the tax on circulating +notes secured by deposit of such bonds be reduced to one-half of one per +cent per annum. I also join him in recommending that authority be given for +the establishment of National banks with a minimum capital of $25,000. This +will enable the smaller villages and agricultural regions of the country to +be supplied with currency to meet their needs. + +I recommend that the issue of National bank notes be restricted to the +denomination of ten dollars and upwards. If the suggestions I have herein +made shall have the approval of Congress, then I would recommend that +National banks be required to redeem their notes in gold. + +The most important problem with which this Government is now called upon to +deal pertaining to its foreign relations concerns its duty toward Spain and +the Cuban insurrection. Problems and conditions more or less in common with +those now existing have confronted this Government at various times in the +past. The story of Cuba for many years has been one of unrest, growing +discontent, an effort toward a larger enjoyment of liberty and +self-control, of organized resistance to the mother country, of depression +after distress and warfare, and of ineffectual settlement to be followed by +renewed revolt. For no enduring period since the enfranchisement of the +continental possessions of Spain in the Western Continent has the condition +of Cuba or the policy of Spain toward Cuba not caused concern to the United +States. + +The prospect from time to time that the weakness of Spain's hold upon the +island and the political vicissitudes and embarrassments of the home +Government might lead to the transfer of Cuba to a continental power called +forth between 1823 and 1860 various emphatic declarations of the policy of +the United States to permit no disturbance of Cuba' s connection with Spain +unless in the direction of independence or acquisition by us through +purchase, nor has there been any change of this declared policy since upon +the part of the Government. + +The revolution which began in 1868 lasted for ten years despite the +strenuous efforts of the successive peninsular governments to suppress it. +Then as now the Government of the United States testified its grave concern +and offered its aid to put an end to bloodshed in Cuba. The overtures made +by General Grant were refused and the war dragged on, entailing great loss +of life and treasure and increased injury to American interests, besides +throwing enhanced burdens of neutrality upon this Government. In 1878 peace +was brought about by the truce of Zanjon, obtained by negotiations between +the Spanish commander, Martinez de Campos, and the insurgent leaders. + +The present insurrection broke out in February, 1895. It is not my purpose +at this time to recall its remarkable increase or to characterize its +tenacious resistance against the enormous forces massed against it by +Spain. The revolt and the efforts to subdue it carried destruction to every +quarter of the island, developing wide proportions and defying the efforts +of Spain for its suppression. The civilized code of war has been +disregarded, no less so by the Spaniards than by the Cubans. + +The existing conditions can not but fill this Government and the American +people with the gravest apprehension. There is no desire on the part of our +people to profit by the misfortunes of Spain. We have only the desire to +see the Cubans prosperous and contented, enjoying that measure of +self-control which is the inalienable right of man, protected in their +right to reap the benefit of the exhaustless treasures of their country. + +The offer made by my predecessor in April, 1896, tendering the friendly +offices of this Government, failed. Any mediation on our part was not +accepted. In brief, the answer read: "There is no effectual way to pacify +Cuba unless it begins with the actual submission of the rebels to the +mother country." Then only could Spain act in the promised direction, of +her own motion and after her own plans. + +The cruel policy of concentration was initiated February 16, 1896. The +productive districts controlled by the Spanish armies were depopulated. The +agricultural inhabitants were herded in and about the garrison towns, their +lands laid waste and their dwellings destroyed. This policy the late +cabinet of Spain justified as a necessary measure of war and as a means of +cutting off supplies from the insurgents. It has utterly failed as a war +measure. It was not civilized warfare. It was extermination. + +Against this abuse of the rights of war I have felt constrained on repeated +occasions to enter the firm and earnest protest of this Government. There +was much of public condemnation of the treatment of American citizens by +alleged illegal arrests and long imprisonment awaiting trial or pending +protracted judicial proceedings. I felt it my first duty to make instant +demand for the release or speedy trial of all American citizens under +arrest. Before the change of the Spanish cabinet in October last twenty-two +prisoners, citizens of the United States, had been given their freedom. + +For the relief of our own citizens suffering because of the conflict the +aid of Congress was sought in a special message, and under the +appropriation of May 24, 1897, effective aid has been given to American +citizens in Cuba, many of them at their own request having been returned to +the United States. + +The instructions given to our new minister to Spain before his departure +for his post directed him to impress upon that Government the sincere wish +of the United States to lend its aid toward the ending of the war in Cuba +by reaching a peaceful and lasting result, just and honorable alike to +Spain and to the Cuban people. These instructions recited the character and +duration of the contest, the widespread losses it entails, the burdens and +restraints it imposes upon us, with constant disturbance of national +interests, and the injury resulting from an indefinite continuance of this +state of things. It was stated that at this juncture our Government was +constrained to seriously inquire if the time was not ripe when Spain of her +own volition, moved by her own interests and every sentiment of humanity, +should put a stop to this destructive war and make proposals of settlement +honorable to herself and just to her Cuban colony. It was urged that as a +neighboring nation, with large interests in Cuba, we could be required to +wait only a reasonable time for the mother country to establish its +authority and restore peace and order within the borders of the island; +that we could not contemplate an indefinite period for the accomplishment +of this result. + +No solution was proposed to which the slightest idea of humiliation to +Spain could attach, and, indeed, precise proposals were withheld to avoid +embarrassment to that Government. All that was asked or expected was that +some safe way might be speedily provided and permanent peace restored. It +so chanced that the consideration of this offer, addressed to the same +Spanish administration which had declined the tenders of my predecessor, +and which for more than two years had poured men and treasure into Cuba in +the fruitless effort to suppress the revolt, fell to others. Between the +departure of General Woodford, the new envoy, and his arrival in Spain the +statesman who had shaped the policy of his country fell by the hand of an +assassin, and although the cabinet of the late premier still held office +and received from our envoy the proposals he bore, that cabinet gave place +within a few days thereafter to a new administration, under the leadership +of Sagasta. + +The reply to our note was received on the 23d day of October. It is in the +direction of a better understanding. It appreciates the friendly purposes +of this Government. It admits that our country is deeply affected by the +war in Cuba and that its desires for peace are just. It declares that the +present Spanish government is bound by every consideration to a change of +policy that should satisfy the United States and pacify Cuba within a +reasonable time. To this end Spain has decided to put into effect the +political reforms heretofore advocated by the present premier, without +halting for any consideration in the path which in its judgment leads to +peace. The military operations, it is said, will continue, but will be +humane and conducted with all regard for private rights, being accompanied +by political action leading to the autonomy of Cuba while guarding Spanish +sovereignty. This, it is claimed, will result in investing Cuba with a +distinct personality, the island to be governed by an executive and by a +local council or chamber, reserving to Spain the control of the foreign +relations, the army and navy, and the judicial administration. To +accomplish this the present government proposes to modify existing +legislation by decree, leaving the Spanish Cortes, with the aid of Cuban +senators and deputies, to solve the economic problem and properly +distribute the existing debt. + +In the absence of a declaration of the measures that this Government +proposes to take in carrying out its proffer of good offices, it suggests +that Spain be left free to conduct military operations and grant political +reforms, while the United States for its part shall enforce its neutral +obligations and cut off the assistance which it is asserted the insurgents +receive from this country. The supposition of an indefinite prolongation of +the war is denied. It is asserted that the western provinces are already +well-nigh reclaimed, that the planting of cane and tobacco therein has been +resumed, and that by force of arms and new and ample reforms very early and +complete pacification is hoped for. + +The immediate amelioration of existing conditions under the new +administration of Cuban affairs is predicted, and therewithal the +disturbance and all occasion for any change of attitude on the part of the +United States. Discussion of the question of the international duties and +responsibilities of the United States as Spain understands them is +presented, with an apparent disposition to charge us with failure in this +regard. This charge is without any basis in fact. It could not have been +made if Spain had been cognizant of the constant efforts this Government +has made, at the cost of millions and by the employment of the +administrative machinery of the nation at command, to perform its full duty +according to the law of nations. That it has successfully prevented the +departure of a single military expedition or armed vessel from our shores +in violation of our laws would seem to be a sufficient answer. But of this +aspect of the Spanish note it is not necessary to speak further now. Firm +in the conviction of a wholly performed obligation, due response to this +charge has been made in diplomatic course. + +Throughout all these horrors and dangers to our own peace this Government +has never in any way abrogated its sovereign prerogative of reserving to +itself the determination of its policy and course according to its own high +sense of right and in consonance with the dearest interests and convictions +of our own people should the prolongation of the strife so demand. + +Of the untried measures there remain only: Recognition of the insurgents as +belligerents; recognition of the independence of Cuba; neutral intervention +to end the war by imposing a rational compromise between the contestants, +and intervention in favor of one or the other party. I speak not of +forcible annexation, for that can not be thought of. That, by our code of +morality, would be criminal aggression. + +Recognition of the belligerency of the Cuban insurgents has often been +canvassed as a possible, if not inevitable, step both in regard to the +previous ten years' struggle and during the present war. I am not unmindful +that the two Houses of Congress in the spring of 1896 expressed the opinion +by concurrent resolution that a condition of public war existed requiring +or justifying the recognition of a state of belligerency in Cuba, and +during the extra session the Senate voted a joint resolution of like +import, which, however, was not brought to a vote in the House of +Representatives. In the presence of these significant expressions of the +sentiment of the legislative branch it behooves the Executive to soberly +consider the conditions under which so important a measure must needs rest +for justification. It is to be seriously considered whether the Cuban +insurrection possesses beyond dispute the attributes of statehood, which +alone can demand the recognition of belligerency in its favor. Possession, +in short, of the essential qualifications of sovereignty by the insurgents +and the conduct of the war by them according to the received code of war +are no less important factors toward the determination of the problem of +belligerency than are the influences and consequences of the struggle upon +the internal polity of the recognizing state. + +The wise utterances of President Grant in his memorable message of December +7, 1875, are signally relevant to the present situation in Cuba, and it may +be wholesome now to recall them. At that time a ruinous conflict had for +seven years wasted the neighboring island. During all those years an utter +disregard of the laws of civilized warfare and of the just demands of +humanity, which called forth expressions of condemnation from the nations +of Christendom, continued unabated. Desolation and ruin pervaded that +productive region, enormously affecting the commerce of all commercial +nations, but that of the United States more than any other by reason of +proximity and larger trade and intercourse. At that juncture General Grant +uttered these words, which now, as then, sum up the elements of the +problem: A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. + +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. It is possible that the acts of foreign powers, and even acts of Spain +herself, of this very nature, might be pointed to in defense of such +recognition. But now, as in its past history, the United States should +carefully avoid the false lights which might lead it into the mazes of +doubtful law and of questionable propriety, and adhere rigidly and sternly +to the rule, which has been its guide, of doing only that which is right +and honest and of good report. The question of according or of withholding +rights of belligerency must be judged in every case in view of the +particular attending facts. Unless justified by necessity, it is always, +and justly, regarded as an unfriendly act and a gratuitous demonstration of +moral support to the rebellion. It is necessary, and it is required, when +the interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations. It confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Turning to the +practical aspects of a recognition of belligerency and reviewing its +inconveniences and positive dangers, still further pertinent considerations +appear. In the code of nations there is no such thing as a naked +recognition of belligerency, unaccompanied by the assumption of +international neutrality. Such recognition, without more, will not confer +upon either party to a domestic conflict a status not theretofore actually +possessed or affect the relation of either party to other states. The act +of recognition usually takes the form of a solemn proclamation of +neutrality, which recites the de facto condition of belligerency as its +motive. It announces a domestic law of neutrality in the declaring state. +It assumes the international obligations of a neutral in the presence of a +public state of war. It warns all citizens and others within the +jurisdiction of the proclaimant that they violate those rigorous +obligations at their own peril and can not expect to be shielded from the +consequences. The right of visit and search on the seas and seizure of +vessels and cargoes and contraband of war and good prize under admiralty +law must under international law be admitted as a legitimate consequence of +a proclamation of belligerency. While according the equal belligerent +rights defined by public law to each party in our ports disfavors would be +imposed on both, which, while nominally equal, would weigh heavily in +behalf of Spain herself. Possessing a navy and controlling the ports of +Cuba, her maritime rights could be asserted not only for the military +investment of the island, but up to the margin of our own territorial +waters, and a condition of things would exist for which the Cubans within +their own domain could not hope to create a parallel, while its creation +through aid or sympathy from within our domain would be even more +impossible than now, with the additional obligations of international +neutrality we would perforce assume. + +The enforcement of this enlarged and onerous code of neutrality would only +be influential within our own jurisdiction by land and sea and applicable +by our own instrumentalities. It could impart to the United States no +jurisdiction between Spain and the insurgents. It would give the United +States no right of intervention to enforce the conduct of the strife within +the paramount authority of Spain according to the international code of +war. + +For these reasons I regard the recognition of the belligerency of the Cuban +insurgents as now unwise, and therefore inadmissible. Should that step +hereafter be deemed wise as a measure of right and duty, the Executive will +take it. + +Intervention upon humanitarian grounds has been frequently suggested and +has not failed to receive my most anxious and earnest consideration. But +should such a step be now taken, when it is apparent that a hopeful change +has supervened in the policy of Spain toward Cuba? A new government has +taken office in the mother country. It is pledged in advance to the +declaration that all the effort in the world can not suffice to maintain +peace in Cuba by the bayonet; that vague promises of reform after +subjugation afford no solution of the insular problem; that with a +substitution of commanders must come a change of the past system of warfare +for one in harmony with a new policy, which shall no longer aim to drive +the Cubans to the "horrible alternative of taking to the thicket or +succumbing in misery;" that reforms must be instituted in accordance with +the needs and circumstances of the time, and that these reforms, while +designed to give full autonomy to the colony and to create a virtual entity +and self-controlled administration, shall yet conserve and affirm the +sovereignty of Spain by a just distribution of powers and burdens upon a +basis of mutual interest untainted by methods of selfish expediency. + +The first acts of the new government lie in these honorable paths. The +policy of cruel rapine and extermination that so long shocked the universal +sentiment of humanity has been reversed. Under the new military commander a +broad clemency is proffered. Measures have already been set on foot to +relieve the horrors of starvation. The power of the Spanish armies, it is +asserted, is to be used not to spread ruin and desolation, but to protect +the resumption of peaceful agricultural pursuits and productive industries. +That past methods are futile to force a peace by subjugation is freely +admitted, and that ruin without conciliation must inevitably fail to win +for Spain the fidelity of a contented dependency. + +Decrees in application of the foreshadowed reforms have already been +promulgated. The full text of these decrees has not been received, but as +furnished in a telegraphic summary from our minister are: All civil and +electoral rights of peninsular Spaniards are, in virtue of existing +constitutional authority, forthwith extended to colonial Spaniards. A +scheme of autonomy has been proclaimed by decree, to become effective upon +ratification by the Cortes. It creates a Cuban parliament, which, with the +insular executive, can consider and vote upon all subjects affecting local +order and interests, possessing unlimited powers save as to matters of +state, war, and the navy, as to which the Governor-General acts by his own +authority as the delegate of the central Government. This parliament +receives the oath of the Governor-General to preserve faithfully the +liberties and privileges of the colony, and to it the colonial secretaries +are responsible. It has the right to propose to the central Government, +through the Governor-General, modifications of the national charter and to +invite new projects of law or executive measures in the interest of the +colony. + +Besides its local powers, it is competent, first, to regulate electoral +registration and procedure and prescribe the qualifications of electors and +the manner of exercising suffrage; second, to organize courts of justice +with native judges from members of the local bar; third, to frame the +insular budget, both as to expenditures and revenues, without limitation of +any kind, and to set apart the revenues to meet the Cuban share of the +national budget, which latter will be voted by the national Cortes with the +assistance of Cuban senators and deputies; fourth, to initiate or take part +in the negotiations of the national Government for commercial treaties +which may affect Cuban interests; fifth, to accept or reject commercial +treaties which the national Government may have concluded without the +participation of the Cuban government; sixth, to frame the colonial tariff, +acting in accord with the peninsular Government in scheduling articles of +mutual commerce between the mother country and the colonies. Before +introducing or voting upon a bill the Cuban government or the chambers will +lay the project before the central Government and hear its opinion thereon, +all the correspondence in such regard being made public. Finally, all +conflicts of jurisdiction arising between the different municipal, +provincial, and insular assemblies, or between the latter and the insular +executive power, and which from their nature may not be referable to the +central Government for decision, shall be submitted to the courts. + +That the government of Sagasta has entered upon a course from which +recession with honor is impossible can hardly be questioned; that in the +few weeks it has existed it has made earnest of the sincerity of its +professions is undeniable. I shall not impugn its sincerity, nor should +impatience be suffered to embarrass it in the task it has undertaken. It is +honestly due to Spain and to our friendly relations with Spain that she +should be given a reasonable chance to realize her expectations and to +prove the asserted efficacy of the new order of things to which she stands +irrevocably committed. She has recalled the commander whose brutal orders +inflamed the American mind and shocked the civilized world. She has +modified the horrible order of concentration and has undertaken to care for +the helpless and permit those who desire to resume the cultivation of their +fields to do so, and assures them of the protection of the Spanish +Government in their lawful occupations. She has just released the +Competitor prisoners, heretofore sentenced to death, and who have been the +subject of repeated diplomatic correspondence during both this and the +preceding Administration. + +Not a single American citizen is now in arrest or confinement in Cuba of +whom this Government has any knowledge. The near future will demonstrate +whether the indispensable condition of a righteous peace, just alike to the +Cubans and to Spain as well as equitable to all our interests so intimately +involved in the welfare of Cuba, is likely to be attained. If not, the +exigency of further and other action by the United States will remain to be +taken. When that time comes that action will be determined in the line of +indisputable right and duty. It will be faced, without misgiving or +hesitancy in the light of the obligation this Government owes to itself, to +the people who have confided to it the protection of their interests and +honor, and to humanity. + +Sure of the right, keeping free from all offense ourselves, actuated only +by upright and patriotic considerations, moved neither by passion nor +selfishness. the Government will continue its watchful care over the rights +and property of American citizens and will abate none of its efforts to +bring about by peaceful agencies a peace which shall be honorable and +enduring. If it shall hereafter appear to be a duty imposed by our +obligations to ourselves, to civilization and humanity to intervene with +force, it shall be without fault on our part and only because the necessity +for such action will be so clear as to command the support and approval of +the civilized world. + +By a special message dated the 16th day of June last, I laid before the +Senate a treaty signed that day by the plenipotentiaries of the United +States and of the Republic of Hawaii, having for its purpose the +incorporation of the Hawaiian Islands as an integral part of the United +States and under its sovereignty. The Senate having removed the injunction +of secrecy, although the treaty is still pending before that body, the +subject may be properly referred to in this Message because the necessary +action of the Congress is required to determine by legislation many details +of the eventual union should the fact of annexation be accomplished, as I +believe it should be. + +While consistently disavowing from a very early period any aggressive +policy of absorption in regard to the Hawaiian group, a long series of +declarations through three-quarters of a century has proclaimed the vital +interest of the United States in the independent life of the Islands and +their intimate commercial dependence upon this country. At the same time it +has been repeatedly asserted that in no event could the entity of Hawaiian +statehood cease by the passage of the Islands under the domination or +influence of another power than the United States. Under these +circumstances, the logic of events required that annexation, heretofore +offered but declined, should in the ripeness of time come about as the +natural result of the strengthening ties that bind us to those Islands, and +be realized by the free will of the Hawaiian State. + +That treaty was unanimously ratified without amendment by the Senate and +President of the Republic of Hawaii on the 10th of September last, and only +awaits the favorable action of the American Senate to effect the complete +absorption of the Islands into the domain of the United States. What the +conditions of such a union shall be, the political relation thereof to the +United States, the character of the local administration, the quality and +degree of the elective franchise of the inhabitants, the extension of the +federal laws to the territory or the enactment of special laws to fit the +peculiar condition thereof, the regulation if need be of the labor system +therein, are all matters which the treaty has wisely relegated to the +Congress. + +If the treaty is confirmed as every consideration of dignity and honor +requires, the wisdom of Congress will see to it that, avoiding abrupt +assimilation of elements perhaps hardly yet fitted to share in the highest +franchises of citizenship, and having due regard to the geographical +conditions, the most just provisions for self-rule in local matters with +the largest political liberties as an integral part of our Nation will be +accorded to the Hawaiians. No less is due to a people who, after nearly +five years of demonstrated capacity to fulfill the obligations of +self-governing statehood, come of their free will to merge their destinies +in our body-politic. + +The questions which have arisen between Japan and Hawaii by reason of the +treatment of Japanese laborers emigrating to the Islands under the +Hawaiian-Japanese convention of 1888, are in a satisfactory stage of +settlement by negotiation. This Government has not been invited to mediate, +and on the other hand has sought no intervention in that matter, further +than to evince its kindliest disposition toward such a speedy and direct +adjustment by the two sovereign States in interest as shall comport with +equity and honor. It is gratifying to learn that the apprehensions at first +displayed on the part of Japan lest the cessation of Hawaii's national life +through annexation might impair privileges to which Japan honorably laid +claim, have given place to confidence in the uprightness of this +Government, and in the sincerity of its purpose to deal with all possible +ulterior questions in the broadest spirit of friendliness. + +As to the representation of this Government to Nicaragua, Salvador, and +Costa Rica, I have concluded that Mr. William L. Merry, confirmed as +minister of the United States to the States of Nicaragua, Salvador and +Costa Rica, shall proceed to San Jose, Costa Rica, and there temporarily +establish the headquarters of the United States to those three States. I +took this action for what I regarded as the paramount interests of this +country. It was developed upon an investigation by the Secretary of State +that the Government of Nicaragua, while not unwilling to receive Mr. Merry +in his diplomatic quality, was unable to do so because of the compact +concluded June 20, 1895, whereby that Republic and those of Salvador and +Honduras, forming what is known as the Greater Republic of Central America, +had surrendered to the representative Diet thereof their right to receive +and send diplomatic agents. The Diet was not willing to accept him because +he was not accredited to that body. I could not accredit him to that body +because the appropriation law of Congress did not permit it. Mr. Baker, the +present minister at Managua, has been directed to present his letters of +recall. + +Mr. W. Godfrey Hunter has likewise been accredited to the Governments of +Guatemala and Honduras, the same as his predecessor. Guatemala is not a +member of the Greater Republic of Central America, but Honduras is. Should +this latter Government decline to receive him, he has been instructed to +report this fact to his Government and await its further instructions. + +A subject of large importance to our country, and increasing appreciation +on the part of the people, is the completion of the great highway of trade +between the Atlantic and Pacific, known as the Nicaragua Canal. Its utility +and value to American commerce is universally admitted. The Commission +appointed under date of July 24 last "to continue the surveys and +examinations authorized by the act approved March 2, 1895," in regard to +"the proper route, feasibility, and cost of construction of the Nicaragua +Canal, with a view of making complete plans for the entire work of +construction of such canal," is now employed in the undertaking. In the +future I shall take occasion to transmit to Congress the report of this +Commission, making at the same time such further suggestions as may then +seem advisable. + +Under the provisions of the act of Congress approved March 3, 1897, for the +promotion of an international agreement respecting bimetallism, I appointed +on the 14th day of April, 1897, Hon. Edward O. Wolcott of Colorado, Hon. +Adlai E. Stevenson of Illinois, and Hon. Charles J. Paine of Massachusetts, +as special envoys to represent the United States. They have been diligent +in their efforts to secure the concurrence and cooperation of European +countries in the international settlement of the question, but up to this +time have not been able to secure an agreement contemplated by their +mission. + +The gratifying action of our great sister Republic of France in joining +this country in the attempt to bring about an agreement among the principal +commercial nations of Europe, whereby a fixed and relative value between +gold and silver shall be secured, furnishes assurance that we are not alone +among the larger nations of the world in realizing the international +character of the problem and in the desire of reaching some wise and +practical solution of it. The British Government has published a resume of +the steps taken jointly by the French ambassador in London and the special +envoys of the United States, with whom our ambassador at London actively +co-operated in the presentation of this subject to Her Majesty's +Government. This will be laid before Congress. + +Our special envoys have not made their final report, as further +negotiations between the representatives of this Government and the +Governments of other countries are pending and in contemplation. They +believe that doubts which have been raised in certain quarters respecting +the position of maintaining the stability of the parity between the metals +and kindred questions may yet be solved by further negotiations. + +Meanwhile it gives me satisfaction to state that the special envoys have +already demonstrated their ability and fitness to deal with the subject, +and it is to be earnestly hoped that their labors may result in an +international agreement which will bring about recognition of both gold and +silver as money upon such terms, and with such safeguards as will secure +the use of both metals upon a basis which shall work no injustice to any +class of our citizens. + +In order to execute as early as possible the provisions of the third and +fourth sections of the Revenue Act, approved July 24, 1897, I appointed the +Hon. John A. Kasson of Iowa, a special commissioner plenipotentiary to +undertake the requisite negotiations with foreign countries desiring to +avail themselves of these provisions. The negotiations are now proceeding +with several Governments, both European and American. It is believed that +by a careful exercise of the powers conferred by that Act some grievances +of our own and of other countries in our mutual trade relations may be +either removed, or largely alleviated, and that the volume of our +commercial exchanges may be enlarged, with advantage to both contracting +parties. + +Most desirable from every standpoint of national interest and patriotism is +the effort to extend our foreign commerce. To this end our merchant marine +should be improved and enlarged. We should do our full share of the +carrying trade of the world. We do not do it now. We should be the laggard +no longer. The inferiority of our merchant marine is justly humiliating to +the national pride. The Government by every proper constitutional means, +should aid in making our ships familiar visitors at every commercial port +of the world, thus opening up new and valuable markets to the surplus +products of the farm and the factory. + +The efforts which had been made during the two previous years by my +predecessor to secure better protection to the fur seals in the North +Pacific Ocean and Bering Sea, were renewed at an early date by this +Administration, and have been pursued with earnestness. Upon my invitation, +the Governments of Japan and Russia sent delegates to Washington, and an +international conference was held during the months of October and November +last, wherein it was unanimously agreed that under the existing regulations +this species of useful animals was threatened with extinction, and that an +international agreement of all the interested powers was necessary for +their adequate protection. + +The Government of Great Britain did not see proper to be represented at +this conference, but subsequently sent to Washington, as delegates, the +expert commissioners of Great Britain and Canada who had, during the past +two years, visited the Pribilof Islands, and who met in conference similar +commissioners on the part of the United States. The result of this +conference was an agreement on important facts connected with the condition +of the seal herd, heretofore in dispute, which should place beyond +controversy the duty of the Governments concerned to adopt measures without +delay for the preservation and restoration of the herd. Negotiations to +this end are now in progress, the result of which I hope to be able to +report to Congress at an early day. + +International arbitration cannot be omitted from the list of subjects +claiming our consideration. Events have only served to strengthen the +general views on this question expressed in my inaugural address. The best +sentiment of the civilized world is moving toward the settlement of +differences between nations without resorting to the horrors of war. +Treaties embodying these humane principles on broad lines, without in any +way imperiling our interests or our honor, shall have my constant +encouragement. + +The acceptance by this Government of the invitation of the Republic of +France to participate in the Universal Exposition of 1900, at Paris, was +immediately followed by the appointment of a special commissioner to +represent the United States in the proposed exposition, with special +reference to the securing of space for an adequate exhibit on behalf of the +United States. + +The special commissioner delayed his departure for Paris long enough to +ascertain the probable demand for space by American exhibitors. His +inquiries developed an almost unprecedented interest in the proposed +exposition, and the information thus acquired enabled him to justify an +application for a much larger allotment of space for the American section +than had been reserved by the exposition authorities. The result was +particularly gratifying, in view of the fact that the United States was one +of the last countries to accept the invitation of France. + +The reception accorded our special commissioner was most cordial, and he +was given every reasonable assurance that the United States would receive a +consideration commensurate with the proportions of our exhibit. The report +of the special commissioner as to the magnitude and importance of the +coming exposition, and the great demand for space by American exhibitors, +supplies new arguments for a liberal and judicious appropriation by +Congress, to the end that an exhibit fairly representative of the +industries and resources of our country may be made in an exposition which +will illustrate the world's progress during the nineteenth century. That +exposition is intended to be the most important and comprehensive of the +long series of international exhibitions, of which our own at Chicago was a +brilliant example, and it is desirable that the United States should make a +worthy exhibit of American genius and skill and their unrivaled +achievements in every branch of industry. + +The present immediately effective force of the Navy consists of four battle +ships of the first class, two of the second, and forty-eight other vessels, +ranging from armored cruisers to torpedo boats. There are under +construction five battle ships of the first class, sixteen torpedo boats, +and one submarine boat. No provision has yet been made for the armor of +three of the five battle ships, as it has been impossible to obtain it at +the price fixed by Congress. It is of great importance that Congress +provide this armor, as until then the ships are of no fighting value. + +The present naval force, especially in view of its increase by the ships +now under construction, while not as large as that of a few other powers, +is a formidable force; its vessels are the very best of each type; and with +the increase that should be made to it from time to time in the future, and +careful attention to keeping it in a high state of efficiency and repair, +it is well adapted to the necessities of the country. + +The great increase of the Navy which has taken place in recent years was +justified by the requirements for national defense, and has received public +approbation. The time has now arrived, however, when this increase, to +which the country is committed, should, for a time, take the form of +increased facilities commensurate with the increase of our naval vessels. +It is an unfortunate fact that there is only one dock on the Pacific Coast +capable of docking our largest ships, and only one on the Atlantic Coast, +and that the latter has for the last six or seven months been under repair +and therefore incapable of use. Immediate steps should be taken to provide +three or four docks of this capacity on the Atlantic Coast, at least one on +the Pacific Coast, and a floating dock in the Gulf. This is the +recommendation of a very competent Board, appointed to investigate the +subject. There should also be ample provision made for powder and +projectiles, and other munitions of war, and for an increased number of +officers and enlisted men. Some additions are also necessary to our +navy-yards, for the repair and care of our large number of vessels. As +there are now on the stocks five battle ships of the largest class, which +cannot be completed for a year or two, I concur with the recommendation of +the Secretary of the Navy for an appropriation authorizing the construction +of one battle ship for the Pacific Coast, where, at present, there is only +one in commission and one under construction, while on the Atlantic Coast +there are three in commission and four under construction; and also that +several torpedo boats be authorized in connection with our general system +of coast defense. + +The Territory of Alaska requires the prompt and early attention of +Congress. The conditions now existing demand material changes in the laws +relating to the Territory. The great influx of population during the past +summer and fall and the prospect of a still larger immigration in the +spring will not permit us to longer neglect the extension of civil +authority within the Territory or postpone the establishment of a more +thorough government. + +A general system of public surveys has not yet been extended to Alaska and +all entries thus far made in that district are upon special surveys. The +act of Congress extending to Alaska the mining laws of the United States +contained the reservation that it should not be construed to put in force +the general land laws of the country. By act approved March 3, 1891, +authority was given for entry of lands for town-site purposes and also for +the purchase of not exceeding one hundred and sixty acres then or +thereafter occupied for purposes of trade and manufacture. The purpose of +Congress as thus far expressed has been that only such rights should apply +to that Territory as should be specifically named. + +It will be seen how much remains to be done for that vast and remote and +yet promising portion of our country. Special authority was given to the +President by the Act of Congress approved July 24, 1897, to divide that +Territory into two land districts and to designate the boundaries thereof +and to appoint registers and receivers of said land offices, and the +President was also authorized to appoint a surveyor-general for the entire +district. Pursuant to this authority, a surveyor-general and receiver have +been appointed, with offices at Sitka. If in the ensuing year the +conditions justify it, the additional land district authorized by law will +be established, with an office at some point in the Yukon Valley. No +appropriation, however, was made for this purpose, and that is now +necessary to be done for the two land districts into which the Territory is +to be divided. + +I concur with the Secretary of War in his suggestions as to the necessity +for a military force in the Territory of Alaska for the protection of +persons and property. Already a small force, consisting of twenty-five men, +with two officers, under command of Lieutenant-Colonel Randall, of the +Eighth Infantry, has been sent to St. Michael to establish a military +post. + +As it is to the interest of the Government to encourage the development and +settlement of the country and its duty to follow up its citizens there with +the benefits of legal machinery, I earnestly urge upon Congress the +establishment of a system of government with such flexibility as will +enable it to adjust itself to the future areas of greatest population. + +The startling though possibly exaggerated reports from the Yukon River +country, of the probable shortage of food for the large number of people +who are wintering there without the means of leaving the country are +confirmed in such measure as to justify bringing the matter to the +attention of Congress. Access to that country in winter can be had only by +the passes from Dyea and vicinity, which is a most difficult and perhaps an +impossible task. However, should these reports of the suffering of our +fellow-citizens be further verified, every effort at any cost should be +made to carry them relief. + +For a number of years past it has been apparent that the conditions under +which the Five Civilized Tribes were established in the Indian Territory +under treaty provisions with the United States, with the right of +self-government and the exclusion of all white persons from within their +borders, have undergone so complete a change as to render the continuance +of the system thus inaugurated practically impossible. The total number of +the Five Civilized Tribes, as shown by the last census, is 45,494, and this +number has not materially increased; while the white population is +estimated at from 200,000 to 250,000 which, by permission of the Indian +Government has settled in the Territory. The present area of the Indian +Territory contains 25,694,564 acres, much of which is very fertile land. +The United States citizens residing in the Territory, most of whom have +gone there by invitation or with the consent of the tribal authorities, +have made permanent homes for themselves. Numerous towns have been built in +which from 500 to 5,000 white people now reside. Valuable residences and +business houses have been erected in many of them. Large business +enterprises are carried on in which vast sums of money are employed, and +yet these people, who have invested their capital in the development of the +productive resources of the country, are without title to the land they +occupy, and have no voice whatever in the government either of the Nations +or Tribes. Thousands of their children who were born in the Territory are +of school age, but the doors of the schools of the Nations are shut against +them, and what education they get is by private contribution. No provision +for the protection of the life or property of these white citizens is made +by the Tribal Governments and Courts. + +The Secretary of the Interior reports that leading Indians have absorbed +great tracts of land to the exclusion of the common people, and government +by an Indian aristocracy has been practically established, to the detriment +of the people. It has been found impossible for the United States to keep +its citizens out of the Territory, and the executory conditions contained +in the treaties with these Nations have for the most part become impossible +of execution. Nor has it been possible for the Tribal Governments to secure +to each individual Indian his full enjoyment in common with Other Indians +of the common property of the Nations. Friends of the Indians have long +believed that the best interests of the Indians of the Five Civilized +Tribes would be found in American citizenship, with all the rights and +privileges which belong to that condition. + +By section 16, of the act of March 3, 1893, the President was authorized to +appoint three commissioners to enter into negotiations with the Cherokee, +Choctaw, Chickasaw, Muscogee (or Creek), and Seminole Nations, commonly +known as the Five Civilized Tribes in the Indian Territory. Briefly, the +purposes of the negotiations were to be: The extinguishment of Tribal +titles to any lands within that Territory now held by any and all such +Nations or Tribes, either by cession of the same or some part thereof to +the United States, or by allotment and division of the same in severalty +among the Indians of such Nations or Tribes respectively as may be entitled +to the same, or by such other method as may be agreed upon between the +several Nations and Tribes aforesaid, or each of them, with the United +States, with a view to such an adjustment upon the basis of justice and +equity as may, with the consent of the said Nations of Indians so far as +may be necessary, be requisite and suitable to enable the ultimate creation +of a State or States of the Union which shall embrace the lands within said +Indian Territory. + +The Commission met much opposition from the beginning. The Indians were +very slow to act, and those in control manifested a decided disinclination +to meet with favor the propositions submitted to them. A little more than +three years after this organization the Commission effected an agreement +with the Choctaw Nation alone. The Chickasaws, however, refused to agree to +its terms, and as they have a common interest with the Choctaws in the +lands of said Nations, the agreement with the latter Nation could have no +effect without the consent of the former. On April 23, 1897, the Commission +effected an agreement with both tribes-- the Choctaws and Chickasaws. This +agreement, it is understood, has been ratified by the constituted +authorities of the respective Tribes or Nations parties thereto, and only +requires ratification by Congress to make it binding. + +On the 27th of September, 1897, an agreement was effected with the Creek +Nation, but it is understood that the National Council of said Nation has +refused to ratify the same. Negotiations are yet to be had with the +Cherokees, the most populous of the Five Civilized Tribes, and with the +Seminoles, the smallest in point of numbers and territory. + +The provision in the Indian Appropriation Act, approved June 10, 1896, +makes it the duty of the Commission to investigate and determine the rights +of applicants for citizenship in the Five Civilized Tribes, and to make +complete census rolls of the citizens of said Tribes. The Commission is at +present engaged in this work among the Creeks, and has made appointments +for taking the census of these people up to and including the 30th of the +present month. + +Should the agreement between the Choctaws and Chickasaws be ratified by +Congress and should the other Tribes fail to make an agreement with the +Commission, then it will be necessary that some legislation shall be had by +Congress, which, while just and honorable to the Indians, shall be +equitable to the white people who have settled upon these lands by +invitation of the Tribal Nations. + +Hon. Henry L. Dawes, Chairman of the Commission, in a letter to the +Secretary of the Interior, under date of October 11, 1897, says: +"Individual ownership is, in their (the Commission's) opinion, absolutely +essential to any permanent improvement in present conditions, and the lack +of it is the root of nearly all the evils which so grievously afflict these +people. Allotment by agreement is the only possible method, unless the +United States Courts are clothed with the authority to apportion the lands +among the citizen Indians for whose use it was originally granted." + +I concur with the Secretary of the Interior that there can be no cure for +the evils engendered by the perversion of these great trusts, excepting by +their resumption by the Government which created them. + +The recent prevalence of yellow fever in a number of cities and towns +throughout the South has resulted in much disturbance of commerce, and +demonstrated the necessity of such amendments to our quarantine laws as +will make the regulations of the national quarantine authorities paramount. +The Secretary of the Treasury, in the portion of his report relating to the +operation of the Marine Hospital Service, calls attention to the defects in +the present quarantine laws, and recommends amendments thereto which will +give the Treasury Department the requisite authority to prevent the +invasion of epidemic diseases from foreign countries, and in times of +emergency, like that of the past summer, will add to the efficiency of the +sanitary measures for the protection of the people, and at the same time +prevent unnecessary restriction of commerce. I concur in his +recommendation. + +In further effort to prevent the invasion of the United States by yellow +fever, the importance of the discovery of the exact cause of the disease, +which up to the present time has been undetermined, is obvious, and to this +end a systematic bacteriological investigation should be made. I therefore +recommend that Congress authorize the appointment of a commission by the +President, to consist of four expert bacteriologists, one to be selected +from the medical officers of the Marine Hospital Service, one to be +appointed from civil life, one to be detailed from the medical officers of +the Army, and one from the medical officers of the Navy. + +The Union Pacific Railway, Main Line, was sold under the decree of the +United States Court for the District of Nebraska, on the 1st and 2d of +November of this year. The amount due the Government consisted of the +principal of the subsidy bonds, $27,236,512, and the accrued interest +thereon, $31,211,711.75, making the total indebtedness, $58,448,223.75. The +bid at the sale covered the first mortgage lien and the entire mortgage +claim of the Government, principal and interest. + +The sale of the subsidized portion of the Kansas Pacific Line, upon which +the Government holds a second mortgage lien, has been postponed at the +instance of the Government to December 16, 1897. The debt of this division +of the Union Pacific Railway to the Government on November 1, 1897, was the +principal of the subsidy bonds, $6,303,000, and the unpaid and accrued +interest thereon, $6,626,690.33, making a total of $12,929,690.33. + +The sale of this road was originally advertised for November 4, but for the +purpose of securing the utmost public notice of the event it was postponed +until December 16, and a second advertisement of the sale was made. By the +decree of the Court, the upset price on the sale of the Kansas Pacific will +yield to the Government the sum of $2,500,000 over all prior liens, costs, +and charges. If no other or better bid is made, this sum is all that the +Government will receive on its claim of nearly $13,000,000. The Government +has no information as to whether there will be other bidders or a better +bid than the minimum amount herein stated. The question presented therefore +is: Whether the Government shall, under the authority given it by the act +of March 3, 1887, purchase or redeem the road in the event that a bid is +not made by private parties covering the entire Government claim. To +qualify the Government to bid at the sales will require a deposit of +$900,000, as follows: In the Government cause $500,000 and in each of the +first mortgage causes $200,000, and in the latter the deposit must be in +cash. Payments at the sale are as follows: Upon the acceptance of the bid a +sum which with the amount already deposited shall equal fifteen per cent of +the bid; the balance in installments of twenty-five per cent thirty, forty, +and fifty days after the confirmation of the sale. The lien on the Kansas +Pacific prior to that of the Government on the 30th July, 1897, principal +and interest, amounted to $7,281,048.11. The Government, therefore, should +it become the highest bidder, will have to pay the amount of the first +mortgage lien. + +I believe that under the act of 1887 it has the authority to do this and in +absence of any action by Congress I shall direct the Secretary of the +Treasury to make the necessary deposit as required by the Court's decree to +qualify as a bidder and to bid at the sale a sum which will at least equal +the principal of the debt due to the Government; but suggest in order to +remove all controversy that an amendment of the law be immediately passed +explicitly giving such powers and appropriating in general terms whatever +sum is sufficient therefor. + +In so important a matter as the Government becoming the possible owner of +railroad property which it perforce must conduct and operate, I feel +constrained to lay before Congress these facts for its consideration and +action before the consummation of the sale. It is clear to my mind that the +Government should not permit the property to be sold at a price which will +yield less than one-half of the principal of its debt and less than +one-fifth of its entire debt, principal and interest. But whether the +Government, rather than accept less than its claim, should become a bidder +and thereby the owner of the property, I submit to the Congress for +action. + +The Library building provided for by the act of Congress approved April 15, +1886, has been completed and opened to the public. It should be a matter of +congratulation that through the foresight and munificence of Congress the +nation possesses this noble treasure-house of knowledge. It is earnestly to +be hoped that having done so much toward the cause of education, Congress +will continue to develop the Library in every phase of research to the end +that it may be not only one of the most magnificent but among the richest +and most useful libraries in the world. + +The important branch of our Government known as the Civil Service, the +practical improvement of which has long been a subject of earnest +discussion, has of late years received increased legislative and Executive +approval. During the past few months the service has been placed upon a +still firmer basis of business methods and personal merit. While the right +of our veteran soldiers to reinstatement in deserving cases has been +asserted, dismissals for merely political reasons have been carefully +guarded against, the examinations for admittance to the service enlarged +and at the same time rendered less technical and more practical; and a +distinct advance has been made by giving a hearing before dismissal upon +all cases where incompetency is charged or demand made for the removal of +officials in any of the Departments. This order has been made to give to +the accused his right to be heard but without in anyway impairing the power +of removal, which should always be exercised in cases of inefficiency and +incompetency, and which is one of the vital safeguards of the civil service +reform system, preventing stagnation and deadwood and keeping every +employee keenly alive to the fact that the security of his tenure depends +not on favor but on his own tested and carefully watched record of +service. + +Much of course still remains to be accomplished before the system can be +made reasonably perfect for our needs. There are places now in the +classified service which ought to be exempted and others not classified may +properly be included. I shall not hesitate to exempt cases which I think +have been improperly included in the classified service or include those +which in my judgment will best promote the public service. The system has +the approval of the people and it will be my endeavor to uphold and extend +it. + +I am forced by the length of this Message to omit many important references +to affairs of the Government with which Congress will have to deal at the +present session. They are fully discussed in the departmental reports, to +all of which I invite your earnest attention. + +The estimates of the expenses of the Government by the several Departments +will, I am sure, have your careful scrutiny. While the Congress may not +find it an easy task to reduce the expenses of the Government, it should +not encourage their increase. These expenses will in my judgment admit of a +decrease in many branches of the Government without injury to the public +service. It is a commanding duty to keep the appropriations within the +receipts of the Government, and thus avoid a deficit. + +*** + +State of the Union Address +William McKinley +December 5, 1898 + +To the Senate and House of Representatives: + +Notwithstanding the added burdens rendered necessary by the war, our people +rejoice in a very satisfactory and steadily increasing degree of +prosperity, evidenced by the largest volume of business ever recorded. +Manufacture has been productive, agricultural pursuits have yielded +abundant returns, labor in all fields of industry is better rewarded, +revenue legislation passed by the present Congress has increased the +Treasury's receipts to the amount estimated by its authors, the finances of +the Government have been successfully administered and its credit advanced +to the first rank, while its currency has been maintained at the world's +highest standard. Military service under a common flag and for a righteous +cause has strengthened the national spirit and served to cement more +closely than ever the fraternal bonds between every section of the +country. + +A review of the relation of the United States to other powers, always +appropriate, is this year of primary importance in view of the momentous +issues which have arisen, demanding in one instance the ultimate +determination by arms and involving far-reaching consequences which will +require the earnest attention of the Congress. + +In my last annual message very full consideration was given to the question +of the duty of the Government of the United States toward Spain and the +Cuban insurrection as being by far the most important problem with which we +were then called upon to deal. The considerations then advanced and the +exposition of the views therein expressed disclosed my sense of the extreme +gravity of the situation. Setting aside as logically unfounded or +practically inadmissible the recognition of the Cuban insurgents as +belligerents, the recognition of the independence of Cuba, neutral +intervention to end the war by imposing a rational compromise between the +contestants, intervention in favor of one or the other party, and forcible +annexation of the island, I concluded it was honestly due to our friendly +relations with Spain that she should be given a reasonable chance to +realize her expectations of reform to which she had become irrevocably +committed. Within a few weeks previously she had announced comprehensive +plans which it was confidently asserted would be efficacious to remedy the +evils so deeply affecting our own country, so injurious to the true +interests of the mother country as well as to those of Cuba, and so +repugnant to the universal sentiment of humanity. + +The ensuing month brought little sign of real progress toward the +pacification of Cuba. The autonomous administrations set up in the capital +and some of the principal cities appeared not to gain the favor of the +inhabitants nor to be able to extend their influence to the large extent of +territory held by the insurgents, while the military arm, obviously unable +to cope with the still active rebellion, continued many of the most +objectionable and offensive policies of the government that had preceded +it. No tangible relief was afforded the vast numbers of unhappy +reconcentrados, despite the reiterated professions made in that regard and +the amount appropriated by Spain to that end. The proffered expedient of +zones of cultivation proved illusory. Indeed no less practical nor more +delusive promises of succor could well have been tendered to the exhausted +and destitute people, stripped of all that made life and home dear and +herded in a strange region among unsympathetic strangers hardly less +necessitous than themselves. + +By the end of December the mortality among them had frightfully increased. +Conservative estimates from Spanish sources placed the deaths among these +distressed people at over 40 per cent from the time General Weyler's decree +of reconcentration was enforced. With the acquiescence of the Spanish +authorities, a scheme was adopted for relief by charitable contributions +raised in this country and distributed, under the direction of the +consul-general and the several consuls, by noble and earnest individual +effort through the organized agencies of the American Red Cross. Thousands +of lives were thus saved, but many thousands more were inaccessible to such +forms of aid. + +The war continued on the old footing, without comprehensive plan, +developing only the same spasmodic encounters, barren of strategic result, +that had marked the course of the earlier ten years' rebellion as well as +the present insurrection from its start. No alternative save physical +exhaustion of either combatant, and therewithal the practical ruin of the +island, lay in sight, but how far distant no one could venture to +conjecture. + +At this juncture, on the 15th of February last, occurred the destruction of +the battle ship Maine while rightfully lying in the harbor of Havana on a +mission of international courtesy and good will--a catastrophe the +suspicious nature and horror of which stirred the nation's heart +profoundly. It is a striking evidence of the poise and sturdy good sense +distinguishing our national character that this shocking blow, falling upon +a generous people already deeply touched by preceding events in Cuba, did +not move them to an instant desperate resolve to tolerate no longer the +existence of a condition of danger and disorder at our doors that made +possible such a deed, by whomsoever wrought. Yet the instinct of justice +prevailed, and the nation anxiously awaited the result of the searching +investigation at once set on foot. The finding of the naval board of +inquiry established that the origin of the explosion was external, by a +submarine mine, and only halted through lack of positive testimony to fix +the responsibility of its authorship. + +All these things carried conviction to the most thoughtful, even before the +finding of the naval court, that a crisis in our relations with Spain and +toward Cuba was at hand. So strong was this belief that it needed but a +brief Executive suggestion to the Congress to receive immediate answer to +the duty of making instant provision for the possible and perhaps speedily +probable emergency of war, and the remarkable, almost unique, spectacle was +presented of a unanimous vote of both Houses, on the 9th of March, +appropriating $50,000,000 "for the national defense and for each and every +purpose connected therewith, to be expended at the discretion of the +President." That this act of prevision came none too soon was disclosed +when the application of the fund was undertaken. Our coasts were +practically undefended. Our Navy needed large provision for increased +ammunition and supplies, and even numbers to cope with any sudden attack +from the navy of Spain, which comprised modern vessels of the highest type +of continental perfection. Our Army also required enlargement of men and +munitions. The details of the hurried preparation for the dreaded +contingency are told in the reports of the Secretaries of War and of the +Navy, and need not be repeated here. It is sufficient to say that the +outbreak of war when it did come found our nation not unprepared to meet +the conflict. + +Nor was the apprehension of coming strife confined to our own country. It +was felt by the continental powers, which on April 6, through their +ambassadors and envoys, addressed to the Executive an expression of hope +that humanity and moderation might mark the course of this Government and +people, and that further negotiations would lead to an agreement which, +while securing the maintenance of peace, would afford all necessary +guaranties for the reestablishment of order in Cuba. In responding to that +representation I said I shared the hope the envoys had expressed that peace +might be preserved in a manner to terminate the chronic condition of +disturbance in Cuba, so injurious and menacing to our interests and +tranquillity, as well as shocking to our sentiments of humanity; and while +appreciating the humanitarian and disinterested character of the +communication they had made on behalf of the powers, I stated the +confidence of this Government, for its part, that equal appreciation would +be shown for its own earnest and unselfish endeavors to fulfill a duty to +humanity by ending a situation the indefinite prolongation of which had +become insufferable. + +Still animated by the hope of a peaceful solution and obeying the dictates +of duty, no effort was relaxed to bring about a speedy ending of the Cuban +struggle. Negotiations to this object continued actively with the +Government of Spain, looking to the immediate conclusion of a six months' +armistice in Cuba, with a view to effect the recognition of her people's +right to independence. Besides this, the instant revocation of the order of +reconcentration was asked, so that the sufferers, returning to their homes +and aided by united American and Spanish effort, might be put in a way to +support themselves and, by orderly resumption of the well-nigh destroyed +productive energies of the island, contribute to the restoration of its +tranquillity and well-being. Negotiations continued for some little time at +Madrid, resulting in offers by the Spanish Government which could not but +be regarded as inadequate. It was proposed to confide the preparation of +peace to the insular parliament, yet to be convened under the autonomous +decrees of November, 1897, but without impairment in any wise of the +constitutional powers of the Madrid Government, which to that end would +grant an armistice, if solicited by the insurgents, for such time as the +general in chief might see fit to fix. How and with what scope of +discretionary powers the insular parliament was expected to set about the +"preparation" of peace did not appear. If it were to be by negotiation with +the insurgents, the issue seemed to rest on the one side with a body chosen +by a fraction of the electors in the districts under Spanish control, and +on the other with the insurgent population holding the interior country, +unrepresented in the so-called parliament and defiant at the suggestion of +suing for peace. + +Grieved and disappointed at this barren outcome of my sincere endeavors to +reach a practicable solution, I felt it my duty to remit the whole question +to the Congress. In the message of April 11, 1898, I announced that with +this last overture in the direction of immediate peace in Cuba and its +disappointing reception by Spain the effort of the Executive was brought to +an end. I again reviewed the alternative courses of action which had been +proposed, concluding that the only one consonant with international policy +and compatible with our firm-set historical traditions was intervention as +a neutral to stop the war and check the hopeless sacrifice of life, even +though that resort involved "hostile constraint upon both the parties to +the contest, as well to enforce a truce as to guide the eventual +settlement." The grounds justifying that step were the interests of +humanity, the duty to protect the life and property of our citizens in +Cuba, the right to check injury to our commerce and people through the +devastation of the island, and, most important, the need of removing at +once and forever the constant menace and the burdens entailed upon our +Government by the uncertainties and perils of the situation caused by the +unendurable disturbance in Cuba. I said: The long trial has proved that the +object for which Spain has waged the war can not be attained. The fire of +insurrection may flame or may smolder with varying seasons, but it has not +been and it is plain that it can not be extinguished by present methods. +The only hope of relief and repose from a condition which can no longer be +endured is the enforced pacification of Cuba. In the name of humanity, in +the name of civilization, in behalf of endangered American interests which +give us the right and the duty to speak and to act, the war in Cuba must +stop. In view of all this the Congress was asked to authorize and empower +the President to take measures to secure a full and final termination of +hostilities between Spain and the people of Cuba and to secure in the +island the establishment of a stable government, capable of maintaining +order and observing its international obligations, insuring peace and +tranquillity and the security of its citizens as well as our own, and for +the accomplishment of those ends to use the military and naval forces of +the United States as might be necessary, with added authority to continue +generous relief to the starving people of Cuba. + +The response of the Congress, after nine days of earnest deliberation, +during which the almost unanimous sentiment of your body was developed on +every point save as to the expediency of coupling the proposed action with +a formal recognition of the Republic of Cuba as the true and lawful +government of that island--a proposition which failed of adoption--the +Congress, after conference, on the 19th of April, by a vote of 42 to 35 in +the Senate and 311 to 6 in the House of Representatives, passed the +memorable joint resolution declaring-- First. That the people of the island +of Cuba are, and of right ought to be, free and independent. + +Second. That it is the duty of the United States to demand, and the +Government of the United States does hereby demand, that the Government of +Spain at once relinquish its authority and government in the island of Cuba +and withdraw its land and naval forces from Cuba and Cuban waters. + +Third. That the President of the United States be, and he hereby is, +directed and empowered to use the entire land and naval forces of the +United States and to call into the actual service of the United States the +militia of the several States to such extent as may be necessary to carry +these resolutions into effect. + +Fourth. That the United States hereby disclaims any disposition or +intention to exercise sovereignty, jurisdiction, or control over said +island except for the pacification thereof, and asserts its determination +when that is accomplished to leave the government and control of the island +to its people. This resolution was approved by the Executive on the next +day, April 20. A copy was at once communicated to the Spanish minister at +this capital, who forthwith announced that his continuance in Washington +had thereby become impossible, and asked for his passports, which were +given him. He thereupon withdrew from Washington, leaving the protection of +Spanish interests in the United States to the French ambassador and the +Austro-Hungarian minister. Simultaneously with its communication to the +Spanish minister here, General Woodford, the American minister at Madrid, +was telegraphed confirmation of the text of the joint resolution and +directed to communicate it to the Government of Spain with the formal +demand that it at once relinquish its authority and government in the +island of Cuba and withdraw its forces therefrom, coupling this demand with +announcement of the intentions of this Government as to the future of the +island, in conformity with the fourth clause of the resolution, and giving +Spain until noon of April 23 to reply. + +That demand, although, as above shown, officially made known to the Spanish +envoy here, was not delivered at Madrid. After the instruction reached +General Woodford on the morning of April 21, but before he could present +it, the Spanish minister of state notified him that upon the President's +approval of the joint resolution the Madrid Government, regarding the act +as "equivalent to an evident declaration of war," had ordered its minister +in Washington to withdraw, thereby breaking off diplomatic relations +between the two countries and ceasing all official communication between +their respective representatives. General Woodford thereupon demanded his +passports and quitted Madrid the same day. + +Spain having thus denied the demand of the United States and initiated that +complete form of rupture of relations which attends a state of war, the +executive powers authorized by the resolution were at once used by me to +meet the enlarged contingency of actual war between sovereign states. On +April 22 I proclaimed a blockade of the north coast of Cuba, including +ports on said coast between Cardenas and Bahia Honda, and the port of +Cienfuegos, on the south coast of Cuba, and on the 23d I called for +volunteers to execute the purpose of the resolution. By my message of April +25 the Congress was informed of the situation, and I recommended formal +declaration of the existence of a state of war between the United States +and Spain. The Congress accordingly voted on the same day the act approved +April 25, 1898, declaring the existence of such war from and including the +21st day of April, and reenacted the provision of the resolution of April +20 directing the President to use all the armed forces of the nation to +carry that act into effect.|| Due notification of the existence of war as +aforesaid was given April 25 by telegraph to all the governments with which +the United States maintain relations, in order that their neutrality might +be assured during the war. The various governments responded with +proclamations of neutrality, each after its own methods. It is not among +the least gratifying incidents of the struggle that the obligations of +neutrality were impartially discharged by all, often under delicate and +difficult circumstances. + +In further fulfillment of international duty I issued, April 26, 1893, a +proclamation announcing the treatment proposed to be accorded to vessels +and their cargoes as to blockade, contraband, the exercise of the right of +search, and the immunity of neutral flags and neutral goods under enemy's +flag. A similar proclamation was made by the Spanish Government. In the +conduct of hostilities the rules of the Declaration of Paris, including +abstention from resort to privateering, have accordingly been observed by +both belligerents, although neither was a party to that declaration. + +Our country thus, after an interval of half a century of peace with all +nations, found itself engaged in deadly conflict with a foreign enemy. +Every nerve was strained to meet the emergency. The response to the initial +call for 125,000 volunteers was instant and complete, as was also the +result of the second call, of May 25, for 75,000 additional volunteers. The +ranks of the Regular Army were increased to the limits provided by the act +of April 26, 1898. + +The enlisted force of the Navy on the 15th day of August, when it reached +its maximum, numbered 24,123 men and apprentices. One hundred and three +vessels were added to the Navy by purchase, 1 was presented to the +Government, 1 leased, and the 4 vessels of the International Navigation +Company--the St. Paul, St. Louis, New York, and Paris--were chartered. In +addition to these the revenue cutters and lighthouse tenders were turned +over to the Navy Department and became temporarily a part of the auxiliary +Navy. + +The maximum effective fighting force of the Navy during the war, separated +into classes, was as follows: + +Four battle ships of the first class, 1 battle ship of the second class, 2 +armored cruisers, 6 coast-defense monitors, 1 armored ram, 12 protected +cruisers, 3 unprotected cruisers, 18 gunboats, 1 dynamite cruiser, 11 +torpedo boats; vessels of the old Navy, including monitors, 14. Auxiliary +Navy: 11 auxiliary cruisers, 28 converted yachts, 27 converted tugs, 19 +converted colliers, 15 revenue cutters, 4 light-house tenders, and 19 +miscellaneous vessels. + +Much alarm was felt along our entire Atlantic seaboard lest some attack +might be made by the enemy. Every precaution was taken to prevent possible +injury to our great cities lying along the coast. Temporary garrisons were +provided, drawn from the State militia; infantry and light batteries were +drawn from the volunteer force. About 12,000 troops were thus employed. The +coast signal service was established for observing the approach of an +enemy's ships to the coast of the United States, and the Life-Saving and +Light-House services cooperated, which enabled the Navy Department to have +all portions of the Atlantic coast, from Maine to Texas, under +observation. + +The auxiliary Navy was created under the authority of Congress and was +officered and manned by the Naval Militia of the several States. This +organization patrolled the coast and performed the duty of a second line of +defense. Under the direction of the Chief of Engineers submarine mines were +placed at the most exposed points. Before the outbreak of the war permanent +mining casemates and cable galleries had been constructed at nearly all +important harbors. Most of the torpedo material was not to be found in the +market, and had to be specially manufactured. Under date of April 19 +district officers were directed to take all preliminary measures short of +the actual attaching of the loaded mines to the cables, and on April 22 +telegraphic orders were issued to place the loaded mines in position. + +The aggregate number of mines placed was 1,535, at the principal harbors +from Maine to California. Preparations were also made for the planting of +mines at certain other harbors, but owing to the early destruction of the +Spanish fleet these mines were not placed. + +The Signal Corps was promptly organized, and performed service of the most +difficult and important character. Its operations during the war covered +the electrical connection of all coast fortifications, the establishment of +telephonic and telegraphic facilities for the camps at Manila, Santiago, +and in Puerto Rico. There were constructed 300 miles of line at ten great +camps, thus facilitating military movements from those points in a manner +heretofore unknown in military administration. Field telegraph lines were +established and maintained under the enemy's fire at Manila, and later the +Manila-Hongkong cable was reopened. + +In Puerto Rico cable communications were opened over a discontinued route, +and on land the headquarters of the commanding officer was kept in +telegraphic or telephonic communication with the division commanders on +four different lines of operations. + +There was placed in Cuban waters a completely outfitted cable ship, with +war cables and cable gear, suitable both for the destruction of +communications belonging to the enemy and the establishment of our own. Two +ocean cables were destroyed under the enemy's batteries at Santiago. The +day previous to the landing of General Shafter's corps, at Caimanera, +within 20 miles of the landing place, cable communications were established +and a cable station opened giving direct communication with the Government +at Washington. This service was invaluable to the Executive in directing +the operations of the Army and Navy. With a total force of over 1,300, the +loss was by disease in camp and field, officers and men included, only 5. + +The national-defense fund of $50,000,000 was expended in large part by the +Army and Navy, and the objects for which it was used are fully shown in the +reports of the several Secretaries. It was a most timely appropriation, +enabling the Government to strengthen its defenses and make preparations +greatly needed in case of war. + +This fund being inadequate to the requirements of equipment and for the +conduct of the war, the patriotism of the Congress provided the means in +the war-revenue act of June 13 by authorizing a 3 per cent popular loan not +to exceed $400,000,000 and by levying additional imposts and taxes. Of the +authorized loan $200,000,000 were offered and promptly taken the +subscriptions so far exceeding the call as to cover it many times over, +while, preference being given to the smaller bids, no single allotment +exceeded $5,000. This was a most encouraging and significant result, +showing the vast resources of the nation and the determination of the +people to uphold their country's honor. + +It is not within the province of this message to narrate the history of the +extraordinary war that followed the Spanish declaration of April 21, but a +brief recital of its more salient features is appropriate. + +The first encounter of the war in point of date took place April 27, when a +detachment of the blockading squadron made a reconnoissance in force at +Matanzas, shelled the harbor forts, and demolished several new works in +construction. + +The next engagement was destined to mark a memorable epoch in maritime +warfare. The Pacific fleet, under Commodore George Dewey, had lain for some +weeks at Hongkong. Upon the colonial proclamation of neutrality being +issued and the customary twenty-four hours' notice being given, it repaired +to Mirs Bay, near Hongkong, whence it proceeded to the Philippine Islands +under telegraphed orders to capture or destroy the formidable Spanish fleet +then assembled at Manila. At daybreak on the 1st of May the American force +entered Manila Bay, and after a few hours' engagement effected the total +destruction of the Spanish fleet, consisting of ten war ships and a +transport, besides capturing the naval station and forts at Cavite, thus +annihilating the Spanish naval power in the Pacific Ocean and completely +controlling the bay of Manila, with the ability to take the city at will. +Not a life was lost on our ships, the wounded only numbering seven, while +not a vessel was materially injured. For this gallant achievement the +Congress, upon my recommendation, fitly bestowed upon the actors preferment +and substantial reward. + +The effect of this remarkable victory upon the spirit of our people and +upon the fortunes of the war was instant. A prestige of invincibility +thereby attached to our arms which continued throughout the struggle. +Reenforcements were hurried to Manila under the command of Major-General +Merritt and firmly established within sight of the capital, which lay +helpless before our guns. + +On the 7th day of May the Government was advised officially of the victory +at Manila, and at once inquired of the commander of our fleet what troops +would be required. The information was received on the 15th day of May, and +the first army expedition sailed May 25 and arrived off Manila June 30. +Other expeditions soon followed, the total force consisting of 641 officers +and 15,058 enlisted men. + +Only reluctance to cause needless loss of life and property prevented the +early storming and capture of the city, and therewith the absolute military +occupancy of the whole group. The insurgents meanwhile had resumed the +active hostilities suspended by the uncompleted truce of December, 1897. +Their forces invested Manila from the northern and eastern sides, but were +constrained by Admiral Dewey and General Merrill from attempting an +assault. It was fitting that whatever was to be done in the way of decisive +operations in that quarter should be accomplished by the strong arm of the +United States alone. Obeying the stern precept of war which enjoins the +overcoming of the adversary and the extinction of his power wherever +assailable as the speedy and sure means to win a peace, divided victory was +not permissible, for no partition of the rights and responsibilities +attending the enforcement of a just and advantageous peace could be thought +of. + +Following the comprehensive scheme of general attack, powerful forces were +assembled at various points on our coast to invade Cuba and Puerto Rico. +Meanwhile naval demonstrations were made at several exposed points. On May +11 the cruiser Wilmington and torpedo boat Winslow were unsuccessful in an +attempt to silence the batteries at Cardenas, a gallant ensign, Worth +Bagley, and four seamen falling. These grievous fatalities were, strangely +enough, among the very few which occurred during our naval operations in +this extraordinary conflict. + +Meanwhile the Spanish naval preparations had been pushed with great vigor. +A powerful squadron under Admiral Cervera, which had assembled at the Cape +Verde Islands before the outbreak of hostilities, had crossed the ocean, +and by its erratic movements in the Caribbean Sea delayed our military +plans while baffling the pursuit of our fleets. For a time fears were felt +lest the Oregon and Marietta, then nearing home after their long voyage +from San Francisco of over 15,000 miles, might be surprised by Admiral +Cervera's fleet, but their fortunate arrival dispelled these apprehensions +and lent much-needed reenforcement. Not until Admiral Cervera took refuge +in the harbor of Santiago de Cuba, about May 19, was it practicable to plan +a systematic naval and military attack upon the Antillean possessions of +Spain. + +Several demonstrations occurred on the coasts of Cuba and Puerto Rico in +preparation for the larger event. On May 13 the North Atlantic Squadron +shelled San Juan de Puerto Rico. On May 30 Commodore Schley's squadron +bombarded the forts guarding the mouth of Santiago Harbor. Neither attack +had any material result. It was evident that well-ordered land operations +were indispensable to achieve a decisive advantage. + +The next act in the war thrilled not alone the hearts of our countrymen but +the world by its exceptional heroism. On the night of June 3 Lieutenant +Hobson, aided by seven devoted volunteers, blocked the narrow outlet from +Santiago Harbor by sinking the collier Merrimac in the channel, under a +fierce fire from the shore batteries, escaping with their lives as by a +miracle, but falling into the hands of the Spaniards. It is a most +gratifying incident of the war that the bravery of this little band of +heroes was cordially appreciated by the Spanish admiral, who sent a flag of +truce to notify Admiral Sampson of their safety and to compliment them on +their daring act. They were subsequently exchanged July 7. + +By June 7 the cutting of the last Cuban cable isolated the island. +Thereafter the invasion was vigorously prosecuted. On June 10, under a +heavy protecting fire, a landing of 600 marines from the Oregon, +Marblehead, and Yankee was effected in Guantanamo Bay, where it had been +determined to establish a naval station. + +This important and essential port was taken from the enemy, after severe +fighting, by the marines, who were the first organized force of the United +States to land in Cuba. + +The position so won was held despite desperate attempts to dislodge our +forces. By June 16 additional forces were landed and strongly in-trenched. +On June 22 the advance of the invading army under Major-General Shafter +landed at Daiquiri, about 15 miles east of Santiago. This was accomplished +under great difficulties, but with marvelous dispatch. On June 23 the +movement against Santiago was begun. On the 24th the first serious +engagement took place, in which the First and Tenth Cavalry and the First +United States Volunteer Cavalry, General Young's brigade of General +Wheeler's division, participated, losing heavily. By nightfall, however, +ground within 5 miles of Santiago was won. The advantage was steadily +increased. On July 1 a severe battle took place, our forces gaining the +outworks of Santiago; on the 2d El Caney and San Juan were taken after a +desperate charge, and the investment of the city was completed. The Navy +cooperated by shelling the town and the coast forts. + +On the day following this brilliant achievement of our land forces, the 3d +of July, occurred the decisive naval combat of the war. The Spanish fleet, +attempting to leave the harbor, was met by the American squadron under +command of Commodore Sampson. In less than three hours all the Spanish +ships were destroyed, the two torpedo boats being sunk and the Maria +Teresa, Almirante Oquendo, Vizcaya, and Cristobal Colon driven ashore. The +Spanish admiral and over 1,300 men were taken prisoners. While the enemy's +loss of life was deplorably large, some 600 perishing, on our side but one +man was killed, on the Brooklyn, and one man seriously wounded. Although +our ships were repeatedly struck, not one was seriously injured. Where all +so conspicuously distinguished themselves, from the commanders to the +gunners and the unnamed heroes in the boiler rooms, each and all +contributing toward the achievement of this astounding victory, for which +neither ancient nor modern history affords a parallel in the completeness +of the event and the marvelous disproportion of casualties, it would be +invidious to single out any for especial honor. Deserved promotion has +rewarded the more conspicuous actors. The nation's profoundest gratitude is +due to all of these brave men who by their skill and devotion in a few +short hours crushed the sea power of Spain and wrought a triumph whose +decisiveness and far-reaching consequences can scarcely be measured. Nor +can we be unmindful of the achievements of our builders, mechanics, and +artisans for their skill in the construction of our war ships. + +With the catastrophe of Santiago Spain's effort upon the ocean virtually +ceased. A spasmodic effort toward the end of June to send her Mediterranean +fleet, under Admiral Camara, to relieve Manila was abandoned, the +expedition being recalled after it had passed through the Suez Canal. + +The capitulation of Santiago followed. The city was closely besieged by +land, while the entrance of our ships into the harbor cut off all relief on +that side. After a truce to allow of the removal of noncombatants +protracted negotiations continued from July 3 until July 15, when, under +menace of immediate assault, the preliminaries of surrender were agreed +upon. On the 17th General Shafter occupied the city. The capitulation +embraced the entire eastern end of Cuba. The number of Spanish soldiers +surrendering was 22,000, all of whom were subsequently conveyed to Spain at +the charge of the United States. The story of this successful campaign is +told in the report of the Secretary of War, which will be laid before you. +The individual valor of officers and soldiers was never more strikingly +shown than in the several engagements leading to the surrender of Santiago, +while the prompt movements and successive victories won instant and +universal applause. To those who gained this complete triumph, which +established the ascendency of the United States upon land as the fight off +Santiago had fixed our supremacy on the seas, the earnest and lasting +gratitude of the nation is unsparingly due. Nor should we alone remember +the gallantry of the living; the dead claim our tears, and our losses by +battle and disease must cloud any exultation at the result and teach us to +weigh the awful cost of war, however rightful the cause or signal the +victory. + +With the fall of Santiago the occupation of Puerto Rico became the next +strategic necessity. General Miles had previously been assigned to organize +an expedition for that purpose. Fortunately he was already at Santiago, +where he had arrived on the 11th of July with reenforcements for General +Shafter's army. + +With these troops, consisting of 3,415 infantry and artillery, two +companies of engineers, and one company of the Signal Corps, General Miles +left Guantanamo on July 21, having nine transports convoyed by the fleet +under Captain Higginson with the Massachusetts (flagship), Dixie, +Gloucester, Columbia, and Yale, the two latter carrying troops. The +expedition landed at Guanica July 25, which port was entered with little +opposition. Here the fleet was joined by the Annapolis and the Wasp, while +the Puritan and Amphitrite went to San Juan and joined the New Orleans, +which was engaged in blockading that port. The Major-General Commanding was +subsequently reenforced by General Schwan's brigade of the Third Army +Corps, by General Wilson with a part of his division, and also by General +Brooke with a part of his corps, numbering in all 16,973 officers and men. + +On July 27 he entered Ponce, one of the most important ports in the island, +from which he thereafter directed operations for the capture of the +island. + +With the exception of encounters with the enemy at Guayama, Hormigueros, +Coamo, and Yauco and an attack on a force landed at Cape San Juan, there +was no serious resistance. The campaign was prosecuted with great vigor, +and by the 12th of August much of the island was in our possession and the +acquisition of the remainder was only a matter of a short time. At most of +the points in the island our troops were enthusiastically welcomed. +Protestations of loyalty to the flag and gratitude for delivery from +Spanish rule met our commanders at every stage. As a potent influence +toward peace the outcome of the Puerto Rican expedition was of great +consequence, and generous commendation is due to those who participated in +it. + +The last scene of the war was enacted at Manila, its starting place. On +August 15, after a brief assault upon the works by the land forces, in +which the squadron assisted, the capital surrendered unconditionally. The +casualties were comparatively few. By this the conquest of the Philippine +Islands, virtually accomplished when the Spanish capacity for resistance +was destroyed by Admiral Dewey's victory of the 1st of May, was formally +sealed. To General Merrill, his officers and men, for their uncomplaining +and devoted service and for their gallantry in action, the nation is +sincerely grateful. Their long voyage was made with singular success, and +the soldierly conduct of the men, most of whom were without previous +experience in the military service, deserves unmeasured praise. + +The total casualties in killed and wounded in the Army during the war with +Spain were: Officers killed, 23; enlisted men killed, 257; total, 280; +officers wounded, 113; enlisted men wounded, 1,464; total, 1,577. Of the +Navy: Killed, 17; wounded, 67; died as result of wounds, 1; invalided from +service, 6; total, 91. + +It will be observed that while our Navy was engaged in two great battles +and in numerous perilous undertakings in blockade and bombardment, and more +than 50,000 of our troops were transported to distant lands and were +engaged in assault and siege and battle and many skirmishes in unfamiliar +territory, we lost in both arms of the service a total of 1,668 killed and +wounded; and in the entire campaign by land and sea we did not lose a gun +or a flag or a transport or a ship, and, with the exception of the crew of +the Merrimac, not a soldier or sailor was taken prisoner. + +On August 7, forty-six days from the date of the landing of General +Shafter's army in Cuba and twenty-one days from the surrender of Santiago, +the United States troops commenced embarkation for home, and our entire +force was returned to the United States as early as August 24. They were +absent from the United States only two months. + +It is fitting that I should bear testimony to the patriotism and devotion +of that large portion of our Army which, although eager to be ordered to +the post of greatest exposure, fortunately was not required outside of the +United States. They did their whole duty, and, like their comrades at the +front, have earned the gratitude of the nation. In like manner, the +officers and men of the Army and of the Navy who remained in their +departments and stations faithfully performing most important duties +connected with the war, and whose requests for assignment in the field and +at sea I was compelled to refuse because their services were indispensable +here, are entitled to the highest commendation. It is my regret that there +seems to be no provision for their suitable recognition. + +In this connection it is a pleasure for me to mention in terms of cordial +appreciation the timely and useful work of the American National Red Cross, +both in relief measures preparatory to the campaigns, in sanitary +assistance at several of the camps of assemblage, and later, under the able +and experienced leadership of the president of the society, Miss Clara +Barton, on the fields of battle and in the hospitals at the front in Cuba. +Working in conjunction with the governmental authorities and under their +sanction and approval, and with the enthusiastic cooperation of many +patriotic women and societies in the various States, the Red Cross has +fully maintained its already high reputation for intense earnestness and +ability to exercise the noble purposes of its international organization, +thus justifying the confidence and support which it has received at the +hands of the American people. To the members and officers of this society +and all who aided them in their philanthropic work the sincere and lasting +gratitude of the soldiers and the public is due and is freely accorded. + +In tracing these events we are constantly reminded of our obligations to +the Divine Master for His watchful care over us and His safe guidance, for +which the nation makes reverent acknowledgment and offers humble prayer for +the continuance of His favor. + +The annihilation of Admiral Cervera's fleet, followed by the capitulation +of Santiago, having brought to the Spanish Government a realizing sense of +the hopelessness of continuing a struggle now become wholly unequal, it +made overtures of peace through the French ambassador, who, with the assent +of his Government, had acted as the friendly representative of Spanish +interests during the war. On the 26th of July M. Cambon presented a +communication signed by the Duke of Almodovar, the Spanish minister of +state, inviting the United States to state the terms upon which it would be +willing to make peace. On the 30th of July, by a communication addressed to +the Duke of Almodovar and handed to M. Cambon, the terms of this Government +were announced substantially as in the protocol afterwards signed. On the +10th of August the Spanish reply, dated August 7, was handed by M. Cambon +to the Secretary of State. It accepted unconditionally the terms imposed as +to Cuba, Puerto Rico, and an island of the Ladrones group, but appeared to +seek to introduce inadmissible reservations in regard to our demand as to +the Philippine Islands. Conceiving that discussion on this point could +neither be practical nor profitable, I directed that in order to avoid +misunderstanding the matter should be forthwith closed by proposing the +embodiment in a formal protocol of the terms upon which the negotiations +for peace were to be undertaken. The vague and inexplicit suggestions of +the Spanish note could not be accepted, the only reply being to present as +a virtual ultimatum a draft of protocol embodying the precise terms +tendered to Spain in our note of July 30, with added stipulations of detail +as to the appointment of commissioners to arrange for the evacuation of the +Spanish Antilles. On August 12 M. Cambon announced his receipt of full +powers to sign the protocol so submitted. Accordingly, on the afternoon of +August 12, M. Cambon, as the plenipotentiary of Spain, and the Secretary of +State, as the plenipotentiary of the United States, signed a protocol +providing-- ARTICLE I. Spain will relinquish all claim of sovereignty over +and title to Cuba. + +ART. II. Spain will cede to the United States the island of Puerto Rico and +other islands now under Spanish sovereignty in the West Indies, and also an +island in the Ladrones to be selected by the United States. + +ART. III. The United States will occupy and hold the city, bay, and harbor +of Manila pending the conclusion of a treaty of peace which shall determine +the control, disposition, and government of the Philippines. The fourth +article provided for the appointment of joint commissions on the part of +the United States and Spain, to meet in Havana and San Juan, respectively, +for the purpose of arranging and carrying out the details of the stipulated +evacuation of Cuba, Puerto Rico, and other Spanish islands in the West +Indies. + +The fifth article provided for the appointment of not more than five +commissioners on each side, to meet at Paris not later than October 1 and +to proceed to the negotiation and conclusion of a treaty of peace, subject +to ratification according to the respective constitutional forms of the two +countries. + +The sixth and last article provided that upon the signature of the protocol +hostilities between the two countries should be suspended and that notice +to that effect should be given as soon as possible by each Government to +the commanders of its military and naval forces. + +Immediately upon the conclusion of the protocol I issued a proclamation, of +August 12 , suspending hostilities on the part of the United States. The +necessary orders to that end were at once given by telegraph. The blockade +of the ports of Cuba and San Juan de Puerto Rico was in like manner raised. +On the 18th of August the muster out of 100,000 volunteers, or as near that +number as was found to be practicable, was ordered. + +On the 1st of December 101,165 officers and men had been mustered out and +discharged from the service, and 9,002 more will be mustered out by the +10th of this month; also a corresponding number of general and general +staff officers have been honorably discharged the service. + +The military commissions to superintend the evacuation of Cuba, Puerto +Rico, and the adjacent islands were forthwith appointed--for Cuba, +Major-General James F. Wade, Rear-Admiral William T. Sampson, Major-General +Matthew C. Butler; for Puerto Rico, Major--General John R. Brooke, +Rear-Admiral Winfield S. Schley, Brigadier-General William W. Gordon--who +soon afterwards met the Spanish commissioners at Havana and San Juan, +respectively. The Puerto Rican Joint Commission speedily accomplished its +task, and by the 18th of October the evacuation of the island was +completed. The United States flag was raised over the island at noon on +that day. The administration of its affairs has been provisionally +intrusted to a military governor until the Congress shall otherwise +provide. The Cuban Joint Commission has not yet terminated its labors. +Owing to the difficulties in the way of removing the large numbers of +Spanish troops still in Cuba, the evacuation can not be completed before +the 1st of January next. + +Pursuant to the fifth article of the protocol, I appointed William R. Day, +lately Secretary of State; Cushman K. Davis, William P. Frye, and George +Gray, Senators of the United States, and Whitelaw Reid to be the peace +commissioners on the part of the United States. Proceeding in due season to +Paris, they there met on the 1st of October five commissioners similarly +appointed on the part of Spain. Their negotiations have made hopeful +progress, so that I trust soon to be able to lay a definitive treaty of +peace before the Senate, with a review of the steps leading to its +signature. + +I do not discuss at this time the government or the future of the new +possessions which will come to us as the result of the war with Spain. Such +discussion will be appropriate after the treaty of peace shall be ratified. +In the meantime and until the Congress has legislated otherwise it will be +my duty to continue the military governments which have existed since our +occupation and give to the people security in life and property and +encouragement under a just and beneficent rule. + +As soon as we are in possession of Cuba and have pacified the island it +will be necessary to give aid and direction to its people to form a +government for themselves. This should be undertaken at the earliest moment +consistent with safety and assured success. It is important that our +relations with this people shall be of the most friendly character and our +commercial relations close and reciprocal. It should be our duty to assist +in every proper way to build up the waste places of the island, encourage +the industry of the people, and assist them to form a government which +shall be free and independent, thus realizing the best aspirations of the +Cuban people. + +Spanish rule must be replaced by a just, benevolent, and humane government, +created by the people of Cuba, capable of performing all international +obligations, and which shall encourage thrift, industry, and prosperity and +promote peace and good will among all of the inhabitants, whatever may have +been their relations in the past. Neither revenge nor passion should have a +place in the new government. Until there is complete tranquillity in the +island and a stable government inaugurated military occupation will be +continued. + +With the one exception of the rupture with Spain, the intercourse of the +United States with the great family of nations has been marked with +cordiality, and the close of the eventful year finds most of the issues +that necessarily arise in the complex relations of sovereign states +adjusted or presenting no serious obstacle to a just and honorable solution +by amicable agreement. + +A long unsettled dispute as to the extended boundary between the Argentine +Republic and Chile, stretching along the Andean crests from the southern +border of the Atacama Desert to Magellan Straits, nearly a third of the +length of the South American continent, assumed an acute stage in the early +part of the year, and afforded to this Government occasion to express the +hope that the resort to arbitration, already contemplated by existing +conventions between the parties, might prevail despite the grave +difficulties arising in its application. I am happy to say that +arrangements to this end have been perfected, the questions of fact upon +which the respective commissioners were unable to agree being in course of +reference to Her Britannic Majesty for determination. A residual difference +touching the northern boundary line across the Atacama Desert, for which +existing treaties provided no adequate adjustment, bids fair to be settled +in like manner by a joint commission, upon which the United States minister +at Buenos Ayres has been invited to serve as umpire in the last resort. + +I have found occasion to approach the Argentine Government with a view to +removing differences of rate charges imposed upon the cables of an American +corporation in the transmission between Buenos Ayres and the cities of +Uruguay and Brazil of through messages passing from and to the United +States. Although the matter is complicated by exclusive concessions by +Uruguay and Brazil to foreign companies, there is strong hope that a good +understanding will be reached and that the important channels of commercial +communication between the United States and the Atlantic cities of South +America may be freed from an almost prohibitory discrimination. + +In this relation I may be permitted to express my sense of the fitness of +an international agreement whereby the interchange of messages over +connecting cables may be regulated on a fair basis of uniformity. The world +has seen the postal system developed from a congeries of independent and +exclusive services into a well-ordered union, of which all countries enjoy +the manifold benefits. It would be strange were the nations not in time +brought to realize that modern civilization, which owes so much of its +progress to the annihilation of space by the electric force, demands that +this all-important means of communication be a heritage of all peoples, to +be administered and regulated in their common behoof. A step in this +direction was taken when the international convention of 1884 for the +protection of submarine cables was signed, and the day is, I trust, not far +distant when this medium for the transmission of thought from land to land +may be brought within the domain of international concert as completely as +is the material carriage of commerce and correspondence upon the face of +the waters that divide them. + +The claim of Thomas Jefferson Page against Argentina, which has been +pending many years, has been adjusted. The sum awarded by the Congress of +Argentina was $4,242.35. + +The sympathy of the American people has justly been offered to the ruler +and the people of Austria-Hungary by reason of the affliction that has +lately befallen them in the assassination of the Empress-Queen of that +historic realm. + +On the 10th of September, 1897, a conflict took place at Lattimer, Pa., +between a body of striking miners and the sheriff of Luzerne County and his +deputies, in which 22 miners were killed and 44 wounded, of whom 10 of the +killed and 12 of the wounded were Austrian and Hungarian subjects. This +deplorable event naturally aroused the solicitude of the Austro-Hungarian +Government, which, on the assumption that the killing and wounding involved +the unjustifiable misuse of authority, claimed reparation for the +sufferers. Apart from the searching investigation and peremptory action of +the authorities of Pennsylvania, the Federal Executive took appropriate +steps to learn the merits of the case, in order to be in a position to meet +the urgent complaint of a friendly power. The sheriff and his deputies, +having been indicted for murder, were tried, and acquitted, after +protracted proceedings and the hearing of hundreds of witnesses, on the +ground that the killing was in the line of their official duty to uphold +law and preserve public order in the State. A representative of the +Department of Justice attended the trial and reported its course fully. +With all the facts in its possession, this Government expects to reach a +harmonious understanding on the subject with that of Austria-Hungary, +notwithstanding the renewed claim of the latter, after learning the result +of the trial, for indemnity for its injured subjects. + +Despite the brief time allotted for preparation, the exhibits of this +country at the Universal Exposition at Brussels in 1897 enjoyed the +singular distinction of a larger proportion of awards, having regard to the +number and classes of articles entered than those of other countries. The +worth of such a result in making known our national capacity to supply the +world's markets is obvious. + +Exhibitions of this international character are becoming more frequent as +the exchanges of commercial countries grow more intimate and varied. Hardly +a year passes that this Government is not invited to national participation +at some important foreign center, but often on too short notice to permit +of recourse to Congress for the power and means to do so. My predecessors +have suggested the advisability of providing by a general enactment and a +standing appropriation for accepting such invitations and for +representation of this country by a commission. This plan has my cordial +approval. + +I trust that the Belgian restrictions on the importation of cattle from the +United States, originally adopted as a sanitary precaution, will at an +early day be relaxed as to their present features of hardship and +discrimination, so as to admit live cattle under due regulation of their +slaughter after landing. I am hopeful, too, of favorable change in the +Belgian treatment of our preserved and salted meats. The growth of direct +trade between the two countries, not alone for Belgian consumption and +Belgian products, but by way of transit from and to other continental +states, has been both encouraging and beneficial. No effort will be spared +to enlarge its advantages by seeking the removal of needless impediments +and by arrangements for increased commercial exchanges. + +The year's events in Central America deserve more than passing mention. + +A menacing rupture between Costa Rica and Nicaragua was happily composed by +the signature of a convention between the parties, with the concurrence of +the Guatemalan representative as a mediator, the act being negotiated and +signed on board the United States steamer Alert, then lying in Central +American waters. It is believed that the good offices of our envoy and of +the commander of that vessel contributed toward this gratifying outcome. + +In my last annual message the situation was presented with respect to the +diplomatic representation of this Government in Central America created by +the association of Nicaragua, Honduras, and Salvador under the title of the +Greater Republic of Central America, and the delegation of their +international functions to the Diet thereof. While the representative +character of the Diet was recognized by my predecessor and has been +confirmed during my Administration by receiving its accredited envoy and +granting exequaturs to consuls commissioned under its authority, that +recognition was qualified by the distinct understanding that the +responsibility of each of the component sovereign Republics toward the +United States remained wholly unaffected. + +This proviso was needful inasmuch as the compact of the three Republics was +at the outset an association whereby certain representative functions were +delegated to a tripartite commission rather than a federation possessing +centralized powers of government and administration. In this view of their +relation and of the relation of the United States to the several Republics, +a change in the representation of this country in Central America was +neither recommended by the Executive nor initiated by Congress, thus +leaving one of our envoys accredited, as heretofore, separately to two +States of the Greater Republic, Nicaragua and Salvador, and to a third +State, Costa Rica, which was not a party to the compact, while our other +envoy was similarly accredited to a union State, Honduras, and a nonunion +State, Guatemala. The result has been that the one has presented +credentials only to the President of Costa Rica, the other having been +received only by the Government of Guatemala. + +Subsequently the three associated Republics entered into negotiations for +taking the steps forecast in the original compact. A convention of their +delegates framed for them a federal constitution under the name of the +United States of Central America, and provided for a central federal +government and legislature. Upon ratification by the constituent States, +the 1st of November last was fixed for the new system to go into operation. +Within a few weeks thereafter the plan was severely tested by revolutionary +movements arising, with a consequent demand for unity of action on the part +of the military power of the federal States to suppress them. Under this +strain the new union seems to have been weakened through the withdrawal of +its more important members. This Government was not officially advised of +the installation of the federation and has maintained an attitude of +friendly expectancy, while in no wise relinquishing the position held from +the outset that the responsibilities of the several States toward us +remained unaltered by their tentative relations among themselves. + +The Nicaragua Canal Commission, under the chairmanship of Rear-Admiral John +G. Walker, appointed July 24, 1897, under the authority of a provision in +the sundry civil act of June 4 of that year, has nearly completed its +labors, and the results of its exhaustive inquiry into the proper route, +the feasibility, and the cost of construction of an interoceanic canal by a +Nicaraguan route will be laid before you. In the performance of its task +the commission received all possible courtesy and assistance from the +Governments of Nicaragua and Costa Rica, which thus testified their +appreciation of the importance of giving a speedy and practical outcome to +the great project that has for so many years engrossed the attention of the +respective countries. + +As the scope of the recent inquiry embraced the whole subject, with the aim +of making plans and surveys for a canal by the most convenient route, it +necessarily included a review of the results of previous surveys and plans, +and in particular those adopted by the Maritime Canal Company under its +existing concessions from Nicaragua and Costa Rica, so that to this extent +those grants necessarily hold as essential a part in the deliberations and +conclusions of the Canal Commission as they have held and must needs hold +in the discussion of the matter by the Congress. Under these circumstances +and in view of overtures made to the Governments of Nicaragua and Costa +Rica by other parties for a new canal concession predicated on the assumed +approaching lapse of the contracts of the Maritime Canal Company with those +States, I have not hesitated to express my conviction that considerations +of expediency and international policy as between the several governments +interested in the construction and control of an interoceanic canal by this +route require the maintenance of the status quo until the Canal Commission +shall have reported and the United States Congress shall have had the +opportunity to pass finally upon the whole matter during the present +session, without prejudice by reason of any change in the existing +conditions. + +Nevertheless, it appears that the Government of Nicaragua, as one of its +last sovereign acts before merging its powers in those of the newly formed +United States of Central America, has granted an optional concession to +another association, to become effective on the expiration of the present +grant. It does not appear what surveys have been made or what route is +proposed under this contingent grant, so that an examination of the +feasibility of its plans is necessarily not embraced in the report of the +Canal Commission. All these circumstances suggest the urgency of some +definite action by the Congress at this session if the labors of the past +are to be utilized and the linking of the Atlantic and Pacific oceans by a +practical waterway is to be realized. That the construction of such a +maritime highway is now more than ever indispensable to that intimate and +ready intercommunication between our eastern and western seaboards demanded +by the annexation of the Hawaiian Islands and the prospective expansion of +our influence and commerce in the Pacific, and that our national policy now +more imperatively than ever calls for its control by this Government, are +propositions which I doubt not the Congress will duly appreciate and wisely +act upon. + +A convention providing for the revival of the late United States and +Chilean Claims Commission and the consideration of claims which were duly +presented to the late commission, but not considered because of the +expiration of the time limited for the duration of the commission, was +signed May 24, 1897, and has remained unacted upon by the Senate. The term +therein fixed for effecting the exchange of ratifications having elapsed, +the convention falls unless the time be extended by amendment, which I am +endeavoring to bring about, with the friendly concurrence of the Chilean +Government. + +The United States has not been an indifferent spectator of the +extraordinary events transpiring in the Chinese Empire, whereby portions of +its maritime provinces are passing under the control of various European +powers; but the prospect that the vast commerce which the energy of our +citizens and the necessity of our staple productions for Chinese uses has +built up in those regions may not be prejudiced through any exclusive +treatment by the new occupants has obviated the need of our country +becoming an actor in the scene. Our position among nations, having a large +Pacific coast and a constantly expanding direct trade with the farther +Orient, gives us the equitable claim to consideration and friendly +treatment in this regard, and it will be my aim to subserve our large +interests in that quarter by all means appropriate to the constant policy +of our Government. The territories of Kiao-chow, of Wei-hai-wei, and of +Port Arthur and Talienwan, leased to Germany, Great Britain, and Russia, +respectively, for terms of years, will, it is announced, be open to +international commerce during such alien occupation; and if no +discriminating treatment of American citizens and their trade be found to +exist or be hereafter developed, the desire of this Government would appear +to be realized. + +In this relation, as showing the volume and value of our exchanges with +China and the peculiarly favorable conditions which exist for their +expansion in the normal course of trade, I refer to the communication +addressed to the Speaker of the House of Representatives by the Secretary +of the Treasury on the 14th of last June, with its accompanying letter of +the Secretary of State, recommending an appropriation for a commission to +study the commercial and industrial conditions in the Chinese Empire and +report as to the opportunities for and obstacles to the enlargement of +markets in China for the raw products and manufactures of the United +States. Action was not taken thereon during the late session. I cordially +urge that the recommendation receive at your hands the consideration which +its importance and timeliness merit. + +Meanwhile there may be just ground for disquietude in view of the unrest +and revival of the old sentiment of opposition and prejudice to alien +people which pervades certain of the Chinese provinces. As in the case of +the attacks upon our citizens in Szechuen and at Kutien in 1895, the United +States minister has been instructed to secure the fullest measure of +protection, both local and imperial, for any menaced American interests, +and to demand, in case of lawless injury to person or property, instant +reparation appropriate to the case. War ships have been stationed at +Tientsin for more ready observation of the disorders which have invaded +even the Chinese capital, so as to be in a position to act should need +arise, while a guard of marines has been sent to Peking to afford the +minister the same measure of authoritative protection as the +representatives of other nations have been constrained to employ. + +Following close upon the rendition of the award of my predecessor as +arbitrator of the claim of the Italian subject Cerruti against the Republic +of Colombia, differences arose between the parties to the arbitration in +regard to the scope and extension of the award, of which certain articles +were contested by Colombia, while Italy claimed their literal fulfillment. +The award having been made by the President of the United States, as an act +of friendly consideration and with the sole view to an impartial +composition of the matter in dispute, I could not but feel deep concern at +such a miscarriage, and while unable to accept the Colombian theory that I, +in my official capacity, possessed continuing functions as arbitrator, with +power to interpret or revise the terms of the award, my best efforts were +lent to bring the parties to a harmonious agreement as to the execution of +its provisions. + +A naval demonstration by Italy resulted in an engagement to pay the +liabilities claimed upon their ascertainment; but this apparent disposition +of the controversy was followed by a rupture of diplomatic intercourse +between Colombia and Italy, which still continues, although, fortunately, +without acute symptoms having supervened. Notwithstanding this, efforts are +reported to be continuing for the ascertainment of Colombia's contingent +liability on account of Cerruti's debts under the fifth article of the +award. + +A claim of an American citizen against the Dominican Republic for a public +bridge over the Ozama River, which has been in diplomatic controversy for +several years, has been settled by expert arbitration and an award in favor +of the claimant amounting to about $90,000. It, however, remains unpaid, +despite urgent demands for its settlement according to the terms of the +compact. + +There is now every prospect that the participation of the United States in +the Universal Exposition to be held in Paris in 1900 will be on a scale +commensurate with the advanced position held by our products and industries +in the world's chief marts. + +The preliminary report of Mr. Moses P. Handy, who, under the act approved +July 19, 1897, was appointed special commissioner with a view to securing +all attainable information necessary to a full and complete understanding +by Congress in regard to the participation of this Government in the Paris +Exposition, was laid before you by my message of December 6, 1897, and +showed the large opportunities opened to make known our national progress +in arts, science, and manufactures, as well as the urgent need of immediate +and adequate provision to enable due advantage thereof to be taken. Mr. +Handy's death soon afterwards rendered it necessary for another to take up +and complete his unfinished work, and on January 11 last Mr. Thomas W. +Cridler, Third Assistant Secretary of State, was designated to fulfill that +task. His report was laid before you by my message of June 14, 1898, with +the gratifying result of awakening renewed interest in the projected +display. By a provision in the sundry civil appropriation act of July 1, +1898, a sum not to exceed $650,000 was allotted for the organization of a +commission to care for the proper preparation and installation of American +exhibits and for the display of suitable exhibits by the several Executive +Departments, particularly by the Department of Agriculture, the Fish +Commission, and the Smithsonian Institution, in representation of the +Government of the United States. + +Pursuant to that enactment I appointed Mr. Ferdinand W. Peck, of Chicago, +commissioner-general, with an assistant commissioner-general and a +secretary. Mr. Peck at once proceeded to Paris, where his success in +enlarging the scope and variety of the United States exhibit has been most +gratifying. Notwithstanding the comparatively limited area of the +exposition site--less than one-half that of the World's Fair at +Chicago--the space assigned to the United States has been increased from +the absolute allotment of 157,403 square feet reported by Mr. Handy to some +202,000 square feet, with corresponding augmentation of the field for a +truly characteristic representation of the various important branches of +our country's development. Mr. Peck's report will be laid before you. In my +judgment its recommendations will call for your early consideration, +especially as regards an increase of the appropriation to at least one +million dollars in all, so that not only may the assigned space be fully +taken up by the best possible exhibits in every class, but the preparation +and installation be on so perfect a scale as to rank among the first in +that unparalleled competition of artistic and inventive production, and +thus counterbalance the disadvantage with which we start as compared with +other countries whose appropriations are on a more generous scale and whose +preparations are in a state of much greater forwardness than our + +Where our artisans have the admitted capacity to excel, where our inventive +genius has initiated many of the grandest discoveries of these later days +of the century, and where the native resources of our land are as limitless +as they are valuable to supply the world's needs, it is our province, as it +should be our earnest care, to lead in the march of human progress, and not +rest content with any secondary place. Moreover, if this be due to +ourselves, it is no less due to the great French nation whose guests we +become, and which has in so many ways testified its wish and hope that our +participation shall befit the place the two peoples have won in the field +of universal development. + +The commercial arrangement made with France on the 28th of May, 1898, under +the provisions of section 3 of the tariff act of 1897, went into effect on +the 1st day of June following. It has relieved a portion of our export +trade from serious embarrassment. Further negotiations are now pending +under section 4 of the same act with a view to the increase of trade +between the two countries to their mutual advantage. Negotiations with +other governments, in part interrupted by the war with Spain, are in +progress under both sections of the tariff act. I hope to be able to +announce some of the results of these negotiations during the present +session of Congress. + +Negotiations to the same end with Germany have been set on foot. Meanwhile +no effort has been relaxed to convince the Imperial Government of the +thoroughness of our inspection of pork products for exportation, and it is +trusted that the efficient administration of this measure by the Department +of Agriculture will be recognized as a guaranty of the healthfulness of the +food staples we send abroad to countries where their use is large and +necessary. + +I transmitted to the Senate on the 10th of February last information +touching the prohibition against the importation of fresh fruits from this +country, which had then recently been decreed by Germany on the ground of +danger of disseminating the San Jose scale insect. This precautionary +measure was justified by Germany on the score of the drastic steps taken in +several States of the Union against the spread of the pest, the elaborate +reports of the Department of Agriculture being put in evidence to show the +danger to German fruit-growing interests should the scale obtain a lodgment +in that country. Temporary relief was afforded in the case of large +consignments of fruit then on the way by inspection and admission when +found noninfected. Later the prohibition was extended to dried fruits of +every kind, but was relaxed so as to apply only to unpeeled fruit and fruit +waste. As was to be expected, the alarm reached to other countries, and +Switzerland has adopted a similar inhibition. Efforts are in progress to +induce the German and Swiss Governments to relax the prohibition in favor +of dried fruits shown to have been cured under circumstances rendering the +existence of animal life impossible. + +Our relations with Great Britain have continued on the most friendly +footing. Assenting to our request, the protection of Americans and their +interests in Spanish jurisdiction was assumed by the diplomatic and +consular representatives of Great Britain, who fulfilled their delicate and +arduous trust with tact and zeal, eliciting high commendation. I may be +allowed to make fitting allusion to the instance of Mr. Ramsden, Her +Majesty's consul at Santiago de Cuba, whose untimely death after +distinguished service and untiring effort during the siege of that city was +sincerely lamented. + +In the early part of April last, pursuant to a request made at the instance +of the Secretary of State by the British ambassador at this capital, the +Canadian government granted facilities for the passage of four United +States revenue cutters from the Great Lakes to the Atlantic coast by way of +the Canadian canals and the St. Lawrence River. The vessels had reached +Lake Ontario and were there awaiting the opening of navigation when war was +declared between the United States and Spain. Her Majesty's Government +thereupon, by a communication of the latter part of April, stated that the +permission granted before the outbreak of hostilities would not be +withdrawn provided the United States Government gave assurance that the +vessels in question would proceed direct to a United States port without +engaging in any hostile operation. This Government promptly agreed to the +stipulated condition, it being understood that the vessels would not be +prohibited from resisting any hostile attack. + +It will give me especial satisfaction if I shall be authorized to +communicate to you a favorable conclusion of the pending negotiations with +Great Britain in respect to the Dominion of Canada. It is the earnest wish +of this Government to remove all sources of discord and irritation in our +relations with the neighboring Dominion. The trade between the two +countries is constantly increasing, and it is important to both countries +that all reasonable facilities should be granted for its development. + +The Government of Greece strongly urges the onerousness of the duty here +imposed upon the currants of that country, amounting to 100 per cent or +more of their market value. This fruit is stated to be exclusively a Greek +product, not coming into competition with any domestic product. The +question of reciprocal commercial relations with Greece, including the +restoration of currants to the free list, is under consideration. + +The long-standing claim of Bernard Campbell for damages for injuries +sustained from a violent assault committed against him by military +authorities in the island of Haiti has been settled by the agreement of +that Republic to pay him $10,000 in American gold. Of this sum $5,000 has +already been paid. It is hoped that other pending claims of American +citizens against that Republic may be amicably adjusted. + +Pending the consideration by the Senate of the treaty signed June 1897, by +the plenipotentiaries of the United States and of the Republic of Hawaii, +providing for the annexation of the islands, a joint resolution to +accomplish the same purpose by accepting the offered cession and +incorporating the ceded territory into the Union was adopted by the +Congress and approved July 7, 1898. I thereupon directed the United States +steamship Philadelphia to convey Rear-Admiral Miller to Honolulu, and +intrusted to his hands this important legislative act, to be delivered to +the President of the Republic of Hawaii, with whom the Admiral and the +United States minister were authorized to make appropriate arrangements for +transferring the sovereignty of the islands to the United States. This was +simply but impressively accomplished on the 12th of August last by the +delivery of a certified copy of the resolution to President Dole, who +thereupon yielded up to the representative of the Government of the United +States the sovereignty and public property of the Hawaiian Islands. + +Pursuant to the terms of the joint resolution and in exercise of the +authority thereby conferred upon me, I directed that the civil, judicial, +and military powers theretofore exercised by the officers of the Government +of the Republic of Hawaii should continue to be exercised by those officers +until Congress shall provide a government for the incorporated territory, +subject to my power to remove such officers and to fill vacancies. The +President, officers, and troops of the Republic thereupon took the oath of +allegiance to the United States, thus providing for the uninterrupted +continuance of all the administrative and municipal functions of the +annexed territory until Congress shall otherwise enact. + +Following the further provision of the joint resolution, I appointed the +Hons. Shelby M. Cullom, of Illinois, John T. Morgan, of Alabama, Robert R. +Hitt, of Illinois, Sanford B. Dole, of Hawaii, and Walter F. Frear, of +Hawaii, as commissioners to confer and recommend to Congress such +legislation concerning the Hawaiian Islands as they should deem necessary +or proper. The commissioners having fulfilled the mission confided to them, +their report will be laid before you at an early day. It is believed that +their recommendations will have the earnest consideration due to the +magnitude of the responsibility resting upon you to give such shape to the +relationship of those mid-Pacific lands to our home Union as will benefit +both in the highest degree, realizing the aspirations of the community that +has cast its lot with us and elected to share our political heritage, while +at the same time justifying the foresight of those who for three-quarters +of a century have looked to the assimilation of Hawaii as a natural and +inevitable consummation, in harmony with our needs and in fulfillment of +our cherished traditions. + +The questions heretofore pending between Hawaii and Japan growing out of +the alleged mistreatment of Japanese treaty immigrants were, I am pleased +to say, adjusted before the act of transfer by the payment of a reasonable +indemnity to the Government of Japan. + +Under the provisions of the joint resolution, the existing customs +relations of the Hawaiian Islands with the United States and with other +countries remain unchanged until legislation shall otherwise provide. The +consuls of Hawaii here and in foreign countries continue to fulfill their +commercial agencies, while the United States consulate at Honolulu is +maintained for all appropriate services pertaining to trade and the +revenue. It would be desirable that all foreign consuls in the Hawaiian +Islands should receive new exequaturs from this Government. + +The attention of Congress is called to the fact that, our consular offices +having ceased to exist in Hawaii and being about to cease in other +countries coming under the sovereignty of the United States, the provisions +for the relief and transportation of destitute American seamen in these +countries under our consular regulations will in consequence terminate. It +is proper, therefore, that new legislation should be enacted upon this +subject in order to meet the changed conditions. + +The interpretation of certain provisions of the extradition convention of +December 11, 1861, has been at various times the occasion of controversy +with the Government of Mexico. An acute difference arose in the case of the +Mexican demand for the delivery of Jesus Guerra, who, having led a +marauding expedition near the border with the proclaimed purpose of +initiating an insurrection against President Diaz, escaped into Texas. +Extradition was refused on the ground that the alleged offense was +political in its character, and therefore came within the treaty proviso of +nonsurrender. The Mexican contention was that the exception only related to +purely political offenses, and that as Guerra's acts were admixed with the +common crime of murder, arson, kidnaping, and robbery, the option of +nondelivery became void, a position which this Government was unable to +admit in view of the received international doctrine and practice in the +matter. The Mexican Government, in view of this, gave notice January 24, +1898, of the termination of the convention, to take effect twelve months +from that date, at the same time inviting the conclusion of a new +convention, toward which negotiations are on foot. + +In this relation I may refer to the necessity of some amendment of our +existing extradition statute. It is a common stipulation of such treaties +that neither party shall be bound to give up its own citizens, with the +added proviso in one of our treaties, that with Japan, that it may +surrender if it see fit. It is held in this country by an almost uniform +course of decisions that where a treaty negatives the obligation to +surrender the President is not invested with legal authority to act. The +conferment of such authority would be in the line of that sound morality +which shrinks from affording secure asylum to the author of a heinous +crime. Again, statutory provision might well be made for what is styled +extradition by way of transit, whereby a fugitive surrendered by one +foreign government to another may be conveyed across the territory of the +United States to the jurisdiction of the demanding state. A recommendation +in this behalf made in the President's message of 1886 was not acted upon. +The matter is presented for your consideration. + +The problem of the Mexican free zone has been often discussed with regard +to its inconvenience as a provocative of smuggling into the United States +along an extensive and thinly guarded land border. The effort made by the +joint resolution of March 1, 1895, to remedy the abuse charged by +suspending the privilege of free transportation in bond across the +territory of the United States to Mexico failed of good result, as is +stated in Report No. 702 of the House of Representatives, submitted in the +last session, March 11, 1898. As the question is one to be conveniently met +by wise concurrent legislation of the two countries looking to the +protection of the revenues by harmonious measures operating equally on +either side of the boundary, rather than by conventional arrangements, I +suggest that Congress consider the advisability of authorizing and inviting +a conference of representatives of the Treasury Departments of the United +States and Mexico to consider the subject in all its complex bearings, and +make report with pertinent recommendations to the respective Governments +for the information and consideration of their Congresses. + +The Mexican Water Boundary Commission has adjusted all matters submitted to +it to the satisfaction of both Governments save in three important +cases--that of the "Chamizal" at El Paso, Tex., where the two commissioners +failed to agree, and wherein, for this case only, this Government has +proposed to Mexico the addition of a third member; the proposed elimination +of what are known as "Bancos," small isolated islands formed by the cutting +off of bends in the Rio Grande, from the operation of the treaties of 1884 +and 1889, recommended by the commissioners and approved by this Government, +but still under consideration by Mexico; and the subject of the "Equitable +distribution of the waters of the Rio Grande," for which the commissioners +recommended an international dam and reservoir, approved by Mexico, but +still under consideration by this Government. Pending these questions it is +necessary to extend the life of the commission, which expires December 23 +next. + +The coronation of the young Queen of the Netherlands was made the occasion +of fitting congratulations. + +The claim of Victor H. McCord against Peru, which for a number of years has +been pressed by this Government and has on several occasions attracted the +attention of the Congress, has been satisfactorily adjusted. A protocol was +signed May 17, 1898, whereby, the fact of liability being admitted, the +question of the amount to be awarded was submitted to the chief justice of +Canada as sole arbitrator. His award sets the indemnity due the claimant at +$40,000. + +The Government of Peru has given the prescribed notification of its +intention to abrogate the treaty of friendship, commerce, and navigation +concluded with this country August 31, 1887. As that treaty contains many +important provisions necessary to the maintenance of commerce and good +relations, which could with difficulty be replaced by the negotiation of +renewed provisions within the brief twelve months intervening before the +treaty terminates, I have invited suggestions by Peru as to the particular +provisions it is desired to annul, in the hope of reaching an arrangement +whereby the remaining articles may be provisionally saved. + +His Majesty the Czar having announced his purpose to raise the Imperial +Russian mission at this capital to the rank of an embassy, I responded, +under the authority conferred by the act of March 3, 1893, by commissioning +and accrediting the actual representative at St. Petersburg in the capacity +of ambassador extraordinary and plenipotentiary. The Russian ambassador to +this country has since presented his credentials. + +The proposal of the Czar for a general reduction of the vast military +establishments that weigh so heavily upon many peoples in time of peace was +communicated to this Government with an earnest invitation to be +represented in the conference which it is contemplated to assemble with a +view to discussing the means of accomplishing so desirable a result. His +Majesty was at once informed of the cordial sympathy of this Government +with the principle involved in his exalted proposal and of the readiness of +the United States to take part in the conference. The active military force +of the United States, as measured by our population, territorial area, and +taxable wealth, is, and under any conceivable prospective conditions must +continue to be, in time of peace so conspicuously less than that of the +armed powers to whom the Czar's appeal is especially addressed that the +question can have for us no practical importance save as marking an +auspicious step toward the betterment of the condition of the modern +peoples and the cultivation of peace and good will among them; but in this +view it behooves us as a nation to lend countenance and aid to the +beneficent project. + +The claims of owners of American sealing vessels for seizure by Russian +cruisers in Bering Sea are being pressed to a settlement. The equities of +the cases justify the expectation that a measure of reparation will +eventually be accorded in harmony with precedent and in the light of the +proven facts. + +The recommendation made in my special message of April 27 last is renewed, +that appropriation be made to reimburse the master and owners of the +Russian bark Hans for wrongful arrest of the master and detention of the +vessel in February, 1896, by officers of the United States district court +for the southern district of Mississippi. The papers accompanying my said +message make out a most meritorious claim and justify the urgency with +which it has been presented by the Government of Russia. + +Malietoa Laupepa, King of Samoa, died on August 22 last. According to +Article I of the general act of Berlin, "his successor shall be duly +elected according to the laws and customs of Samoa." + +Arrangements having been agreed upon between the signatories of the general +act for the return of Mataafa and the other exiled Samoan chiefs, they were +brought from Jaluit by a German war vessel and landed at Apia on September +18 last. + +Whether the death of Malietoa and the return of his old-time rival Mataafa +will add to the undesirable complications which the execution of the +tripartite general act has heretofore developed remains to be seen. The +efforts of this Government will, as heretofore, be addressed toward a +harmonious and exact fulfillment of the terms of the international +engagement to which the United States became a party in 1889. + +The Cheek claim against Siam, after some five years of controversy, has +been adjusted by arbitration under an agreement signed July 6, 1897, an +award of 706,721 ticals (about $187,987.78 ), with release of the Cheek +estate from mortgage claims, having been rendered March 21, 1898, in favor +of the claimant by the arbitrator, Sir Nicholas John Hannen, British chief +justice for China and Japan. + +An envoy from Siam has been accredited to this Government and has presented +his credentials. + +Immediately upon the outbreak of the war with Spain the Swiss Government, +fulfilling the high mission it has deservedly assumed as the patron of the +International Red Cross, proposed to the United States and Spain that they +should severally recognize and carry into execution, as a modus vivendi, +during the continuance of hostilities, the additional articles proposed by +the international conference of Geneva, October 20, 1868, extending the +effects of the existing Red Cross convention of 1864 to the conduct of +naval war. Following the example set by France and Germany in 1870 in +adopting such a modus vivendi, and in view of the accession of the United +States to those additional articles in 1882, although the exchange of +ratifications thereof still remained uneffected, the Swiss proposal was +promptly and cordially accepted by us, and simultaneously by Spain. + +This Government feels a keen satisfaction in having thus been enabled to +testify its adherence to the broadest principles of humanity even amidst +the clash of war, and it is to be hoped that the extension of the Red Cross +compact to hostilities by sea as well as on land may soon become an +accomplished fact through the general promulgation of the additional naval +Red Cross articles by the maritime powers now parties to the convention of +1864. + +The important question of the claim of Switzerland to the perpetual +cantonal allegiance of American citizens of Swiss origin has not made +hopeful progress toward a solution, and controversies in this regard still +continue. + +The newly accredited envoy of the United States to the Ottoman Porte +carries instructions looking to the disposal of matters in controversy with +Turkey for a number of years. He is especially charged to press for a just +settlement of our claims for indemnity by reason of the destruction of the +property of American missionaries resident in that country during the +Armenian troubles of 1895, as well as for the recognition of older claims +of equal justness. + +He is also instructed to seek an adjustment of the dispute growing out of +the refusal of Turkey to recognize the acquired citizenship of Ottoman-born +persons naturalized in the United States since 1869 without prior imperial +consent, and in the same general relation he is directed to endeavor to +bring about a solution of the question which has more or less acutely +existed since 1869 concerning the jurisdictional rights of the United +States in matters of criminal procedure and punishment under Article IV of +the treaty of 1830. This latter difficulty grows out of a verbal +difference, claimed by Turkey to be essential, between the original Turkish +text and the promulgated translation. + +After more than two years from the appointment of a consul of this country +to Erzerum, he has received his exequatur. + +The arbitral tribunal appointed under the treaty of February 2, 1897, +between Great Britain and Venezuela, to determine the boundary line between +the latter and the colony of British Guiana, is to convene at Paris during +the present month. It is a source of much gratification to this Government +to see the friendly resort of arbitration applied to the settlement of this +controversy, not alone because of the earnest part we have had in bringing +about the result, but also because the two members named on behalf of +Venezuela, Mr. Chief Justice Fuller and Mr. Justice Brewer, chosen from our +highest court, appropriately testify the continuing interest we feel in the +definitive adjustment of the question according to the strictest rules of +justice. The British members, Lord Herschell and Sir Richard Collins, are +jurists of no less exalted repute, while the fifth member and president of +the tribunal, M. F. De Martens, has earned a world-wide reputation as an +authority upon international law. + +The claim of Felipe Scandella against Venezuela for arbitrary expulsion and +injury to his business has been adjusted by the revocation of the order of +expulsion and by the payment of the sum of $16,000. + +I have the satisfaction of being able to state that the Bureau of the +American Republics, created in 1890 as the organ for promoting commercial +intercourse and fraternal relations among the countries of the Western +Hemisphere, has become a more efficient instrument of the wise purposes of +its founders, and is receiving the cordial support of the contributing +members of the international union which are actually represented in its +board of management. A commercial directory, in two volumes, containing a +mass of statistical matter descriptive of the industrial and commercial +interests of the various countries, has been printed in English, Spanish, +Portuguese, and French, and a monthly bulletin published in these four +languages and distributed in the Latin-American countries as well as in the +United States has proved to be a valuable medium for disseminating +information and furthering the varied interests of the international +union. + +During the past year the important work of collecting information of +practical benefit to American industries and trade through the agency of +the diplomatic and consular officers has been steadily advanced, and in +order to lay such data before the public with the least delay the practice +was begun in January, 1898, of issuing the commercial reports from day to +day as they are received by the Department of State. It is believed that +for promptitude as well as fullness of information the service thus +supplied to our merchants and manufacturers will be found to show sensible +improvement and to merit the liberal support of Congress. + +The experiences of the last year bring forcibly home to us a sense of the +burdens and the waste of war. We desire, in common with most civilized +nations, to reduce to the lowest possible point the damage sustained in +time of war by peaceable trade and commerce. It is true we may suffer in +such cases less than other communities, but all nations are damaged more or +less by the state of uneasiness and apprehension into which an outbreak of +hostilities throws the entire commercial world. It should be our object, +therefore, to minimize, so far as practicable, this inevitable loss and +disturbance. This purpose can probably best be accomplished by an +international agreement to regard all private property at sea as exempt +from capture or destruction by the forces of belligerent powers. The United +States Government has for many years advocated this humane and beneficent +principle, and is now in position to recommend it to other powers without +the imputation of selfish motives. I therefore suggest for your +consideration that the Executive be authorized to correspond with the +governments of the principal maritime powers with a view of incorporating +into the permanent law of civilized nations the principle of the exemption +of all private property at sea, not contraband of war, from capture or +destruction by belligerent powers. + +The Secretary of the Treasury reports that the receipts of the Government +from all sources during the fiscal year ended June 30, 1898, including +$64,751,223 received from sale of Pacific railroads, amounted to +$405,321,335, and its expenditures to $443,168,582. There was collected +from customs $149,575,062 and from internal revenue $170,900,641. Our +dutiable imports amounted to $324,635,479, a decrease of $58,156,690 over +the preceding year, and importations free of duty amounted to $291,414,175, +a decrease from the preceding year of $90,524,068. Internal-revenue +receipts exceeded those of the preceding year by $24,212,067. + +The total tax collected on distilled spirits was $92,546,999; on +manufactured tobacco, $36,230,522, and on fermented liquors, $39,515,421. +We exported merchandise during the year amounting to $1,231,482,330, an +increase of $180,488,774 from the preceding year. + +It is estimated upon the basis of present revenue laws that the receipts of +the Government for the year ending June 30, 1899, will be $577,874,647, and +its expenditures $689,874,647, resulting in a deficiency of $112,000,000. + +On the 1st of December, 1898, there was held in the Treasury gold coin +amounting to $138,441,547, gold bullion amounting to $138,502,545, silver +bullion amounting to $93,359,250, and other forms of money amounting to +$451,963,981. + +On the same date the amount of money of all kinds in circulation, or not +included in Treasury holdings, was $1,886,879,504, an increase for the year +of $165,794,966. Estimating our population at 75,194,000 at the time +mentioned, the per capita circulation was $25.09. On the same date there +was in the Treasury gold bullion amounting to $138,502,545. + +The provisions made for strengthening the resources of the Treasury in +connection with the war have given increased confidence in the purpose and +power of the Government to maintain the present standard, and have +established more firmly than ever the national credit at home and abroad. A +marked evidence of this is found in the inflow of gold to the Treasury. Its +net gold holdings on November 1, 1898, were $239,885,162 as compared with +$153,573,147 on November 1, 1897, and an increase of net cash of +$207,756,100, November 1, 1897, to $300,238,275, November 1, 1898. The +present ratio of net Treasury gold to outstanding Government liabilities, +including United States notes, Treasury notes of 1890, silver certificates, +currency certificates, standard silver dollars, and fractional silver coin, +November 1, 1898, was 25.35 per cent, as compared with 16.96 per cent, +November 1, 1897. + +I renew so much of my recommendation of December, 1897, as follows: That +when any of the United States notes are presented for redemption in gold +and are redeemed in gold, such notes shall be kept and set apart and only +paid out in exchange for gold. This is an obvious duty. If the holder of +the United States note prefers the gold and gets it from the Government, he +should not receive back from the Government a United States note without +paying gold in exchange for it. The reason for this is made all the more +apparent when the Government issues an interest-bearing debt to provide +gold for the redemption of United States notes--a non-interest-bearing +debt. Surely it should not pay them out again except on demand and for +gold. If they are put out in any other way, they may return again, to he +followed by another bond issue to redeem them--another interest-bearing +debt to redeem a non-interest-bearing debt. This recommendation was made in +the belief that such provisions of law would insure to a greater degree the +safety of the present standard, and better protect our currency from the +dangers to which it is subjected from a disturbance in the general business +conditions of the country. + +In my judgment the present condition of the Treasury amply justifies the +immediate enactment of the legislation recommended one year ago, under +which a portion of the gold holdings should be placed in a trust fund from +which greenbacks should be redeemed upon presentation, but when once +redeemed should not thereafter be paid out except for gold. + +It is not to be inferred that other legislation relating to our currency is +not required; on the contrary, there is an obvious demand for it. + +The importance of adequate provision which will insure to our future a +money standard related as our money standard now is to that of our +commercial rivals is generally recognized. + +The companion proposition that our domestic paper currency shall be kept +safe and yet be so related to the needs of our industries and internal +commerce as to be adequate and responsive to such needs is a proposition +scarcely less important. The subject, in all its parts, is commended to the +wise consideration of the Congress. + +The annexation of Hawaii and the changed relations of the United States to +Cuba, Puerto Rico, and the Philippines resulting from the war, compel the +prompt adoption of a maritime policy by the United States. There should be +established regular and frequent steamship communication, encouraged by the +United States, under the American flag, with the newly acquired islands. +Spain furnished to its colonies, at an annual cost of about $2,000,000, +steamship lines communicating with a portion of the world's markets, as +well as with trade centers of the home Government. The United States will +not undertake to do less. It is our duty to furnish the people of Hawaii +with facilities, under national control, for their export and import trade. +It will be conceded that the present situation calls for legislation which +shall be prompt, durable, and liberal. + +The part which American merchant vessels and their seamen performed in the +war with Spain demonstrates that this service, furnishing both pickets and +the second line of defense, is a national necessity, and should be +encouraged in every constitutional way. Details and methods for the +accomplishment of this purpose are discussed in the report of the Secretary +of the Treasury, to which the attention of Congress is respectfully +invited. + +In my last annual message I recommended that Congress authorize the +appointment of a commission for the purpose of making systematic +investigations with reference to the cause and prevention of yellow fever. +This matter has acquired an increased importance as a result of the +military occupation of the island of Cuba and the commercial intercourse +between this island and the United States which we have every reason to +expect. The sanitary problems connected with our new relations with the +island of Cuba and the acquisition of Puerto Rico are no less important +than those relating to finance, commerce, and administration. It is my +earnest desire that these problems may be considered by competent experts +and that everything may be done which the most recent advances in sanitary +science can offer for the protection of the health of our soldiers in those +islands and of our citizens who are exposed to the dangers of infection +from the importation of yellow fever. I therefore renew my recommendation +that the authority of Congress may be given and a suitable appropriation +made to provide for a commission of experts to be appointed for the purpose +indicated. + +Under the act of Congress approved April 26, 1898, authorizing the +President in his discretion, "upon a declaration of war by Congress, or a +declaration by Congress that war exists," I directed the increase of the +Regular Army to the maximum of 62,000, authorized in said act. + +There are now in the Regular Army 57,862 officers and men. In said act it +was provided-- That at the end of any war in which the United States may +become involved the Army shall be reduced to a peace basis by the transfer +in the same arm of the service or absorption by promotion or honorable +discharge, under such regulations as the Secretary of War may establish, of +supernumerary commissioned officers and the honorable discharge or transfer +of supernumerary enlisted men; and nothing contained in this act shall be +construed as authorizing the permanent increase of the commissioned or +enlisted force of the Regular Army beyond that now provided by the law in +force prior to the passage of this act, except as to the increase of +twenty-five majors provided for in section 1 hereof. The importance of +legislation for the permanent increase of the Army is therefore manifest, +and the recommendation of the Secretary of War for that purpose has my +unqualified approval. There can be no question that at this time, and +probably for some time in the future, 100,000 men will be none too many to +meet the necessities of the situation. At all events, whether that number +shall be required permanently or not, the power should be given to the +President to enlist that force if in his discretion it should be necessary; +and the further discretion should be given him to recruit for the Army +within the above limit from the inhabitants of the islands with the +government of which we are charged. It is my purpose to muster out the +entire Volunteer Army as soon as the Congress shall provide for the +increase of the regular establishment. This will be only an act of justice +and will be much appreciated by the brave men who left their homes and +employments to help the country in its emergency. + +In my last annual message I stated: The Union Pacific Railway, main line, +was sold under the decree of the United States court for the district of +Nebraska on the 1st and 2d of November of this year. The amount due the +Government consisted of the principal of the subsidy bonds, $27,236,512, +and the accrued interest thereon, $31,211,711.75, making the total +indebtedness $58,448,223.75. The bid at the sale covered the first-mortgage +lien and the entire mortgage claim of the Government, principal and +interest. This left the Kansas Pacific case unconcluded. By a decree of the +court in that case an upset price for the property was fixed at a sum which +would yield to the Government only $2,500,000 upon its lien. The sale, at +the instance of the Government, was postponed first to December 15, 1897, +and later, upon the application of the United States, was postponed to the +16th day of February, 1898. + +Having satisfied myself that the interests of the Government required that +an effort should be made to obtain a larger sum, I directed the Secretary +of the Treasury, under the act passed March 3, 1887, to pay out of the +Treasury to the persons entitled to receive the same the amounts due upon +all prior mortgages upon the Eastern and Middle divisions of said railroad +out of any money in the Treasury not otherwise appropriated, whereupon the +Attorney-General prepared a petition to be presented to the court, offering +to redeem said prior liens in such manner as the court might direct, and +praying that thereupon the United States might be held to be subrogated to +all the rights of said prior lien holders and that a receiver might be +appointed to take possession of the mortgaged premises and maintain and +operate the same until the court or Congress otherwise directed. Thereupon +the reorganization committee agreed that if said petition was withdrawn and +the sale allowed to proceed on the 16th of February, 1898, they would bid a +sum at the sale which would realize to the Government the entire principal +of its debt, $6,303,000. + +Believing that no better price could be obtained and appreciating the +difficulties under which the Government would labor if it should become the +purchaser of the road at the sale, in the absence of any authority by +Congress to take charge of and operate the road I directed that upon the +guaranty of a minimum bid which should give the Government the principal of +its debt the sale should proceed. By this transaction the Government +secured an advance of $3,803,000 over and above the sum which the court had +fixed as the upset price, and which the reorganization committee had +declared was the maximum which they would pay for the property. + +It is a gratifying fact that the result of these proceedings against the +Union Pacific system and the Kansas Pacific line is that the Government has +received on account of its subsidy claim the sum of $64,751,223.75, an +increase of $18,997,163.76 over the sum which the reorganization committee +originally agreed to bid for the joint property, the Government receiving +its whole claim, principal and interest, on the Union Pacific, and the +principal of its debt on the Kansas Pacific Railroad. + +Steps had been taken to foreclose the Government's lien upon the Central +Pacific Railroad Company, but before action was commenced Congress passed +an act, approved July 7, 1898, creating a commission consisting of the +Secretary of the Treasury, the Attorney-General, and the Secretary of the +Interior, and their successors in office, with full power to settle the +indebtedness to the Government growing out of the issue of bonds in aid of +the construction of the Central Pacific and Western Pacific bond-aided +railroads, subject to the approval of the President. + +No report has yet been made to me by the commission thus created. Whatever +action is had looking to a settlement of the indebtedness in accordance +with the act referred to will be duly submitted to the Congress. + +I deem it my duty to call to the attention of Congress the condition of the +present building occupied by the Department of Justice. The business of +that Department has increased very greatly since it was established in its +present quarters. The building now occupied by it is neither large enough +nor of suitable arrangement for the proper accommodation of the business of +the Department. The Supervising Architect has pronounced it unsafe and +unsuited for the use to which it is put. The Attorney-General in his report +states that the library of the Department is upon the fourth floor, and +that all the space allotted to it is so crowded with books as to +dangerously overload the structure. The first floor is occupied by the +Court of Claims. The building is of an old and dilapidated appearance, +unsuited to the dignity which should attach to this important Department. + +A proper regard for the safety, comfort, and convenience of the officers +and employees would justify the expenditure of a liberal sum of money in +the erection of a new building of commodious proportions and handsome +appearance upon the very advantageous site already secured for that +purpose, including the ground occupied by the present structure and +adjoining vacant lot, comprising in all a frontage of 201 feet on +Pennsylvania avenue and a depth of 136 feet. + +In this connection I may likewise refer to the inadequate accommodations +provided for the Supreme Court in the Capitol, and suggest the wisdom of +making provision for the erection of a separate building for the court and +its officers and library upon available ground near the Capitol. + +The postal service of the country advances with extraordinary growth. +Within twenty years both the revenues and the expenditures of the +Post-Office Department have multiplied threefold. In the last ten years +they have nearly doubled. Our postal business grows much more rapidly than +our population. It now involves an expenditure of $100,000,000 a year, +numbers 73,000 post-offices, and enrolls 200,000 employees. This remarkable +extension of a service which is an accurate index of the public conditions +presents gratifying evidence of the advancement of education, of the +increase of communication and business activity, and of the improvement of +mail facilities leading to their constantly augmenting use. + +The war with Spain laid new and exceptional labors on the Post-Office +Department. The mustering of the military and naval forces of the United +States required special mail arrangements for every camp and every +campaign. The communication between home and camp was naturally eager and +expectant. In some of the larger places of rendezvous as many as 50,000 +letters a day required handling. This necessity was met by the prompt +detail and dispatch of experienced men from the established force and by +directing all the instrumentalities of the railway mail and post-office +service, so far as necessary, to this new need. Congress passed an act +empowering the postmaster-General to establish offices or branches at every +military camp or station, and under this authority the postal machinery was +speedily put into effective operation. + +Under the same authority, when our forces moved upon Cuba, Puerto Rico, and +the Philippines they were attended and followed by the postal service. +Though the act of Congress authorized the appointment of postmasters where +necessary, it was early determined that the public interests would best be +subserved, not by new designations, but by the detail of experienced men +familiar with every branch of the service, and this policy was steadily +followed. When the territory which was the theater of conflict came into +our possession, it became necessary to reestablish mail facilities for the +resident population as well as to provide them for our forces of +occupation, and the former requirement was met through the extension and +application of the latter obligation. I gave the requisite authority, and +the same general principle was applied to this as to other branches of +civil administration under military occupation. The details are more +particularly given in the report of the postmaster-General, and, while the +work is only just begun, it is pleasing to be able to say that the service +in the territory which has come under our control is already materially +improved. + +The following recommendations of the Secretary of the Navy relative to the +increase of the Navy have my earnest approval: + +1. Three seagoing sheathed and coppered battle ships of about 13,500 tons +trial displacement, carrying the heaviest armor and most powerful ordnance +for vessels of their class, and to have the highest practicable speed and +great radius of action. Estimated cost, exclusive of armor and armament, +$3,600,000 each. + +2. Three sheathed and coppered armored cruisers of about 12,000 tons trial +displacement, carrying the heaviest armor and most powerful ordnance for +vessels of their class, and to have the highest practicable speed and great +radius of action. Estimated cost, exclusive of armor and armament, +$4,000,000 each. + +3. Three sheathed and coppered protected cruisers of about 6,000 tons trial +displacement, to have the highest practicable speed and great radius of +action, and to carry the most powerful ordnance suitable for vessels of +their class. Estimated cost, exclusive of armor and armament, $2,150,000 +each. + +4. Six sheathed and coppered cruisers of about 2,500 tons trial dis. +placement, to have the highest speed compatible with good cruising +qualities, great radius of action, and to carry the most powerful ordnance +suited to vessels of their class. Estimated cost, exclusive of armament, +$1,141,800 each. + +I join with the Secretary of the Navy in recommending that grades of +admiral and vice-admiral be temporarily revived, to be filled by officers +who have specially distinguished themselves in the war with Spain. + +I earnestly urge upon Congress the importance of early legislation +providing for the taking of the Twelfth Census. This is necessary in view +of the large amount of work which must be performed in the preparation of +the schedules preparatory to the enumeration of the population. + +There were on the pension rolls on June 30, 1898, 993,714 names, an +increase of nearly 18,000 over the number on the rolls on the same day of +the preceding year. The amount appropriated by the act of December 22, +1896, for the payment of pensions for the fiscal year of 1898 was +$140,000,000. Eight million seventy thousand eight hundred and seventy-two +dollars and forty-six cents was appropriated by the act of March 31, 1898, +to cover deficiencies in army pensions, and repayments in the sum of +$12,020.33, making a total of $148,082,892.79 available for the payment of +pensions during the fiscal year 1898. The amount disbursed from that sum +was $144,651,879.80, leaving a balance of $3,431,012.99 unexpended on the +30th of June, 1898, which was covered into the Treasury. There were 389 +names added to the rolls during the year by special acts passed at the +second session of the Fifty-fifth Congress, making a total of 6,486 +pensioners by Congressional enactments since 1861. + +The total receipts of the Patent Office during the past year were +$1,253,948.44. The expenditures were $1,081,633.79, leaving a surplus of +$172,314.65. + +The public lands disposed of by the Government during the year reached +8,453,896.92 acres, an increase of 614,780.26 acres over the previous year. +The total receipts from public lands during the fiscal year amounted to +$2,277,995.18, an increase of $190,063.90 over the preceding year. The +lands embraced in the eleven forest reservations which were suspended by +the act of June 4, 1897, again became subject to the operations of the +proclamations of February 22, 1897, creating them, which added an estimated +amount of 19,951,360 acres to the area embraced in the reserves previously +created. In addition thereto two new reserves were created during the +year--the Pine Mountain and Zaca Lake Reserve, in California, embracing +1,644,594 acres, and the Prescott Reserve, in Arizona, embracing 10,240 +acres--while the Pecos River Reserve, in New Mexico, has been changed and +enlarged to include 120,000 additional acres. + +At the close of the year thirty forest reservations, not including those of +the Afognak Forest and the Fish-Culture Reserve, in Alaska, had been +created by Executive proclamations under section 24 of the act of March 3, +1891, embracing an estimated area of 40,719,474 acres. + +The Department of the Interior has inaugurated a forest system, made +possible by the act of July, 1898, for a graded force of officers in +control of the reserves. This system has only been in full operation since +August, but good results have already been secured in many sections. The +reports received indicate that the system of patrol has not only prevented +destructive fires from gaining headway, but has diminished the number of +fires. + +The special attention of the Congress is called to that part of the report +of the Secretary of the Interior in relation to the Five Civilized Tribes. +It is noteworthy that the general condition of the Indians shows marked +progress. But one outbreak of a serious character occurred during the year, +and that among the Chippewa Indians of Minnesota, which happily has been +suppressed. + +While it has not yet been practicable to enforce all the provisions of the +act of June 28, 1898, "for the protection of the people of the Indian +Territory, and for other purposes," it is having a salutary effect upon the +nations composing the five tribes. The Dawes Commission reports that the +most gratifying results and greater advance toward the attainment of the +objects of the Government have been secured in the past year than in any +previous year. I can not too strongly indorse the recommendation of the +commission and of the Secretary of the Interior for the necessity of +providing for the education of the 30,000 white children resident in the +Indian Territory. + +The Department of Agriculture has been active in the past year. Explorers +have been sent to many of the countries of the Eastern and Western +hemispheres for seeds and plants that may be useful to the United States, +and with the further view of opening up markets for our surplus products. +The Forestry Division of the Department is giving special attention to the +treeless regions of our country and is introducing species specially +adapted to semiarid regions. Forest fires, which seriously interfere with +production, especially in irrigated regions, are being studied, that losses +from this cause may be avoided. The Department is inquiring into the use +and abuse of water in many States of the West, and collating information +regarding the laws of the States, the decisions of the courts, and the +customs of the people in this regard, so that uniformity may be secured. +Experiment stations are becoming more effective every year. The annual +appropriation of $720,000 by Congress is supplemented by $400,000 from the +States. Nation-wide experiments have been conducted to ascertain the +suitableness as to soil and climate and States for growing sugar beets. The +number of sugar factories has been doubled in the past two years, and the +ability of the United States to produce its own sugar from this source has +been clearly demonstrated. + +The Weather Bureau forecast and observation stations have been extended +around the Caribbean Sea, to give early warning of the approach of +hurricanes from the south seas to our fleets and merchant marine. + +In the year 1900 will occur the centennial anniversary of the founding of +the city of Washington for the permanent capital of the Government of the +United States by authority of an act of Congress approved July 16, 1790. In +May, 1800, the archives and general offices of the Federal Government were +removed to this place. On the 17th of November, 1800, the National Congress +met here for the first time and assumed exclusive control of the Federal +district and city. This interesting event assumes all the more significance +when we recall the circumstances attending the choosing of the site, the +naming of the capital in honor of the Father of his Country, and the +interest taken by him in the adoption of plans for its future development +on a magnificent scale. + +These original plans have been wrought out with a constant progress and a +signal success even beyond anything their framers could have foreseen. The +people of the country are justly proud of the distinctive beauty and +government of the capital and of the rare instruments of science and +education which here find their natural home. + +A movement lately inaugurated by the citizens to have the anniversary +celebrated with fitting ceremonies, including, perhaps, the establishment +of a handsome permanent memorial to mark so historical an occasion and to +give it more than local recognition, has met with general favor on the part +of the public. + +I recommend to the Congress the granting of an appropriation for this +purpose and the appointment of a committee from its respective bodies. It +might also be advisable to authorize the President to appoint a committee +from the country at large, which, acting with the Congressional and +District of Columbia committees, can complete the plans for an appropriate +national celebration. + +The alien contract law is shown by experience to need some amendment; a +measure providing better protection for seamen is proposed; the rightful +application of the eight-hour law for the benefit of labor and of the +principle of arbitration are suggested for consideration; and I commend +these subjects to the careful attention of the Congress. + +The several departmental reports will be laid before you. They give in +great detail the conduct of the affairs of the Government during the past +year and discuss many questions upon which the Congress may feel called +upon to act. + +*** + +State of the Union Address +William McKinley +December 5, 1899 + +To the Senate and House of Representatives: + +At the threshold of your deliberations you are called to mourn with your +countrymen the death of Vice-President Hobart, who passed from this life on +the morning of November 21 last. His great soul now rests in eternal peace. +His private life was pure and elevated. while his public career was ever +distinguished by large capacity, stainless integrity, and exalted motives. +He has been removed from the high office which he honored and dignified, +but his lofty character, his devotion to duty, his honesty of purpose, and +noble virtues remain with us as a priceless legacy and example. + +The Fifty-sixth Congress convenes in its first regular session with the +country in a condition of unusual prosperity, of universal good will among +the people at home, and in relations of peace and friendship with every +government of the world. Our foreign commerce has shown great increase in +volume and value. The combined imports and exports for the year are the +largest ever shown by a single year in all our history. Our exports for +1899 alone exceeded by more than a billion dollars our imports and exports +combined in 1870. The imports per capita are 20 per cent less than in 1870, +while the exports per capita are 58 per cent more than in 1870, showing the +enlarged capacity of the United States to satisfy the wants of its own +increasing population, as well as to contribute to those of the peoples of +other nations. + +Exports of agricultural products were $784,776,142. Of manufactured +products we exported in value $339,592,146, being larger than any previous +year. It is a noteworthy fact that the only years in all our history when +the products of our manufactories sold abroad exceeded those bought abroad +were 1898 and 1899. + +Government receipts from all sources for the fiscal year ended June 30, +1899, including $11,798,314,14, part payment of the Central Pacific +Railroad indebtedness, aggregated $610,982,004.35. Customs receipts were +$206,128,481.75, and those from internal revenue $273,437,161.51. + +For the fiscal year the expenditures were $700,093,564.02, leaving a +deficit of $89,111,559.67. + +The Secretary of the Treasury estimates that the receipts for the current +fiscal year will aggregate $640,958,112, and upon the basis of present +appropriations the expenditures will aggregate $600,958,112, leaving a +surplus of $40,000,000. + +For the fiscal year ended June 30, 1899, the internal-revenue receipts were +increased about $100,000,000. + +The present gratifying strength of the Treasury is shown by the fact that +on December 1, 1899, the available cash balance was $278,004,837.72, Of +which $239,744,905.36 was in gold coin and bullion. The conditions of +confidence which prevail throughout the country have brought gold into more +general use and customs receipts are now almost entirely paid in that +coin. + +The strong position of the Treasury with respect to cash on band and the +favorable showing made by the revenues have made it possible for the +Secretary of the Treasury to take action under the provisions of section +3694, Revised Statutes, relating to the sinking fund. Receipts exceeded +expenditures for the first five months of the current fiscal year by +$13,413,389.91, and, as mentioned above, the Secretary of the Treasury +estimates that there will be a surplus of approximately $40,000,000 at the +end of the year. Under such conditions it was deemed advisable and proper +to resume compliance with the provisions of the sinking-fund law, which for +eight years has not been done because of deficiencies in the revenues. The +Treasury Department therefore offered to purchase during November +$25,000,000 of the 5 per cent loan of 1904, or the 4 per cent funded loan +of 1907, at the current market price. The amount offered and purchased +during November was $18,408,600. The premium paid by the Government on such +purchases was $2,263,521 and the net saving in interest was about +$2,885,000. The success of this operation was sufficient to induce the +Government to continue the offer to purchase bonds to and including the 23d +day of December, instant, unless the remainder of the $25,000,000 called +for should be presented in the meantime for redemption + +Increased activity in industry, with its welcome attendant--a larger +employment for labor at higher wages--gives to the body of the people a +larger power to absorb the circulating medium. It is further true that year +by year, with larger areas of land under cultivation, the increasing volume +of agricultural products, cotton, corn, and wheat, calls for a larger +volume of money supply. This is especially noticeable at the +crop-harvesting and crop-moving period. + +In its earlier history the National Banking Act seemed to prove a +reasonable avenue through which needful additions to the circulation could +from time to time be made. Changing conditions have apparently rendered it +now inoperative to that end. The high margin in bond securities required, +resulting from large premiums which Government bonds command in the market, +or the tax on note issues, or both operating together, appear to be the +influences which impair its public utility. + +The attention of Congress is respectfully invited to this important matter, +with the view of ascertaining whether or not such reasonable modifications +can be made in the National Banking Act as will render its service in the +particulars here referred to more responsive to the people's needs. I again +urge that national banks be authorized to organize with a capital of +$25,000. + +I urgently recommend that to support the existing gold standard, and to +maintain "the parity in value of the coins of the two metals (gold and +silver) and the equal power of every dollar at all times in the market and +in the payment of debts," the Secretary of the Treasury be given additional +power and charged with the duty to sell United States bonds and to employ +such other effective means as may be necessary to these ends. The authority +should include the power to sell bonds on long and short time, as +conditions may require, and should provide for a rate of interest lower +than that fixed by the act of January 14, 1875. While there is now no +commercial fright which withdraws gold from the Government, but, on the +contrary, such widespread confidence that gold seeks the Treasury demanding +paper money in exchange, yet the very situation points to the present as +the most fitting time to make adequate provision to insure the continuance +of the gold standard and of public confidence in the ability and purpose of +the Government to meet all its obligations in the money which the civilized +world recognizes as the best. The financial transactions of the Government +are conducted upon a gold basis. We receive gold when we sell United States +bonds and use gold for their payment. We are maintaining the parity of all +the money issued or coined by authority of the Government. We are doing +these things with the means at hand. Happily at the present time we are not +compelled to resort to loans to supply gold. It has been done in the past, +however, and may have to be done in the future. It behooves us, therefore, +to provide at once the best means to meet the emergency when it arises, and +the best means are those which are the most certain and economical. Those +now authorized have the virtue neither of directness nor economy. We have +already eliminated one of the causes of our financial plight and +embarrassment during the years 1893, 1894, 1895, and 1896. Our receipts now +equal our expenditures; deficient revenues no longer create alarm Let us +remove the only remaining cause by conferring the full and necessary power +on the Secretary of the Treasury and impose upon him the duty to uphold the +present gold standard and preserve the coins of the two metals on a parity +with each other, which is the repeatedly declared policy of the United +States. + +In this connection I repeat my former recommendations that a portion of the +gold holdings shall be placed in a trust fund from which greenbacks shall +be redeemed upon presentation, but when once redeemed shall not thereafter +be paid out except for gold. + +The value of an American merchant marine to the extension of our commercial +trade and the strengthening of our power upon the sea invites the immediate +action of the Congress. Our national development will be one-sided and +unsatisfactory so long as the remarkable growth of our inland industries +remains unaccompanied by progress on the seas. There is no lack of +constitutional authority for legislation which shall give to the country +maritime strength commensurate with its industrial achievements and with +its rank among the nations of the earth, + +The past year has recorded exceptional activity in our shipyards. and the +promises of continual prosperity in shipbuilding are abundant. Advanced +legislation for the protection of our seamen has been enacted. Our coast +trade, under regulations wisely framed at the beginning of the Government +and since, shows results for the past fiscal year unequaled in our records +or those of any other power. We shall fail to realize our opportunities, +however, if we complacently regard only matters at home and blind ourselves +to the necessity of securing our share in the valuable carrying trade of +the world. + +Last year American vessels transported a smaller share of our exports and +imports than during any former year in all our history, and the measure of +our dependence upon foreign shipping was painfully manifested to our +people. Without any choice of our own, but from necessity, the Departments +of the Government charged with military and naval operations in the East +and West Indies had to obtain from foreign flags merchant vessels essential +for those operations. + +The other great nations have not hesitated to adopt the required means to +develop their shipping as a factor in national defense and as one of the +surest and speediest means of obtaining for their producers a share in +foreign markets. Like vigilance and effort on our part cannot fail to +improve our situation, which is regarded with humiliation at home and with +surprise abroad. Even the seeming sacrifices, which at the beginning may be +involved, will be offset later by more than equivalent gains. + +The expense is as nothing compared to the advantage to be achieved. The +reestablishment of our merchant marine involves in a large measure our +continued industrial progress and the extension of our commercial triumphs. +I am satisfied the judgment of the country favors the policy of aid to our +merchant marine, which will broaden our commerce and markets and upbuild +our sea-carrying capacity for the products of agriculture and manufacture; +which, with the increase of our Navy, mean more work and wages to our +countrymen, as well as a safeguard to American interests in every part of +the world. + +Combinations of capital organized into trusts to control the conditions of +trade among our citizens, to stifle competition, limit production, and +determine the prices of products used and consumed by the people, are +justly provoking public discussion, and should early claim the attention of +the Congress. + +The Industrial Commission, created by the act of the Congress of June 18, +1898, has been engaged in extended hearings upon the disputed questions +involved in the subject of combinations in restraint of trade and +competition. They have not yet completed their investigation of this +subject, and the conclusions and recommendations at which they may arrive +are undetermined. + +The subject is one giving rise to many divergent views as to the nature and +variety or cause and extent of the 111juries to the public which may result +from large combinations concentrating more or less numerous enterprises and +establishments, which previously to the formation of the combination were +carried on separately. + +It is universally conceded that combinations which engross or control the +market of any particular kind of merchandise or commodity necessary to the +general community, by suppressing natural and ordinary competition, whereby +prices are unduly enhanced to the general consumer, ,,re obnoxious not only +to the common law but also to the public welfare. There must be a remedy +for the evils involved in such organizations. If the present law can be +extended more certainly to control or check these monopolies or trusts, it +should be done without delay. Whatever power the Congress possesses over +this most important subject should be promptly ascertained and asserted. + +President Harrison in his annual message of December 3, 1889, says: Earnest +attention should be given by Congress to a consideration of the question +how far the restraint of those combinations of capital commonly called 11 +trusts" is matter of Federal jurisdiction. When organized, as they often +are, to crush out all 'healthy competition and to monopolize the production +or sale of an article of commerce and general necessity they are dangerous +conspiracies against the public good, and should be made the subject of +prohibitory and even penal legislation. An act to protect trade and +commerce against unlawful restraints and monopolies was passed by Congress +on the 2d of July, 1890. The provisions of this statute are comprehensive +and stringent. It declares every contract or combination, in the form of a +trust or otherwise, or conspiracy in the restraint of trade or commerce +among the several States or with foreign nations, to be unlawful. It +denominates as a criminal every person who makes any such contract or +engages in any such combination or conspiracy, and provides a punishment by +fine or imprisonment. It invests the several circuit courts of the United +States with jurisdiction to prevent and restrain violations of the act, and +makes it the duty of the several United States district attorneys, under +the direction of the Attorney General, to institute proceedings in equity +to prevent and restrain such violations. It further confers upon any person +who shall be injured in his business or property by any other person or +corporation by reason of anything forbidden or declared to be unlawful by +the act, the power to sue therefore in any circuit court of the United +States without respect to the amount in controversy, and to recover +threefold the damages by him sustained and the costs of the suit, including +reasonable attorney fees. It will be perceived that the act is aimed at +every kind of combination in the nature of a trust or monopoly in restraint +of interstate or international commerce. + +The prosecution by the United States of offenses under the act of 1890 has +been frequently resorted to in the Federal courts, and notable efforts in +the restraint of interstate commerce, such as the Trans-Missouri Freight +Association and the joint Traffic Association, have been successfully +opposed and suppressed. + +President Cleveland in his annual message of December 7, 1896 -- more than +six years subsequent to the enactment of this law -- after stating the +evils of these trust combinations, says: Though Congress has attempted to +deal with this matter by legislation, the laws passed for that purpose thus +far have proved ineffective, not because of any lack of disposition or +attempt to enforce them, but simply because the laws themselves as +interpreted by the courts do not reach the difficulty. If the +insufficiencies of existing laws can be remedied by further legislation, it +should be done. The fact must be recognized, however, that all Federal +legislation on this subject may fall short of its purpose because of +inherent obstacles, and also because of the complex character of our +governmental system, which, while making the Federal authority supreme +within its sphere, has carefully limited that sphere by metes and bounds +which cannot be transgressed. The decision of our highest court on this +precise question renders it quite doubtful whether the evils of trusts and +monopolies may be adequately treated through Federal action, unless they +seek directly and purposely to include in their objects transportation or +intercourse between States or between the United States and foreign +countries. It does not follow, however, that this is the limit of the +remedy that may be applied. Even though it may be found that Federal +authority is not broad enough to fully reach the case, there can be no +doubt of the power of the several States to act effectively in the +premises, and there should be no reason to doubt their willingness to +judiciously exercise such power. The State legislation to which President +Cleveland looked for relief from the evils of trusts has failed to +accomplish fully that object. This is probably due to a great extent to the +fact that different States take different views as to the proper way to +discriminate between evil and injurious combinations and those associations +which are beneficial and necessary to the business prosperity of the +country. The great diversity of treatment in different States arising from +this cause and the intimate relations of all parts of the country to each +other without regarding State lines in the conduct of business have made +the enforcement of State laws difficult. + +It is apparent that uniformity of legislation upon this subject in the +several States is much to be desired. It is to be hoped that such +uniformity founded in a wise and just discrimination between what is +injurious and what is useful and necessary in business operations may be +obtained and that means may be found for the Congress within the +limitations of its constitutional power so to supplement an effective code +of State legislation as to make a complete system of laws throughout the +United States adequate to compel a general observance of the salutary rules +to which I have referred. + +The whole question is so important and far-reaching that I am sure no part +of it will be lightly considered, but every phase of it will have the +studied deliberation of the Congress, resulting in wise and judicious +action. + +A review of our relations with foreign States is presented with such +recommendations as are deemed appropriate. + +The long-pending boundary dispute between the Argentine Republic and Chile +was settled in March last by the award of an arbitral commission, on which +the United States minister at Buenos Ayres served as umpire. + +Progress has been made toward the conclusion of a convention of extradition +with the Argentine Republic. Having been advised and consented to by the +United States Senate and ratified by Argentina, it only awaits the +adjustment of some slight changes in the text before exchange. + +In my last annual message I adverted to the claim of the Austro-Hungarian +Government for indemnity for the killing of certain Austrian and Hungarian +subjects by the authorities of the State of Pennsylvania, at Lattimer, +while suppressing an unlawful tumult of miners, September 10, 1897. In view +of the verdict of acquittal rendered by the court before which the sheriff +and his deputies were tried for murder, and following the established +doctrine that the Government may not be held accountable for injuries +suffered by individuals at the hands of the public authorities while acting +in the line of duty in suppressing disturbance of the public peace, this +Government, after due consideration of the claim advanced by the +Austro-Hungarian Government, was constrained to decline liability to +indemnify the sufferers. + +It is gratifying to be able to announce that the Belgian Government has +mitigated the restrictions on the importation of cattle from the United +States, to which I referred in my last annual message. + +Having been invited by Belgium to participate in a congress, held at +Brussels, to revise the provisions of the general act Of July 2, 1890, for +the repression of the African slave trade, to which the United States was a +signatory party, this Government preferred not to be represented by a +plenipotentiary, but reserved the right of accession to the result. Notable +changes were made, those especially concerning this country being in the +line of the increased restriction of the deleterious trade in spirituous +liquors with the native tribes, which this Government has from the outset +urgently advocated. The amended general act will be laid before the Senate, +with a view to its advice and consent. + +Early in the year the peace of Bolivia was disturbed by a successful +insurrection. The United States minister remained at his post, attending to +the American interests in that quarter, and using besides his good offices +for the protection of the interests of British subjects in the absence of +their national representative. On the establishment of the new Government, +our minister was directed to enter into relations therewith. + +General Pando was elected President of Bolivia on October 23. + +Our representative has been instructed to use all permissible friendly +endeavors to induce the Government of Bolivia to amend its marriage laws so +as to give legal status to the non-Catholic and civil marriages of aliens +within its jurisdiction, and strong hopes are entertained that the Bolivian +law in this regard will be brought, as was that of Peru some years ago, +into harmony with the general practice of modern States. + +A convention of extradition with Brazil, signed May 14, 1897, has been +rati6ed by the Brazilian Legislature. + +During the past summer two national ships of the United States have visited +Brazilian ports on a friendly mission and been cordially received. The +voyage of the Wilininglon up the Amazon River gave rise to a passing +misunderstanding, owing to confusion in obtaining permission to visit the +interior and make surveys in the general interest of navigation, but the +incident found a ready adjustment in harmony with the close relations of +amity which this Government has always sedulously sought to cultivate with +the commonwealths of the Western Continent. + +The claim growing out of the seizure of the American-owned newspaper "The +Panama Star and Herald" by the authorities of Colombia has been settled, +after a controversy of several years, by an agreement assessing at $30,000 +the indemnity to be paid by the Colombian Government, in three installments +of $10,000 each. + +The good will of Colombia toward our country has been testified anew by the +cordial extension of facilities to the Nicaraguan Canal Commission in their +approaching investigation of the Panama Canal and other projected routes +across the Isthmus of Darien. + +Toward the end of October an insurrectionary disturbance developed in the +Colombian Republic. This movement has thus far not attained any decisive +result and is still in progress. + +Discussion of the questions raised by the action of Denmark in imposing +restrictions on the importation of American meats has continued without +substantial result in our favor. + +The neighboring island Republic of Santo Domingo has lately been the scene +of revolution, following a long period of tranquility. It began with the +killing of President Heureaux in July last, and culminated in the +relinquishment by the succeeding Vice-President of the reins of government +to the insurgents. The first act of the provisional government was the +calling of a presidential and constituent election. Juan Isidro Jimenez, +having been elected President, was inaugurated on the 14th of November. +Relations have been entered into with the newly established Government. + +The experimental association of Nicaragua, Honduras, and Salvador, tinder +the title of the Greater Republic of Central America, when apparently on +the threshold of a complete federal organization by the adoption of a +constitution and the formation of a national legislature, was disrupted in +the last days of November, 1898, by the withdrawal of Salvador. Thereupon +Nicaragua and Honduras abandoned the joint compact, each resuming its +former independent sovereignty. This was followed by the reception of +Minister Merry by the Republics of Nicaragua and Salvador, while Minister +Hunter in turn presented his credentials to the Government of Honduras, +thus reverting to the old distribution of the diplomatic agencies of the +United States in Central America for which our existing statutes provide. A +Nicaraguan envoy has been accredited to the United States. + +An insurrectionary movement, under General Reyes, broke out at Eluefields +in February last, and for a time exercised actual control in the Mosquito +Territory. The Detroit was promptly sent thither for the protection of +American interests. After a few weeks the Reyes government renounced the +conflict, giving place to the restored supremacy of Nicaragua. During the +interregnum certain public dues accruing under Nicaraguan law were +collected from American merchants by the authorities for the time being in +effective administrative control. Upon the titular government regaining +power, a second payment of these dues was demanded. Controversy arose +touching the validity of the original payment of the debt to the de facto +regent of the territory. An arrangement was effected in April last by the +United States minister and the foreign secretary of Nicaragua whereby the +amounts of the duplicate payments were deposited with the British consul +pending an adjustment of the matter by direct agreement between the +Governments of the United States and Nicaragua. The controversy is still +unsettled. + +The contract of the Maritime Canal Company of Nicaragua was declared +forfeited by the Nicaraguan Government on the Tenth of October, on the +ground of nonfulfillment within the ten years' term stipulated in the +contract. The Maritime Canal Company has lodged a protest against this +action, alleging rights in the premises which appear worthy of +consideration. This Government expects that Nicaragua will afford the +protestants a full and fair hearing upon the merits of the case. + +The Nicaragua Canal Commission, which bad been engaged upon the work of +examination and survey for a ship-canal route across Nicaragua, having +completed its labors and made its report, was dissolved on May P, and on +June To a new commission, known as the Isthmian Canal Commission, was +organized under the terms of the act approved March 3, 1899, for the +purpose of examining the American Isthmus with a view to determining the +most practicable and feasible route for a ship canal across that Isthmus, +with its probable cost, and other essential details. + +This Commission, under the presidency of Rear-Admiral John G. Walker, U. S. +N. (retired), entered promptly upon the work intrusted to it, and is now +carrying on examinations in Nicaragua along the route of the Panama Canal, +and in Darien from the Atlantic, in the neighborhood of the Atrato River, +to the Bay of Panama, on the Pacific side. Good progress has been made, but +under the law a comprehensive and complete investigation is called for, +which will require much labor and considerable time for its accomplishment. +The work will be prosecuted as expeditiously as possible and a report made +at the earliest practicable date. + +The great importance of this work cannot be too often or too strongly +pressed upon the attention of the Congress. In my message of a year ago I +expressed my views of the necessity of a canal which would link the two +great oceans, to which I again invite your consideration. The reasons then +presented for early action are even stronger now. + +A pleasing incident in the relations of this Government with that of Chile +occurred in the generous assistance given to the war ship Newark when in +distress in Chilean waters. Not alone in this way has the friendly +disposition of Chile found expression. That country has acceded to the +convention for the establishment of the Bureau of the American Republics, +in which organization every independent State of the continent now shares. + +The exchange of ratifications of a convention for the revival of the United +States and Chilean Claims Commission and for the adjudication of claims +heretofore presented but not determined during the life of the previous +Commission has been delayed by reason of the necessity for fresh action by +the Chilean Senate upon the amendments attached to the ratification of the +treaty by the United States Senate. This formality is soon to be +accomplished. + +In view of disturbances in the populous provinces of northern China, where +are many of our citizens, and of the imminence of disorder near the capital +and toward the seaboard, a guard of marines was landed from the Boston and +stationed during last winter in the legation compound at Peking. With the +restoration of order this protection was withdrawn. + +The interests of our citizens in that vast Empire have not been neglected +during the past year. Adequate protection has been secured for our +missionaries and some injuries to their property have been redressed. + +American capital has sought and found various opportunities of competing to +carry out the internal improvements which the Imperial Government is wisely +encouraging, and to develop the natural resources of the Empire. Our trade +with China has continued to grow, and our commercial rights under existing +treaties have been everywhere maintained during the past year, as they will +be in the future. + +The extension of the area open to international foreign settlement at +Shanghai and the opening of the ports of Nanking, Tsing-tao (Kiao chao), +and Ta-lien-wan to foreign trade and settlement will doubtless afford +American enterprise additional facilities and new fields, of which it will +not be slow to take advantage. + +In my message to Congress of December 5, 1898, 1 urged that the +recommendation which had been made to the Speaker of the House of +Representatives by the Secretary of the Treasury on the 14th of June, z898, +for an appropriation for a commission to study the commercial and +industrial conditions in the Chinese Empire and report as to the +opportunities for, and obstacles to, the enlargement of markets in China +for the raw products and manufactures of the United States, should receive +at your hands the consideration which its importance and timeliness +merited, but the Congress failed to take action. + +I now renew this recommendation, as the importance of the subject has +steadily grown since it was first submitted to you, and no time should be +lost in studying for ourselves the resources of this great field for +American trade and enterprise. + +The death of President Faure in February last called forth those sincere +expressions of sympathy which befit the relations of two Republics as +closely allied by unbroken historic ties as are the United States and +France. + +Preparations for the representation of the industries, arts, and products +of the United States at the World's Exposition to be held in Paris next +year continue on an elaborate and comprehensive scale, thanks to the +generous appropriation provided by Congress and to the friendly interest +the French Government has shown in furthering a typical exhibit of American +progress. + +There has been allotted to the United States a considerable addition of +space, which, while placing our country in the first rant among exhibitors, +does not suffice to meet the increasingly urgent demands of our +manufacturers. The efforts of the Commissioner General are ably directed +toward a strictly representative display of all that most +characteristically marks American achievement in the inventive arts, and +most adequately shows the excellence of our natural productions. + +In this age of keen rivalry among nations for mastery in commerce, the +doctrine of evolution and the rule of the survival of the fittest must be +as inexorable in their operation as they are positive in the results they +bring about. The place won in the struggle by an industrial people can only +be held by unrelaxed endeavor and constant advance in achievement. The +present extraordinary impetus in every line of American exportation and the +astounding increase in the volume and value of our share in the world's +markets may not be attributed to accidental conditions. + +The reasons are not far to seek. They lie deep in our national character +and find expression year by year in every branch of handicraft, in every +new device whereby the materials we so abundantly produce are subdued to +the artisan's will and made to yield the largest, most practical, and most +beneficial return. The American exhibit at Paris should, and I am confident +will, be an open volume, whose lessons of skillfully directed endeavor, +unfaltering energy, and consummate performance may be read by all on every +page, thus spreading abroad a clearer knowledge of the worth of our +productions and the justice of our claim to an important place in the marts +of the world. To accomplish this by judicious selection, by recognition of +paramount merit in whatever walk of trade or manufacture it may appear, and +by orderly classification and attractive installation is the task of our +Commission. + +The United States Government building is approaching completion, and no +effort will be spared to make it worthy, in beauty of architectural plan +and in completeness of display, to represent our nation. It has been +suggested that a permanent building of similar or appropriate design be +erected on a convenient site, already given by the municipality, near the +exposition grounds, to serve in commemoration of the part taken by this +country in this great enterprise, as an American National Institute, for +our countrymen resorting to Paris for study. + +I am informed by our Commissioner-General that we shall have in the +American sections at Paris over 7,000 exhibitors, from every State ill our +country, a number ten times as great as those which were represented at +Vienna in 1873, six times as many as those in Paris in 1878, and four times +as many as those who exhibited in Paris in 1889. This statement does not +include the exhibits from either Cuba, Puerto Rico, or Hawaii, for which +arrangements have been made. + +A number of important international congresses on special topics affecting +public interests are proposed to be held in Paris next summer in connection +with the exposition. Effort will be made to have the several technical +branches of our administration efficiently represented at those +conferences, each in its special line, and to procure the largest possible +concourse of State representatives, particularly at the Congresses of +Public Charity and Medicine. + +Our relations with Germany continue to be most cordial. The increasing +intimacy of direct association has been marked during the year by the +granting permission in April for the landing on our shores of a cable from +Borkum Emden, on the North Sea, by way of the Azores, and also by the +conclusion on September 2 of a Parcels Post Convention with the German +Empire. In all that promises closer relations of intercourse and commerce +and a better understanding between two races having so many traits in +common, Germany can be assured of the most cordial cooperation of this +Government and people. We may be rivals in many material paths, but our +rivalry should be generous and open, ever aiming toward the attainment of +larger results and the mutually beneficial advancement of each in the line +of its especial adaptabilities. + +The several governments of the Empire seem reluctant to admit the natural +excellence of our food productions and to accept the evidence we constantly +tender of the care with which their purity is guarded by rigid inspection +from the farm, through the slaughterhouse and the packing establishments, +to the port of shipment. Our system of control over exported food staples +invites examination from any quarter and challenges respect by its +efficient thoroughness. + +It is to be hoped that in time the two Governments will act in common +accord toward the realization of their common purpose to safeguard the +public health and to insure the purity and wholesomeness of all food +products imported by either country from the other. Were the Congress to +authorize an invitation to Germany, in connection with the pending +reciprocity negotiations, for the constitution of a joint commission of +scientific experts and practical men of affairs to conduct a searching +investigation of food production and exportation in both countries and +report to their respective legislatures for the adoption of such remedial +measures as they might recommend for either, the way might be opened for +the desirable result indicated. + +Efforts to obtain for American life insurance companies a full hearing as +to their business operations in Prussia have, after several years of +patient representation, happily succeeded, and one of the most important +American companies has been granted a concession to continue business in +that Kingdom. + +I am also glad to announce that the German insurance companies have been +readmitted by the superintendent of insurance to do business in the State +of New York. + +Subsequent to the exchange of our peace treaty with Spain, Germany acquired +the Caroline Islands by purchase, paying therefore $5,000,000. Assurances +have been received from the German Government that the rights of American +missionaries and traders there will be considerately observed. + +In my last annual message I referred to the pending negotiations with Great +Britain in respect to the Dominion of Canada. By means of an executive +agreement, a joint High Commission had been created for the purpose of +adjusting all unsettled questions between the United States and Canada, +embracing twelve subjects, among which were the questions of the fur seals, +the fisheries of the coast and contiguous inland waters, the Alaskan +boundary, the transit of merchandise in bond, the alien labor laws, mining +rights, reciprocity in trade, revision of the agreement respecting naval +vessels in the Great Lakes, a more complete marking of parts of the +boundary, provision for the conveyance of criminals, and for wrecking and +salvage. + +Much progress had been made by the Commission toward the adjustment of many +of these questions, when it became apparent that an irreconcilable +difference of views was entertained respecting the delimitation of the +Alaskan, boundary. In the failure of an agreement as to the meaning of +Articles III and IV of the treaty of 1825 between Russia and Great Britain, +which defined the boundary between Alaska and Canada, the American +Commissioners proposed that the subject of the boundary be laid aside, and +that the remaining questions of difference be proceeded with, some of which +were so far advanced as to assure the probability of a settlement. This +being declined by the British Commissioners, an adjournment was taken until +the boundary should be adjusted by the two Governments. The subject has +been receiving the careful attention which its importance demands, with the +result that a modus vivendi for provisional demarcations in the region +about the head of Lynn Canal has, been agreed upon; and it is hoped that +the negotiations now in progress between the two Governments will end in an +agreement for the establishment and delimitation of a permanent boundary. + +Apart from these questions growing out of our relationship with our +northern neighbor, the most friendly disposition and ready agreement have +marked the discussion of numerous matters arising in the vast and intimate +intercourse of the United States with Great Britain. + +This Government has maintained an attitude of neutrality in the unfortunate +contest between Great Britain and the Boer States of Africa. We have +remained faithful to the precept of avoiding entangling 'alliances as to +affairs not of our direct concern. Had circumstances suggested that the +parties to the quarrel would have welcomed any kindly expression of the +hope of the American people that war might be averted, good offices would +have been gladly tendered. The United States representative at Pretoria was +early instructed to see that all neutral American interests be respected by +the combatants. This has been an easy task in view of the positive +declarations of both British and Boer authorities that the personal and +property rights of our citizens should be observed. + +Upon the withdrawal of the British agent from Pretoria the United States +consul was authorized, upon the request of the British Government and with +the assent of the South African and Orange Free State Governments, to +exercise the customary good offices of a neutral for the care of British +interests. In the discharge of this function, I am happy to say that +abundant opportunity has been afforded to show the impartiality of this +Government toward both the combatants. + +For the fourth time in the present decade, question has arisen with the +Government of Italy in regard to the lynching of Italian subjects. The +latest of these deplorable events occurred at Tallulah, Louisiana, whereby +five unfortunates of Italian origin were taken from jail and hanged. + +The authorities of the State and a representative of the Italian Embassy +having separately investigated the occurrence, with discrepant results, +particularly as to the alleged citizenship of the victims, and it not +appearing that the State had been able to discover and punish the violators +of the law, an independent investigation has been set on foot, through the +agency of the Department of State, and is still in progress. The result +will enable the Executive to treat the question with the Government of +Italy it) a spirit of fairness and justice. A satisfactory solution will +doubtless be reached. + +The recurrence of these distressing manifestations of blind mob fury +directed at dependents or natives of a foreign country suggests that the +contingency has arisen for action by Congress in the direction of +conferring upon the Federal courts jurisdiction in this class of +international cases where the ultimate responsibility of the Federal +Government may be involved. The suggestion is not new. In his annual +message of December 9, 1891, my predecessor, President Harrison, said: It +would, I believe, be entirely competent for Congress to make offenses +against the treaty rights of foreigners domiciled in the United States +cognizable in the Federal courts. This has not, however, been done, and the +Federal officers and courts have no power in such cases to intervene either +for the protection of a foreign citizen or for the punishment of his +slayers. It seems to me to follow, in this state of the law, that the +officers of the State charged with police and judicial powers in such cases +must, in the consideration of international questions growing out of such +incidents, be regarded in such sense as Federal agents as to make this +Government answerable for their acts in cases where it would be answerable +if the United States had used its constitutional power to define and punish +crimes against treaty rights. A bill to provide for the punishment of +violations of treaty rights of aliens was introduced in the Senate March 1, +1892, and reported favorably March 30. Having doubtless in view the +language of that part of Article III of the treaty of February 26, 1871, +between the United States and Italy, which stipulates that " The citizens +of each of the high contracting parties shall receive, in the States and +Territories of the other, most constant protection and security for their +persons and property, and shall enjoy in this respect the same rights and +privileges as are or shall be granted to the natives, on their submitting +themselves to the conditions imposed upon the natives," the bill so +introduced and reported provided that any act committed in any State or +Territory of the United States in violation of the rights of a citizen or +subject of a foreign country secured to such citizen or subject by treaty +between the United States and such foreign country and constituting a crime +under the laws of the State or Territory shall constitute a like crime +against the United States and be cognizable in the Federal courts. No +action was taken by Congress in the matter. + +I earnestly recommend that the subject be taken tip anew and acted upon +during the present session. The necessity for some such provision +abundantly appears. Precedent for constituting a Federal jurisdiction in +criminal cases where aliens are sufferers is rationally deducible from the +existing statute, which gives to the district and circuit courts of the +United States jurisdiction of civil suits brought by aliens where the +amount involved exceeds a certain sum. If such jealous solicitude be shown +for alien rights in cases of mere]y civil and pecuniary import, how much +greater should be the public duty to take cognizance of matters affecting +the lives and the rights of aliens tinder the settled principles of +international law no less than under treaty stipulation, in cases of such +transcendent wrong. doing as mob murder, especially when experience has +shown that local justice is too often helpless to punish the offenders. + +After many years of endeavor on the part of this Government to that end the +Italian Government has consented to enter into negotiations for a +naturalization convention, having for one of its objects the regulation of +the status of Italians (except those of an age for active military service) +who, having been naturalized in the United States, may revisit Italy. It is +hoped that with the mutually conciliatory spirit displayed a successful +conclusion will be reached. + +The treaty of commerce and navigation between the United States and Japan +on November 22, 1894, took effect in accordance with the terms of its XIXth +Article on the 17th of July last, simultaneously with the enforcement of +like treaties with the other powers, except France, whose convention did +not go into operation until August 4, the United States being, however, +granted up to that date all the privileges and rights accorded to French +citizens under the old French treaty. By this notable conventional reform +Japan's position as a fully independent sovereign power is assured, control +being gained of taxation, customs revenues, judicial administration, +coasting trade, and all other domestic functions of government, and foreign +extra-territorial rights being renounced. + +Comprehensive codes of civil and criminal procedure according to western +methods, public instruction, patents and copyrights, municipal +administration, including jurisdiction over the former foreign settlements, +customs tariffs and procedure, public health, and other administrative +measures have been proclaimed. The working of the new system has given rise +to no material complaints on the part of the American citizens or +interests, a circumstance which attests the ripe consideration with which +the change has been prepared. + +Valuable assistance was rendered by the Japanese authorities to the United +States transport ship Morgan City while stranded at Kobe. Permission has +been granted to land and pasture army horses at Japanese ports of call on +the way to the Philippine Islands. These kindly evidences of good will are +highly appreciated. + +The Japanese Government has shown a lively interest in the proposition of +the Pacific Cable Company to add to its projected cable lines to Hawaii, +Guam, and the Philippines a branch connection with the coast of Japan. It +would be a gratifying consummation were the utility of the contemplated +scheme enhanced by bringing Japan and the United States into direct +telegraphic relation. + +Without repeating the observations of my special message of February 10, +1899, concerning the necessity of a cable to Manila. I respectfully invite +attention to it. + +I recommend that, in case the Congress should not take measures to bring +about this result by direct action of the Government, the Postmaster +General be authorized to invite competitive bids for the establishment of a +cable; the company making the best responsible bid to be awarded the +contract; the successful company to give ample bonds to insure the +completion of the work within a reasonable time. + +The year has been marked by constant increase in the intimacy of our +relations with Mexico and in the magnitude of mutually advantageous +interchanges. This Government has omitted no opportunity to show its strong +desire to develop and perpetuate the ties of cordiality now so long happily +unbroken. + +Following the termination on January 20, 1899, by Mexico of the convention +of extradition of December 11, 1861, a new treaty more in accordance with +the ascertained needs of both countries was signed February 22, 1899, and +exchanged in the City of Mexico on the 22d of April last. Its operation +thus far has been effective and satisfactory. A recent case has served to +test the application of its IVth Article, which provides that neither party +shall be bound to deliver up its own citizens, but that the executive +authority of each shall have the power to deliver them up if in its +discretion it be deemed proper to do so. + +The extradition of Mrs. Mattie Rich, a citizen of the United States, +charged with homicide committed in Mexico, was after mature consideration +directed by me in the conviction that the ends of justice would be thereby +subserved. Similar action, on appropriate occasion, by the Mexican +Executive will not only tend to accomplish the desire of both Governments +that grave crimes go not unpunished, but also to repress lawlessness along +the border of the two countries. The new treaty stipulates that neither +Government shall assume jurisdiction in the punishment of crimes committed +exclusively within the territory of the other. This will obviate in future +the embarrassing controversies which have heretofore arisen through +Mexico's assertion of a claim to try and punish an American citizen for an +offense committed within the jurisdiction of the United States. + +The International Water Boundary Commission, organized by the convention of +March 1, 1889, for the adjustment of questions affecting the Rio Grande +frontier, has not yet completed its labors. A further extension of its term +for one year, until December 24, 1899, was effected by a convention signed +December z, 1898, and exchanged and proclaimed in February last. + +An invitation extended to the President of Mexico to visit Chicago in +October, on the occasion of laying the corner stone of the United States +Government building in that city, was cordially accepted by him, with the +necessary consent of the Mexican Congress, but the illness of a member of +his family prevented his attendance. The Minister of Foreign Relations, +however, came as the personal representative of President Diaz, and in that +high character was duly honored. + +Claims growing out of the seizure of American sealing vessels in Bering Sea +have been under discussion with the Government of Russia for several years, +with the recent happy result of an agreement to submit them to the decision +of a single arbitrator. By this act Russia affords proof of her adherence +to the beneficent principle of arbitration which her plenipotentiaries +conspicuously favored at The Hague Disarmament Conference when it was +advocated by the representatives of the United States. + +A suggestion for a permanent exposition of our products and manufactures in +Russia, although not yet fully shaped, has been so cordially welcomed by +the Imperial Government that it may not inaptly take a fitting place in +whatever legislation the Congress may adopt looking to enlargement of our +commercial opportunities abroad. + +Important events have occurred in the Samoan Islands. The election, +according to the laws and customs of Samoa, of a successor to the late +King, Malietoa Laupepa, developed a contest as to the validity of the +result, which issue, by the terms of the General Act, was to be decided by +the Chief justice. Upon his rendering a judgment in favor of Malietoa Tanu, +the rival chief, Mataafa, took up arms. The active intervention of American +and British war ships became imperative to restore order, at the cost of +sanguinary encounters. In this emergency a joint commission of +representatives of the United States, Germany, and Great Britain was sent +to Samoa to investigate the situation and provide a temporary remedy. By +its active efforts a peaceful solution was reached for the time being, the +kingship being abolished and a provisional government established. +Recommendations unanimously made by the commission for a permanent +adjustment of the Samoan question were taken under consideration by the +three powers parties to the General Act. But the more they were examined +the more evident it became that a radical change was necessary in the +relations of the powers to Samoa. + +The inconveniences and possible perils of the tripartite scheme of +supervision and control in the Samoan group by powers having little +interest in common in that quarter beyond commercial rivalry had been once +more emphasized by the recent events. The suggested remedy of the joint +Commission, like the scheme it aimed to replace amounted to what has been +styled a tridominium, being the exercise of the functions of sovereignty by +an unanimous agreement of three powers. The situation had become far more +intricate and embarrassing from every point of view than it was when my +predecessor, in 1894, summed up its perplexities and condemned the +participation in it of the United States. + +The arrangement under which Samoa was administered had proved impracticable +and unacceptable to all the powers concerned. To withdraw from the +agreement and abandon the islands to Germany and Great Britain would not be +compatible with our interests in the archipelago. To relinquish our rights +in the harbor of Pago Pago, the best anchorage in the Pacific, the +occupancy of which had been leased to the United States in 1878 by the +first foreign treaty ever concluded by Samoa, was not to be thought of +either as regards the needs of our Navy or the interests of our growing +commerce with the East. We could not have considered any proposition for +the abrogation of the tripartite control which did not confirm us in all +our rights and safeguard all our national interests in the islands. + +Our views commended themselves to the other powers. A satisfactory +arrangement was concluded between the Governments of Germany and of +England, by virtue of which England retired from Samoa in view of +compensations in other directions, and both powers renounced in favor of +the United States all their rights and claims over and in respect to that +portion of the group lying to the east of the one hundred and seventy-first +degree of west longitude, embracing the islands of Tutuila, Ofoo, Olosenga, +and Manua. I transmit to the Senate, for its constitutional action thereon, +a convention, which besides the provisions above mentioned also guarantees +us the same privileges and conditions in respect to commerce and commercial +vessels in all of the islands of Samoa as those possessed by Germany. + +Claims have been preferred by white residents of Samoa on account of +injuries alleged to have been suffered through the acts of the treaty +Governments in putting down the late disturbances. A convention has been +made between the three powers for the investigation and settlement of these +claims by a neutral arbitrator, to which the attention of the Senate will +be invited. + +My annual message of last year was necessarily devoted, in great part to a +consideration of the Spanish War and of the results it wrought and the +conditions it imposed for the future. I am gratified to announce that the +treaty of peace has restored friendly relations between the two powers. +Effect has been given to its most important provisions. The evacuation of +Puerto Rico having already been accomplished on the x8th of October, 1898, +nothing remained necessary there but to continue the provisional military +control of the island until the Congress should enact a suitable government +for the ceded territory. Of the character and scope of the measures to that +end I shall treat in another part of this message. + +The withdrawal of the authority of Spain from the island of Cuba was +effected by the 1st of January, so that the full re-establishment of peace +found the relinquished territory held by us in trust for the inhabitants, +maintaining, under the direction of the Executive, such government and +control therein as should conserve public order, restore the productive +conditions of peace so long disturbed by the instability and disorder which +prevailed for the greater part of the preceding three decades, and build up +that tranquil development of the domestic state whereby alone can be +realized the high purpose, as proclaimed in the joint resolution adopted by +the Congress on the 19th of April, 1898, by which the United States +disclaimed any disposition or intention to exercise sovereignty, +jurisdiction, or control over Cuba, except for the pacification thereof, +and asserted its determination when that was accomplished to leave the +government and control of the island to its people. The pledge contained in +this resolution is of the highest honorable obligation and must be sacredly +kept. + +I believe that substantial progress has been made in this direction. All +the administrative measures adopted in Cuba have aimed to fit it for a +regenerated existence by enforcing the supremacy of law and justice; by +placing wherever practicable the machinery of administration in the hands +of the inhabitants; by instituting needed sanitary reforms; by spreading +education; by fostering industry and trade; by inculcating public morality, +and, in short, by taking every rational step to aid the Cuban people to +attain to that plane of self-conscious respect and self-reliant unity which +fits an enlightened community for self-government within its own sphere, +while enabling it to fulfill all outward obligation. + +This nation has assumed before the world a grave responsibility for the +future good government of Cuba. We have accepted a trust the fulfillment of +which calls for the sternest integrity of purpose and the exercise of the +highest wisdom. The new Cuba yet to arise from the ashes of the past must +needs be bound to us by ties of singular intimacy and strength if its +enduring welfare is to be assured. Whether those ties shall be organic or +conventional, the destinies of Cuba are in some rightful form and manner +irrevocably linked with our own, but how and how far is for the future to +determine in the ripeness of events. Whatever be the outcome, we must see +to it that free Cuba be a reality, not a name, a perfect entity, not a +hasty experiment bearing within itself the elements of failure. Our +mission, to accomplish which we took up the wager of battle, is not to be +fulfilled by turning adrift any loosely framed commonwealth to face the +vicissitudes which too often attend weaker States whose natural wealth and +abundant resources are offset by the incongruities of their political +organization and the recurring occasions for internal rivalries to sap +their strength and dissipate their energies. The greatest blessing which +can come to Cuba is the restoration of her agricultural and industrial +prosperity, which will give employment to idle men and re-establish the +pursuits of peace. This is her chief and immediate need. + +On the 19th of August last an order was made for the taking of the census +in the island, to be completed on the 3oth of November. By the treaty of +peace the Spanish people on the island have until April 11, 1900, to elect +whether they will remain citizens of Spain or become citizens of Cuba. +Until then it cannot be definitely ascertained who shall be entitled to +participate in the formation of the government of Cuba. By that time the +results of the census will have been tabulated and we shall proceed to +provide for elections which will commit the municipal governments of the +island to the officers elected by the people. The experience thus acquired +will prove of great value in the formation of a representative convention +of the people to draft a constitution and establish a general system of +independent government for the island. In the meantime and so long as we +exercise control over the island the products of Cuba should have a market +in the United States on as good terms and with as favorable rates of duty +as are given to the West India Islands under treaties of reciprocity which +shall be made. + +For the relief of the distressed in the island of Cuba the War Department +has issued supplies to destitute persons through the officers of the Army, +which have amounted to 5,493,ooo rations, at a cost Of $1,417,554.07. + +To promote the disarmament of the Cuban volunteer army, and in the interest +of public peace and the welfare of the people, the sum Of $75 was paid to +each Cuban soldier borne upon the authenticated rolls, on condition that he +should deposit his arms with the authorities designated by the United +States. The sum thus disbursed aggregated $2,547,750, which was paid from +the emergency fund provided by the act of January 5, 1899, for that +purpose. + +Out of the Cuban island revenues during the six months ending June 30, +1899, $1,712,014.20 was expended for sanitation, $293,881.70 for charities +and hospitals, and $88,944.03 for aid to the destitute. + +Following the exchange of ratifications of the treaty of peace the two +Governments accredited ministers to each other, Spain sending to Washington +the Duke of Arcos, an eminent diplomatist, previously stationed in Mexico, +while the United States transferred to Madrid Hon. Bellamy Storer, its +minister at Brussels. This was followed by the respective appointment of +consuls, thereby fully resuming the relations interrupted by the war. In +addition to its consular representation in the United States, the Spanish +Government has appointed consuls for Cuba, who have been provisionally +recognized during the military administration of the affairs of that +island. + +Judicial intercourse between the courts of Cuba and Puerto Rico and of +Spain has been established, as provided by the treaty of peace. The Cuban +political prisoners in Spanish penal stations have been and are being +released and returned to their homes, in accordance with Article VI of the +treaty. Negotiations are about to be had for defining the conventional +relations between the two countries, which fell into abeyance by reason of +the war. I trust that these will include a favorable arrangement for +commercial reciprocity under the terms of sections 3 and 4 of the current +tariff act. In these, as in all matters of international concern, no effort +will be spared to respond to the good disposition of Spain, and to +cultivate in all practicable ways the intimacy which should prevail between +two nations whose past history has so often and in so many ways been marked +by sincere friendship and by community of interests. + +I would recommend appropriate legislation in order to carry into execution +Article VII of the Treaty of Peace with Spain, by which the United States +assured the payment of certain claims for indemnity of its citizens against +Spain. + +The United States minister to Turkey continues, under instructions, to +press for a money payment in satisfaction of the just claims for injuries +suffered by American citizens in the disorders of several years past and +for wrongs done to them by the Ottoman authorities. Some of these claims +are of many years' standing. This Government is hopeful of a general +agreement in this regard. + +In the Turkish Empire the situation of our citizens remains unsatisfactory. +Our efforts during nearly forty years to bring about a convention of +naturalization seem to be on the brink of final failure through the +announced policy of the Ottoman Porte to refuse recognition of the alien +status of native Turkish subjects naturalized abroad since 1867. Our +statutes do not allow this Government to admit any distinction between the +treatment of native and naturalized Americans abroad, so that ceaseless +controversy arises in cases where persons owing in the eye of international +law a dual allegiance are prevented from entering Turkey or are expelled +after entrance. Our law in this regard contrasts with that of the European +States. The British act, for instance, does not claim effect for the +naturalization of an alien in the event of his return to his native +country, unless the change be recognized by the law of that country or +stipulated by treaty between it and the naturalizing State. + +The arbitrary treatment, in some instances, of American productions in +Turkey has attracted attention of late, notably in regard to our flour. +Large shipments by the recently opened direct steamship line to Turkish +ports have been denied entrance on the score that, although of standard +composition and unquestioned purity, the flour was pernicious to health +because of deficient "elasticity" as indicated by antiquated and +untrustworthy tests. Upon due protest by the American minister, and it +appearing that the act was a virtual discrimination against our product, +the shipments in question were admitted. In these, as in all instances, +wherever occurring, when American products may be subjected in a foreign +country, upon specious pretexts, to discrimination compared with the like +products of another country, this Government will use its earnest efforts +to secure fair and equal treatment for its citizens and their goods. +Failing this, it will not hesitate to apply whatever corrective may be +provided by the statutes. + +The International Commission of Arbitration, appointed under the +Anglo-Venezuelan treaty of 1897, rendered an award on October 3 last, +whereby the boundary line between Venezuela and British Guiana is +determined, thus ending a controversy which has existed for the greater +part of the century. The award, as to which the arbitrators were unanimous, +while not meeting the extreme contention of either party, gives to Great +Britain a large share of the interior territory in dispute and to Venezuela +the entire mouth of the Orinoco, including Barima Point and the Caribbean +littoral for some distance to the eastward. The decision appears to be +equally satisfactory to both parties. + +Venezuela has once more undergone a revolution. The insurgents, under +General Castro, after a sanguinary engagement in which they suffered much +loss, rallied in the mountainous interior and advanced toward the capital. +The bulk of the army having sided with the movement, President Andrade +quitted Caracas, where General Castro set up a provisional government with +which our minister and the representatives of other powers entered into +diplomatic relations on the 20th of November, 1899. + +The fourth section of the Tariff Act approved July 24, x897, appears to +provide only for commercial treaties which should be entered into by the +President and also ratified by the Senate within two years from its +passage. Owing to delays inevitable in negotiations of this nature, none of +the treaties initiated under that section could be concluded in time for +ratification by the Senate prior to its adjournment on the 4th of March +last. Some of the pending negotiations, however, were near conclusion at +that time, and the resulting conventions have since been signed by the +plenipotentiaries. Others, within both the third and fourth sections of the +act, are still under consideration. Acting under the constitutional power +of the Executive in respect to treaties, I have deemed it my duty, while +observing the limitations of concession provided by the fourth section, to +bring to a conclusion all pending negotiations, and submit them to the +Senate for its advice and consent. + +Conventions of reciprocity have been signed during the Congressional recess +with Great Britain for the respective colonies of British Guiana, Barbados, +Bermuda, Jamaica, and Turks and Caicos Islands, and with the Republic of +Nicaragua. + +Important reciprocal conventions have also been concluded with France and +with the Argentine Republic. + +In my last annual message the progress noted in the work of the diplomatic +and consular officers in collecting information as to the industries and +commerce of other countries, and in the care and promptitude with which +their reports are printed and distributed, has continued during the past +year, with increasingly valuable results in suggesting new sources of +demand for American products and in pointing out the obstacles still to be +overcome in facilitating the remarkable expansion of our foreign trade. It +will doubtless be gratifying to Congress to learn that the various agencies +of the Department of State are co-operating in these endeavors with a zeal +and effectiveness which are not only receiving the cordial recognition of +our business interests, but are exciting the emulation of other +Governments. In any rearrangement of the great and complicated work of +obtaining official data of an economic character which Congress may +undertake it is most important, in my judgment, that the results already +secured by the efforts of the Department of State should be carefully +considered with a view to a judicious development and increased utility to +our export trade. + +The interest taken by the various States forming the International Union of +American Republics in the work of its organic bureau is evidenced by the +fact that for the first time since its creation in i8go all the Republics +of South and Central America are now represented in it. + +The unanimous recommendation of the International American Conference, +providing for the International Union of American Republics, stated that it +should continue in force during a term of ten years from the date of its +organization, and no country becoming a member of the union should cease to +be a member until the end of said period of ten years, and unless twelve +months before the expiration of said period a majority of the members of +the union had given to the Secretary of State of the United States official +notice of their wish to terminate the union at the end of its first period, +that the union should continue to be maintained for another period of ten +years, and thereafter, under the same conditions, for successive periods of +ten years each. + +The period for notification expired on July 14, 1899, without any of the +members having given the necessary notice of withdrawal. Its maintenance is +therefore assured for the next ten years. In view of this fact and of the +numerous questions of general interest and common benefit to all of the +Republics of America, some of which were considered by the first +International American Conference, but not finally settled, and others +which have since then grown to importance, it would seem expedient that the +various Republics constituting the Union should be invited to hold at an +early date another conference in the capital of one of the countries other +than the United States, which has already enjoyed this honor. + +The purely international character of the work being done by the bureau and +the appreciation of its value are further emphasized by the active +co-operation which the various Governments of the Latin. American Republics +and their diplomatic representatives in this capital are now exhibiting and +the zealous endeavors they are making to extend its field of usefulness, to +promote through it commercial intercourse, and strengthen the bonds of +amity and confidence between its various members and the nations of this +continent. + +The act to encourage the holding of the Pan-Amencan Exposition on the +Niagara frontier, within the county of Erie or Niagara, in the State of New +York, in the year 1901, was approved on March 3, 1899. + +This exposition, which will be held in the city of Buffalo, in the near +vicinity of the great Niagara cataract, and within a day's journey of which +reside 40, 000, 000 Of our people, will be confined entirely to the Western +Hemisphere. Satisfactory assurances have already been given by the +diplomatic representatives of Great Britain, Mexico, the Central and South +American Republics, and most of the States of the United States that these +countries and States will make an unique, interesting, and instructive +exhibit, peculiarly illustrative of their material progress during the +century which is about to close. + +The law provides an appropriation Of $500,000 for the purpose of making an +exhibit at the exposition by the Government of the United States from its +Executive Departments and from the Smithsonian Institution and National +Museum, the United States Commission of Fish and Fisheries, the Department +of Labor, and the Bureau of the American Republics. To secure a complete +and harmonious arrangement of this Government exhibit a board of management +has already been created, and charged with the selection, purchase, +preparation, transportation, arrangement, and safe-keeping of the articles +and materials to be exhibited. This board has been organized and has +already entered upon the performance of its duties, as provided for by the +law + +I have every reason to hope and believe that this exposition will tend more +firmly to cement the cordial relations between the nations on this +continent. + +In accordance with an act of Congress approved December 21, 1898, and under +the auspices of the Philadelphia Commercial Museum, a most interesting and +valuable exposition of products and manufactures especially adapted to +export trade was held in Philadelphia from the 14th of September to the 1st +of December, 1899. The representative character of the exhibits and the +widespread interest manifested in the special objects of the undertaking +afford renewed encouragement to those who look confidently to the steady +growth of our enlarged exportation of manufactured goods, which has been +the most remarkable fact in the economic development of the United States +in recent years. A feature of this exposition which is likely to become of +permanent and increasing utility to our industries is the collection of +samples of merchandise produced in various countries with special reference +to particular markets, providing practical object lessons to United States +manufacturers as to qualities, styles, and prices of goods such as meet the +special demands of consumers and may be exported with advantage. + +In connection with the exposition an International Commercial Congress was +held, upon the invitation of the Philadelphia Commercial Museum, +transmitted by the Department of State to the various foreign Governments, +for an exchange of information and opinions with the view to the promotion +of international trade. This invitation met with general and cordial +acceptance, and the Congress, which began its sessions at the exposition on +the 13th of October proved to be of great practical importance, from the +fact that it developed a general recognition of the interdependence of +nations in trade and a most gratifying spirit of accommodation with +reference to the gradual removal of existing impediments to reciprocal +relations, without injury to the industrial interests of either party. + +In response to the invitation of His Majesty, the Emperor of Russia, +delegates from twenty-six countries were assembled at The Hague on the 18th +of May, as members of a conference in the interest of peace. The commission +from the United States consisted of the Hon. Andrew D. White, the Hon. Seth +Low, the Hon. Stanford Newel, Captain Alfred T. Mahan, of the United States +Navy, Captain William Crozier, of the United States Army, and the Hon. +Frederick W. Holls, secretary. The occasion seemed to be opportune for the +serious consideration of a plan for the pacific adjustment of international +differences, a subject in which the American people have been deeply +interested for many years, and a definite project for a permanent +international tribunal was included in the instructions to the delegates of +the United States. + +The final act of the conference includes conventions upon the amelioration +of the laws and customs of war on land, the adaptation to maritime warfare +of the principles of the Geneva Convention of 1864, and the extension of +judicial methods to international cases. The Convention for the Pacific +Settlement of International Conflicts embodies the leading features of the +American plan, with such modifications as were rendered 'necessary by the +great diversity of views and interests represented by the delegates. The +four titles of the convention provide for the maintenance of general peace, +the exercise of good offices and mediation, the formation of commissions of +inquiry, and international arbitration. + +The mediation provided for by the convention is purely voluntary and +advisory, and is intended to avoid any invasion or limitation of the +sovereign rights of the adhering States. The commissions of inquiry +proposed consists of delegations to be specifically constituted for +particular purposes by means of conventions between the contesting parties, +having for their object the clear understanding of international +differences before resorting to the use of force. The provision for +arbitration contemplates the formation of a permanent tribunal before which +disputed cases may be brought for settlement by the mutual consent of the +litigants in each separate case. The advantages of such a permanent +tribunal over impromptu commissions of arbitration are conceived to be the +actual existence of a competent court, prepared to administer justice, the +greater economy resulting from a well-devised system, and the accumulated +judicial skill and experience which such a tribunal would soon possess. + +While earnestly promoting the idea of establishing a permanent +international tribunal, the delegation of the United States was not +unmindful of the inconveniences which might arise from an obtrusive +exercise of mediation, and in signing the convention carefully guarded the +historic position of the United States by the following declaration: +Nothing contained in this convention shall be so construed as to require +the United States of America to depart from its traditional policy of not +intruding upon, interfering with, or entangling itself in the political +questions or policy or internal administration of any foreign state; nor +shall anything contained in the said convention be construed to imply a +relinquishment by the United. States of America of its traditional attitude +toward purely American questions. Thus interpreted, the Convention for the +Pacific Settlement of International Conflicts may be regarded as realizing +the earnest desire of great numbers of American citizens, whose deep sense +of justice, expressed in numerous resolutions and memorials, has urged them +to labor for this noble achievement. The general character of this +convention, already signed by the delegates of more than twenty sovereign +States, further commends it to the favorable action of the Senate of the +United States, whose ratification it still awaits. + +Since my last annual message, and in obedience to the acts of the Congress +of April 22 and 26, 1898, the remaining volunteer force enlisted for the +Spanish War, consisting Of 34,834 regulars and 110,202 volunteers, with +over 5,000 volunteer officers, has been discharged from the military +service. Of the volunteers, 667 officers and 14,831 men were serving in the +Philippines, and 1,650 of the regulars, who were entitled to be mustered +out after the ratification of the treaty of peace. They voluntarily +remained at the front until their places could be filled by new troops. +They were returned home in the order in which they went to Manila, and are +now all of them out of the service and in the ranks of citizenship. I +recommend that the Congress provide a special medal of honor for the +volunteers, regulars, sailors, and marines on duty in the Philippines who +voluntarily remained in the service after their terms of enlistment had +expired. + +By the act of March 2, 1899, Congress gave authority to increase the +Regular Army to a maximum not exceeding 65,000 enlisted men, and to enlist +a force of 5,000 volunteers, to be recruited from the country at large. By +virtue of this authority the Regular Army has been increased to the number +of 61,999 enlisted men and 2,248 officers, and new volunteer regiments have +been organized aggregating 33,05o enlisted men and 1,524 officers. Two of +these volunteer regiments are madeup of colored men, with colored line +officers. The new troops to take the places of those returning from the +Philippines have been transported to Manila to the number of 581 officers +and 26,322 enlisted men of the Regular Army and 594 officers and 15,388 +enlisted men of the new volunteer force, while 504 officers and 14, 119 men +of the volunteer force are on the ocean en route to Manila. + +The force now in Manila consists Of 905 officers and 30,578 regulars, and +594 officers and 15,388 of the volunteers, making an aggregate of 1,499 +officers and 45,966 men. When the troops now under orders shall reach +Manila the force in the archipelago will comprise 2,051 officers and 63,483 +men. The muster out of the great volunteer army organized for the Spanish +War and the creation of a new army, the transportation from Manila to San +Francisco of those entitled to discharge and the transportation of the new +troops to take their places have been a work of great magnitude well and +ably done, for which too much credit cannot be given the War Department. + +During the past year we have reduced our force in Cuba and Puerto Rico, In +Cuba we now have 334 officers and 10,796 enlisted men; In Puerto Rico, 87 +officers and 2,855 enlisted men and a battalion of 400 men composed of +native Puerto Ricans; while stationed throughout the United States are 910 +officers and 17,317 men, and in Hawaii 12 officers and 453 enlisted men. + +The operations of the Army are fully presented in the report of the +Secretary of War. I cannot withhold from officers and men the highest +commendation for their soldierly conduct in trying situations, their +willing sacrifices for their country, and the integrity and ability with +which they have performed unusual and difficult duties in our island +possessions. + +In the organization of the volunteer regiments authorized by the act of +March 2, 1899, it was found that no provision had been made for chaplains. +This omission was doubtless from inadvertence. I recommend the early +authorization for the appointment of one chaplain for each of said +regiments. These regiments are now in the Philippines, and it is important +that immediate action be had. + +In restoring peaceful conditions, orderly rule, and civic progress in Cuba, +Puerto Rico, and, so far as practicable, in the Philippines, the +rehabilitation of the postal service has been an essential and important +part of the work. It became necessary to provide mail facilities both for +our forces of occupation and for the native population. To meet this +requirement has involved a substantial reconstruction. The existing systems +were so fragmentary, defective, and inadequate that a new and comprehensive +organization had to be created. American trained officials have been +assigned to the directing and executive positions, while natives have been +chiefly employed in making up the body of the force. In working out this +plan the merit rule has been rigorously and faithfully applied. + +The appointment of Director-General of Posts of Cuba was given to an expert +who had been Chief Post-Office Inspector and Assistant Postmaster-General, +and who united large experience with administrative capacity. For the +postmastership at Havana the range of skilled and available men was +scanned, and the choice fell upon one who had been twenty years in the +service as deputy postmaster and postmaster of a large city. This principle +governed and determined the selection of the American officials sent not +only to Cuba, but to Puerto Rico and the Philippines, and they were +instructed to apply it so far as practicable in the employment of the +natives as minor postmasters and clerks. The postal system in Cuba, though +remaining under the general guidance of the Postmaster-General, was made +essentially independent. It was felt that it should not be a burden upon +the postal service of the United States, and provision was made that any +deficit in the postal revenue should be a charge upon the general revenues +of the island. + +Though Puerto Rico and the Philippines hold a different relation to the +United States, yet, for convenience of administration, the same principle +of an autonomous system has been extended to them. The development of the +service in all of the islands has been rapid and successful. It has moved +forward on American lines, with free delivery, money order, and registry +systems, and has given the people mail facilities far greater and more +reliable than any they have ever before enjoyed. It is thus not only a +vital agency of industrial, social, and business progress, but an important +influence in diffusing a just understanding of the true spirit and +character of American administration. + +The domestic postal service continues to grow with extraordinary rapidity. +The expenditures and the revenues will each exceed $100,000,000 during the +current year. Fortunately, since the revival of prosperous times the +revenues have grown much faster than the expenditures, and there is every +indication that a short period will witness the obliteration of the annual +deficit. In this connection the report of the Postmaster-General embodies a +statement of some evils which have grown up outside of the contemplation of +law in the treatment of some classes of mail matter which wrongly exercise +the privilege of the pound rate, and shows that if this matter had been +properly classified and had paid the rate which it should have paid, +instead of a postal deficit for the last fiscal year of $6,610,000, there +would have been on one basis a surplus of $17,637,570, and on another Of +$5,733,836. The reform thus suggested, in the opinion of the +Postmaster-General, would not only put the postal service at once on a +self-sustaining basis, but would permit great and valuable improvements, +and I commend the subject to the consideration of the Congress. + +The Navy has maintained the spirit and high efficiency which have always +characterized that service, and has lost none of the gallantry in heroic +action which has signalized its brilliant and glorious past. The Nation has +equal pride in its early and later achievements. Its habitual readiness for +every emergency has won the confidence and admiration of the country. The +people are interested in the continued preparation and prestige of the Navy +and will justify liberal appropriations for its maintenance and +improvement. The officers have shown peculiar adaptation for the +performance of new and delicate duties which our recent war has imposed. + +It cannot be doubted that Congress will at once make necessary provision +for the armor plate for the vessels now under contract and building. Its +attention is respectfully called to the report of the Secretary of the +Navy, in which the subject is fully presented. I unite in his +recommendation that the Congress enact such special legislation as may be +necessary to enable the Department to make contracts early in the coming +year for armor of the best quality that can be obtained in this country for +the Maine, Ohio, and Missouri, and that the provision of the act of March +3, 1899, limiting the price of armor to $300 per ton be removed. + +In the matter of naval construction Italy and Japan, of the great powers, +laid down less tonnage in the year 1899 than this country, and Italy alone +has less tonnage under construction. I heartily concur in the +recommendations for the increase of the Navy, as suggested by the +Secretary. + +Our future progress and prosperity depend upon our ability to equal, if not +surpass, other nations in the enlargement and advance of science, industry, +and commerce. To invention we must turn as one of the most powerful aids to +the accomplishment of such a result. The attention of the Congress is +directed to the report of the Commissioner of Patents, in which will be +found valuable suggestions and recommendations. + +On the 30th of June, 1899, the pension roll of the United States numbered +991,519. These include the pensioners of the Army and Navy in all our wars. +The number added to the rolls during the year was 40,991. The number +dropped by reason of death, remarriage, minors by legal limitation, failure +to claim within three years, and other causes, was 43, 186, and the number +of claims disallowed was 107,gig. During the year 89,054 pension +certificates were issued, of which 37,077 were for new or original +pensions. The amount disbursed for army and navy pensions during the year +was $138,355,052.95, which was $1,651,461.61 less than the sum of the +appropriations. + +The Grand Army of the Republic at its recent national encampment held in +Philadelphia has brought to my attention and to that of the Congress the +wisdom and justice of a modification of the third section of the act of +June 27, x8go, which provides pensions for the widows of officers and +enlisted men who served ninety days or more during the War of the Rebellion +and were honorably discharged, provided that such widows are without other +means of sup, port than their daily labor and were married to the soldier, +sailor, or marine on account of whose service they claim pension prior to +the date of the act. + +The present holding of the Department is that if the widow's income aside +from her daily labor does not exceed in amount what her pension would be, +to wit, $96 per annum, she would be deemed to be without other means of +support than her daily labor, and would be entitled to a pension under this +act; while if the widow's income independent of the amount received by her +as the result of her daily labor exceeds $96, she would not be pensionable +under the act. I am advised by the Commissioner of Pensions that the amount +of the income allowed before title to pension would be barred has varied +widely under different administrations of the Pension Office, as well as +during different periods of the same administration, and has been the cause +of just complaint and criticism. + +With the approval of the Secretary of the Interior the Commissioner of +Pensions recommends that, in order to make the practice at all times +uniform and to do justice to the dependent widow, the amount of income +allowed independent of the proceeds of her daily labor should be not less +than $250 per annum, and he urges that the Congress shall so amend the act +as to permit the Pension Office to grant pensionable status to widows under +the terms of the third section of the act of June 27, 1890, whose income +aside from the proceeds of daily labor is not in excess of $250 per annum. +I believe this to be a simple act of justice and heartily recommend it. + +The Dawes Commission reports that gratifying progress has been made in its +work during the preceding year. The field-work of enrollment of four of the +nations has been completed. I recommend that Congress at an early day make +liberal appropriation for educational purposes in the Indian Territory. + +In accordance with the act of Congress approved March 3, 1899. the +preliminary work in connection with the Twelfth Census is now fully under +way. The officers required for the proper administration. of the duties +imposed have been selected. The provision for securing a proper enumeration +of the population, as well as to secure evidence of the industrial growth +of the Nation, is broader and more comprehensive than any similar +legislation in the past. The Director advises that every needful effort is +being made to push this great work to completion in the time limited by the +statute. It is believed that the Twelfth Census will emphasize our +remarkable advance in all that pertains to national progress. + +Under the authority of the act of Congress approved July 7, 1898, the +commission consisting of the Secretary of the Treasury, the +Attorney-General, and the Secretary of the Interior has made an agreement +of settlement, which has had my approval, of the indebtedness to the +Government growing out of the issue of bonds to aid in the construction of +the Central Pacific and Western Pacific rail. roads. The agreement secures +to the Government the principal and interest of said bonds, amounting to +$58,812,715.48. There has been paid thereon $11,762,543.12, which has been +covered into the Treasury, and the remainder, payable within ten years, +with interest at the rate Of 3 per cent per annum, payable semiannually, is +secured by the deposit of an equal amount of first-mortgage bonds of the +Pacific Railway companies. The amounts paid and secured to be paid to the +Government on account of the Pacific Railroad subsidy claims are: Union +Pacific, cash - $58,448,223.75 + +Kansas Pacific, cash - 6,303,000.00 + +Central and Western Pacific, cash - 11,798,314.14 + +Notes, secured - 47,050,172.36 + +Kansas Pacific--dividends for deficiency due United States, cash - +821,897.70 - + +*** + +State of the Union Address +William McKinley +December 3, 1900 + +To the Senate and House of Representatives: + +At the outgoing of the old and the incoming of the new century you begin +the last session of the Fifty-sixth Congress with evidences on every hand +of individual and national prosperity and with proof of the growing +strength and increasing power for good of Republican institutions. Your +countrymen will join with you in felicitation that American liberty is more +firmly established than ever before, and that love for it and the +determination to preserve it are more universal than at any former period +of our history. + +The Republic was never so strong, because never so strongly entrenched in +the hearts of the people as now. The Constitution, with few amendments, +exists as it left the hands of its authors. The additions which have been +made to it proclaim larger freedom and more extended citizenship. Popular +government has demonstrated in its one hundred and twenty-four years of +trial here its stability and security, and its efficiency as the best +instrument of national development and the best safeguard to human rights. + +When the Sixth Congress assembled in November, 1800, the population of the +United States was 5,308,483.It is now 76,304,799. Then we had sixteen +States. Now we have forty-five. Then our territory consisted Of 909,050 +square miles. It is now 3,846,595 square miles. Education, religion, and +morality have kept pace with our advancement in other directions, and while +extending its power the Government has adhered to its foundation principles +and abated none of them in dealing with our new peoples and possessions. A +nation so preserved and blessed gives reverent thanks to God and invokes +His guidance and the continuance of His care and favor. + +In our foreign intercourse the dominant question has been the treatment of +the Chinese problem. Apart from this our relations with the powers have +been happy. + +The recent troubles in China spring from the antiforeign agitation which +for the past three years has gained strength in the northern provinces. +Their origin lies deep in the character of the Chinese races and in the +traditions of their Government. The Taiping rebellion and the opening of +Chinese ports to foreign trade and settlement disturbed alike the +homogeneity and the seclusion of China. + +Meanwhile foreign activity made itself felt in all quarters, not alone on +the coast, but along the great river arteries and in the remoter districts, +carrying new ideas and introducing new associations among a primitive +people which had pursued for centuries a national policy of isolation. + +The telegraph and the railway spreading over their land, the steamers +plying on their waterways, the merchant and the missionary penetrating year +by year farther to the interior, became to the Chinese mind types of an +alien invasion, changing the course of their national life and fraught with +vague forebodings of disaster to their beliefs and their self-control. + +For several years before the present troubles all the resources of foreign +diplomacy, backed by moral demonstrations of the physical force of fleets +and arms, have been needed to secure due respect for the treaty rights of +foreigners and to obtain satisfaction from the responsible authorities for +the sporadic outrages upon the persons and property of unoffending +sojourners, which from time to time occurred at widely separated points in +the northern provinces, as in the case of the outbreaks in Sze-chuen and +Shan-tung. + +Posting of antiforeign placards became a daily occurrence, which the +repeated reprobation of the Imperial power failed to check or punish. These +inflammatory appeals to the ignorance and superstition of the masses, +mendacious and absurd in their accusations and deeply hostile in their +spirit, could not but work cumulative harm. They aimed at no particular +class of foreigners; they were impartial in attacking everything foreign. + +An outbreak in Shan-tung, in which German missionaries were slain, was the +too natural result of these malevolent teachings. + +The posting of seditious placards, exhorting to the utter destruction of +foreigners and of every foreign thing, continued unrebuked. Hostile +demonstrations toward the stranger gained strength by organization. + +The sect, commonly styled the Boxers, developed greatly in the provinces +north of the Yang-Tse, and with the collusion of many notable officials, +including some in the immediate councils of the Throne itself, became +alarmingly aggressive. No foreigner's life, outside of the protected treaty +ports, was safe. No foreign interest was secure from spoliation. + +The diplomatic representatives of the powers in Peking strove in vain to +check this movement. Protest was followed by demand and demand by renewed +protest, to be met with perfunctory edicts from the Palace and evasive and +futile assurances from the Tsung-li Yamen. The circle of the Boxer +influence narrowed about Peking, and while nominally stigmatized as +seditious, it was felt that its spirit pervaded the capital itself, that +the Imperial forces were imbued with its doctrines, and that the immediate +counselors of the Empress Dowager were in full sympathy with the +antiforeign movement. + +The increasing gravity of the conditions in China and the imminence of +peril to our own diversified interests in the Empire, as well as to those +of all the other treaty governments, were soon appreciated by this +Government, causing it profound solicitude. The United States from the +earliest days of foreign intercourse with China had followed a policy of +peace, omitting no occasions to testify good will, to further the extension +of lawful trade, to respect the sovereignty of its Government, and to +insure by all legitimate and kindly but earnest means the fullest measure +of protection for the lives and property of our law-abiding citizens and +for the exercise of their beneficent callings among the Chinese people. + +Mindful of this, it was felt to be appropriate that our purposes should be +pronounced in favor of such course as would hasten united action of the +powers at Peking to promote the administrative reforms so greatly needed +for strengthening the Imperial Government and maintaining the integrity of +China, in which we believed the whole western world to be alike concerned. +To these ends I caused to be addressed to the several powers occupying +territory and maintaining spheres of influence in China the circular +proposals of 1899, inviting from them declarations of their intentions and +views as to the desirability of the adoption of measures insuring the +benefits of equality of treatment of all foreign trade throughout China. + +With gratifying unanimity the responses coincided in this common policy, +enabling me to see in the successful termination of these negotiations +proof of the friendly spirit which animates the various powers interested +in the untrammeled development of commerce and industry in the Chinese +Empire as a source of vast benefit to the whole commercial world. + +In this conclusion, which I had the gratification to announce as a +completed engagement to the interested powers on March 20, 1900, I +hopefully discerned a potential factor for the abatement of the distrust of +foreign purposes which for a year past had appeared to inspire the policy +of the Imperial Government, and for the effective exertion by it of power +and authority to quell the critical antiforeign movement in the northern +provinces most immediately influenced by the Manchu sentiment. + +Seeking to testify confidence in the willingness and ability of the +Imperial administration to redress the wrongs and prevent the evils we +suffered and feared, the marine guard, which had been sent to Peking in the +autumn of 1899 for the protection of the legation, was withdrawn at the +earliest practicable moment, and all pending questions were remitted, as +far as we were concerned, to the ordinary resorts of diplomatic +intercourse. + +The Chinese Government proved, however, unable to check the rising strength +of the Boxers and appeared to be a prey to internal dissensions. In the +unequal contest the antiforeign influences soon gained the ascendancy under +the leadership of Prince Tuan. Organized armies of Boxers, with which the +Imperial forces affiliated, held the country between Peking and the coast, +penetrated into Manchuria up to the Russian borders, and through their +emissaries threatened a like rising throughout northern China. + +Attacks upon foreigners, destruction of their property, and slaughter of +native converts were reported from all sides. The Tsung-li Yamen, already +permeated with hostile sympathies, could make no effective response to the +appeals of the legations. At this critical juncture, in the early spring of +this year, a proposal was made by the other powers that a combined fleet +should be assembled in Chinese waters as a moral demonstration, under cover +of which to exact of the Chinese Government respect for foreign treaty +rights and the suppression of the Boxers. + +The United States, while not participating in the joint demonstration, +promptly sent from the Philippines all ships that could be spared for +service on the Chinese coast. A small force of marines was landed at Taku +and sent to Peking for the protection of the American legation. Other +powers took similar action, until some four hundred men were assembled in +the capital as legation guards. + +Still the peril increased. The legations reported the development of the +seditious movement in Peking and the need of increased provision for +defense against it. While preparations were in progress for a larger +expedition, to strengthen the legation guards and keep the railway open, an +attempt of the foreign ships to make a landing at Taku was met by a fire +from the Chinese forts. The forts were thereupon shelled by the foreign +vessels, the American admiral taking no part in the attack, on the ground +that we were not at war with China and that a hostile demonstration might +consolidate the antiforeign elements and strengthen the Boxers to oppose +the relieving column. + +Two days later the Taku forts were captured after a sanguinary conflict. +Severance of communication with Peking followed, and a combined force of +additional guards, which was advancing to Peking by the Pei-Ho, was checked +at Langfang. The isolation of the legations was complete. + +The siege and the relief of the legations has passed into undying history. +In all the stirring chapter which records the heroism of the devoted band, +clinging to hope in the face of despair, and the undaunted spirit that led +their relievers through battle and suffering to the goal, it is a memory of +which my countrymen may be justly proud that the honor of our flag was +maintained alike in the siege and the rescue, and that stout American +hearts have again set high, in fervent emulation with true men of other +race and language, the indomitable courage that ever strives for the cause +of right and justice. + +By June 19 the legations were cut off. An identical note from the, Yamen +ordered each minister to leave Peking, under a promised escort, within +twenty-four hours. To gain time they replied, asking prolongation of the +time, which was afterwards granted, and requesting an interview with the +Tsung-li Yamen on the following day. No reply being received, on the +morning of the 2oth the German minister, Baron von Ketteler, set out for +the Yamen to obtain a response, and oil the way was murdered. + +An attempt by the legation guard to recover his body was foiled by the +Chinese. Armed forces turned out against the legations. Their quarters were +surrounded and attacked. The mission compounds were abandoned, their +inmates taking refuge in the British legation, where all the other +legations and guards gathered for more effective defense. Four hundred +persons were crowded in its narrow compass. Two thousand native converts +were assembled in a nearby palace under protection of the foreigners. Lines +of defense were strengthened, trenches dug, barricades raised, and +preparations made to stand a siege, which at once began. + +From June 20 until July 17, writes Minister Conger, 11 there was scarcely +an hour during which there was not firing upon some part of our lines and +into some of the legations, varying from a single shot to a general and +continuous attack along the whole line." Artillery was placed around the +legations and on the over-looking palace walls, and thousands Of 3-inch +shot and shell were fired, destroying some buildings and damaging all. So +thickly did the balls rain, that, when the ammunition of the besieged ran +low, five quarts of Chinese bullets were gathered in an hour in one +compound and recast. + +Attempts were made to burn the legations by setting neighboring houses on +fire, but the flames were successfully fought off, although the Austrian, +Belgian, Italian. and Dutch legations were then and subsequently burned. +With the aid of the native converts, directed by the missionaries, to whose +helpful co-operation Mr. Conger awards unstinted praise, the British +legation was made a veritable fortress. The British minister, Sir Claude +MacDonald, was chosen general commander of the defense, with the secretary +of the American legation, Mr. E. G. Squiers, as chief of staff. + +To save life and ammunition the besieged sparingly returned the incessant +fire of the Chinese soldiery, fighting only to repel attack or make an +occasional successful sortie for strategic advantage, such as that of +fifty-five American, British, and Russian marines led by Captain Myers, of +the United States Marine Corps, which resulted in the capture of a +formidable barricade on the wall that gravely menaced the American +position. It was held to the last, and proved an invaluable acquisition, +because commanding the water gate through which the relief column entered. + +During the siege the defenders lost 65 killed, 135 wounded, and 7 by +disease, the last all children. + +On July 14 the besieged bad their first communication with the Tsung-li +Yamen, from whom a message came inviting to a conference, which was +declined. Correspondence, however, ensued and a sort of armistice was +agreed upon, which stopped the bombardment and lessened the rifle fire for +a time. Even then no protection whatever was afforded, nor any aid given, +save to send to the legations a small supply of fruit and three sacks of +flour. + +Indeed, the only communication had with the Chinese Government related to +the occasional delivery or dispatch of a telegram or to the demands of the +Tsung-li Yamen for the withdrawal of the legations to the coast under +escort. Not only are the protestations of the Chinese Government that it +protected and succored the legations positively contradicted, but +irresistible proof accumulates that the attacks upon them were made by +Imperial troops, regularly uniformed, armed, and officered, belonging to +the command of Jung Lu, the Imperial commander in chief. Decrees +encouraging the Boxers, organizing them tinder prominent Imperial officers, +provisioning them, and even granting them large sums in the name of the +Empress Dowager, are known to exist. Members of the Tsung-li Yamen who +counseled protection of the foreigners were beheaded. Even in the distant +provinces men suspected of foreign sympathy were put to death, prominent +among these being Chang Yen-hoon, formerly Chinese minister in Washington. + +With the negotiation of the partial armistice of July 14, a proceeding +which was doubtless promoted by the representations of the Chinese envoy in +Washington, the way was opened for the conveyance to Mr. Conger of a test +message sent by the Secretary of State through the kind offices of Minister +Wu Ting-fang. Mr. Conger's reply, dispatched from Peking on July 18 through +the same channel, afforded to the outside world the first tidings that the +inmates of the legations were still alive and hoping for succor. + +This news stimulated the preparations for a joint relief expedition in +numbers sufficient to overcome the resistance which for a month had been +organizing between Taku and the capital. Reinforcements sent by all the +co-operating Governments were constantly arriving. The United States +contingent, hastily assembled from the Philippines or dispatched from this +country, amounted to some 5,000 men, under the able command first of the +lamented Colonel Liscurn and afterwards of General Chaffee. + +Toward the end of July the movement began. A severe conflict followed at +Tientsin, in which Colonel Liscurn was killed. The city was stormed and +partly destroyed. Its capture afforded the base of operations from which to +make the final advance, which began in the first days of August, the +expedition being made up of Japanese, Russian, British, and American troops +at the outset. + +Another battle was fought and won at Yangtsun. Thereafter the disheartened +Chinese troops offered little show of resistance. A few days later the +important position of Ho-si-woo was taken. A rapid march brought the united +forces to the populous city of Tung Chow, which capitulated without a +contest. + +On August 14 the capital was reached. After a brief conflict beneath the +walls the relief column entered and the legations were saved. The United +States soldiers, sailors, and marines, officers and men alike, in those +distant climes and unusual surroundings, showed the same valor, discipline, +and good conduct and gave proof of the same high degree of intelligence and +efficiency which have distinguished them in every emergency. + +The Imperial family and the Government had fled a few days before. The city +was without visible control. The remaining Imperial soldiery had made on +the night of the 13th a last attempt to exterminate the besieged, which was +gallantly repelled. It fell to the occupying forces to restore order and +organize a provisional administration. + +Happily the acute disturbances were confined to the northern provinces. It +is a relief to recall and a pleasure to record the loyal conduct of the +viceroys and local authorities of the southern and eastern provinces. Their +efforts were continuously directed to the pacific control of the vast +populations under their rule and to the scrupulous observance of foreign +treaty rights. At critical moments they did not hesitate to memorialize the +Throne, urging the protection of the legations, the restoration of +communication, and the assertion of the Imperial authority against the +subversive elements. They maintained excellent relations with the official +representatives of foreign powers. To their kindly disposition is largely +due the success of the consuls in removing many of the missionaries from +the interior to places of safety. In this relation the action of the +consuls should be highly commended. In Shan-tung and eastern Chi-li the +task was difficult, but, thanks to their energy and the cooperation of +American and foreign naval commanders, hundreds of foreigners, including +those of other nationalities than ours, were rescued from imminent peril. + +The policy of the United States through all this trying period was clearly +announced and scrupulously carried out. A circular note to the powers dated +July 3 proclaimed our attitude. Treating the condition in the north as one +of virtual anarchy, in which the great provinces of the south and southeast +had no share, we regarded the local authorities in the latter quarters as +representing the Chinese people with whom we sought to remain in peace and +friendship. Our declared aims involved no war against the Chinese nation. +We adhered to the legitimate office of rescuing the imperiled legation, +obtaining redress for wrongs already suffered, securing wherever possible +the safety of American life and property in China, and preventing a spread +of the disorders or their recurrence. + +As was then said, " The policy of the Government of the United States is to +seek a solution which may bring about permanent safety and peace to China, +preserve Chinese territorial and administrative entity, protect all rights +guaranteed to friendly powers by treaty and international law, and +safeguard for the world the principle of equal and impartial trade with all +parts of the Chinese Empire." + +Faithful to those professions which, as it proved, reflected the views and +purposes of the other co-operating Governments, all our efforts have been +directed toward ending the anomalous situation in China by negotiations for +a settlement at the earliest possible moment. As soon as the sacred duty of +relieving our legation and its dependents was accomplished we withdrew from +active hostilities, leaving our legation under an adequate guard in Peking +as a channel of negotiation and settlement--a course adopted by others of +the interested powers. Overtures of the empowered representatives of the +Chinese Emperor have been considerately entertained. + +The Russian proposition looking to the restoration of the Imperial power in +Peking has been accepted as in full consonance with our own desires, for we +have held and hold that effective reparation for wrongs suffered and an +enduring settlement that will make their recurrence impossible can best be +brought about under an authority which the Chinese nation reverences and +obeys. While so doing we forego no jot of our undoubted right to exact +exemplary and deterrent punishment of the responsible authors and abettors +of the criminal acts whereby we and other nations have suffered grievous +injury. + +For the real culprits, the evil counselors who have misled the Imperial +judgment and diverted the sovereign authority to their own guilty ends,, +full expiation becomes imperative within the rational limits of retributive +Justice. Regarding this as the initial condition of an acceptable +settlement between China and the powers, I said in my message of October 18 +to the Chinese Emperor: I trust that negotiations may begin so soon as we +and the other offended Governments shall be effectively satisfied of Your +Majesty's ability and power to treat with just sternness the principal +offenders, who are doubly culpable, not alone toward the foreigners, but +toward Your Majesty, under whose rule the purpose of China to dwell in +concord with the world had hitherto found expression in the welcome and +protection assured to strangers. Taking, as a point of departure, the +Imperial edict appointing Earl Li Hung Chang and Prince Ching +plenipotentiaries to arrange a settlement, and the edict of September 25, +whereby certain high officials were designated for punishment, this +Government has moved, in concert with the other powers, toward the opening +of negotiations, which Mr. Conger, assisted by Mr. Rockhill, has been +authorized to conduct on behalf of the United States. + +General bases of negotiation formulated by the Government of the French +Republic have been accepted with certain reservations as to details, made +necessary by our own circumstances, but, like similar reservations by other +powers, open to discussion in the progress of the negotiations. The +disposition of the Emperor's Government to admit liability for wrongs done +to foreign Governments and their nationals, and to act upon such additional +designation of the guilty persons as the foreign ministers at Peking may be +in a position to make, gives hope of a complete settlement of all questions +involved, assuring foreign rights of residence and intercourse on terms of +equality for all the world. + +I regard as one of the essential factors of a durable adjustment the +securement of adequate guarantees for liberty of faith, since insecurity of +those natives who may embrace alien creeds is a scarcely less effectual +assault upon the rights of foreign worship and teaching than would be the +direct invasion thereof. + +The matter of indemnity for our wronged citizens is a question of grave +concern. Measured in money alone, a sufficient reparation may prove to be +beyond the ability of China to meet. All the powers concur in emphatic +disclaimers of any purpose of aggrandizement through the dismemberment of +the Empire. I am disposed to think that due compensation may be made in +part by increased guarantees of security for foreign rights and immunities, +and, most important of all, by the opening of China to the equal commerce +of all the world. These views have been and will be earnestly advocated by +our representatives. + +The Government of Russia has put forward a suggestion, that in the event of +protracted divergence of views in regard to indemnities the matter may be +relegated to the Court of Arbitration at The Hague. I favorably incline to +this, believing that high tribunal could not fail to reach a solution no +less conducive to the stability and enlarged prosperity of China itself +than immediately beneficial to the powers. + +Ratifications of a treaty of extradition with the Argentine Republic were +exchanged on June 2 last. + +While the Austro-Hungarian Government has in the many cases that have been +reported of the arrest of our naturalized citizens for alleged evasion of +military service faithfully observed the provisions of the treaty and +released such persons from military obligations, it has in some instances +expelled those whose presence in the community of their origin was asserted +to have a pernicious influence. Representations have been made against this +course whenever its adoption has appeared unduly onerous. + +We have been urgently solicited by Belgium to ratify the International +Convention of June, 1899, amendatory of the previous Convention of 1890 in +respect to the regulation of the liquor trade in Africa. Compliance was +necessarily withheld, in the absence of the advice and consent of the +Senate thereto. The principle involved has the cordial sympathy of this +Government, which in the reversionary negotiations advocated more drastic +measures, and I would gladly see its extension, by international agreement, +to the restriction of the liquor traffic with all. uncivilized peoples, +especially in the Western Pacific. + +A conference will be held at Brussels December 11, 1900, under the +Convention for the protection of industrial property, concluded at Paris +March 20, 1883, to which delegates from this country have been appointed. +Any lessening of the difficulties that our inventors encounter in obtaining +patents abroad for their inventions and that our farmers, manufacturers, +and merchants may have in the protection of their trade-marks is worthy of +careful consideration, and your attention will be called to the results of +the conference at the proper time. + +In the interest of expanding trade between this country and South America, +efforts have been made during the past year to conclude conventions with +the southern republics for the enlargement of postal facilities. Two such +agreements, signed with Bolivia on April 24, of which that establishing the +money-order system is undergoing certain changes suggested by the +Post-Office Department, have not yet been ratified by this Government. A +treaty of extradition with that country, signed on the same day, is before +the Senate. + +A boundary dispute between Brazil and Bolivia over the territory of Acre is +in a fair way of friendly adjustment, a protocol signed in December, 1899, +having agreed on a definite frontier and provided for its demarcation by a +joint commission. + +Conditions in Brazil have weighed heavily on our export trade to that +country in marked contrast to the favorable conditions upon which Brazilian +products are admitted into our markets. Urgent representations have been +made to that Government on the subject and some amelioration has been +effected. We rely upon the reciprocal justice and good will of that +Government to assure to us a further improvement in our commercial +relations. + +The Convention signed May 24, 1897, for the final settlement of claims left +in abeyance upon the dissolution of the Commission of 1893, was at length +ratified by the Chilean Congress and the supplemental Commission has been +organized. + +It remains for the Congress to appropriate for the necessary expenses of +the Commission. + +The insurrectionary movement which disturbed Colombia in the latter part of +1899 has been practically suppressed, although guerrillas still operate in +some departments. The executive power of that Republic changed hands in +August last by the act of Vice-President Marroquin in assuming the reins of +government during the absence of President San Clemente from the capital. +The change met with no serious opposition, and, following the precedents in +such cases, the United States minister entered into relations with the new +defacto Government on September 17. + +It is gratifying to announce that the residual questions between Costa Rica +and Nicaragua growing out of the Award of President Cleveland in 1888 have +been adjusted through the choice of an American engineer, General E. P. +Alexander, as umpire to run the disputed line. His task has been +accomplished to the satisfaction of both contestants. + +A revolution in the Dominican Republic toward the close of last year +resulted in the installation of President Jimenez, whose Government was +formally recognized in January. Since then final payment has been made of +the American claim in regard to the Ozama bridge. + +The year of the exposition has been fruitful in occasions for displaying +the good will that exists between this country and France. This great +competition brought together from every nation the best in natural +productions, industry, science, and the arts, submitted in generous rivalry +to a judgment made all the more searching because of that rivalry. The +extraordinary increase of exportations from this country during the past +three years and the activity with which our inventions and wares bad +invaded new markets caused much interest to center upon the American +exhibit, and every encouragement was offered in the way of space and +facilities to permit of its being comprehensive as a whole and complete in +every part. + +It was, however, not an easy task to assemble exhibits that could fitly +illustrate our diversified resources and manufactures. Singularly enough, +our national prosperity lessened. the incentive to exhibit. The dealer in +raw materials knew that the user must come to him; the great factories were +contented with the phenomenal demand for their output, not alone at home, +but also abroad, where merit had already won a profitable trade. + +Appeals had to be made to the patriotism of exhibitors to induce them to +incur outlays promising no immediate return. This was especially the case +where it became needful to complete an industrial sequence or illustrate a +class of processes. One manufacturer after another had to be visited and +importuned, and at times, after a promise to exhibit in a particular +section bad been obtained, it would be withdrawn, owing to pressure of +trade orders, and a new quest would have to be made. + +The installation of exhibits, too, encountered many obstacles and involved +unexpected cost. The exposition was far from ready at the date fixed for +its opening. The French transportation lines were congested with offered +freight. Belated goods had to be hastily installed in unfinished quarters +with whatever labor could be obtained in the prevailing confusion. Nor was +the task of the Commission lightened by the fact that, owing to the scheme +of classification adopted, it was impossible to have the entire exhibit of +any one country in the same building or more than one group of exhibits in +the same part of any building. Our installations were scattered on both +sides of the Seine and in widely remote suburbs of Paris, so that +additional assistants were needed for the work of supervision and +arrangement. + +Despite all these drawbacks the contribution of the United States was not +only the largest foreign display, but was among the earliest in place and +the most orderly in arrangement. Our exhibits were shown in one hundred and +one out of one hundred and twenty-one classes, and more completely covered +the entire classification than those of any other nation. In total number +they ranked next after those of France, and the attractive form in which +they were presented secured general attention. + +A criterion of the extent and success of our participation and of the +thoroughness with which our exhibits were organized is seen in the awards +granted to American exhibitors by the international jury, namely, grand +prizes, 240; gold medals, 597; silver medals, 776; bronze medals, 541, and +honorable mentions, 322 -- 2,476 in all, being the greatest total number +given to the exhibit of any exhibiting nation, as well as the largest +number in each grade. This significant recognition of merit in competition +with the chosen exhibits of all other nations and at the hands of juries +almost wholly made tip of representatives of France and other competing +countries is not only most gratifying, but is especially valuable, since it +sets us to the front in international questions of supply and demand, while +the large proportion of awards in the classes of art and artistic +manufactures afforded unexpected proof of the stimulation of national +culture by the prosperity that flows from natural productiveness joined to +industrial excellence. + +Apart from the exposition several occasions for showing international good +will occurred. The inauguration in Paris of the Lafayette Monument, +presented by the school children of the United States, and the designing of +a commemorative coin by our Mint and the presentation of the first piece +struck to the President of the Republic, were marked by appropriate +ceremonies, and the Fourth of July was especially observed in the French +capital. + +Good will prevails in our relations with the German Empire. An amicable +adjustment of the long-pending question of the admission of our +life-insurance companies to do business in Prussia has been reached. One of +the principal companies has already been readmitted and the way is opened +for the others to share the privilege. + +The settlement of the Samoan problem, to which I adverted in my last +message, has accomplished good results. Peace and contentment prevail in +the islands, especially in Tutuila, where a convenient administration that +has won the confidence and esteem of the kindly disposed natives has been +organized under the direction of the commander of the United States naval +station at Pago-Pago. + +An Imperial meat inspection law has been enacted for Germany. While it may +simplify the inspections, it prohibits certain products heretofore +admitted. There is still great uncertainty as to whether our well-nigh +extinguished German trade in meat products can revive tinder its new +burdens. Much will depend upon regulations not yet promulgated, which we +confidently hope will be free from the discriminations which attended the +enforcement of the old statutes. + +The remaining link in the new lines of direct telegraphic communication +between the United States and the German Empire has recently been +completed, affording a gratifying occasion for exchange of friendly +congratulations with the German Emperor. + +Our friendly relations with Great Britain continue. The war in Southern +Africa introduced important questions. A condition unusual in international +wars was presented in that while one belligerent had control of the seas, +the other had no ports, shipping, or direct trade, but was only accessible +through the territory of a neutral. Vexatious questions arose through Great +Britain's action in respect to neutral cargoes, not contraband in their own +nature, shipped to Portuguese South Africa, on the score of probable or +suspected ultimate destination to the Boer States. + +Such consignments in British ships, by which alone direct trade is kept up +between our ports and Southern Africa, were seized in application of a +municipal law prohibiting British vessels from trading with the enemy +without regard to any contraband character of the goods, while cargoes +shipped to Delagoa Bay in neutral bottoms were arrested on the ground of +alleged destination to enemy's country. Appropriate representations on our +part resulted in the British Government agreeing to purchase outright all +such goods shown to be the actual property of American citizens, thus +closing the incident to the satisfaction of the immediately interested +parties, although, unfortunately, without a broad settlement of the +question of a neutral's right to send goods not contraband per se to a +neutral port adjacent to a belligerent area. + +The work of marking certain provisional boundary points, for convenience of +administration, around the head of Lynn Canal, in accordance with the +temporary arrangement of October, 1899, Was completed by a joint survey in +July last. The modus vivendi has so far worked without friction, and the +Dominion Government has provided rules and regulations for securing to our +citizens the benefit of the reciprocal stipulation that the citizens or +subjects of either power found by that arrangement within the temporary +jurisdiction of the other shall suffer no diminution of the rights and +privileges they have hitherto enjoyed. But however necessary such an +expedient may have been to tide over the grave emergencies of the +situation, it is at best but an unsatisfactory makeshift, which should not +be suffered to delay the speedy and complete establishment of the frontier +line to which we are entitled under the Russo-American treaty for the +cession of Alaska. + +In this relation I may refer again to the need of definitely marking the +Alaskan boundary where it follows the one hundred and forty-first meridian. +A convention to that end has been before the Senate for some two years, but +as no action has been taken I contemplate negotiating a new convention for +a joint determination of the meridian by telegraphic observations. These, +it is believed, will give more accurate and unquestionable results than the +sidereal methods heretofore independently followed, which, as is known, +proved discrepant at several points on the line, although not varying at +any place more than 700 feet + +The pending claim of R. H. May against the Guatemalan Government has been +settled by arbitration, Mr. George F. B. Jenner, British minister at +Guatemala, who was chosen as sole arbitrator. having awarded $143,750.73 in +gold to the claimant. + +Various American claims against Haiti have been or are being advanced to +the resort of arbitration. + +As the result of negotiations with the Government of Honduras in regard to +the indemnity demanded for the murder of Frank H. Pears in Honduras, that +Government has paid $10,000 in settlement of the claim of the heirs. + +The assassination of King Humbert called forth sincere expressions of +sorrow from this Government and people, and occasion was fitly taken to +testify to the Italian nation the high regard here felt for the memory of +the lamented ruler. + +In my last message I referred at considerable length to the lynching of +five Italians at Tallulah. Notwithstanding the efforts of the Federal +Government, the production of evidence tending to inculpate the authors of +this grievous offense against our civilization, and the repeated inquests +set on foot by the authorities of the State of Louisiana, no punishments +have followed. Successive grand juries have failed to indict. The +representations of the Italian Government in the face of this miscarriage +have been most temperate and just. + +Setting the principle at issue high above all consideration of merely +pecuniary indemnification, such as this Government made in the three +previous cases, Italy has solemnly invoked the pledges of existing treaty +and asked that the justice to which she is entitled shall be meted in +regard to her unfortunate countrymen in our territory with the same full +measure she herself would give to any American were his reciprocal treaty +rights contemned. + +I renew the urgent recommendations I made last year that the Congress +appropriately confer upon the Federal courts jurisdiction in this class of +international cases where the ultimate responsibility of the Federal +Government may be involved, and I invite action upon the bills to +accomplish this which were introduced in the Sen. ate and House. It is +incumbent upon us to remedy the statutory omission which has led, and may +again lead, to such untoward results. I have pointed out the necessity and +the precedent for legislation of this character. Its enactment is a simple +measure of previsory justice toward the nations with which we as a +sovereign equal make treaties requiring reciprocal observance. + +While the Italian Government naturally regards such action as the primary +and, indeed, the most essential element in the disposal of the Tallulah +incident, I advise that, in accordance with precedent, and in view of the +improbability of that particular case being reached by the bill now +pending, Congress make gracious provision for indemnity to the Italian +sufferers in the same form and proportion as heretofore. + +In my inaugural address I referred to the general subject of lynching in +these words: Lynching must not be tolerated in a great and civilized +country like the United States; courts, not mobs, must execute the +penalties of the law. The preservation of public order, the right of +discussion, the integrity of courts, and the orderly administration of +justice must continue forever the rock of safety upon which our Government +securely rests. This I most urgently reiterate and again invite the +attention of my countrymen to this reproach upon our civilization. + +The closing year has witnessed a decided strengthening of Japan's relations +to other states. The development of her independent judicial and +administrative functions under the treaties which took effect July 17, +1899, has proceeded without international friction, showing the competence +of the Japanese to hold a foremost place among modern peoples. + +In the treatment of the difficult Chinese problems Japan has acted in +harmonious concert with the other powers, and her generous cooperation +materially aided in the joint relief of the beleaguered legations in Peking +and in bringing about an understanding preliminary to a settlement of the +issues between the powers and China. Japan's declarations in favor of the +integrity of the Chinese Empire and the conservation of open world trade +therewith have been frank and positive. As a factor for promoting the +general interests of peace, order, and fair commerce in the Far East the +influence of Japan can hardly be overestimated. + +The valuable aid and kindly courtesies extended by the Japanese Government +and naval officers to the battle ship Oregon are gratefully appreciated. + +Complaint was made last summer of the discriminatory enforcement of a +bubonic quarantine against Japanese on the Pacific coast and of +interference with their travel in California and Colorado under the health +laws of those States. The latter restrictions have been adjudged by a +Federal court to be unconstitutional. No recurrence of either cause of +complaint is apprehended. + +No noteworthy incident has occurred in our relations with our important +southern neighbor. Commercial intercourse with Mexico continues to thrive, +and the two Governments neglect no opportunity to foster their mutual +interests in all practicable ways. + +Pursuant to the declaration of the Supreme Court that the awards of the +late joint Commission in the La Abra and Weil claims were obtained through +fraud, the sum awarded in the first case, $403,030.08, has been returned to +Mexico, and the amount of the Weil award will be returned in like manner. + +A Convention indefinitely extending the time for the labors of the United +States and Mexican International (Water) Boundary Commission has been +signed. + +It is with satisfaction that I am able to announce the formal notification +at The Hague, on September 4, of the deposit of ratifications of the +Convention for the Pacific Settlement of International Disputes by sixteen +powers, namely, the United States, Austria, Belgium, Denmark, England, +France, Germany, Italy, Persia, Portugal, Roumania, Russia, Siam, Spain, +Sweden and Norway, and the Netherlands. Japan also has since ratified the +Convention. + +The Administrative Council of the Permanent Court of Arbitration has been +organized and has adopted rules of order and a constitution for the +International Arbitration Bureau. In accordance with Article XXIII of the +Convention providing for the appointment by each signatory power of persons +of known competency in questions of international law as arbitrators, I +have appointed as members of this Court, Hon. Benjamin Harrison, of +Indiana, ex-President of the United States; Hon. Melville W. Fuller, of +Illinois, Chief justice of the United States; Hon. John W. Griggs, of New +Jersey, Attorney General of the United States; and Hon. George Gray, of +Delaware, a judge of the circuit court of the United States. + +As an incident of the brief revolution in the Mosquito district of +Nicaragua early in 1899 the insurgents forcibly collected from American +merchants duties upon imports. On the restoration of order the Nicaraguan +authorities demanded a second payment of such duties on the ground that +they were due to the titular Government and that their diversion had aided +the revolt. + +This position was not accepted by us. After prolonged discussion a +compromise was effected under which the amount of the second payments was +deposited with the British consul at San Juan del Norte in trust until the +two Governments should determine whether the first payments had been made +under compulsion to a de facto authority. Agreement as to this was not +reached, and the point was waived by the act of the Nicaraguan Government +in requesting the British consul to return the deposits to the merchants. + +Menacing differences between several of the Central American States have +been accommodated, our ministers rendering good offices toward an +understanding. + +The all-important matter of an interoceanic canal has assumed a new phase. +Adhering to its refusal to reopen the question of the forfeiture of the +contract of the Maritime Canal Company, which was terminated for alleged +nonexecution in October, 1899, the Government of Nicaragua has since +supplemented that action by declaring the so styled Eyre-Cragin option void +for nonpayment of the stipulated advance. Protests in relation to these +acts have been filed in the State Department and are under consideration. +Deeming itself relieved from existing engagements, the Nicaraguan +Government shows a disposition to deal freely with the canal question +either in the way of negotiations with the United States or by taking +measures to promote the waterway. + +Overtures for a convention to effect the building of a canal under the +auspices of the United States are under consideration. In the meantime, the +views of the Congress upon the general subject, in the light of the report +of the Commission appointed to examine the comparative merits of the +various trans-Isthmian ship-canal projects, may be awaited. + +I commend to the early attention of the Senate the Convention with Great +Britain to facilitate the construction of such a canal and to remove any +objection which might arise out of the Convention commonly called the +Clayton-Bulwer Treaty. + +The long-standing contention with Portugal, growing out of the seizure of +the Delagoa Bay Railway, has been at last determined by a favorable award +of the tribunal of arbitration at Berne, to which it was submitted. The +amount of the award, which was deposited in London awaiting arrangements by +the Governments of the United States and Great Britain for its disposal, +has recently been paid over to the two Governments. + +A lately signed Convention of Extradition with Peru as amended by the +Senate has been ratified by the Peruvian Congress. + +Another illustration of the policy of this Government to refer +international disputes to impartial arbitration is seen in the agreement +reached with Russia to submit the claims on behalf of American sealing +vessels seized in Bering Sea to determination by Mr. T. M. C. Asser, a +distinguished statesman and jurist of the Netherlands. + +Thanks are due to the Imperial Russian Government for the kindly aid +rendered by its authorities in eastern Siberia to American missionaries +fleeing from Manchuria. + +Satisfactory progress has been made toward the conclusion of a general +treaty of friendship and intercourse with Spain, in replacement of the old +treaty, which passed into abeyance by reason of the late war. A new +convention of extradition is approaching completion, and I should be much +pleased were a commercial arrangement to follow. I feel that we should not +suffer to pass any opportunity to reaffirm the cordial ties that existed +between us and Spain from the time of our earliest independence, and to +enhance the mutual benefits of that commercial intercourse which is natural +between the two countries. + +By the terms of the Treaty of Peace the line bounding the ceded Philippine +group in the southwest failed to include several small islands lying +westward of the Sulus, which have always been recognized as under Spanish +control. The occupation of Sibutd and Cagayan Sulu by our naval forces +elicited a claim on the part of Spain, the essential equity of which could +not be gainsaid. In order to cure the defect of the treaty by removing all +possible ground of future misunderstanding respecting the interpretation of +its third article, I directed the negotiation of a supplementary treaty, +which will be forthwith laid before the Senate, whereby Spain quits all +title and claim of title to the islands named as well as to any and all +islands belonging to the Philippine Archipelago lying outside the lines +described in said third article, and agrees that all such islands shall be +comprehended in the cession of the archipelago as fully as if they had been +expressly included within those lines. In consideration of this cession the +United States is to pay to Spain the sum of $100,000. + +A bill is now pending to effect the recommendation made in my last annual +message that appropriate legislation be had to carry into execution Article +VII of the Treaty of Peace with Spain, by which the United States assumed +the payment of certain claims for indemnity of its citizens against Spain. +I ask that action be taken to fulfill this obligation. + +The King of Sweden and Norway has accepted the joint invitation of the +United States, Germany, and Great Britain to arbitrate claims growing out +of losses sustained in the Samoan Islands in the course of military +operations made necessary by the disturbances in 1899. + +Our claims upon the Government of the Sultan for reparation for injuries +suffered by American citizens in Armenia and elsewhere give promise of +early and satisfactory settlement. His Majesty's good disposition in this +regard has been evinced by the issuance of an irade for rebuilding the +American college at Harpoot. + +The failure of action by the Senate at its last session upon the commercial +conventions then submitted for its consideration and approval, although +caused by the great pressure of other legislative business, has caused much +disappointment to the agricultural and industrial interests of the country, +which hoped to profit by their provisions. The conventional periods for +their ratification having expired, it became necessary to sign additional +articles extending the time for that purpose. This was requested on our +part, and the other Governments interested have concurred with the +exception of one convention, in respect to which no formal reply has been +received. + +Since my last communication to the Congress on this subject special +commercial agreements under the third section of the tariff act have been +proclaimed with Portugal, with Italy, and with Germany. Commercial +conventions tinder the general limitations of the fourth section of the +same act have been concluded with + +Nicaragua, with Ecuador, with the Dominican Republic, with Great Britain on +behalf of the island of Trinidad, and with Denmark on behalf of the island +of St. Croix. These will be early communicated to the Senate. Negotiations +with other Governments are in progress for the improvement and security of +our commercial relations. + +The policy of reciprocity so manifestly rests upon the principles of +international equity and has been so repeatedly approved by the people of +the United States that there ought to be no hesitation in either branch of +the Congress in giving to it full effect. + +This Government desires to preserve the most just and amicable commercial +relations with all foreign countries, unmoved by the industrial rivalries +necessarily developed in the expansion of international trade. It is +believed that the foreign Governments generally entertain the same purpose, +although in some instances there are clamorous demands upon them for +legislation specifically hostile to American interests. Should these +demands prevail I shall communicate with the Congress with the view of +advising such legislation as may be necessary to meet the emergency. + +The exposition of the resources and products of the Western Hemisphere to +be held at Buffalo next year promises important results not only for the +United States but for the other participating countries. It is gratifying +that the Latin-American States have evinced the liveliest interest, and the +fact that an International American Congress will be held in the City of +Mexico while the exposition is in progress encourages the hope of a larger +display at Buffalo than might otherwise be practicable. The work of +preparing an exhibit of our national resources is making satisfactory +progress under the direction of different officials of the Federal +Government, and the various States of the Union have shown a disposition +toward the most liberal participation in the enterprise. + +The Bureau of the American Republics continues to discharge, with the +happiest results, the important work of promoting cordial relations between +the United States and the Latin-American countries, all of which are now +active members of the International Union. The Bureau has been instrumental +in bringing about the agreement for another International American +Congress, which is to meet in the City of Mexico in October, 1901. The +Bureau's future for another term of ten years is assured by the +international compact, but the congress will doubtless have much to do with +shaping new lines of work and a general policy. Its usefulness to the +interests of Latin-American trade is widely appreciated and shows a +gratifying development. + +The practical utility of the consular service in obtaining a wide range of +information as to the industries and commerce of other countries and the +opportunities thereby afforded for introducing the sale of our goods have +kept steadily in advance of the notable expansion of our foreign trade, and +abundant evidence has been furnished, both at home and abroad, of the fact +that the Consular Reports, including many from our diplomatic +representatives, have to a considerable extent pointed out ways and means +of disposing of a great variety of manufactured goods which otherwise might +not have found sale abroad. + +Testimony of foreign observers to the commercial efficiency of the consular +corps seems to be conclusive, and our own manufacturers and exporters +highly appreciate the value of the services rendered not only in the +printed reports but also in the individual efforts of consular officers to +promote American trade. An increasing part of the work of the Bureau of +Foreign Commerce, whose primary duty it is to compile and print the +reports, is to answer inquiries from trade organizations, business houses, +etc., as to conditions in various parts of the world, and, notwithstanding +the smallness of the force employed, the work has been so systematized that +responses are made with such promptitude and accuracy as to elicit +flattering encomiums. The experiment of printing the Consular Reports daily +for immediate use by trade bodies, exporters, and the press, which was +begun in January, 1898, continues to give general satisfaction. + +It is gratifying to be able to state that the surplus revenues for the +fiscal year ended June 30, 1900, were $79,527,060.18. For the six preceding +years we had only deficits, the aggregate of which from 1894 to 1899, +inclusive, amounted to $283,022,991.14. The receipts for the year from all +sources, exclusive of postal revenues, aggregated $567,240,851.89, and +expenditures for all purposes, except for the administration of the postal +department, aggregated $487,713,791.71. The receipts from customs were +$233,164,871.16, an increase over the preceding year Of $27,036,389.41. The +receipts from internal revenue were $295,327,926.76, an increase Of +$21,890,765.25 over 1899. The receipts from miscellaneous sources were +$38,748,053.97, as against $36,394,976.92 for the previous year. + +It is gratifying also to note that during the year a considerable reduction +is shown in the expenditures of the Government. The War Department +expenditures for the fiscal year 1900 were $134,774,767.78, a reduction of +$95,066,486.69 over those of 1899. In the Navy Department the expenditures +were $55,953,077.72 for the year 1900, as against $63,942,104.25 for the +preceding year, a decrease of $7,989,026.53. In the expenditures on account +of Indians there was a decrease in 1900 over 1899 Of $2,630,604.38; and in +the civil and miscellaneous expenses for 1900 there was a reduction Of +$13,418,065.74. + +Because of the excess of revenues over expenditures the Secretary of the +Treasury was enabled to apply bonds and other securities to the sinking +fund to the amount Of $56,544,556.06. The details of the sinking fund are +set forth in the report of the Secretary of the Treasury, to which I invite +attention. The Secretary of the Treasury estimates that the receipts for +the current fiscal year will aggregate $580,000,000 and the expenditures +$500,000,000, leaving an excess of revenues over expenditures of +$80,000,000. The present condition of the Treasury is one of undoubted +strength. The available cash balance November 30 was $139,303,794.50. Under +the form of statement prior to the financial law of March 14 last there +would have been included in the statement of available cash gold coin and +bullion held for the redemption of United States notes. + +If this form were pursued, the cash balance including the present gold +reserve of $150,000,000, would be $289,303,794.50. Such balance November +30, 1899, was $296,495,301.55. In the general fund, which is wholly +separate from the reserve and trust funds, there was on November 30, +$70,090,073.15 in gold coin and bullion, to which should be added +$22,957,300 in gold certificates subject to issue, against which there is +held in the Division of Redemption gold coin and bullion, making a total +holding of free gold amounting to $93,047,373.15. + +It will be the duty as I am sure it will be the disposition of the Congress +to provide whatever further legislation is needed to insure the continued +parity under all conditions between our two forms of metallic money, silver +and gold. + +Our surplus revenues have permitted the Secretary of the Treasury since the +close of the fiscal year to call in the funded loan of 1891 continued at 2 +per cent, in the sum of $25,364,500. To and including November 30, +$23,458,100 Of these bonds have been paid. This sum, together with the +amount which may accrue from further redemptions under the call, will be +applied to the sinking fund. + +The law of March 14, 1900, provided for refunding into 2 per cent +thirty-year bonds, payable, principal and interest, in gold coin of the +present standard value, that portion of the public debt represented by the +3 per cent bonds of 1908, the 4 percents Of 1907, and the 5 percents of +1904, Of which there was outstanding at the date of said law $839,149,930, +The holders of the old bonds presented them for exchange between March 14 +and November 30 to the amount of $364,943,750. The net saving to the +Government on these transactions aggregates $9,106,166. + +Another effect of the operation, as stated by the Secretary, is to reduce +the charge upon the Treasury for the payment of interest from the dates of +refunding to February 1, 1904, by the sum of more than seven million +dollars annually. From February 1, 1904, to July 1, 11907, the annual +interest charge will be reduced by the sum of more than five millions, and +for the thirteen months ending August 1, 1908, by about one million. The +full details of the refunding are given in the annual report of the +Secretary of the Treasury. + +The beneficial effect of the financial act of 1900, so far as it relates to +a modification of the national banking act, is already apparent. The +provision for the incorporation of national banks with a capital of not +less than $25,000 in places not exceeding three thousand inhabitants has +resulted in the extension of banking facilities to many small communities +hitherto unable to provide themselves with banking institutions under the +national system. There were organized from the enactment of the law up to +and including November 30, 369 national banks, of which 266 were with +capital less than $50,000, and 103 with capital of $50,000 or more. + +It is worthy of mention that the greater number of banks being organized +under the new law are in sections where the need of banking facilities has +been most pronounced. Iowa stands first, with 30 banks of the smaller +class, while Texas, Oklahoma, Indian Territory, and the middle and western +sections of the country have also availed themselves largely of the +privileges under the new law. + +A large increase in national bank-note circulation has resulted from the +provision of the act which permits national banks to issue circulating +notes to the par value of the United States bonds de. posited as security +instead of only go per cent thereof, as heretofore. The increase in +circulating notes from March 14 to November 30 is $77,889,570. + +The party in power is committed to such legislation as will better make the +currency responsive to the varying needs of business at all seasons and in +all sections. + +Our foreign trade shows a remarkable record of commercial and industrial +progress. The total of imports and exports for the first time in the +history of the country exceeded two billions of dollars. The exports are +greater than they have ever been before, the total for the fiscal year 1900 +being $1,394,483,082, an increase over 1899 of $167,459,780, an increase +over 1898 of $163,000,752, over 1897 Of $343,489,526, and greater than 1896 +by $511,876,144. + +The growth of manufactures in the United States is evidenced by the fact +that exports of manufactured products largely exceed those of any previous +year, their value for 1900 being $433,851,756, against $339,592,146 in +1899, an increase of 28 per cent. + +Agricultural products were also exported during 1900 in greater volume than +in 1899, the total for the year being $835,858,123, against $784,776,142 in +1899. + +The imports for the year amounted to $849,941,184, an increase over 1899 of +$152,792,695. This increase is largely in materials for manufacture, and is +in response to the rapid development of manufacturing in the United States. +While there was imported for use in manufactures in 1900 material to the +value of $79,768,972 in excess of 1899, it is reassuring to observe that +there is a tendency toward decrease in the importation of articles +manufactured ready for consumption, which in 1900 formed 15.17 per cent of +the total imports, against 15.54 per cent in 1899 and 21.09 per cent in +1896. + +I recommend that the Congress at its present session reduce the +internal-revenue taxes imposed to meet the expenses of the war with Spain. +in the sum of thirty millions of dollars. This reduction should be secured +by the remission of those taxes which experience has shown to be the most +burdensome to the industries of the people. + +I specially urge that there be included in whatever reduction is made the +legacy tax on bequests for public uses of a literary, educational, or +charitable character. + +American vessels during the past three years have carried about 9 per cent +of our exports and imports. Foreign ships should carry the least, not the +greatest, part of American trade. The remarkable growth of our steel +industries, the progress of shipbuilding for the domestic trade, and our +steadily maintained expenditures for the Navy have created an opportunity +to place the United States in the 6rst rank of commercial maritime powers. + +Besides realizing a proper national aspiration this will mean the +establishment and healthy growth along all our coasts of a distinctive +national industry, expanding the field for the profitable employment of +labor and capital. It will increase the transportation facilities and +reduce freight charges on the vast volume of products brought from the +interior to the seaboard for export, and will strengthen an arm of the +national defense upon which the founders of the Government and their +successors have relied. In again urging immediate action by the Congress on +measures to promote American shipping and foreign trade, I direct attention +to the recommendations on the subject in previous messages, and +particularly to the opinion expressed in the message of 1899: I am +satisfied the judgment of the country favors the policy of aid to our +merchant marine, which will broaden our commerce and markets and upbuild +our sea-carrying capacity for the products of agriculture and manufacture, +which, with the increase of our Navy, mean more work and wages to our +countrymen, as well as a safeguard to American interests in every part of +the world. The attention of the Congress is invited to the recommendation +of the Secretary of the Treasury in his annual report for legislation in +behalf of the Revenue-Cutter Service, and favorable action is urged. + +In my last annual message to the Congress I called attention to the +necessity for early action to remedy such evils as might be found to exist +in connection with combinations of capital organized into trusts, and again +invite attention to my discussion of the subject at that time, which +concluded with these words: It is apparent that uniformity of legislation +upon this subject in the several States is much to be desired. It is to be +hoped that such uniformity, founded in a wise and just discrimination +between what is injurious and what is useful and necessary in business +operations, may be obtained, and that means may be found for the Congress, +within the limitations of its constitutional power, so to supplement an +effective code of State legislation as to make a complete system of laws +throughout the United States adequate to compel a general observance of the +salutary rules to which I have referred. + +The whole question is so important and far-reaching that I am sure no part +of it will be lightly considered, but every phase of it will have the +studied deliberation of the Congress, resulting in wise and judicious +action. Restraint upon such combinations as are injurious, and which are +within Federal jurisdiction, should be promptly applied by the Congress. + +In my last annual message I dwelt at some length upon the condition of +affairs in the Philippines. While seeking to impress upon you that the +grave responsibility of the future government of those islands rests with +the Congress of the United States, I abstained from recommending at that +time a specific and final form of government for the territory actually +held by the United States forces and in which as long as insurrection +continues the military arm must necessarily be supreme. I stated my +purpose, until the Congress shall have made the formal expression of its +will, to use the authority vested in me by the Constitution and the +statutes to uphold the sovereignty of the United States in those distant +islands as in all other places where our flag rightfully floats, placing, +to that end, at the disposal of the army and navy all the means which the +liberality of the Congress and the people have provided. No contrary +expression of the will of the Congress having been made, I have steadfastly +pursued the purpose so declared, employing the civil arm as well toward the +accomplishment of pacification and the institution of local governments +within the lines of authority and law. + +Progress in the hoped-for direction has been favorable. Our forces have +successfully controlled the greater part of the islands, overcoming the +organized forces of the insurgents and carrying order and administrative +regularity to all quarters. What opposition remains is for the most part +scattered, obeying no concerted plan of strategic action, operating only by +the methods common to the traditions of guerrilla warfare, which, while +ineffective to alter the general control now established, are still +sufficient to beget insecurity among the populations that have felt the +good results of our control and thus delay the conferment upon them of the +fuller measures of local self-government, of education, and of industrial +and agricultural development which we stand ready to give to them. + +By the spring of this year the effective opposition of the dissatisfied +Tagals to the authority of the United States was virtually ended, thus +opening the door for the extension of a stable administration over much of +the territory of the Archipelago. Desiring to bring this about, I appointed +in March last a civil Commission composed of the Hon. William H. Taft, of +Ohio; Prof. Dean C. Worcester, of Michigan; the Hon. Luke I. Wright, of +Tennessee; the Hon. Henry C. Ide, of Vermont, and Prof. Bernard Moses, of +California. The aims of their mission and the scope of their authority are +clearly set forth in my instructions of April 7, 1900, addressed to the +Secretary of War to be transmitted to them: + +In the message transmitted to the Congress on the 5th of December, 1899, 1 +said. sneaking of the Philippine Islands: 11 As long as the insurrection +continues the military arm must necessarily be supreme. But there is no +reason why steps should not be taken from time to time to inaugurate +governments essentially popular in their form as fast as territory is held +and controlled by our troops. To this end I am considering the advisability +of the return of the Commission, or such of the members thereof as can be +secured, to aid the existing authorities and facilitate this work +throughout the islands." + +To give effect to the intention thus expressed, I have appointed Hon. +William H. Taft, of Ohio; Prof. Dean C. Worcester, of Michigan; Non. Luke +I. Wright, of Tennessee; Hon. Henry C. Ide, of Vermont, and Prof. Bernard +Moses, of California, Commissioners to the Philippine Islands to continue +and perfect the work of organizing and establishing civil government +already commenced by the military authorities, subject in all respects to +any laws which Congress may hereafter enact. + +The Commissioners named will meet and act as a board, and the Hon. William +H. Taft t is designated as president of the board. It is probable that the +transfer of authority from military commanders to civil officers will be +gradual and will occupy a considerable period. Its successful +accomplishment and the maintenance of peace and order in the meantime will +require the most perfect co-operation between the civil and military +authorities in the islands, and both should be directed during the +transition period by the same Executive Department. The Commission will +therefore report to the Secretary of War, and all their action will be +subject to your approval and control. + +You will instruct the Commission to proceed to the city of Manila, where +they will make their principal office, and to communicate with the Military +Governor of the Philippine Islands, whom you will at the same time direct +to render to them every assistance within his power in the performance of +their duties. Without hampering them by too specific instructions, they +should in general be enjoined, after making themselves familiar with the +conditions and needs of the country, to devote their attention in the first +instance to the establishment of municipal governments, in which the +natives of the islands, both in the cities and in the rural communities, +shall be afforded the opportunity to manage their own local affairs to the +fullest extent of which they are capable and subject to the least degree of +supervision and control which a careful study of their capacities and +observation of the workings of native control show to be consistent with +the maintenance of law, order, and loyalty. + +The next subject in order of importance should be the organization of +government in the larger administrative divisions corresponding to +counties, departments, or provinces, in which the common interests of many +or several municipalities failing within the same tribal lines, or the same +natural geographical limits, may best be subserved by a common +administration. Whenever the Commission is of the opinion that the +condition of affairs in the islands is such that the central administration +may safely be transferred from military to civil control they will report +that conclusion to you, with their recommendations as to the form of +central government to be established for the purpose of taking over the +control. + +Beginning with the 1st day of September, 1900, the authority to exercise, +subject to my approval, through the Secretary of War, that part of the +power of government in the Philippine Islands which is of a legislative +nature is to be transferred from the Military Governor of the islands to +this Commission, to be thereafter exercised by them in the place and stead +of the Military Governor, under such rules and regulations as you shall +prescribe, until the establishment of the civil central government for the +islands contemplated in the last foregoing paragraph, or until Congress +shall otherwise provide. Exercise of this legislative authority will +include the making of rules and orders, having the effect of law, for the +raising of revenue by taxes, customs duties, and imposts; the appropriation +and expenditure of public funds of the islands; the establishment of an +educational system throughout t1he islands; the establishment of a system +to secure an efficient civil service; the organization and establishment of +courts; the organization and establishment of municipal and departmental +governments, and all other matters of a civil nature for which the Military +Governor is now competent to provide by rules or orders of a legislative +character. + +The Commission will also have power during the same period to appoint to +office such officers under the judicial, educational, and civil-service +systems and in the municipal and departmental governments as shall be +provided for. Until the complete transfer of control the Military Governor +will remain the chief executive head of the government of the islands, and +will exercise the executive authority now possessed by him and not herein +expressly assigned to the Commission, subject, however, to the rules and +orders enacted by the Commission in the exercise of the legislative powers +conferred upon them. In the meantime the municipal and departmental +governments will continue to report to the Military Governor and be subject +to his administrative supervision and control, under your direction, but +that supervision and control will be confined within the narrowest limits +consistent with the requirement that the powers of government in the +municipalities and departments shall be honestly and effectively exercised +and that law and order and individual freedom shall be maintained. + +All legislative rules and orders, establishments of government, and +appointments to office by the Commission will take effect immediately, or +at such times as they shall designate, subject to your approval and action +upon the coming in of the Commission's reports, which are to be made from +time to time as their action is taken. Wherever civil governments are +constituted under the direction of the Commission such military posts, +garrisons, and forces will be continued for the suppression of insurrection +and brigandage and the maintenance of law and order as the Military +Commander shall deem requisite, and the military forces shall be at all +times subject, under his orders, to the call of the civil authorities for +the maintenance of law and order and the enforcement of their authority. + +In the establishment of municipal governments the Commission will take as +the basis of their work the governments established by the Military +Governor under his order of August 8, 1899. and under the report of the +board constituted by the Military Governor by his order of January 29, +1900, to formulate and report a plan of municipal government, of which His +Honor Cayetano Arellano, President of the Audiencia, was chairman, and they +will give to the conclusions of that board the weight and consideration +which the high character and distinguished abilities of its members +justify. + +In the constitution of departmental or provincial governments they will +give especial attention to the existing government of the island of Negros, +constituted, with the approval of the people of that island, under the +order of the Military Governor of July 22, 1899, and after verifying, so +far as may be practicable, the reports of the successful working of that +government they will be guided by the experience thus acquired so far as it +may be applicable to the condition existing in other portions of the +Philippines. They will avail themselves, to the fullest degree practicable, +of the conclusions reached by the previous Commission to the Philippines. + +In the distribution of powers among the governments organized by the +Commission, the presumption is always to be in favor of the smaller +subdivision, so that all the powers which can properly be exercised by the +municipal government shall be vested in that government, and all the powers +of a more general character which can be exercised by the departmental +government shall be vested in that government, and so that in the +governmental system, which is the result of the process, the central +government of the islands, following the example of the distribution of the +powers between the States and the National Government of the United States, +shall have no direct administration except of matters of purely general +concern, and shall have only such supervision and control over local +governments as may be necessary to secure and enforce faithful and +efficient administration by local officers. + +The many Different degrees of civilization and varieties of custom and +capacity among the people of the different islands preclude very definite +instruction as to the part which the people shall take in the selection of +their own officers; but these general rules are to be observed: That in all +cases the municipal officers, who administer the local affairs of the +people, are to be selected by the people, and that wherever officers of +more extended jurisdiction are to be selected in any way, natives of the +islands are to be preferred, and if they can be found competent and willing +to perform the duties, they are to receive the offices in preference to any +others. + +It will be necessary to fill some offices for the present with Americans +which after a time may well be filled by natives of the islands. As soon as +practicable a system for ascertaining the merit and fitness of candidates +for civil office should be put in force. An indispensable qualification for +all offices and positions of trust and authority in the islands must be +absolute and unconditional loyalty to the United States, and absolute and +unhampered authority and power to remove and punish any officer deviating +from that standard must at all times be retained in the bands of the +central authority of the islands. + +In all the forms of government and administrative provisions which they are +authorized to prescribe the Commission should bear in mind that the +government which they are establishing is designed not for our +satisfaction, or for the expression of our theoretical views, but for the +happiness, peace, and prosperity of tile people of the Philippine Islands, +and the measures adopted should be made to conform to their customs, their +habits, and even heir prejudices, to the fullest extent consistent with the +accomplishment of the Indispensable requisites of just and effective +government. + +At the same time the Commission should bear in mind, and the people of the +islands should be made plainly to understand, that there are certain great +principles of government which have been made the basis of our governmental +system which we deem essential to the rule of law and the maintenance of +individual freedom, and of which they have, unfortunately, been denied the +experience possessed by us; that there are also certain practical rules of +government which we have found to be essential to the preservation of these +great principles of liberty and law, and that these principles and these +rules of government must be established and maintained in their islands for +the sake of their liberty and happiness, however much they may conflict +with the customs or laws of procedure with which they are familiar. + +It is evident that the most enlightened thought of the Philippine Islands +fully appreciates the importance of these principles and rules, and they +will inevitably within a short time command universal assent. Upon every +division and branch of the government of the Philippines, therefore, must +be imposed these inviolable rules: + +That no person shall be deprived of life, liberty, or property without due +process of law; that private property shall not be taken for public use +without just compensation; that in all criminal prosecutions the accused +shall enjoy the right to a speedy and public trial, to be informed of the +nature and cause of the accusation, to be confronted with the witnesses +against him, to have compulsory process for obtaining witnesses in his +favor, and to have the assistance of counsel for his defense; that +excessive bail shall not be required, nor excessive fines imposed, nor +cruel and unusual punishment inflicted; that no person shall be put twice +in jeopardy for the same offense, or be compelled in any criminal case to +be a witness against himself; that the right to be secure against +unreasonable searches and seizures shall not be violated; that neither +slavery nor involuntary servitude shall exist except as a punishment for +crime; that no bill of attainder or ex-post facto law shall be passed; that +no law shall be passed abridging the freedom of speech or of the press, or +the rights of the people to peaceably assemble and petition the Government +for a redress of grievances; that no law shall be made respecting an +establishment of religion, or prohibiting the free exercise thereof, and +that the free exercise and enjoyment of religious profession and worship +without discrimination or preference shall forever be allowed. + +It will be the duty of the Commission to make a thorough investigation into +the titles to the large tracts of land held or claimed by individuals or by +religious orders; into the justice of the claims and complaints made +against Stich landholders by the people of the island or any part of the +people, and to seek by wise and peaceable measures a just settlement of the +controversies and redress of wrongs which have caused strife and bloodshed +in the past. In the performance of this duty the Commission is enjoined to +see that no injustice is done; to have regard for substantial rights and +equity, disregarding technicalities so far as substantial right permits, +and to observe the following rules: + +That the provision of the Treaty of Paris pledging the United States to the +protection of all rights of property in the islands, and as well the +principle of our own Government which prohibits the taking of private +property without due process of law, shall not be violated; that the +welfare of the people of the islands, which should be a paramount +consideration, shall be attained consistently with this rule of property +right; that if it becomes necessary for the public interest of the people +of the islands to dispose of claims to property which the Commission finds +to be not lawfully acquired and held disposition shall be made thereof by +due legal procedure, in which there shall be full opportunity for fair and +impartial hearing and judgment; that if the same public interests require +the extinguishment of property rights lawfully acquired and held due +compensation shall be made out of the public treasury therefore; that no +form of religion and no minister of religion shall be forced upon any +community or upon any citizen of the islands; that, upon the other hand, no +minister of religion shall be interfered with or molested in following his +calling. and that the separation between State and Church shall be real, +entire, and absolute. + +It will be the duty of the Commission to promote and extend, and, as they +find occasion, to improve the system of education already inaugurated by +the military authorities. In doing this they should regard as of first +importance the extension of a system of primary education which shall be +free to all, and which shall tend to fit the people for the duties of +citizenship and for the ordinary avocations of a civilized community. This +instruction should be given in the first instance in every part of the +islands in the language of the people. In view of the great number of +languages spoken by the different tribes, it is especially important to the +prosperity of the islands that a common medium of communication may be +established, and it is obviously desirable that this medium should be the +English language. Especial attention should be at once given to affording +full opportunity to all the people of the islands to acquire the use of the +English language. + +It may be well that the main changes which should be made in the system of +taxation and in the body of the laws under which the people are governed, +except such changes as have already been made by the military government, +should be relegated to the civil government which is to be established +under the auspices of the Commission. It will, however, be the duty of the +Commission to inquire diligently as to whether there are any further +changes which ought not to be delayed, and if so, they are authorized to +make such changes subject to your approval. In doing so they are to bear in +mind that taxes which tend 6 penalize or repress industry and enterprise +are to be avoided; that provisions for taxation should be simple, so that +they may be understood by the people; that they should affect the fewest +practicable subjects of taxation which will serve for the general +distribution of the burden. + +The main body of the laws which regulate the rights and obligations of the +people should be maintained with as little interference as possible. +Changes made should be mainly in procedure, and in the criminal laws to +secure speedy and impartial trials, and at the same time effective +administration and respect for individual rights. + +In dealing with the uncivilized tribes of the islands the Commission should +adopt the same course followed by Congress in permitting the tribes of our +North American Indians to maintain their tribal organization and +government, and under which many of those tribes are now living in peace +and contentment, surrounded by a civilization to which they are unable or +unwilling to conform. Such tribal governments should, however, be subjected +to wise and firm regulation, and, without undue or petty interference, +constant and active effort should be exercised to prevent barbarous +practices and introduce civilized customs. + +Upon all officers and employees of the United States, both civil and +military, should be impressed a sense of the duty to observe not merely the +material but the personal and social rights of the people of the islands, +and to treat them with the same courtesy and respect for their personal +dignity which the people of the United States are accustomed W require from +each other. + +The articles of capitulation of the city of Manila on the 13th of August, +1898, concluded with these words: + +"This city, its inhabitants, its churches and religious worship, its +educational establishments, and its private property of all descriptions, +are placed under the special safeguard of the faith and honor of the +American Army." + +I believe that this pledge has been faithfully kept. As high and sacred an +obligation rests upon the Government of the United States to give +protection for property and life, civil and religious freedom, and wise, +firm, and unselfish guidance in the paths of peace and prosperity to all +the people of the Philippine Islands. I charge this Commission to labor for +the full performance of this obligation, which concerns the honor and +conscience of their country, in the firm hope that through their labors all +the inhabitants of the Philippine Islands may come to look back with +gratitude to the day when God gave victory to American arms at Manila and +set their land under the sovereignty and the protection of the people of +the United States. + +Coincidently with the entrance of the Commission upon its labors I caused +to be issued by General MacArthur, the Military Governor of the +Philippines, on June 21, 1900, a proclamation of amnesty in generous terms, +of which many of the insurgents took advantage, among them a number of +important leaders. + +This Commission, composed of eminent citizens representing the diverse +geographical and political interests of the country, and bringing to their +task the ripe fruits of long and intelligent service in educational, +administrative, and judicial careers, made great progress from the outset. +As early as August 21, 1900, it submitted a preliminary report, which will +be laid before the Congress, and from which it appears that already the +good effects of returning order are felt; that business, interrupted by +hostilities, is improving as peace extends; that a larger area is under +sugar cultivation than ever before; that the customs revenues are greater +than at any time during the Spanish rule; that economy and efficiency in +the military administration have created a surplus fund of $6,000,000, +available for needed public improvements; that a stringent civil-service +law is in preparation; that railroad communications are expanding, opening +up rich districts, and that a comprehensive scheme of education is being +organized. + +Later reports from the Commission show yet more encouraging advance toward +insuring the benefits of liberty and good government to the Filipinos, in +the interest of humanity and with the aim of building up an enduring, +self-supporting, and self-administering community in those far eastern +seas. I would impress upon the Congress that whatever legislation may be +enacted in respect to the Philippine Islands should be along these generous +lines. The fortune of war has thrown upon this nation an unsought trust +which should be unselfishly discharged, and devolved upon this Government a +moral as well as material responsibility toward these millions whom we have +freed from an oppressive yoke. + +I have on another occasion called the Filipinos the wards of the nation. +"Our obligation as guardian was not lightly assumed; it must not be +otherwise than honestly fulfilled, aiming first of all to benefit those who +have come under our fostering care. It is our duty so to treat them that +our flag may be no less beloved in the mountains of Luzon and the fertile +zones of Mindanao and Negros than it is at home, that there as here it +shall be the revered symbol of liberty, enlightenment, and progress in +every avenue of development + +The Filipinos are a race quick to learn and to profit by knowledge He would +be rash who, with the teachings of contemporaneous history in view, would +fix a limit to the degree of culture and advancement yet within the reach +of these people if our duty toward them be faithfully performed. + +The civil government of Puerto Rico provided for by the act of the Congress +approved April 12, 1900 is in successful operation The courts have been +established. The Governor and his associates, working intelligently and +harmoniously, are meeting with Commendable success. + +On the 6th of November a general election was held in the island for +members of the Legislature, and the body elected has been called to convene +on the first Monday of December. + +I recommend that legislation be enacted by the Congress conferring upon the +Secretary of the Interior supervision over the public lands in Puerto Rico, +and that he be directed to ascertain the location and quantity of lands the +title to which remained in the Crown of Spain at the date of cession of +Puerto Rico to the United States, and that appropriations necessary for +surveys be made, and that the methods of the disposition of such lands be +prescribed by law. + +On the 25th of July, 1900, I directed that a call be issued for an election +in Cuba for members of a constitutional convention to frame a constitution +as a basis for a stable and independent government in the island. In +pursuance thereof the Military Governor issued the following instructions: +Whereas the Congress of the United States, by its joint resolution of April +20, 1898, declared: + +"That the people of the island of Cuba are, and of right ought to be, free +and independent. + +"That the United States hereby disclaims any disposition or intention to +exercise sovereignty, jurisdiction, or control over said island except for +the pacification thereof, and asserts its determination, when that is +accomplished, to leave the government and control of the island to its +people;" + +And whereas, the people of Cuba have established municipal governments, +deriving their authority from the suffrages of the people given under just +and equal + +laws, and are now ready, in like manner, to proceed to the establishment of +a general government which shall assume and exercise sovereignty, +jurisdiction, and control over the island: + +Therefore, it is ordered that a general election be held in the island of +Cuba on the third Saturday of September, in the year nineteen hundred, to +elect delegates to a convention to meet in the city of Havana at twelve +o'clock noon on the first Monday of November, in the year nineteen hundred, +to frame and adopt a constitution for the people of Cuba, and as a part +thereof to provide for and agree with the Government of the United States +upon the relations to exist between that Government and the Government of +Cuba, and to provide for the election by the people of officers under such +constitution and the transfer of government to the officers so elected. + +The election will be held in the several voting precincts of the island +under, and pursuant to, the provisions of the electoral law of April 18, +1900, and the amendments thereof. The election was held on the 15th of +September, and the convention assembled on the 5th of November, 1900, and +is now in session. + +In calling the convention to order, the Military Governor of Cuba made the +following statement: As Military Governor of the island, representing the +President of the United States, I call this convention to order. + +It will be your duty, first, to frame and adopt a constitution for Cuba, +and whet) that has been done to formulate what in your opinion ought to be +the relations between Cuba and the United States. + +The constitution must be adequate to secure a stable, orderly, and free +government. + +When you have formulated the relations which in your opinion ought to exist +between Cuba and the United States the Government of the United States will +doubtless take such action on its part as shall lead to a final and +authoritative agreement between the people of the two countries to the +promotion of their common interests. + +All friends of Cuba will follow your deliberations with the deepest +interest, earnestly desiring that you shall reach just conclusions, and +that by the dignity, individual self-restraint, and wise conservatism which +shall characterize your proceedings the capacity of the Cuban people for +representative government may be signally illustrated. + +The fundamental distinction between true representative government and +dictatorship is that in the former every representative of the people, in +whatever office, confines himself strictly within the limits of his defined +powers. Without such restraint there can be no free constitutional +government. + +Under the order pursuant to which you have been elected and convened you +have no duty and no authority to take part in the present government of the +island. Your powers are strictly limited by the terms of that order. When +the convention concludes its labors I will transmit to the Congress the +constitution as framed by the convention for its consideration and for such +action as it may deem advisable. + +I renew the recommendation made in my special message of February 10, 1899, +as to the necessity for cable communication between the United States and +Hawaii, with extension to Manila. Since then circumstances have strikingly +emphasized this need. Surveys have shown the entire feasibility of a chain +of cables which at each stopping place shall touch on American territory, +so that the system shall be under our own complete control. Manila once +within telegraphic reach, connection with the systems of the Asiatic coast +would open increased and profitable opportunities for a more direct cable +route from our shores to the Orient than is now afforded by the +trans-Atlantic, continental, and trans-Asian lines. I urge attention to +this important matter + +The present strength of the Army is 100,000 men -- 65,ooo regulars and +35,000 volunteers. Under the act of March 2, 1899, on the 3oth of June next +the present volunteer force will be discharged and the Regular Army will be +reduced to 2,447 officers and 29,025 enlisted men. + +In 1888 a Board of Officers convened by President Cleveland adopted a +comprehensive scheme of coast-defense fortifications which involved the +outlay of something over one hundred million dollars. This plan received +the approval of the Congress, and since then regular appropriations have +been made and the work of fortification has steadily progressed. + +More than sixty millions of dollars have been invested in a great number of +forts and guns, with all the complicated and scientific machinery and +electrical appliances necessary for their use. The proper care of this +defensive machinery requires men trained in its use. The number of men +necessary to perform this duty alone is ascertained by the War Department, +at a minimum allowance, to be 18,420. + +There are fifty-eight or more military posts in the United States other +than the coast-defense fortifications. + +The number of these posts is being constantly increased by the Congress. +More than $22,000,000 have been expended in building and equipment, and +they can only be cared for by the Regular Army. The posts now in existence +and others to be built provide for accommodations for, and if fully +garrisoned require, 26,000 troops. Many of these posts are along our +frontier or at important strategic points, the occupation of which is +necessary. + +We have in Cuba between 5,000 and 6,000 troops. For the present our troops +in that island cannot be withdrawn or materially diminished, and certainly +not until the conclusion of the labors of the constitutional convention now +in session and a government provided by the new constitution shall have +been established and its stability assured. + +In Puerto Rico we have reduced the garrisons to 1,636, which includes 879 +native troops. There is no room for further reduction here. + +We will be required to keep a considerable force in the Philippine Islands +for some time to come. From the best information obtainable we will need +there for the immediate future from 45,000 to 60,000 men. I am sure the +number may be reduced as the insurgents shall come to acknowledge the +authority of the United States, of which there are assuring indications. + +It must be apparent that we will require an army of about 60,000, and that +during present conditions in Cuba and the Philippines the President should +have authority to increase the force to the present number of 100,000. +Included in this number authority should be given to raise native troops in +the Philippines up to 15,000, which the Taft Commission believe will be +more effective in detecting and suppressing guerrillas, assassins, and +ladrones than our own soldiers. + +The full discussion of this subject by the Secretary of War in his annual +report is called to your earnest attention. + +I renew the recommendation made in my last annual message that the Congress +provide a special medal of honor for the volunteers, regulars, sailors, and +marines on duty in the Philippines who voluntarily remained in the service +after their terms of enlistment had expired. + +I favor the recommendation of the Secretary of War for the detail oil +officers from the line of the Army when vacancies occur in the +Adjutant-General's Department, Inspector-General's Department, +Quartermaster's Department, Subsistence Department, Pay Department, +Ordnance Department, and Signal Corps. + +The Army cannot be too highly commended for its faithful and effective +service in active military operations in the field and the difficult work +of civil administration. + +The continued and rapid growth of the postal service is a sure index of the +great and increasing business activity of the country. Its most striking +new development is the extension of rural free delivery. This has come +almost wholly within the last year. At the beginning of the fiscal year +1899, 1900 the number of routes in operation was only 391, and most of +these had been running less than twelve months. On the 15th of November, +1900, the number had increased to 2,614, reaching into forty-four States +and Territories, and serving a population of 1,801,524. The number of +applications now pending and awaiting action nearly equals all those +granted up to the present time, and by the close of the current fiscal year +about 4,ooo routes will have been established, providing for the daily +delivery of mails at the scattered homes of about three and a half millions +of rural population. + +This service ameliorates the isolation of farm life, conduces to good +roads, and quickens and extends the dissemination of general information. +Experience thus far has tended to allay the apprehension that it would be +so expensive as to forbid its general adoption or make it a serious burden. +Its actual application has shown that it increases postal receipts, and can +be accompanied by reductions in other branches of the service, so that the +augmented revenues and the accomplished savings together materially reduce +the net cost. The evidences which point to these conclusions are presented +in detail in the annual report of the Postmaster-General, which with its +recommendations is commended to the consideration of the Congress. The full +development of this special service, however, requires such a large outlay +of money that it should be undertaken only after a careful study and +thorough understanding of all that it involves. + +Very efficient service has been rendered by the Navy in connection with the +insurrection in the Philippines and the recent disturbance in China. + +A very satisfactory settlement has been made of the long-pending question +of the manufacture of armor plate. A reasonable price has been secured and +the necessity for a Government armor plant avoided. + +I approve of the recommendations of the Secretary for new vessels and for +additional officers and men which the required increase of the Navy makes +necessary. I commend to the favorable action of the Congress the measure +now pending for the erection of a statue to the memory of the late Admiral +David D. Porter. I commend also the establishment of a national naval +reserve and of the grade of vice-admiral. Provision should be made, as +recommended by the Secretary, for suitable rewards for special merit. Many +officers who rendered the most distinguished service during the recent war +with Spain have received in return no recognition from the Congress. + +The total area of public lands as given by the Secretary of the Interior is +approximately 1,071,881,662 acres, of which 917,135,880 acres are +undisposed of and 154,745,782 acres have been reserved for various +purposes. The public lands disposed of during the year amount to +13,453,887.96 acres, including 62,423.09 acres of Indian lands, an increase +Of 4,271,474.80 over the preceding year. The total receipts from the sale +of public lands during the fiscal year were $4,379,758.10, an increase of +$1,309,620.76 over the preceding year. + +The results obtained from our forest policy have demonstrated its wisdom +and the necessity in the interest of the public for its continuance and +increased appropriations by the Congress for the carrying on of the work. +On June 30, 1900, there were thirty-seven forest reserves, created by +Presidential proclamations under section 24 Of the act of March 3, 1891, +embracing an area Of 46,425,529 acres. + +During the past year the Olympic Reserve, in the State of Washington, was +reduced 265,040 acres, leaving its present area at 1,923,840 acres. The +Prescott Reserve, in Arizona, was increased from 10,240 acres to 423,680 +acres, and the Big Horn Reserve, in Wyoming, was increased from 1,127,680 +acres to 1,180,800 acres. A new reserve; the Santa Ynez, in California, +embracing an area of 145,000 acres, was created during this year. On +October 10, 1900, the Crow Creek Forest Reserve, in Wyoming, was created, +with an area of 56,320 acres. + +At the end of the fiscal year there were on the pension roll 993,529 names, +a net increase Of 2,010 over the fiscal year 1899. The number added to the +rolls during the year was 45,344. The amount disbursed for Army pensions +during the year was $134,700,597.24 and for Navy pensions $3,761,533.41, a +total of $138,462,130.65, leaving an unexpended balance of $5,542,768.25 to +be covered into the Treasury, which shows an increase over the previous +year's expenditure Of $107,077.70. There were 684 names added to the rolls +during the year by special acts passed at the first session of the +Fifty-sixth Congress. + +The act of May 9, 1900, among other things provides for an extension of +income to widows pensioned under said act to $250 per annum. The Secretary +of the Interior believes that by the operations of this act the number of +persons pensioned under it will increase and the increased annual payment +for pensions will be between $3,000,000 and $4,000,000. + +The Government justly appreciates the services of its soldiers and sailors +by making pension payments liberal beyond precedent to them, their widows +and orphans. + +There were 26,540 letters patent granted, including reissues and designs, +during the fiscal year ended June 30, 1900; 1,660 trademarks, 682 labels, +and 93 prints registered. The number of patents which expired was 19,988. +The total receipts for patents were $1,358,228.35. The expenditures were +$1,247,827.58, showing a surplus Of $110,400.77 + +The attention of the Congress is called to the report of the Secretary of +the Interior touching the necessity for the further establishment of +schools in the Territory of Alaska, and favorable action is invited +thereon. + +Much interesting information is given in the report of the Governor of +Hawaii as to the progress and development of the islands during the period +from July 7, 1898, the date of the approval of the joint resolution of the +Congress providing for their annexation, up to April 30, 1900, the date of +the approval of the act providing a government for the Territory, and +thereafter. + +The last Hawaiian census, taken in the year 1896, gives a total population +of 109,020, Of Which 31,019 were native Hawaiians. The number of Americans +reported was 8,485. The results of the Federal census, taken this year, +show the islands to have a total population Of 154,001, showing an increase +over that reported in 1896 of 44,981, or 41.2 per cent. + +There has been marked progress in the educational, agricultural, and +railroad development of the islands. + +In the Territorial act of April 30, 1900, section 7 of said act repeals +Chapter 34 Of the Civil Laws of Hawaii whereby the Government was to assist +in encouraging and developing the agricultural resources of the Republic, +especially irrigation. The Governor of Hawaii recommends legislation +looking to the development of such water supply as may exist on the public +lands, with a view of promoting land settlement. The earnest consideration +of the Congress is invited to this important recommendation and others, as +embodied in the report of the Secretary of the Interior. + +The Director of the Census states that the work in connection with the +Twelfth Census is progressing favorably. This national undertaking, ordered +by the Congress each decade, has finally resulted in the collection of an +aggregation of statistical facts to determine the industrial growth of the +country, its manufacturing and mechanical resources, its richness in mines +and forests, the number of its agriculturists, their farms and products, +its educational and religious opportunities, as well as questions +pertaining to sociological conditions. + +The labors of the officials in charge of the Bureau indicate that the four +important and most desired subjects, namely, population, agricultural, +manufacturing, and vital statistics, will be completed within the limit +prescribed by the law of March 3, 1899. + +The field work incident to the above inquiries is now practically finished, +and as a result the population of the States and Territories, including the +Hawaiian Islands and Alaska, has been announced. The growth of population +during the last decade amounts to over 13,000,000, a greater numerical +increase than in any previous census in the history of the country. + +Bulletins will be issued as rapidly as possible giving the population by +States and Territories, by minor civil divisions. Several announcements of +this kind have already been made, and it is hoped that the list will be +completed by January 1. Other bulletins giving the results of the +manufacturing and agricultural inquiries will be given to the public as +rapidly as circumstances will admit. + +The Director, while confident of his ability to complete the different +branches of the undertaking in the allotted time, finds himself embarrassed +by the lack of a trained force properly equipped for statistical work, thus +raising the question whether in the interest of economy and a thorough +execution of the census work there should not be retained in the Government +employ a certain number of experts not only to aid in the preliminary +organization prior to the taking of the decennial census,, but in addition +to have the advantage in the field and office work of the Bureau of trained +assistants to facilitate the early completion of this enormous +undertaking. + +I recommend that the Congress at its present session apportion +representation among the several States as provided by the Constitution. + +The Department of Agriculture has been extending its work during the past +year, reaching farther for new varieties of seeds and plants; co-operating +more fully with the States and Territories in research along useful lines; +making progress in meteorological work relating to lines of wireless +telegraphy and forecasts for ocean-going vessels; continuing inquiry as to +animal disease; looking into the extent and character of food adulteration; +outlining plans for the care, preservation, and intelligent harvesting of +our woodlands; studying soils that producers may cultivate with better +knowledge of conditions, and helping to clothe desert places with grasses +suitable to our and regions. Our island possessions are being considered +that their peoples may be helped to produce the tropical products now so +extensively brought into the United States. Inquiry into methods of +improving our roads has been active during the year; help has been given to +many localities, and scientific investigation of material in the States and +Territories has been inaugurated. Irrigation + +problems in our semiarid regions are receiving careful and increased +consideration. + +An extensive exhibit at Paris of the products of agriculture has made the +peoples of many countries more familiar with the varied products of our +fields and their comparative excellence. + +The collection of statistics regarding our crops is being improved and +sources of information are being enlarged, to the end that producers may +have the earliest advices regarding crop conditions. There has never been a +time when those for whom it was established have shown more appreciation of +the services of the Department. + +In my annual message of December 5, 1898, 1 called attention to the +necessity for some amendment of the alien contract law. There still remain +important features of the rightful application of the eight-hour law for +the benefit of labor and of the principle of arbitration, and I again +commend these subjects to the careful attention of the Congress. + +That there may be secured the best service possible in the Philippine +Islands, I have issued, under date of November 30, 1900, the following +order: The United States Civil Service Commission is directed to render +such assistance as may be practicable to the Civil Service Board, created +under the act of the United States Philippine Commission, for the +establishment and maintenance of an honest and efficient civil service in +the Philippine Islands, and for that purpose to conduct examinations for +the civil service of the Philippine islands, upon the request of the Civil +Service Board of said islands, under such regulations as may be agreed upon +by the said Board and the said United States Civil Service Commission. The +Civil Service Commission is greatly embarrassed in its work for want of an +adequate permanent force for clerical and other assistance. Its needs are +fully set forth in its report. I invite attention to the report, and +especially urge upon the Congress that this important bureau of the public +service, which passes upon the qualifications and character of so large a +number of the officers and employees of the Government, should be supported +by all needed appropriations to secure promptness and efficiency. + +I am very much impressed with the statement made by the heads of all the +Departments of the urgent necessity of a hall of public records. In every +departmental building in Washington, so far as I am informed, the space for +official records is not only exhausted, but the walls of rooms are lined +with shelves, the middle floor space of many rooms is tilled with tile +cases, and garrets and basements, which were never intended and are +unfitted for their accommodation, are crowded with them. Aside from the +inconvenience there is great danger, not only from fire, but from the +weight of these records upon timbers not intended for their support. There +should be a separate building especially designed for the purpose of +receiving and preserving the annually accumulating archives of the several +Executive Departments. Such a hall need not be a costly structure, but +should be so arranged as to admit of enlargement from time to time. I +urgently recommend that the Congress take early action in this matter. + +I transmit to the Congress a resolution adopted at a recent meeting of the +American Bar Association concerning the proposed celebration of John +Marshall Day, February 4, 1901. Fitting exercises have been arranged, and +it is earnestly desired by the committee that the Congress may participate +in this movement to honor the memory of the great jurist. + +The transfer of the Government to this city is a fact of great historical +interest. Among the people there is a feeling of genuine pride in the +Capital of the Republic. + +It is a matter of interest in this connection that in 1800 the population +of the District of Columbia was 14,093; to-day it is 278,718. The +population of the city of Washington was then 3,210; to-day it is 218,196. + +The Congress having provided for "an appropriate national celebration of +the Centennial Anniversary of the Establishment of the Seat of the +Government in the District of Columbia," the committees authorized by it +have prepared a programme for the 12th of December, 1900, which date has +been selected as the anniversary day. Deep interest has been shown in the +arrangements for the celebration by the members of the committees of the +Senate and House of Representatives, the committee of Governors appointed +by the President, and the committees appointed by the citizens and +inhabitants of the District of Columbia generally. The programme, in +addition to a reception and other exercises at the Executive Mansion, +provides commemorative exercises to be held jointly by the Senate and House +of Representatives in the Hall of the House of Representatives, and a +reception in the evening at the Corcoran Gallery of Art in honor of the +Governors of the States and Territories. + +In our great prosperity we must guard against the danger it invites of +extravagance in Government expenditures and appropriations; and the chosen +representatives of the people will, I doubt not, furnish an example in +their legislation of that wise economy which in a season of plenty husbands +for the future. In this era of great business activity and opportunity +caution is not untimely. It will not abate, but strengthen, confidence. It +will not retard, but promote, legitimate industrial and commercial +expansion. Our growing power brings with it temptations and perils +requiring constant vigilance to avoid. It must not be used to invite +conflicts, nor for oppression, but for the more effective maintenance of +those principles of equality and justice upon which our institutions and +happiness depend. Let us keep always in mind that the foundation of our +Government is liberty; its superstructure peace. + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY WILLIAM MCKINLEY *** + +This file should be named sumck10.txt or sumck10.zip +Corrected EDITIONS of our eBooks get a new NUMBER, sumck11.txt +VERSIONS based on separate sources get new LETTER, sumck10a.txt + +Project Gutenberg eBooks are often created from several printed +editions, all of which are confirmed as Public Domain in the US +unless a copyright notice is included. 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Their meeting occurs under felicitous conditions, justifying +sincere congratulation and calling for our grateful acknowledgment to a +beneficent Providence which has so signally blessed and prospered us as a +nation. Peace and good will with all the nations of the earth continue +unbroken. + +A matter of genuine satisfaction is the growing feeling of fraternal regard +and unification of all sections of our country, the incompleteness of which +has too long delayed realization of the highest blessings of the Union. The +spirit of patriotism is universal and is ever increasing in fervor. The +public questions which now most engross us are lifted far above either +partisanship, prejudice, or former sectional differences. They affect every +part of our common country alike and permit of no division on ancient +lines. Questions of foreign policy, of revenue, the soundness of the +currency, the inviolability of national obligations, the improvement of the +public service, appeal to the individual conscience of every earnest +citizen to whatever party he belongs or in whatever section of the country +he may reside. + +The extra session of this Congress which closed during July last enacted +important legislation, and while its full effect has not yet been realized, +what it has already accomplished assures us of its timeliness and wisdom. +To test its permanent value further time will be required, and the people, +satisfied with its operation and results thus far, are in no mind to +withhold from it a fair trial. + +Tariff legislation having been settled by the extra session of Congress, +the question next pressing for consideration is that of the currency. + +The work of putting our finances upon a sound basis, difficult as it may +seem, will appear easier when we recall the financial operations of the +Government since 1866. On the 30th day of June of that year we had +outstanding demand liabilities in the sum of $728,868,447.41. On the 1st of +January, 1879, these liabilities had been reduced to $443,889,495.88. Of our +interest-bearing obligations, the figures are even more striking. On July +1, 1866, the principal of the interest-bearing debt of the Government was +$2,332,331,208. On the 1st day of July, 1893, this sum had been reduced to +$585,137,100, or an aggregate reduction of $1,747,294,108. The +interest-bearing debt of the United States on the 1st day of December, +1897, was $847,365,620. The Government money now outstanding (December 1) +consists of $346,681,016 of United States notes, $107,793,280 of Treasury +notes issued by authority of the law of 1890, $384,963,504 of silver +certificates, and $61,280,761 of standard silver dollars. + +With the great resources of the Government, and with the honorable example +of the past before us, we ought not to hesitate to enter upon a currency +revision which will make our demand obligations less onerous to the +Government and relieve our financial laws from ambiguity and doubt. + +The brief review of what was accomplished from the close of the war to +1893, makes unreasonable and groundless any distrust either of our +financial ability or soundness; while the situation from 1893 to 1897 must +admonish Congress of the immediate necessity of so legislating as to make +the return of the conditions then prevailing impossible. + +There are many plans proposed as a remedy for the evil. Before we can find +the true remedy we must appreciate the real evil. It is not that our +currency of every kind is not good, for every dollar of it is good; good +because the Government's pledge is out to keep it so, and that pledge will +not be broken. However, the guaranty of our purpose to keep the pledge will +be best shown by advancing toward its fulfillment. + +The evil of the present system is found in the great cost to the Government +of maintaining the parity of our different forms of money, that is, keeping +all of them at par with gold. We surely cannot be longer heedless of the +burden this imposes upon the people, even under fairly prosperous +conditions, while the past four years have demonstrated that it is not only +an expensive charge upon the Government, but a dangerous menace to the +National credit. + +It is manifest that we must devise some plan to protect the Government +against bond issues for repeated redemptions. We must either curtail the +opportunity for speculation, made easy by the multiplied redemptions of our +demand obligations, or increase the gold reserve for their redemption. We +have $900,000,000 of currency which the Government by solemn enactment has +undertaken to keep at par with gold. Nobody is obliged to redeem in gold +but the Government. The banks are not required to redeem in gold. The +Government is obliged to keep equal with gold all its outstanding currency +and coin obligations, while its receipts are not required to be paid in +gold. They are paid in every kind of money but gold, and the only means by +which the Government can with certainty get gold is by borrowing. It can +get it in no other way when it most needs it. The Government without any +fixed gold revenue is pledged to maintain gold redemption, which it has +steadily and faithfully done, and which, under the authority now given, it +will continue to do. + +The law which requires the Government, after having redeemed its United +States notes, to pay them out again as current funds, demands a constant +replenishment of the gold reserve. This is especially so in times of +business panic and when the revenues are insufficient to meet the expenses +of the Government. At such times the Government has no other way to supply +its deficit and maintain redemption but through the increase of its bonded +debt, as during the Administration of my predecessor, when $262,315,400 of +four-and-a-half per cent bonds were issued and sold and the proceeds used +to pay the expenses of the Government in excess of the revenues and sustain +the gold reserve. While it is true that the greater part of the proceeds of +these bonds were used to supply deficient revenues, a considerable portion +was required to maintain the gold reserve. + +With our revenues equal to our expenses, there would be no deficit +requiring the issuance of bonds. But if the gold reserve falls below +$100,000,000, how will it be replenished except by selling more bonds? Is +there any other way practicable under existing law? The serious question +then is, Shall we continue the policy that has been pursued in the past; +that is, when the gold reserve reaches the point of danger, issue more +bonds and supply the needed gold, or shall we provide other means to +prevent these recurring drains upon the gold reserve? If no further +legislation is had and the policy of selling bonds is to be continued, then +Congress should give the Secretary of the Treasury authority to sell bonds +at long or short periods, bearing a less rate of interest than is now +authorized by law. + +I earnestly recommend, as soon as the receipts of the Government are quite +sufficient to pay all the expenses of the Government, that when any of the +United States notes are presented for redemption in gold and are redeemed +in gold, such notes shall be kept and set apart, and only paid out in +exchange for gold. This is an obvious duty. If the holder of the United +States note prefers the gold and gets it from the Government, he should not +receive back from the Government a United States note without paying gold +in exchange for it. The reason for this is made all the more apparent when +the Government issues an interest-bearing debt to provide gold for the +redemption of United States notes--a non-interest-bearing debt. Surely it +should not pay them out again except on demand and for gold. If they are +put out in any other way, they may return again to be followed by another +bond issue to redeem them--another interest-bearing debt to redeem a +non-interest-bearing debt. + +In my view, it is of the utmost importance that the Government should be +relieved from the burden of providing all the gold required for exchanges +and export. This responsibility is alone borne by the Government, without +any of the usual and necessary banking powers to help itself. The banks do +not feel the strain of gold redemption. The whole strain rests upon the +Government, and the size of the gold reserve in the Treasury has come to +be, with or without reason, the signal of danger or of security. This ought +to be stopped. + +If we are to have an era of prosperity in the country, with sufficient +receipts for the expenses of the Government, we may feel no immediate +embarrassment from our present currency; but the danger still exists, and +will be ever present, menacing us so long as the existing system continues. +And, besides, it is in times of adequate revenues and business tranquillity +that the Government should prepare for the worst. We cannot avoid, without +serious consequences, the wise consideration and prompt solution of this +question. + +The Secretary of the Treasury has outlined a plan, in great detail, for the +purpose of removing the threatened recurrence of a depleted gold reserve +and save us from future embarrassment on that account. To this plan I +invite your careful consideration. + +I concur with the Secretary of the Treasury in his recommendation that +National banks be allowed to issue notes to the face value of the bonds +which they have deposited for circulation, and that the tax on circulating +notes secured by deposit of such bonds be reduced to one-half of one per +cent per annum. I also join him in recommending that authority be given for +the establishment of National banks with a minimum capital of $25,000. This +will enable the smaller villages and agricultural regions of the country to +be supplied with currency to meet their needs. + +I recommend that the issue of National bank notes be restricted to the +denomination of ten dollars and upwards. If the suggestions I have herein +made shall have the approval of Congress, then I would recommend that +National banks be required to redeem their notes in gold. + +The most important problem with which this Government is now called upon to +deal pertaining to its foreign relations concerns its duty toward Spain and +the Cuban insurrection. Problems and conditions more or less in common with +those now existing have confronted this Government at various times in the +past. The story of Cuba for many years has been one of unrest, growing +discontent, an effort toward a larger enjoyment of liberty and +self-control, of organized resistance to the mother country, of depression +after distress and warfare, and of ineffectual settlement to be followed by +renewed revolt. For no enduring period since the enfranchisement of the +continental possessions of Spain in the Western Continent has the condition +of Cuba or the policy of Spain toward Cuba not caused concern to the United +States. + +The prospect from time to time that the weakness of Spain's hold upon the +island and the political vicissitudes and embarrassments of the home +Government might lead to the transfer of Cuba to a continental power called +forth between 1823 and 1860 various emphatic declarations of the policy of +the United States to permit no disturbance of Cuba's connection with Spain +unless in the direction of independence or acquisition by us through +purchase, nor has there been any change of this declared policy since upon +the part of the Government. + +The revolution which began in 1868 lasted for ten years despite the +strenuous efforts of the successive peninsular governments to suppress it. +Then as now the Government of the United States testified its grave concern +and offered its aid to put an end to bloodshed in Cuba. The overtures made +by General Grant were refused and the war dragged on, entailing great loss +of life and treasure and increased injury to American interests, besides +throwing enhanced burdens of neutrality upon this Government. In 1878 peace +was brought about by the truce of Zanjon, obtained by negotiations between +the Spanish commander, Martinez de Campos, and the insurgent leaders. + +The present insurrection broke out in February, 1895. It is not my purpose +at this time to recall its remarkable increase or to characterize its +tenacious resistance against the enormous forces massed against it by +Spain. The revolt and the efforts to subdue it carried destruction to every +quarter of the island, developing wide proportions and defying the efforts +of Spain for its suppression. The civilized code of war has been +disregarded, no less so by the Spaniards than by the Cubans. + +The existing conditions can not but fill this Government and the American +people with the gravest apprehension. There is no desire on the part of our +people to profit by the misfortunes of Spain. We have only the desire to +see the Cubans prosperous and contented, enjoying that measure of +self-control which is the inalienable right of man, protected in their +right to reap the benefit of the exhaustless treasures of their country. + +The offer made by my predecessor in April, 1896, tendering the friendly +offices of this Government, failed. Any mediation on our part was not +accepted. In brief, the answer read: "There is no effectual way to pacify +Cuba unless it begins with the actual submission of the rebels to the +mother country." Then only could Spain act in the promised direction, of +her own motion and after her own plans. + +The cruel policy of concentration was initiated February 16, 1896. The +productive districts controlled by the Spanish armies were depopulated. The +agricultural inhabitants were herded in and about the garrison towns, their +lands laid waste and their dwellings destroyed. This policy the late +cabinet of Spain justified as a necessary measure of war and as a means of +cutting off supplies from the insurgents. It has utterly failed as a war +measure. It was not civilized warfare. It was extermination. + +Against this abuse of the rights of war I have felt constrained on repeated +occasions to enter the firm and earnest protest of this Government. There +was much of public condemnation of the treatment of American citizens by +alleged illegal arrests and long imprisonment awaiting trial or pending +protracted judicial proceedings. I felt it my first duty to make instant +demand for the release or speedy trial of all American citizens under +arrest. Before the change of the Spanish cabinet in October last twenty-two +prisoners, citizens of the United States, had been given their freedom. + +For the relief of our own citizens suffering because of the conflict the +aid of Congress was sought in a special message, and under the +appropriation of May 24, 1897, effective aid has been given to American +citizens in Cuba, many of them at their own request having been returned to +the United States. + +The instructions given to our new minister to Spain before his departure +for his post directed him to impress upon that Government the sincere wish +of the United States to lend its aid toward the ending of the war in Cuba +by reaching a peaceful and lasting result, just and honorable alike to +Spain and to the Cuban people. These instructions recited the character and +duration of the contest, the widespread losses it entails, the burdens and +restraints it imposes upon us, with constant disturbance of national +interests, and the injury resulting from an indefinite continuance of this +state of things. It was stated that at this juncture our Government was +constrained to seriously inquire if the time was not ripe when Spain of her +own volition, moved by her own interests and every sentiment of humanity, +should put a stop to this destructive war and make proposals of settlement +honorable to herself and just to her Cuban colony. It was urged that as a +neighboring nation, with large interests in Cuba, we could be required to +wait only a reasonable time for the mother country to establish its +authority and restore peace and order within the borders of the island; +that we could not contemplate an indefinite period for the accomplishment +of this result. + +No solution was proposed to which the slightest idea of humiliation to +Spain could attach, and, indeed, precise proposals were withheld to avoid +embarrassment to that Government. All that was asked or expected was that +some safe way might be speedily provided and permanent peace restored. It +so chanced that the consideration of this offer, addressed to the same +Spanish administration which had declined the tenders of my predecessor, +and which for more than two years had poured men and treasure into Cuba in +the fruitless effort to suppress the revolt, fell to others. Between the +departure of General Woodford, the new envoy, and his arrival in Spain the +statesman who had shaped the policy of his country fell by the hand of an +assassin, and although the cabinet of the late premier still held office +and received from our envoy the proposals he bore, that cabinet gave place +within a few days thereafter to a new administration, under the leadership +of Sagasta. + +The reply to our note was received on the 23d day of October. It is in the +direction of a better understanding. It appreciates the friendly purposes +of this Government. It admits that our country is deeply affected by the +war in Cuba and that its desires for peace are just. It declares that the +present Spanish government is bound by every consideration to a change of +policy that should satisfy the United States and pacify Cuba within a +reasonable time. To this end Spain has decided to put into effect the +political reforms heretofore advocated by the present premier, without +halting for any consideration in the path which in its judgment leads to +peace. The military operations, it is said, will continue, but will be +humane and conducted with all regard for private rights, being accompanied +by political action leading to the autonomy of Cuba while guarding Spanish +sovereignty. This, it is claimed, will result in investing Cuba with a +distinct personality, the island to be governed by an executive and by a +local council or chamber, reserving to Spain the control of the foreign +relations, the army and navy, and the judicial administration. To +accomplish this the present government proposes to modify existing +legislation by decree, leaving the Spanish Cortes, with the aid of Cuban +senators and deputies, to solve the economic problem and properly +distribute the existing debt. + +In the absence of a declaration of the measures that this Government +proposes to take in carrying out its proffer of good offices, it suggests +that Spain be left free to conduct military operations and grant political +reforms, while the United States for its part shall enforce its neutral +obligations and cut off the assistance which it is asserted the insurgents +receive from this country. The supposition of an indefinite prolongation of +the war is denied. It is asserted that the western provinces are already +well-nigh reclaimed, that the planting of cane and tobacco therein has been +resumed, and that by force of arms and new and ample reforms very early and +complete pacification is hoped for. + +The immediate amelioration of existing conditions under the new +administration of Cuban affairs is predicted, and therewithal the +disturbance and all occasion for any change of attitude on the part of the +United States. Discussion of the question of the international duties and +responsibilities of the United States as Spain understands them is +presented, with an apparent disposition to charge us with failure in this +regard. This charge is without any basis in fact. It could not have been +made if Spain had been cognizant of the constant efforts this Government +has made, at the cost of millions and by the employment of the +administrative machinery of the nation at command, to perform its full duty +according to the law of nations. That it has successfully prevented the +departure of a single military expedition or armed vessel from our shores +in violation of our laws would seem to be a sufficient answer. But of this +aspect of the Spanish note it is not necessary to speak further now. Firm +in the conviction of a wholly performed obligation, due response to this +charge has been made in diplomatic course. + +Throughout all these horrors and dangers to our own peace this Government +has never in any way abrogated its sovereign prerogative of reserving to +itself the determination of its policy and course according to its own high +sense of right and in consonance with the dearest interests and convictions +of our own people should the prolongation of the strife so demand. + +Of the untried measures there remain only: Recognition of the insurgents as +belligerents; recognition of the independence of Cuba; neutral intervention +to end the war by imposing a rational compromise between the contestants, +and intervention in favor of one or the other party. I speak not of +forcible annexation, for that can not be thought of. That, by our code of +morality, would be criminal aggression. + +Recognition of the belligerency of the Cuban insurgents has often been +canvassed as a possible, if not inevitable, step both in regard to the +previous ten years' struggle and during the present war. I am not unmindful +that the two Houses of Congress in the spring of 1896 expressed the opinion +by concurrent resolution that a condition of public war existed requiring +or justifying the recognition of a state of belligerency in Cuba, and +during the extra session the Senate voted a joint resolution of like +import, which, however, was not brought to a vote in the House of +Representatives. In the presence of these significant expressions of the +sentiment of the legislative branch it behooves the Executive to soberly +consider the conditions under which so important a measure must needs rest +for justification. It is to be seriously considered whether the Cuban +insurrection possesses beyond dispute the attributes of statehood, which +alone can demand the recognition of belligerency in its favor. Possession, +in short, of the essential qualifications of sovereignty by the insurgents +and the conduct of the war by them according to the received code of war +are no less important factors toward the determination of the problem of +belligerency than are the influences and consequences of the struggle upon +the internal polity of the recognizing state. + +The wise utterances of President Grant in his memorable message of December +7, 1875, are signally relevant to the present situation in Cuba, and it may +be wholesome now to recall them. At that time a ruinous conflict had for +seven years wasted the neighboring island. During all those years an utter +disregard of the laws of civilized warfare and of the just demands of +humanity, which called forth expressions of condemnation from the nations +of Christendom, continued unabated. Desolation and ruin pervaded that +productive region, enormously affecting the commerce of all commercial +nations, but that of the United States more than any other by reason of +proximity and larger trade and intercourse. At that juncture General Grant +uttered these words, which now, as then, sum up the elements of the +problem: A recognition of the independence of Cuba being, in my opinion, +impracticable and indefensible, the question which next presents itself is +that of the recognition of belligerent rights in the parties to the +contest. + +In a former message to Congress I had occasion to consider this question, +and reached the conclusion that the conflict in Cuba, dreadful and +devastating as were its incidents, did not rise to the fearful dignity of +war. It is possible that the acts of foreign powers, and even acts of Spain +herself, of this very nature, might be pointed to in defense of such +recognition. But now, as in its past history, the United States should +carefully avoid the false lights which might lead it into the mazes of +doubtful law and of questionable propriety, and adhere rigidly and sternly +to the rule, which has been its guide, of doing only that which is right +and honest and of good report. The question of according or of withholding +rights of belligerency must be judged in every case in view of the +particular attending facts. Unless justified by necessity, it is always, +and justly, regarded as an unfriendly act and a gratuitous demonstration of +moral support to the rebellion. It is necessary, and it is required, when +the interests and rights of another government or of its people are so far +affected by a pending civil conflict as to require a definition of its +relations to the parties thereto. But this conflict must be one which will +be recognized in the sense of international law as war. Belligerence, too, +is a fact. The mere existence of contending armed bodies and their +occasional conflicts do not constitute war in the sense referred to. +Applying to the existing condition of affairs in Cuba the tests recognized +by publicists and writers on international law, and which have been +observed by nations of dignity, honesty, and power when free from sensitive +or selfish and unworthy motives, I fail to find in the insurrection the +existence of such a substantial political organization, real, palpable, and +manifest to the world, having the forms and capable of the ordinary +functions of government toward its own people and to other states, with +courts for the administration of justice, with a local habitation, +possessing such organization of force, such material, such occupation of +territory, as to take the contest out of the category of a mere rebellious +insurrection or occasional skirmishes and place it on the terrible footing +of war, to which a recognition of belligerency would aim to elevate it. The +contest, moreover, is solely on land; the insurrection has not possessed +itself of a single seaport whence it may send forth its flag, nor has it +any means of communication with foreign powers except through the military +lines of its adversaries. No apprehension of any of those sudden and +difficult complications which a war upon the ocean is apt to precipitate +upon the vessels, both commercial and national, and upon the consular +officers of other powers calls for the definition of their relations to the +parties to the contest. Considered as a question of expediency, I regard +the accordance of belligerent rights still to be as unwise and premature as +I regard it to be, at present, indefensible as a measure of right. Such +recognition entails upon the country according the rights which flow from +it difficult and complicated duties, and requires the exaction from the +contending parties of the strict observance of their rights and +obligations. It confers the right of search upon the high seas by vessels +of both parties; it would subject the carrying of arms and munitions of +war, which now may be transported freely and without interruption in the +vessels of the United States, to detention and to possible seizure; it +would give rise to countless vexatious questions, would release the parent +Government from responsibility for acts done by the insurgents, and would +invest Spain with the right to exercise the supervision recognized by our +treaty of 1795 over our commerce on the high seas, a very large part of +which, in its traffic between the Atlantic and the Gulf States and between +all of them and the States on the Pacific, passes through the waters which +wash the shores of Cuba. The exercise of this supervision could scarce fail +to lead, if not to abuses, certainly to collisions perilous to the peaceful +relations of the two States. There can be little doubt to what result such +supervision would before long draw this nation. It would be unworthy of the +United States to inaugurate the possibilities of such result by measures of +questionable right or expediency or by any indirection. Turning to the +practical aspects of a recognition of belligerency and reviewing its +inconveniences and positive dangers, still further pertinent considerations +appear. In the code of nations there is no such thing as a naked +recognition of belligerency, unaccompanied by the assumption of +international neutrality. Such recognition, without more, will not confer +upon either party to a domestic conflict a status not theretofore actually +possessed or affect the relation of either party to other states. The act +of recognition usually takes the form of a solemn proclamation of +neutrality, which recites the de facto condition of belligerency as its +motive. It announces a domestic law of neutrality in the declaring state. +It assumes the international obligations of a neutral in the presence of a +public state of war. It warns all citizens and others within the +jurisdiction of the proclaimant that they violate those rigorous +obligations at their own peril and can not expect to be shielded from the +consequences. The right of visit and search on the seas and seizure of +vessels and cargoes and contraband of war and good prize under admiralty +law must under international law be admitted as a legitimate consequence of +a proclamation of belligerency. While according the equal belligerent +rights defined by public law to each party in our ports disfavors would be +imposed on both, which, while nominally equal, would weigh heavily in +behalf of Spain herself. Possessing a navy and controlling the ports of +Cuba, her maritime rights could be asserted not only for the military +investment of the island, but up to the margin of our own territorial +waters, and a condition of things would exist for which the Cubans within +their own domain could not hope to create a parallel, while its creation +through aid or sympathy from within our domain would be even more +impossible than now, with the additional obligations of international +neutrality we would perforce assume. + +The enforcement of this enlarged and onerous code of neutrality would only +be influential within our own jurisdiction by land and sea and applicable +by our own instrumentalities. It could impart to the United States no +jurisdiction between Spain and the insurgents. It would give the United +States no right of intervention to enforce the conduct of the strife within +the paramount authority of Spain according to the international code of +war. + +For these reasons I regard the recognition of the belligerency of the Cuban +insurgents as now unwise, and therefore inadmissible. Should that step +hereafter be deemed wise as a measure of right and duty, the Executive will +take it. + +Intervention upon humanitarian grounds has been frequently suggested and +has not failed to receive my most anxious and earnest consideration. But +should such a step be now taken, when it is apparent that a hopeful change +has supervened in the policy of Spain toward Cuba? A new government has +taken office in the mother country. It is pledged in advance to the +declaration that all the effort in the world can not suffice to maintain +peace in Cuba by the bayonet; that vague promises of reform after +subjugation afford no solution of the insular problem; that with a +substitution of commanders must come a change of the past system of warfare +for one in harmony with a new policy, which shall no longer aim to drive +the Cubans to the "horrible alternative of taking to the thicket or +succumbing in misery;" that reforms must be instituted in accordance with +the needs and circumstances of the time, and that these reforms, while +designed to give full autonomy to the colony and to create a virtual entity +and self-controlled administration, shall yet conserve and affirm the +sovereignty of Spain by a just distribution of powers and burdens upon a +basis of mutual interest untainted by methods of selfish expediency. + +The first acts of the new government lie in these honorable paths. The +policy of cruel rapine and extermination that so long shocked the universal +sentiment of humanity has been reversed. Under the new military commander a +broad clemency is proffered. Measures have already been set on foot to +relieve the horrors of starvation. The power of the Spanish armies, it is +asserted, is to be used not to spread ruin and desolation, but to protect +the resumption of peaceful agricultural pursuits and productive industries. +That past methods are futile to force a peace by subjugation is freely +admitted, and that ruin without conciliation must inevitably fail to win +for Spain the fidelity of a contented dependency. + +Decrees in application of the foreshadowed reforms have already been +promulgated. The full text of these decrees has not been received, but as +furnished in a telegraphic summary from our minister are: All civil and +electoral rights of peninsular Spaniards are, in virtue of existing +constitutional authority, forthwith extended to colonial Spaniards. A +scheme of autonomy has been proclaimed by decree, to become effective upon +ratification by the Cortes. It creates a Cuban parliament, which, with the +insular executive, can consider and vote upon all subjects affecting local +order and interests, possessing unlimited powers save as to matters of +state, war, and the navy, as to which the Governor-General acts by his own +authority as the delegate of the central Government. This parliament +receives the oath of the Governor-General to preserve faithfully the +liberties and privileges of the colony, and to it the colonial secretaries +are responsible. It has the right to propose to the central Government, +through the Governor-General, modifications of the national charter and to +invite new projects of law or executive measures in the interest of the +colony. + +Besides its local powers, it is competent, first, to regulate electoral +registration and procedure and prescribe the qualifications of electors and +the manner of exercising suffrage; second, to organize courts of justice +with native judges from members of the local bar; third, to frame the +insular budget, both as to expenditures and revenues, without limitation of +any kind, and to set apart the revenues to meet the Cuban share of the +national budget, which latter will be voted by the national Cortes with the +assistance of Cuban senators and deputies; fourth, to initiate or take part +in the negotiations of the national Government for commercial treaties +which may affect Cuban interests; fifth, to accept or reject commercial +treaties which the national Government may have concluded without the +participation of the Cuban government; sixth, to frame the colonial tariff, +acting in accord with the peninsular Government in scheduling articles of +mutual commerce between the mother country and the colonies. Before +introducing or voting upon a bill the Cuban government or the chambers will +lay the project before the central Government and hear its opinion thereon, +all the correspondence in such regard being made public. Finally, all +conflicts of jurisdiction arising between the different municipal, +provincial, and insular assemblies, or between the latter and the insular +executive power, and which from their nature may not be referable to the +central Government for decision, shall be submitted to the courts. + +That the government of Sagasta has entered upon a course from which +recession with honor is impossible can hardly be questioned; that in the +few weeks it has existed it has made earnest of the sincerity of its +professions is undeniable. I shall not impugn its sincerity, nor should +impatience be suffered to embarrass it in the task it has undertaken. It is +honestly due to Spain and to our friendly relations with Spain that she +should be given a reasonable chance to realize her expectations and to +prove the asserted efficacy of the new order of things to which she stands +irrevocably committed. She has recalled the commander whose brutal orders +inflamed the American mind and shocked the civilized world. She has +modified the horrible order of concentration and has undertaken to care for +the helpless and permit those who desire to resume the cultivation of their +fields to do so, and assures them of the protection of the Spanish +Government in their lawful occupations. She has just released the +Competitor prisoners, heretofore sentenced to death, and who have been the +subject of repeated diplomatic correspondence during both this and the +preceding Administration. + +Not a single American citizen is now in arrest or confinement in Cuba of +whom this Government has any knowledge. The near future will demonstrate +whether the indispensable condition of a righteous peace, just alike to the +Cubans and to Spain as well as equitable to all our interests so intimately +involved in the welfare of Cuba, is likely to be attained. If not, the +exigency of further and other action by the United States will remain to be +taken. When that time comes that action will be determined in the line of +indisputable right and duty. It will be faced, without misgiving or +hesitancy in the light of the obligation this Government owes to itself, to +the people who have confided to it the protection of their interests and +honor, and to humanity. + +Sure of the right, keeping free from all offense ourselves, actuated only +by upright and patriotic considerations, moved neither by passion nor +selfishness, the Government will continue its watchful care over the rights +and property of American citizens and will abate none of its efforts to +bring about by peaceful agencies a peace which shall be honorable and +enduring. If it shall hereafter appear to be a duty imposed by our +obligations to ourselves, to civilization and humanity to intervene with +force, it shall be without fault on our part and only because the necessity +for such action will be so clear as to command the support and approval of +the civilized world. + +By a special message dated the 16th day of June last, I laid before the +Senate a treaty signed that day by the plenipotentiaries of the United +States and of the Republic of Hawaii, having for its purpose the +incorporation of the Hawaiian Islands as an integral part of the United +States and under its sovereignty. The Senate having removed the injunction +of secrecy, although the treaty is still pending before that body, the +subject may be properly referred to in this Message because the necessary +action of the Congress is required to determine by legislation many details +of the eventual union should the fact of annexation be accomplished, as I +believe it should be. + +While consistently disavowing from a very early period any aggressive +policy of absorption in regard to the Hawaiian group, a long series of +declarations through three-quarters of a century has proclaimed the vital +interest of the United States in the independent life of the Islands and +their intimate commercial dependence upon this country. At the same time it +has been repeatedly asserted that in no event could the entity of Hawaiian +statehood cease by the passage of the Islands under the domination or +influence of another power than the United States. Under these +circumstances, the logic of events required that annexation, heretofore +offered but declined, should in the ripeness of time come about as the +natural result of the strengthening ties that bind us to those Islands, and +be realized by the free will of the Hawaiian State. + +That treaty was unanimously ratified without amendment by the Senate and +President of the Republic of Hawaii on the 10th of September last, and only +awaits the favorable action of the American Senate to effect the complete +absorption of the Islands into the domain of the United States. What the +conditions of such a union shall be, the political relation thereof to the +United States, the character of the local administration, the quality and +degree of the elective franchise of the inhabitants, the extension of the +federal laws to the territory or the enactment of special laws to fit the +peculiar condition thereof, the regulation if need be of the labor system +therein, are all matters which the treaty has wisely relegated to the +Congress. + +If the treaty is confirmed as every consideration of dignity and honor +requires, the wisdom of Congress will see to it that, avoiding abrupt +assimilation of elements perhaps hardly yet fitted to share in the highest +franchises of citizenship, and having due regard to the geographical +conditions, the most just provisions for self-rule in local matters with +the largest political liberties as an integral part of our Nation will be +accorded to the Hawaiians. No less is due to a people who, after nearly +five years of demonstrated capacity to fulfill the obligations of +self-governing statehood, come of their free will to merge their destinies +in our body-politic. + +The questions which have arisen between Japan and Hawaii by reason of the +treatment of Japanese laborers emigrating to the Islands under the +Hawaiian-Japanese convention of 1888, are in a satisfactory stage of +settlement by negotiation. This Government has not been invited to mediate, +and on the other hand has sought no intervention in that matter, further +than to evince its kindliest disposition toward such a speedy and direct +adjustment by the two sovereign States in interest as shall comport with +equity and honor. It is gratifying to learn that the apprehensions at first +displayed on the part of Japan lest the cessation of Hawaii's national life +through annexation might impair privileges to which Japan honorably laid +claim, have given place to confidence in the uprightness of this +Government, and in the sincerity of its purpose to deal with all possible +ulterior questions in the broadest spirit of friendliness. + +As to the representation of this Government to Nicaragua, Salvador, and +Costa Rica, I have concluded that Mr. William L. Merry, confirmed as +minister of the United States to the States of Nicaragua, Salvador and +Costa Rica, shall proceed to San Jose, Costa Rica, and there temporarily +establish the headquarters of the United States to those three States. I +took this action for what I regarded as the paramount interests of this +country. It was developed upon an investigation by the Secretary of State +that the Government of Nicaragua, while not unwilling to receive Mr. Merry +in his diplomatic quality, was unable to do so because of the compact +concluded June 20, 1895, whereby that Republic and those of Salvador and +Honduras, forming what is known as the Greater Republic of Central America, +had surrendered to the representative Diet thereof their right to receive +and send diplomatic agents. The Diet was not willing to accept him because +he was not accredited to that body. I could not accredit him to that body +because the appropriation law of Congress did not permit it. Mr. Baker, the +present minister at Managua, has been directed to present his letters of +recall. + +Mr. W. Godfrey Hunter has likewise been accredited to the Governments of +Guatemala and Honduras, the same as his predecessor. Guatemala is not a +member of the Greater Republic of Central America, but Honduras is. Should +this latter Government decline to receive him, he has been instructed to +report this fact to his Government and await its further instructions. + +A subject of large importance to our country, and increasing appreciation +on the part of the people, is the completion of the great highway of trade +between the Atlantic and Pacific, known as the Nicaragua Canal. Its utility +and value to American commerce is universally admitted. The Commission +appointed under date of July 24 last "to continue the surveys and +examinations authorized by the act approved March 2, 1895," in regard to +"the proper route, feasibility, and cost of construction of the Nicaragua +Canal, with a view of making complete plans for the entire work of +construction of such canal," is now employed in the undertaking. In the +future I shall take occasion to transmit to Congress the report of this +Commission, making at the same time such further suggestions as may then +seem advisable. + +Under the provisions of the act of Congress approved March 3, 1897, for the +promotion of an international agreement respecting bimetallism, I appointed +on the 14th day of April, 1897, Hon. Edward O. Wolcott of Colorado, Hon. +Adlai E. Stevenson of Illinois, and Hon. Charles J. Paine of Massachusetts, +as special envoys to represent the United States. They have been diligent +in their efforts to secure the concurrence and cooperation of European +countries in the international settlement of the question, but up to this +time have not been able to secure an agreement contemplated by their +mission. + +The gratifying action of our great sister Republic of France in joining +this country in the attempt to bring about an agreement among the principal +commercial nations of Europe, whereby a fixed and relative value between +gold and silver shall be secured, furnishes assurance that we are not alone +among the larger nations of the world in realizing the international +character of the problem and in the desire of reaching some wise and +practical solution of it. The British Government has published a resume of +the steps taken jointly by the French ambassador in London and the special +envoys of the United States, with whom our ambassador at London actively +co-operated in the presentation of this subject to Her Majesty's +Government. This will be laid before Congress. + +Our special envoys have not made their final report, as further +negotiations between the representatives of this Government and the +Governments of other countries are pending and in contemplation. They +believe that doubts which have been raised in certain quarters respecting +the position of maintaining the stability of the parity between the metals +and kindred questions may yet be solved by further negotiations. + +Meanwhile it gives me satisfaction to state that the special envoys have +already demonstrated their ability and fitness to deal with the subject, +and it is to be earnestly hoped that their labors may result in an +international agreement which will bring about recognition of both gold and +silver as money upon such terms, and with such safeguards as will secure +the use of both metals upon a basis which shall work no injustice to any +class of our citizens. + +In order to execute as early as possible the provisions of the third and +fourth sections of the Revenue Act, approved July 24, 1897, I appointed the +Hon. John A. Kasson of Iowa, a special commissioner plenipotentiary to +undertake the requisite negotiations with foreign countries desiring to +avail themselves of these provisions. The negotiations are now proceeding +with several Governments, both European and American. It is believed that +by a careful exercise of the powers conferred by that Act some grievances +of our own and of other countries in our mutual trade relations may be +either removed, or largely alleviated, and that the volume of our +commercial exchanges may be enlarged, with advantage to both contracting +parties. + +Most desirable from every standpoint of national interest and patriotism is +the effort to extend our foreign commerce. To this end our merchant marine +should be improved and enlarged. We should do our full share of the +carrying trade of the world. We do not do it now. We should be the laggard +no longer. The inferiority of our merchant marine is justly humiliating to +the national pride. The Government by every proper constitutional means, +should aid in making our ships familiar visitors at every commercial port +of the world, thus opening up new and valuable markets to the surplus +products of the farm and the factory. + +The efforts which had been made during the two previous years by my +predecessor to secure better protection to the fur seals in the North +Pacific Ocean and Bering Sea, were renewed at an early date by this +Administration, and have been pursued with earnestness. Upon my invitation, +the Governments of Japan and Russia sent delegates to Washington, and an +international conference was held during the months of October and November +last, wherein it was unanimously agreed that under the existing regulations +this species of useful animals was threatened with extinction, and that an +international agreement of all the interested powers was necessary for +their adequate protection. + +The Government of Great Britain did not see proper to be represented at +this conference, but subsequently sent to Washington, as delegates, the +expert commissioners of Great Britain and Canada who had, during the past +two years, visited the Pribilof Islands, and who met in conference similar +commissioners on the part of the United States. The result of this +conference was an agreement on important facts connected with the condition +of the seal herd, heretofore in dispute, which should place beyond +controversy the duty of the Governments concerned to adopt measures without +delay for the preservation and restoration of the herd. Negotiations to +this end are now in progress, the result of which I hope to be able to +report to Congress at an early day. + +International arbitration cannot be omitted from the list of subjects +claiming our consideration. Events have only served to strengthen the +general views on this question expressed in my inaugural address. The best +sentiment of the civilized world is moving toward the settlement of +differences between nations without resorting to the horrors of war. +Treaties embodying these humane principles on broad lines, without in any +way imperiling our interests or our honor, shall have my constant +encouragement. + +The acceptance by this Government of the invitation of the Republic of +France to participate in the Universal Exposition of 1900, at Paris, was +immediately followed by the appointment of a special commissioner to +represent the United States in the proposed exposition, with special +reference to the securing of space for an adequate exhibit on behalf of the +United States. + +The special commissioner delayed his departure for Paris long enough to +ascertain the probable demand for space by American exhibitors. His +inquiries developed an almost unprecedented interest in the proposed +exposition, and the information thus acquired enabled him to justify an +application for a much larger allotment of space for the American section +than had been reserved by the exposition authorities. The result was +particularly gratifying, in view of the fact that the United States was one +of the last countries to accept the invitation of France. + +The reception accorded our special commissioner was most cordial, and he +was given every reasonable assurance that the United States would receive a +consideration commensurate with the proportions of our exhibit. The report +of the special commissioner as to the magnitude and importance of the +coming exposition, and the great demand for space by American exhibitors, +supplies new arguments for a liberal and judicious appropriation by +Congress, to the end that an exhibit fairly representative of the +industries and resources of our country may be made in an exposition which +will illustrate the world's progress during the nineteenth century. That +exposition is intended to be the most important and comprehensive of the +long series of international exhibitions, of which our own at Chicago was a +brilliant example, and it is desirable that the United States should make a +worthy exhibit of American genius and skill and their unrivaled +achievements in every branch of industry. + +The present immediately effective force of the Navy consists of four battle +ships of the first class, two of the second, and forty-eight other vessels, +ranging from armored cruisers to torpedo boats. There are under +construction five battle ships of the first class, sixteen torpedo boats, +and one submarine boat. No provision has yet been made for the armor of +three of the five battle ships, as it has been impossible to obtain it at +the price fixed by Congress. It is of great importance that Congress +provide this armor, as until then the ships are of no fighting value. + +The present naval force, especially in view of its increase by the ships +now under construction, while not as large as that of a few other powers, +is a formidable force; its vessels are the very best of each type; and with +the increase that should be made to it from time to time in the future, and +careful attention to keeping it in a high state of efficiency and repair, +it is well adapted to the necessities of the country. + +The great increase of the Navy which has taken place in recent years was +justified by the requirements for national defense, and has received public +approbation. The time has now arrived, however, when this increase, to +which the country is committed, should, for a time, take the form of +increased facilities commensurate with the increase of our naval vessels. +It is an unfortunate fact that there is only one dock on the Pacific Coast +capable of docking our largest ships, and only one on the Atlantic Coast, +and that the latter has for the last six or seven months been under repair +and therefore incapable of use. Immediate steps should be taken to provide +three or four docks of this capacity on the Atlantic Coast, at least one on +the Pacific Coast, and a floating dock in the Gulf. This is the +recommendation of a very competent Board, appointed to investigate the +subject. There should also be ample provision made for powder and +projectiles, and other munitions of war, and for an increased number of +officers and enlisted men. Some additions are also necessary to our +navy-yards, for the repair and care of our large number of vessels. As +there are now on the stocks five battle ships of the largest class, which +cannot be completed for a year or two, I concur with the recommendation of +the Secretary of the Navy for an appropriation authorizing the construction +of one battle ship for the Pacific Coast, where, at present, there is only +one in commission and one under construction, while on the Atlantic Coast +there are three in commission and four under construction; and also that +several torpedo boats be authorized in connection with our general system +of coast defense. + +The Territory of Alaska requires the prompt and early attention of +Congress. The conditions now existing demand material changes in the laws +relating to the Territory. The great influx of population during the past +summer and fall and the prospect of a still larger immigration in the +spring will not permit us to longer neglect the extension of civil +authority within the Territory or postpone the establishment of a more +thorough government. + +A general system of public surveys has not yet been extended to Alaska and +all entries thus far made in that district are upon special surveys. The +act of Congress extending to Alaska the mining laws of the United States +contained the reservation that it should not be construed to put in force +the general land laws of the country. By act approved March 3, 1891, +authority was given for entry of lands for town-site purposes and also for +the purchase of not exceeding one hundred and sixty acres then or +thereafter occupied for purposes of trade and manufacture. The purpose of +Congress as thus far expressed has been that only such rights should apply +to that Territory as should be specifically named. + +It will be seen how much remains to be done for that vast and remote and +yet promising portion of our country. Special authority was given to the +President by the Act of Congress approved July 24, 1897, to divide that +Territory into two land districts and to designate the boundaries thereof +and to appoint registers and receivers of said land offices, and the +President was also authorized to appoint a surveyor-general for the entire +district. Pursuant to this authority, a surveyor-general and receiver have +been appointed, with offices at Sitka. If in the ensuing year the +conditions justify it, the additional land district authorized by law will +be established, with an office at some point in the Yukon Valley. No +appropriation, however, was made for this purpose, and that is now +necessary to be done for the two land districts into which the Territory is +to be divided. + +I concur with the Secretary of War in his suggestions as to the necessity +for a military force in the Territory of Alaska for the protection of +persons and property. Already a small force, consisting of twenty-five men, +with two officers, under command of Lieutenant-Colonel Randall, of the +Eighth Infantry, has been sent to St. Michael to establish a military +post. + +As it is to the interest of the Government to encourage the development and +settlement of the country and its duty to follow up its citizens there with +the benefits of legal machinery, I earnestly urge upon Congress the +establishment of a system of government with such flexibility as will +enable it to adjust itself to the future areas of greatest population. + +The startling though possibly exaggerated reports from the Yukon River +country, of the probable shortage of food for the large number of people +who are wintering there without the means of leaving the country are +confirmed in such measure as to justify bringing the matter to the +attention of Congress. Access to that country in winter can be had only by +the passes from Dyea and vicinity, which is a most difficult and perhaps an +impossible task. However, should these reports of the suffering of our +fellow-citizens be further verified, every effort at any cost should be +made to carry them relief. + +For a number of years past it has been apparent that the conditions under +which the Five Civilized Tribes were established in the Indian Territory +under treaty provisions with the United States, with the right of +self-government and the exclusion of all white persons from within their +borders, have undergone so complete a change as to render the continuance +of the system thus inaugurated practically impossible. The total number of +the Five Civilized Tribes, as shown by the last census, is 45,494, and this +number has not materially increased; while the white population is +estimated at from 200,000 to 250,000 which, by permission of the Indian +Government has settled in the Territory. The present area of the Indian +Territory contains 25,694,564 acres, much of which is very fertile land. +The United States citizens residing in the Territory, most of whom have +gone there by invitation or with the consent of the tribal authorities, +have made permanent homes for themselves. Numerous towns have been built in +which from 500 to 5,000 white people now reside. Valuable residences and +business houses have been erected in many of them. Large business +enterprises are carried on in which vast sums of money are employed, and +yet these people, who have invested their capital in the development of the +productive resources of the country, are without title to the land they +occupy, and have no voice whatever in the government either of the Nations +or Tribes. Thousands of their children who were born in the Territory are +of school age, but the doors of the schools of the Nations are shut against +them, and what education they get is by private contribution. No provision +for the protection of the life or property of these white citizens is made +by the Tribal Governments and Courts. + +The Secretary of the Interior reports that leading Indians have absorbed +great tracts of land to the exclusion of the common people, and government +by an Indian aristocracy has been practically established, to the detriment +of the people. It has been found impossible for the United States to keep +its citizens out of the Territory, and the executory conditions contained +in the treaties with these Nations have for the most part become impossible +of execution. Nor has it been possible for the Tribal Governments to secure +to each individual Indian his full enjoyment in common with Other Indians +of the common property of the Nations. Friends of the Indians have long +believed that the best interests of the Indians of the Five Civilized +Tribes would be found in American citizenship, with all the rights and +privileges which belong to that condition. + +By section 16, of the act of March 3, 1893, the President was authorized to +appoint three commissioners to enter into negotiations with the Cherokee, +Choctaw, Chickasaw, Muscogee (or Creek), and Seminole Nations, commonly +known as the Five Civilized Tribes in the Indian Territory. Briefly, the +purposes of the negotiations were to be: The extinguishment of Tribal +titles to any lands within that Territory now held by any and all such +Nations or Tribes, either by cession of the same or some part thereof to +the United States, or by allotment and division of the same in severalty +among the Indians of such Nations or Tribes respectively as may be entitled +to the same, or by such other method as may be agreed upon between the +several Nations and Tribes aforesaid, or each of them, with the United +States, with a view to such an adjustment upon the basis of justice and +equity as may, with the consent of the said Nations of Indians so far as +may be necessary, be requisite and suitable to enable the ultimate creation +of a State or States of the Union which shall embrace the lands within said +Indian Territory. + +The Commission met much opposition from the beginning. The Indians were +very slow to act, and those in control manifested a decided disinclination +to meet with favor the propositions submitted to them. A little more than +three years after this organization the Commission effected an agreement +with the Choctaw Nation alone. The Chickasaws, however, refused to agree to +its terms, and as they have a common interest with the Choctaws in the +lands of said Nations, the agreement with the latter Nation could have no +effect without the consent of the former. On April 23, 1897, the Commission +effected an agreement with both tribes--the Choctaws and Chickasaws. This +agreement, it is understood, has been ratified by the constituted +authorities of the respective Tribes or Nations parties thereto, and only +requires ratification by Congress to make it binding. + +On the 27th of September, 1897, an agreement was effected with the Creek +Nation, but it is understood that the National Council of said Nation has +refused to ratify the same. Negotiations are yet to be had with the +Cherokees, the most populous of the Five Civilized Tribes, and with the +Seminoles, the smallest in point of numbers and territory. + +The provision in the Indian Appropriation Act, approved June 10, 1896, +makes it the duty of the Commission to investigate and determine the rights +of applicants for citizenship in the Five Civilized Tribes, and to make +complete census rolls of the citizens of said Tribes. The Commission is at +present engaged in this work among the Creeks, and has made appointments +for taking the census of these people up to and including the 30th of the +present month. + +Should the agreement between the Choctaws and Chickasaws be ratified by +Congress and should the other Tribes fail to make an agreement with the +Commission, then it will be necessary that some legislation shall be had by +Congress, which, while just and honorable to the Indians, shall be +equitable to the white people who have settled upon these lands by +invitation of the Tribal Nations. + +Hon. Henry L. Dawes, Chairman of the Commission, in a letter to the +Secretary of the Interior, under date of October 11, 1897, says: +"Individual ownership is, in their (the Commission's) opinion, absolutely +essential to any permanent improvement in present conditions, and the lack +of it is the root of nearly all the evils which so grievously afflict these +people. Allotment by agreement is the only possible method, unless the +United States Courts are clothed with the authority to apportion the lands +among the citizen Indians for whose use it was originally granted." + +I concur with the Secretary of the Interior that there can be no cure for +the evils engendered by the perversion of these great trusts, excepting by +their resumption by the Government which created them. + +The recent prevalence of yellow fever in a number of cities and towns +throughout the South has resulted in much disturbance of commerce, and +demonstrated the necessity of such amendments to our quarantine laws as +will make the regulations of the national quarantine authorities paramount. +The Secretary of the Treasury, in the portion of his report relating to the +operation of the Marine Hospital Service, calls attention to the defects in +the present quarantine laws, and recommends amendments thereto which will +give the Treasury Department the requisite authority to prevent the +invasion of epidemic diseases from foreign countries, and in times of +emergency, like that of the past summer, will add to the efficiency of the +sanitary measures for the protection of the people, and at the same time +prevent unnecessary restriction of commerce. I concur in his +recommendation. + +In further effort to prevent the invasion of the United States by yellow +fever, the importance of the discovery of the exact cause of the disease, +which up to the present time has been undetermined, is obvious, and to this +end a systematic bacteriological investigation should be made. I therefore +recommend that Congress authorize the appointment of a commission by the +President, to consist of four expert bacteriologists, one to be selected +from the medical officers of the Marine Hospital Service, one to be +appointed from civil life, one to be detailed from the medical officers of +the Army, and one from the medical officers of the Navy. + +The Union Pacific Railway, Main Line, was sold under the decree of the +United States Court for the District of Nebraska, on the 1st and 2d of +November of this year. The amount due the Government consisted of the +principal of the subsidy bonds, $27,236,512, and the accrued interest +thereon, $31,211,711.75, making the total indebtedness, $58,448,223.75. The +bid at the sale covered the first mortgage lien and the entire mortgage +claim of the Government, principal and interest. + +The sale of the subsidized portion of the Kansas Pacific Line, upon which +the Government holds a second mortgage lien, has been postponed at the +instance of the Government to December 16, 1897. The debt of this division +of the Union Pacific Railway to the Government on November 1, 1897, was the +principal of the subsidy bonds, $6,303,000, and the unpaid and accrued +interest thereon, $6,626,690.33, making a total of $12,929,690.33. + +The sale of this road was originally advertised for November 4, but for the +purpose of securing the utmost public notice of the event it was postponed +until December 16, and a second advertisement of the sale was made. By the +decree of the Court, the upset price on the sale of the Kansas Pacific will +yield to the Government the sum of $2,500,000 over all prior liens, costs, +and charges. If no other or better bid is made, this sum is all that the +Government will receive on its claim of nearly $13,000,000. The Government +has no information as to whether there will be other bidders or a better +bid than the minimum amount herein stated. The question presented therefore +is: Whether the Government shall, under the authority given it by the act +of March 3, 1887, purchase or redeem the road in the event that a bid is +not made by private parties covering the entire Government claim. To +qualify the Government to bid at the sales will require a deposit of +$900,000, as follows: In the Government cause $500,000 and in each of the +first mortgage causes $200,000, and in the latter the deposit must be in +cash. Payments at the sale are as follows: Upon the acceptance of the bid a +sum which with the amount already deposited shall equal fifteen per cent of +the bid; the balance in installments of twenty-five per cent thirty, forty, +and fifty days after the confirmation of the sale. The lien on the Kansas +Pacific prior to that of the Government on the 30th July, 1897, principal +and interest, amounted to $7,281,048.11. The Government, therefore, should +it become the highest bidder, will have to pay the amount of the first +mortgage lien. + +I believe that under the act of 1887 it has the authority to do this and in +absence of any action by Congress I shall direct the Secretary of the +Treasury to make the necessary deposit as required by the Court's decree to +qualify as a bidder and to bid at the sale a sum which will at least equal +the principal of the debt due to the Government; but suggest in order to +remove all controversy that an amendment of the law be immediately passed +explicitly giving such powers and appropriating in general terms whatever +sum is sufficient therefor. + +In so important a matter as the Government becoming the possible owner of +railroad property which it perforce must conduct and operate, I feel +constrained to lay before Congress these facts for its consideration and +action before the consummation of the sale. It is clear to my mind that the +Government should not permit the property to be sold at a price which will +yield less than one-half of the principal of its debt and less than +one-fifth of its entire debt, principal and interest. But whether the +Government, rather than accept less than its claim, should become a bidder +and thereby the owner of the property, I submit to the Congress for +action. + +The Library building provided for by the act of Congress approved April 15, +1886, has been completed and opened to the public. It should be a matter of +congratulation that through the foresight and munificence of Congress the +nation possesses this noble treasure-house of knowledge. It is earnestly to +be hoped that having done so much toward the cause of education, Congress +will continue to develop the Library in every phase of research to the end +that it may be not only one of the most magnificent but among the richest +and most useful libraries in the world. + +The important branch of our Government known as the Civil Service, the +practical improvement of which has long been a subject of earnest +discussion, has of late years received increased legislative and Executive +approval. During the past few months the service has been placed upon a +still firmer basis of business methods and personal merit. While the right +of our veteran soldiers to reinstatement in deserving cases has been +asserted, dismissals for merely political reasons have been carefully +guarded against, the examinations for admittance to the service enlarged +and at the same time rendered less technical and more practical; and a +distinct advance has been made by giving a hearing before dismissal upon +all cases where incompetency is charged or demand made for the removal of +officials in any of the Departments. This order has been made to give to +the accused his right to be heard but without in anyway impairing the power +of removal, which should always be exercised in cases of inefficiency and +incompetency, and which is one of the vital safeguards of the civil service +reform system, preventing stagnation and deadwood and keeping every +employee keenly alive to the fact that the security of his tenure depends +not on favor but on his own tested and carefully watched record of +service. + +Much of course still remains to be accomplished before the system can be +made reasonably perfect for our needs. There are places now in the +classified service which ought to be exempted and others not classified may +properly be included. I shall not hesitate to exempt cases which I think +have been improperly included in the classified service or include those +which in my judgment will best promote the public service. The system has +the approval of the people and it will be my endeavor to uphold and extend +it. + +I am forced by the length of this Message to omit many important references +to affairs of the Government with which Congress will have to deal at the +present session. They are fully discussed in the departmental reports, to +all of which I invite your earnest attention. + +The estimates of the expenses of the Government by the several Departments +will, I am sure, have your careful scrutiny. While the Congress may not +find it an easy task to reduce the expenses of the Government, it should +not encourage their increase. These expenses will in my judgment admit of a +decrease in many branches of the Government without injury to the public +service. It is a commanding duty to keep the appropriations within the +receipts of the Government, and thus avoid a deficit. + +*** + +State of the Union Address +William McKinley +December 5, 1898 + +To the Senate and House of Representatives: + +Notwithstanding the added burdens rendered necessary by the war, our people +rejoice in a very satisfactory and steadily increasing degree of +prosperity, evidenced by the largest volume of business ever recorded. +Manufacture has been productive, agricultural pursuits have yielded +abundant returns, labor in all fields of industry is better rewarded, +revenue legislation passed by the present Congress has increased the +Treasury's receipts to the amount estimated by its authors, the finances of +the Government have been successfully administered and its credit advanced +to the first rank, while its currency has been maintained at the world's +highest standard. Military service under a common flag and for a righteous +cause has strengthened the national spirit and served to cement more +closely than ever the fraternal bonds between every section of the +country. + +A review of the relation of the United States to other powers, always +appropriate, is this year of primary importance in view of the momentous +issues which have arisen, demanding in one instance the ultimate +determination by arms and involving far-reaching consequences which will +require the earnest attention of the Congress. + +In my last annual message very full consideration was given to the question +of the duty of the Government of the United States toward Spain and the +Cuban insurrection as being by far the most important problem with which we +were then called upon to deal. The considerations then advanced and the +exposition of the views therein expressed disclosed my sense of the extreme +gravity of the situation. Setting aside as logically unfounded or +practically inadmissible the recognition of the Cuban insurgents as +belligerents, the recognition of the independence of Cuba, neutral +intervention to end the war by imposing a rational compromise between the +contestants, intervention in favor of one or the other party, and forcible +annexation of the island, I concluded it was honestly due to our friendly +relations with Spain that she should be given a reasonable chance to +realize her expectations of reform to which she had become irrevocably +committed. Within a few weeks previously she had announced comprehensive +plans which it was confidently asserted would be efficacious to remedy the +evils so deeply affecting our own country, so injurious to the true +interests of the mother country as well as to those of Cuba, and so +repugnant to the universal sentiment of humanity. + +The ensuing month brought little sign of real progress toward the +pacification of Cuba. The autonomous administrations set up in the capital +and some of the principal cities appeared not to gain the favor of the +inhabitants nor to be able to extend their influence to the large extent of +territory held by the insurgents, while the military arm, obviously unable +to cope with the still active rebellion, continued many of the most +objectionable and offensive policies of the government that had preceded +it. No tangible relief was afforded the vast numbers of unhappy +reconcentrados, despite the reiterated professions made in that regard and +the amount appropriated by Spain to that end. The proffered expedient of +zones of cultivation proved illusory. Indeed no less practical nor more +delusive promises of succor could well have been tendered to the exhausted +and destitute people, stripped of all that made life and home dear and +herded in a strange region among unsympathetic strangers hardly less +necessitous than themselves. + +By the end of December the mortality among them had frightfully increased. +Conservative estimates from Spanish sources placed the deaths among these +distressed people at over 40 per cent from the time General Weyler's decree +of reconcentration was enforced. With the acquiescence of the Spanish +authorities, a scheme was adopted for relief by charitable contributions +raised in this country and distributed, under the direction of the +consul-general and the several consuls, by noble and earnest individual +effort through the organized agencies of the American Red Cross. Thousands +of lives were thus saved, but many thousands more were inaccessible to such +forms of aid. + +The war continued on the old footing, without comprehensive plan, +developing only the same spasmodic encounters, barren of strategic result, +that had marked the course of the earlier ten years' rebellion as well as +the present insurrection from its start. No alternative save physical +exhaustion of either combatant, and therewithal the practical ruin of the +island, lay in sight, but how far distant no one could venture to +conjecture. + +At this juncture, on the 15th of February last, occurred the destruction of +the battle ship Maine while rightfully lying in the harbor of Havana on a +mission of international courtesy and good will--a catastrophe the +suspicious nature and horror of which stirred the nation's heart +profoundly. It is a striking evidence of the poise and sturdy good sense +distinguishing our national character that this shocking blow, falling upon +a generous people already deeply touched by preceding events in Cuba, did +not move them to an instant desperate resolve to tolerate no longer the +existence of a condition of danger and disorder at our doors that made +possible such a deed, by whomsoever wrought. Yet the instinct of justice +prevailed, and the nation anxiously awaited the result of the searching +investigation at once set on foot. The finding of the naval board of +inquiry established that the origin of the explosion was external, by a +submarine mine, and only halted through lack of positive testimony to fix +the responsibility of its authorship. + +All these things carried conviction to the most thoughtful, even before the +finding of the naval court, that a crisis in our relations with Spain and +toward Cuba was at hand. So strong was this belief that it needed but a +brief Executive suggestion to the Congress to receive immediate answer to +the duty of making instant provision for the possible and perhaps speedily +probable emergency of war, and the remarkable, almost unique, spectacle was +presented of a unanimous vote of both Houses, on the 9th of March, +appropriating $50,000,000 "for the national defense and for each and every +purpose connected therewith, to be expended at the discretion of the +President." That this act of prevision came none too soon was disclosed +when the application of the fund was undertaken. Our coasts were +practically undefended. Our Navy needed large provision for increased +ammunition and supplies, and even numbers to cope with any sudden attack +from the navy of Spain, which comprised modern vessels of the highest type +of continental perfection. Our Army also required enlargement of men and +munitions. The details of the hurried preparation for the dreaded +contingency are told in the reports of the Secretaries of War and of the +Navy, and need not be repeated here. It is sufficient to say that the +outbreak of war when it did come found our nation not unprepared to meet +the conflict. + +Nor was the apprehension of coming strife confined to our own country. It +was felt by the continental powers, which on April 6, through their +ambassadors and envoys, addressed to the Executive an expression of hope +that humanity and moderation might mark the course of this Government and +people, and that further negotiations would lead to an agreement which, +while securing the maintenance of peace, would afford all necessary +guaranties for the reestablishment of order in Cuba. In responding to that +representation I said I shared the hope the envoys had expressed that peace +might be preserved in a manner to terminate the chronic condition of +disturbance in Cuba, so injurious and menacing to our interests and +tranquillity, as well as shocking to our sentiments of humanity; and while +appreciating the humanitarian and disinterested character of the +communication they had made on behalf of the powers, I stated the +confidence of this Government, for its part, that equal appreciation would +be shown for its own earnest and unselfish endeavors to fulfill a duty to +humanity by ending a situation the indefinite prolongation of which had +become insufferable. + +Still animated by the hope of a peaceful solution and obeying the dictates +of duty, no effort was relaxed to bring about a speedy ending of the Cuban +struggle. Negotiations to this object continued actively with the +Government of Spain, looking to the immediate conclusion of a six months' +armistice in Cuba, with a view to effect the recognition of her people's +right to independence. Besides this, the instant revocation of the order of +reconcentration was asked, so that the sufferers, returning to their homes +and aided by united American and Spanish effort, might be put in a way to +support themselves and, by orderly resumption of the well-nigh destroyed +productive energies of the island, contribute to the restoration of its +tranquillity and well-being. Negotiations continued for some little time at +Madrid, resulting in offers by the Spanish Government which could not but +be regarded as inadequate. It was proposed to confide the preparation of +peace to the insular parliament, yet to be convened under the autonomous +decrees of November, 1897, but without impairment in any wise of the +constitutional powers of the Madrid Government, which to that end would +grant an armistice, if solicited by the insurgents, for such time as the +general in chief might see fit to fix. How and with what scope of +discretionary powers the insular parliament was expected to set about the +"preparation" of peace did not appear. If it were to be by negotiation with +the insurgents, the issue seemed to rest on the one side with a body chosen +by a fraction of the electors in the districts under Spanish control, and +on the other with the insurgent population holding the interior country, +unrepresented in the so-called parliament and defiant at the suggestion of +suing for peace. + +Grieved and disappointed at this barren outcome of my sincere endeavors to +reach a practicable solution, I felt it my duty to remit the whole question +to the Congress. In the message of April 11, 1898, I announced that with +this last overture in the direction of immediate peace in Cuba and its +disappointing reception by Spain the effort of the Executive was brought to +an end. I again reviewed the alternative courses of action which had been +proposed, concluding that the only one consonant with international policy +and compatible with our firm-set historical traditions was intervention as +a neutral to stop the war and check the hopeless sacrifice of life, even +though that resort involved "hostile constraint upon both the parties to +the contest, as well to enforce a truce as to guide the eventual +settlement." The grounds justifying that step were the interests of +humanity, the duty to protect the life and property of our citizens in +Cuba, the right to check injury to our commerce and people through the +devastation of the island, and, most important, the need of removing at +once and forever the constant menace and the burdens entailed upon our +Government by the uncertainties and perils of the situation caused by the +unendurable disturbance in Cuba. I said: The long trial has proved that the +object for which Spain has waged the war can not be attained. The fire of +insurrection may flame or may smolder with varying seasons, but it has not +been and it is plain that it can not be extinguished by present methods. +The only hope of relief and repose from a condition which can no longer be +endured is the enforced pacification of Cuba. In the name of humanity, in +the name of civilization, in behalf of endangered American interests which +give us the right and the duty to speak and to act, the war in Cuba must +stop. In view of all this the Congress was asked to authorize and empower +the President to take measures to secure a full and final termination of +hostilities between Spain and the people of Cuba and to secure in the +island the establishment of a stable government, capable of maintaining +order and observing its international obligations, insuring peace and +tranquillity and the security of its citizens as well as our own, and for +the accomplishment of those ends to use the military and naval forces of +the United States as might be necessary, with added authority to continue +generous relief to the starving people of Cuba. + +The response of the Congress, after nine days of earnest deliberation, +during which the almost unanimous sentiment of your body was developed on +every point save as to the expediency of coupling the proposed action with +a formal recognition of the Republic of Cuba as the true and lawful +government of that island--a proposition which failed of adoption--the +Congress, after conference, on the 19th of April, by a vote of 42 to 35 in +the Senate and 311 to 6 in the House of Representatives, passed the +memorable joint resolution declaring-- + +First. That the people of the island of Cuba are, and of right ought to be, +free and independent. + +Second. That it is the duty of the United States to demand, and the +Government of the United States does hereby demand, that the Government of +Spain at once relinquish its authority and government in the island of Cuba +and withdraw its land and naval forces from Cuba and Cuban waters. + +Third. That the President of the United States be, and he hereby is, +directed and empowered to use the entire land and naval forces of the +United States and to call into the actual service of the United States the +militia of the several States to such extent as may be necessary to carry +these resolutions into effect. + +Fourth. That the United States hereby disclaims any disposition or +intention to exercise sovereignty, jurisdiction, or control over said +island except for the pacification thereof, and asserts its determination +when that is accomplished to leave the government and control of the island +to its people. This resolution was approved by the Executive on the next +day, April 20. A copy was at once communicated to the Spanish minister at +this capital, who forthwith announced that his continuance in Washington +had thereby become impossible, and asked for his passports, which were +given him. He thereupon withdrew from Washington, leaving the protection of +Spanish interests in the United States to the French ambassador and the +Austro-Hungarian minister. Simultaneously with its communication to the +Spanish minister here, General Woodford, the American minister at Madrid, +was telegraphed confirmation of the text of the joint resolution and +directed to communicate it to the Government of Spain with the formal +demand that it at once relinquish its authority and government in the +island of Cuba and withdraw its forces therefrom, coupling this demand with +announcement of the intentions of this Government as to the future of the +island, in conformity with the fourth clause of the resolution, and giving +Spain until noon of April 23 to reply. + +That demand, although, as above shown, officially made known to the Spanish +envoy here, was not delivered at Madrid. After the instruction reached +General Woodford on the morning of April 21, but before he could present +it, the Spanish minister of state notified him that upon the President's +approval of the joint resolution the Madrid Government, regarding the act +as "equivalent to an evident declaration of war," had ordered its minister +in Washington to withdraw, thereby breaking off diplomatic relations +between the two countries and ceasing all official communication between +their respective representatives. General Woodford thereupon demanded his +passports and quitted Madrid the same day. + +Spain having thus denied the demand of the United States and initiated that +complete form of rupture of relations which attends a state of war, the +executive powers authorized by the resolution were at once used by me to +meet the enlarged contingency of actual war between sovereign states. On +April 22 I proclaimed a blockade of the north coast of Cuba, including +ports on said coast between Cardenas and Bahia Honda, and the port of +Cienfuegos, on the south coast of Cuba, and on the 23d I called for +volunteers to execute the purpose of the resolution. By my message of April +25 the Congress was informed of the situation, and I recommended formal +declaration of the existence of a state of war between the United States +and Spain. The Congress accordingly voted on the same day the act approved +April 25, 1898, declaring the existence of such war from and including the +21st day of April, and reenacted the provision of the resolution of April +20 directing the President to use all the armed forces of the nation to +carry that act into effect. Due notification of the existence of war as +aforesaid was given April 25 by telegraph to all the governments with which +the United States maintain relations, in order that their neutrality might +be assured during the war. The various governments responded with +proclamations of neutrality, each after its own methods. It is not among +the least gratifying incidents of the struggle that the obligations of +neutrality were impartially discharged by all, often under delicate and +difficult circumstances. + +In further fulfillment of international duty I issued, April 26, 1893, a +proclamation announcing the treatment proposed to be accorded to vessels +and their cargoes as to blockade, contraband, the exercise of the right of +search, and the immunity of neutral flags and neutral goods under enemy's +flag. A similar proclamation was made by the Spanish Government. In the +conduct of hostilities the rules of the Declaration of Paris, including +abstention from resort to privateering, have accordingly been observed by +both belligerents, although neither was a party to that declaration. + +Our country thus, after an interval of half a century of peace with all +nations, found itself engaged in deadly conflict with a foreign enemy. +Every nerve was strained to meet the emergency. The response to the initial +call for 125,000 volunteers was instant and complete, as was also the +result of the second call, of May 25, for 75,000 additional volunteers. The +ranks of the Regular Army were increased to the limits provided by the act +of April 26, 1898. + +The enlisted force of the Navy on the 15th day of August, when it reached +its maximum, numbered 24,123 men and apprentices. One hundred and three +vessels were added to the Navy by purchase, 1 was presented to the +Government, 1 leased, and the 4 vessels of the International Navigation +Company--the St. Paul, St. Louis, New York, and Paris--were chartered. In +addition to these the revenue cutters and lighthouse tenders were turned +over to the Navy Department and became temporarily a part of the auxiliary +Navy. + +The maximum effective fighting force of the Navy during the war, separated +into classes, was as follows: + +Four battle ships of the first class, 1 battle ship of the second class, 2 +armored cruisers, 6 coast-defense monitors, 1 armored ram, 12 protected +cruisers, 3 unprotected cruisers, 18 gunboats, 1 dynamite cruiser, 11 +torpedo boats; vessels of the old Navy, including monitors, 14. Auxiliary +Navy: 11 auxiliary cruisers, 28 converted yachts, 27 converted tugs, 19 +converted colliers, 15 revenue cutters, 4 light-house tenders, and 19 +miscellaneous vessels. + +Much alarm was felt along our entire Atlantic seaboard lest some attack +might be made by the enemy. Every precaution was taken to prevent possible +injury to our great cities lying along the coast. Temporary garrisons were +provided, drawn from the State militia; infantry and light batteries were +drawn from the volunteer force. About 12,000 troops were thus employed. The +coast signal service was established for observing the approach of an +enemy's ships to the coast of the United States, and the Life-Saving and +Light-House services cooperated, which enabled the Navy Department to have +all portions of the Atlantic coast, from Maine to Texas, under +observation. + +The auxiliary Navy was created under the authority of Congress and was +officered and manned by the Naval Militia of the several States. This +organization patrolled the coast and performed the duty of a second line of +defense. Under the direction of the Chief of Engineers submarine mines were +placed at the most exposed points. Before the outbreak of the war permanent +mining casemates and cable galleries had been constructed at nearly all +important harbors. Most of the torpedo material was not to be found in the +market, and had to be specially manufactured. Under date of April 19 +district officers were directed to take all preliminary measures short of +the actual attaching of the loaded mines to the cables, and on April 22 +telegraphic orders were issued to place the loaded mines in position. + +The aggregate number of mines placed was 1,535, at the principal harbors +from Maine to California. Preparations were also made for the planting of +mines at certain other harbors, but owing to the early destruction of the +Spanish fleet these mines were not placed. + +The Signal Corps was promptly organized, and performed service of the most +difficult and important character. Its operations during the war covered +the electrical connection of all coast fortifications, the establishment of +telephonic and telegraphic facilities for the camps at Manila, Santiago, +and in Puerto Rico. There were constructed 300 miles of line at ten great +camps, thus facilitating military movements from those points in a manner +heretofore unknown in military administration. Field telegraph lines were +established and maintained under the enemy's fire at Manila, and later the +Manila-Hongkong cable was reopened. + +In Puerto Rico cable communications were opened over a discontinued route, +and on land the headquarters of the commanding officer was kept in +telegraphic or telephonic communication with the division commanders on +four different lines of operations. + +There was placed in Cuban waters a completely outfitted cable ship, with +war cables and cable gear, suitable both for the destruction of +communications belonging to the enemy and the establishment of our own. Two +ocean cables were destroyed under the enemy's batteries at Santiago. The +day previous to the landing of General Shafter's corps, at Caimanera, +within 20 miles of the landing place, cable communications were established +and a cable station opened giving direct communication with the Government +at Washington. This service was invaluable to the Executive in directing +the operations of the Army and Navy. With a total force of over 1,300, the +loss was by disease in camp and field, officers and men included, only 5. + +The national-defense fund of $50,000,000 was expended in large part by the +Army and Navy, and the objects for which it was used are fully shown in the +reports of the several Secretaries. It was a most timely appropriation, +enabling the Government to strengthen its defenses and make preparations +greatly needed in case of war. + +This fund being inadequate to the requirements of equipment and for the +conduct of the war, the patriotism of the Congress provided the means in +the war-revenue act of June 13 by authorizing a 3 per cent popular loan not +to exceed $400,000,000 and by levying additional imposts and taxes. Of the +authorized loan $200,000,000 were offered and promptly taken the +subscriptions so far exceeding the call as to cover it many times over, +while, preference being given to the smaller bids, no single allotment +exceeded $5,000. This was a most encouraging and significant result, +showing the vast resources of the nation and the determination of the +people to uphold their country's honor. + +It is not within the province of this message to narrate the history of the +extraordinary war that followed the Spanish declaration of April 21, but a +brief recital of its more salient features is appropriate. + +The first encounter of the war in point of date took place April 27, when a +detachment of the blockading squadron made a reconnoissance in force at +Matanzas, shelled the harbor forts, and demolished several new works in +construction. + +The next engagement was destined to mark a memorable epoch in maritime +warfare. The Pacific fleet, under Commodore George Dewey, had lain for some +weeks at Hongkong. Upon the colonial proclamation of neutrality being +issued and the customary twenty-four hours' notice being given, it repaired +to Mirs Bay, near Hongkong, whence it proceeded to the Philippine Islands +under telegraphed orders to capture or destroy the formidable Spanish fleet +then assembled at Manila. At daybreak on the 1st of May the American force +entered Manila Bay, and after a few hours' engagement effected the total +destruction of the Spanish fleet, consisting of ten war ships and a +transport, besides capturing the naval station and forts at Cavite, thus +annihilating the Spanish naval power in the Pacific Ocean and completely +controlling the bay of Manila, with the ability to take the city at will. +Not a life was lost on our ships, the wounded only numbering seven, while +not a vessel was materially injured. For this gallant achievement the +Congress, upon my recommendation, fitly bestowed upon the actors preferment +and substantial reward. + +The effect of this remarkable victory upon the spirit of our people and +upon the fortunes of the war was instant. A prestige of invincibility +thereby attached to our arms which continued throughout the struggle. +Reenforcements were hurried to Manila under the command of Major-General +Merritt and firmly established within sight of the capital, which lay +helpless before our guns. + +On the 7th day of May the Government was advised officially of the victory +at Manila, and at once inquired of the commander of our fleet what troops +would be required. The information was received on the 15th day of May, and +the first army expedition sailed May 25 and arrived off Manila June 30. +Other expeditions soon followed, the total force consisting of 641 officers +and 15,058 enlisted men. + +Only reluctance to cause needless loss of life and property prevented the +early storming and capture of the city, and therewith the absolute military +occupancy of the whole group. The insurgents meanwhile had resumed the +active hostilities suspended by the uncompleted truce of December, 1897. +Their forces invested Manila from the northern and eastern sides, but were +constrained by Admiral Dewey and General Merrill from attempting an +assault. It was fitting that whatever was to be done in the way of decisive +operations in that quarter should be accomplished by the strong arm of the +United States alone. Obeying the stern precept of war which enjoins the +overcoming of the adversary and the extinction of his power wherever +assailable as the speedy and sure means to win a peace, divided victory was +not permissible, for no partition of the rights and responsibilities +attending the enforcement of a just and advantageous peace could be thought +of. + +Following the comprehensive scheme of general attack, powerful forces were +assembled at various points on our coast to invade Cuba and Puerto Rico. +Meanwhile naval demonstrations were made at several exposed points. On May +11 the cruiser Wilmington and torpedo boat Winslow were unsuccessful in an +attempt to silence the batteries at Cardenas, a gallant ensign, Worth +Bagley, and four seamen falling. These grievous fatalities were, strangely +enough, among the very few which occurred during our naval operations in +this extraordinary conflict. + +Meanwhile the Spanish naval preparations had been pushed with great vigor. +A powerful squadron under Admiral Cervera, which had assembled at the Cape +Verde Islands before the outbreak of hostilities, had crossed the ocean, +and by its erratic movements in the Caribbean Sea delayed our military +plans while baffling the pursuit of our fleets. For a time fears were felt +lest the Oregon and Marietta, then nearing home after their long voyage +from San Francisco of over 15,000 miles, might be surprised by Admiral +Cervera's fleet, but their fortunate arrival dispelled these apprehensions +and lent much-needed reenforcement. Not until Admiral Cervera took refuge +in the harbor of Santiago de Cuba, about May 19, was it practicable to plan +a systematic naval and military attack upon the Antillean possessions of +Spain. + +Several demonstrations occurred on the coasts of Cuba and Puerto Rico in +preparation for the larger event. On May 13 the North Atlantic Squadron +shelled San Juan de Puerto Rico. On May 30 Commodore Schley's squadron +bombarded the forts guarding the mouth of Santiago Harbor. Neither attack +had any material result. It was evident that well-ordered land operations +were indispensable to achieve a decisive advantage. + +The next act in the war thrilled not alone the hearts of our countrymen but +the world by its exceptional heroism. On the night of June 3 Lieutenant +Hobson, aided by seven devoted volunteers, blocked the narrow outlet from +Santiago Harbor by sinking the collier Merrimac in the channel, under a +fierce fire from the shore batteries, escaping with their lives as by a +miracle, but falling into the hands of the Spaniards. It is a most +gratifying incident of the war that the bravery of this little band of +heroes was cordially appreciated by the Spanish admiral, who sent a flag of +truce to notify Admiral Sampson of their safety and to compliment them on +their daring act. They were subsequently exchanged July 7. + +By June 7 the cutting of the last Cuban cable isolated the island. +Thereafter the invasion was vigorously prosecuted. On June 10, under a +heavy protecting fire, a landing of 600 marines from the Oregon, +Marblehead, and Yankee was effected in Guantanamo Bay, where it had been +determined to establish a naval station. + +This important and essential port was taken from the enemy, after severe +fighting, by the marines, who were the first organized force of the United +States to land in Cuba. + +The position so won was held despite desperate attempts to dislodge our +forces. By June 16 additional forces were landed and strongly in-trenched. +On June 22 the advance of the invading army under Major-General Shafter +landed at Daiquiri, about 15 miles east of Santiago. This was accomplished +under great difficulties, but with marvelous dispatch. On June 23 the +movement against Santiago was begun. On the 24th the first serious +engagement took place, in which the First and Tenth Cavalry and the First +United States Volunteer Cavalry, General Young's brigade of General +Wheeler's division, participated, losing heavily. By nightfall, however, +ground within 5 miles of Santiago was won. The advantage was steadily +increased. On July 1 a severe battle took place, our forces gaining the +outworks of Santiago; on the 2d El Caney and San Juan were taken after a +desperate charge, and the investment of the city was completed. The Navy +cooperated by shelling the town and the coast forts. + +On the day following this brilliant achievement of our land forces, the 3d +of July, occurred the decisive naval combat of the war. The Spanish fleet, +attempting to leave the harbor, was met by the American squadron under +command of Commodore Sampson. In less than three hours all the Spanish +ships were destroyed, the two torpedo boats being sunk and the Maria +Teresa, Almirante Oquendo, Vizcaya, and Cristobal Colon driven ashore. The +Spanish admiral and over 1,300 men were taken prisoners. While the enemy's +loss of life was deplorably large, some 600 perishing, on our side but one +man was killed, on the Brooklyn, and one man seriously wounded. Although +our ships were repeatedly struck, not one was seriously injured. Where all +so conspicuously distinguished themselves, from the commanders to the +gunners and the unnamed heroes in the boiler rooms, each and all +contributing toward the achievement of this astounding victory, for which +neither ancient nor modern history affords a parallel in the completeness +of the event and the marvelous disproportion of casualties, it would be +invidious to single out any for especial honor. Deserved promotion has +rewarded the more conspicuous actors. The nation's profoundest gratitude is +due to all of these brave men who by their skill and devotion in a few +short hours crushed the sea power of Spain and wrought a triumph whose +decisiveness and far-reaching consequences can scarcely be measured. Nor +can we be unmindful of the achievements of our builders, mechanics, and +artisans for their skill in the construction of our war ships. + +With the catastrophe of Santiago Spain's effort upon the ocean virtually +ceased. A spasmodic effort toward the end of June to send her Mediterranean +fleet, under Admiral Camara, to relieve Manila was abandoned, the +expedition being recalled after it had passed through the Suez Canal. + +The capitulation of Santiago followed. The city was closely besieged by +land, while the entrance of our ships into the harbor cut off all relief on +that side. After a truce to allow of the removal of noncombatants +protracted negotiations continued from July 3 until July 15, when, under +menace of immediate assault, the preliminaries of surrender were agreed +upon. On the 17th General Shafter occupied the city. The capitulation +embraced the entire eastern end of Cuba. The number of Spanish soldiers +surrendering was 22,000, all of whom were subsequently conveyed to Spain at +the charge of the United States. The story of this successful campaign is +told in the report of the Secretary of War, which will be laid before you. +The individual valor of officers and soldiers was never more strikingly +shown than in the several engagements leading to the surrender of Santiago, +while the prompt movements and successive victories won instant and +universal applause. To those who gained this complete triumph, which +established the ascendency of the United States upon land as the fight off +Santiago had fixed our supremacy on the seas, the earnest and lasting +gratitude of the nation is unsparingly due. Nor should we alone remember +the gallantry of the living; the dead claim our tears, and our losses by +battle and disease must cloud any exultation at the result and teach us to +weigh the awful cost of war, however rightful the cause or signal the +victory. + +With the fall of Santiago the occupation of Puerto Rico became the next +strategic necessity. General Miles had previously been assigned to organize +an expedition for that purpose. Fortunately he was already at Santiago, +where he had arrived on the 11th of July with reenforcements for General +Shafter's army. + +With these troops, consisting of 3,415 infantry and artillery, two +companies of engineers, and one company of the Signal Corps, General Miles +left Guantanamo on July 21, having nine transports convoyed by the fleet +under Captain Higginson with the Massachusetts (flagship), Dixie, +Gloucester, Columbia, and Yale, the two latter carrying troops. The +expedition landed at Guanica July 25, which port was entered with little +opposition. Here the fleet was joined by the Annapolis and the Wasp, while +the Puritan and Amphitrite went to San Juan and joined the New Orleans, +which was engaged in blockading that port. The Major-General Commanding was +subsequently reenforced by General Schwan's brigade of the Third Army +Corps, by General Wilson with a part of his division, and also by General +Brooke with a part of his corps, numbering in all 16,973 officers and men. + +On July 27 he entered Ponce, one of the most important ports in the island, +from which he thereafter directed operations for the capture of the +island. + +With the exception of encounters with the enemy at Guayama, Hormigueros, +Coamo, and Yauco and an attack on a force landed at Cape San Juan, there +was no serious resistance. The campaign was prosecuted with great vigor, +and by the 12th of August much of the island was in our possession and the +acquisition of the remainder was only a matter of a short time. At most of +the points in the island our troops were enthusiastically welcomed. +Protestations of loyalty to the flag and gratitude for delivery from +Spanish rule met our commanders at every stage. As a potent influence +toward peace the outcome of the Puerto Rican expedition was of great +consequence, and generous commendation is due to those who participated in +it. + +The last scene of the war was enacted at Manila, its starting place. On +August 15, after a brief assault upon the works by the land forces, in +which the squadron assisted, the capital surrendered unconditionally. The +casualties were comparatively few. By this the conquest of the Philippine +Islands, virtually accomplished when the Spanish capacity for resistance +was destroyed by Admiral Dewey's victory of the 1st of May, was formally +sealed. To General Merrill, his officers and men, for their uncomplaining +and devoted service and for their gallantry in action, the nation is +sincerely grateful. Their long voyage was made with singular success, and +the soldierly conduct of the men, most of whom were without previous +experience in the military service, deserves unmeasured praise. + +The total casualties in killed and wounded in the Army during the war with +Spain were: Officers killed, 23; enlisted men killed, 257; total, 280; +officers wounded, 113; enlisted men wounded, 1,464; total, 1,577. Of the +Navy: Killed, 17; wounded, 67; died as result of wounds, 1; invalided from +service, 6; total, 91. + +It will be observed that while our Navy was engaged in two great battles +and in numerous perilous undertakings in blockade and bombardment, and more +than 50,000 of our troops were transported to distant lands and were +engaged in assault and siege and battle and many skirmishes in unfamiliar +territory, we lost in both arms of the service a total of 1,668 killed and +wounded; and in the entire campaign by land and sea we did not lose a gun +or a flag or a transport or a ship, and, with the exception of the crew of +the Merrimac, not a soldier or sailor was taken prisoner. + +On August 7, forty-six days from the date of the landing of General +Shafter's army in Cuba and twenty-one days from the surrender of Santiago, +the United States troops commenced embarkation for home, and our entire +force was returned to the United States as early as August 24. They were +absent from the United States only two months. + +It is fitting that I should bear testimony to the patriotism and devotion +of that large portion of our Army which, although eager to be ordered to +the post of greatest exposure, fortunately was not required outside of the +United States. They did their whole duty, and, like their comrades at the +front, have earned the gratitude of the nation. In like manner, the +officers and men of the Army and of the Navy who remained in their +departments and stations faithfully performing most important duties +connected with the war, and whose requests for assignment in the field and +at sea I was compelled to refuse because their services were indispensable +here, are entitled to the highest commendation. It is my regret that there +seems to be no provision for their suitable recognition. + +In this connection it is a pleasure for me to mention in terms of cordial +appreciation the timely and useful work of the American National Red Cross, +both in relief measures preparatory to the campaigns, in sanitary +assistance at several of the camps of assemblage, and later, under the able +and experienced leadership of the president of the society, Miss Clara +Barton, on the fields of battle and in the hospitals at the front in Cuba. +Working in conjunction with the governmental authorities and under their +sanction and approval, and with the enthusiastic cooperation of many +patriotic women and societies in the various States, the Red Cross has +fully maintained its already high reputation for intense earnestness and +ability to exercise the noble purposes of its international organization, +thus justifying the confidence and support which it has received at the +hands of the American people. To the members and officers of this society +and all who aided them in their philanthropic work the sincere and lasting +gratitude of the soldiers and the public is due and is freely accorded. + +In tracing these events we are constantly reminded of our obligations to +the Divine Master for His watchful care over us and His safe guidance, for +which the nation makes reverent acknowledgment and offers humble prayer for +the continuance of His favor. + +The annihilation of Admiral Cervera's fleet, followed by the capitulation +of Santiago, having brought to the Spanish Government a realizing sense of +the hopelessness of continuing a struggle now become wholly unequal, it +made overtures of peace through the French ambassador, who, with the assent +of his Government, had acted as the friendly representative of Spanish +interests during the war. On the 26th of July M. Cambon presented a +communication signed by the Duke of Almodovar, the Spanish minister of +state, inviting the United States to state the terms upon which it would be +willing to make peace. On the 30th of July, by a communication addressed to +the Duke of Almodovar and handed to M. Cambon, the terms of this Government +were announced substantially as in the protocol afterwards signed. On the +10th of August the Spanish reply, dated August 7, was handed by M. Cambon +to the Secretary of State. It accepted unconditionally the terms imposed as +to Cuba, Puerto Rico, and an island of the Ladrones group, but appeared to +seek to introduce inadmissible reservations in regard to our demand as to +the Philippine Islands. Conceiving that discussion on this point could +neither be practical nor profitable, I directed that in order to avoid +misunderstanding the matter should be forthwith closed by proposing the +embodiment in a formal protocol of the terms upon which the negotiations +for peace were to be undertaken. The vague and inexplicit suggestions of +the Spanish note could not be accepted, the only reply being to present as +a virtual ultimatum a draft of protocol embodying the precise terms +tendered to Spain in our note of July 30, with added stipulations of detail +as to the appointment of commissioners to arrange for the evacuation of the +Spanish Antilles. On August 12 M. Cambon announced his receipt of full +powers to sign the protocol so submitted. Accordingly, on the afternoon of +August 12, M. Cambon, as the plenipotentiary of Spain, and the Secretary of +State, as the plenipotentiary of the United States, signed a protocol +providing-- + +ARTICLE I. Spain will relinquish all claim of sovereignty over and title +to Cuba. + +ART. II. Spain will cede to the United States the island of Puerto Rico and +other islands now under Spanish sovereignty in the West Indies, and also an +island in the Ladrones to be selected by the United States. + +ART. III. The United States will occupy and hold the city, bay, and harbor +of Manila pending the conclusion of a treaty of peace which shall determine +the control, disposition, and government of the Philippines. The fourth +article provided for the appointment of joint commissions on the part of +the United States and Spain, to meet in Havana and San Juan, respectively, +for the purpose of arranging and carrying out the details of the stipulated +evacuation of Cuba, Puerto Rico, and other Spanish islands in the West +Indies. + +The fifth article provided for the appointment of not more than five +commissioners on each side, to meet at Paris not later than October 1 and +to proceed to the negotiation and conclusion of a treaty of peace, subject +to ratification according to the respective constitutional forms of the two +countries. + +The sixth and last article provided that upon the signature of the protocol +hostilities between the two countries should be suspended and that notice +to that effect should be given as soon as possible by each Government to +the commanders of its military and naval forces. + +Immediately upon the conclusion of the protocol I issued a proclamation, of +August 12, suspending hostilities on the part of the United States. The +necessary orders to that end were at once given by telegraph. The blockade +of the ports of Cuba and San Juan de Puerto Rico was in like manner raised. +On the 18th of August the muster out of 100,000 volunteers, or as near that +number as was found to be practicable, was ordered. + +On the 1st of December 101,165 officers and men had been mustered out and +discharged from the service, and 9,002 more will be mustered out by the +10th of this month; also a corresponding number of general and general +staff officers have been honorably discharged the service. + +The military commissions to superintend the evacuation of Cuba, Puerto +Rico, and the adjacent islands were forthwith appointed--for Cuba, +Major-General James F. Wade, Rear-Admiral William T. Sampson, Major-General +Matthew C. Butler; for Puerto Rico, Major--General John R. Brooke, +Rear-Admiral Winfield S. Schley, Brigadier-General William W. Gordon--who +soon afterwards met the Spanish commissioners at Havana and San Juan, +respectively. The Puerto Rican Joint Commission speedily accomplished its +task, and by the 18th of October the evacuation of the island was +completed. The United States flag was raised over the island at noon on +that day. The administration of its affairs has been provisionally +intrusted to a military governor until the Congress shall otherwise +provide. The Cuban Joint Commission has not yet terminated its labors. +Owing to the difficulties in the way of removing the large numbers of +Spanish troops still in Cuba, the evacuation can not be completed before +the 1st of January next. + +Pursuant to the fifth article of the protocol, I appointed William R. Day, +lately Secretary of State; Cushman K. Davis, William P. Frye, and George +Gray, Senators of the United States, and Whitelaw Reid to be the peace +commissioners on the part of the United States. Proceeding in due season to +Paris, they there met on the 1st of October five commissioners similarly +appointed on the part of Spain. Their negotiations have made hopeful +progress, so that I trust soon to be able to lay a definitive treaty of +peace before the Senate, with a review of the steps leading to its +signature. + +I do not discuss at this time the government or the future of the new +possessions which will come to us as the result of the war with Spain. Such +discussion will be appropriate after the treaty of peace shall be ratified. +In the meantime and until the Congress has legislated otherwise it will be +my duty to continue the military governments which have existed since our +occupation and give to the people security in life and property and +encouragement under a just and beneficent rule. + +As soon as we are in possession of Cuba and have pacified the island it +will be necessary to give aid and direction to its people to form a +government for themselves. This should be undertaken at the earliest moment +consistent with safety and assured success. It is important that our +relations with this people shall be of the most friendly character and our +commercial relations close and reciprocal. It should be our duty to assist +in every proper way to build up the waste places of the island, encourage +the industry of the people, and assist them to form a government which +shall be free and independent, thus realizing the best aspirations of the +Cuban people. + +Spanish rule must be replaced by a just, benevolent, and humane government, +created by the people of Cuba, capable of performing all international +obligations, and which shall encourage thrift, industry, and prosperity and +promote peace and good will among all of the inhabitants, whatever may have +been their relations in the past. Neither revenge nor passion should have a +place in the new government. Until there is complete tranquillity in the +island and a stable government inaugurated military occupation will be +continued. + +With the one exception of the rupture with Spain, the intercourse of the +United States with the great family of nations has been marked with +cordiality, and the close of the eventful year finds most of the issues +that necessarily arise in the complex relations of sovereign states +adjusted or presenting no serious obstacle to a just and honorable solution +by amicable agreement. + +A long unsettled dispute as to the extended boundary between the Argentine +Republic and Chile, stretching along the Andean crests from the southern +border of the Atacama Desert to Magellan Straits, nearly a third of the +length of the South American continent, assumed an acute stage in the early +part of the year, and afforded to this Government occasion to express the +hope that the resort to arbitration, already contemplated by existing +conventions between the parties, might prevail despite the grave +difficulties arising in its application. I am happy to say that +arrangements to this end have been perfected, the questions of fact upon +which the respective commissioners were unable to agree being in course of +reference to Her Britannic Majesty for determination. A residual difference +touching the northern boundary line across the Atacama Desert, for which +existing treaties provided no adequate adjustment, bids fair to be settled +in like manner by a joint commission, upon which the United States minister +at Buenos Ayres has been invited to serve as umpire in the last resort. + +I have found occasion to approach the Argentine Government with a view to +removing differences of rate charges imposed upon the cables of an American +corporation in the transmission between Buenos Ayres and the cities of +Uruguay and Brazil of through messages passing from and to the United +States. Although the matter is complicated by exclusive concessions by +Uruguay and Brazil to foreign companies, there is strong hope that a good +understanding will be reached and that the important channels of commercial +communication between the United States and the Atlantic cities of South +America may be freed from an almost prohibitory discrimination. + +In this relation I may be permitted to express my sense of the fitness of +an international agreement whereby the interchange of messages over +connecting cables may be regulated on a fair basis of uniformity. The world +has seen the postal system developed from a congeries of independent and +exclusive services into a well-ordered union, of which all countries enjoy +the manifold benefits. It would be strange were the nations not in time +brought to realize that modern civilization, which owes so much of its +progress to the annihilation of space by the electric force, demands that +this all-important means of communication be a heritage of all peoples, to +be administered and regulated in their common behoof. A step in this +direction was taken when the international convention of 1884 for the +protection of submarine cables was signed, and the day is, I trust, not far +distant when this medium for the transmission of thought from land to land +may be brought within the domain of international concert as completely as +is the material carriage of commerce and correspondence upon the face of +the waters that divide them. + +The claim of Thomas Jefferson Page against Argentina, which has been +pending many years, has been adjusted. The sum awarded by the Congress of +Argentina was $4,242.35. + +The sympathy of the American people has justly been offered to the ruler +and the people of Austria-Hungary by reason of the affliction that has +lately befallen them in the assassination of the Empress-Queen of that +historic realm. + +On the 10th of September, 1897, a conflict took place at Lattimer, Pa., +between a body of striking miners and the sheriff of Luzerne County and his +deputies, in which 22 miners were killed and 44 wounded, of whom 10 of the +killed and 12 of the wounded were Austrian and Hungarian subjects. This +deplorable event naturally aroused the solicitude of the Austro-Hungarian +Government, which, on the assumption that the killing and wounding involved +the unjustifiable misuse of authority, claimed reparation for the +sufferers. Apart from the searching investigation and peremptory action of +the authorities of Pennsylvania, the Federal Executive took appropriate +steps to learn the merits of the case, in order to be in a position to meet +the urgent complaint of a friendly power. The sheriff and his deputies, +having been indicted for murder, were tried, and acquitted, after +protracted proceedings and the hearing of hundreds of witnesses, on the +ground that the killing was in the line of their official duty to uphold +law and preserve public order in the State. A representative of the +Department of Justice attended the trial and reported its course fully. +With all the facts in its possession, this Government expects to reach a +harmonious understanding on the subject with that of Austria-Hungary, +notwithstanding the renewed claim of the latter, after learning the result +of the trial, for indemnity for its injured subjects. + +Despite the brief time allotted for preparation, the exhibits of this +country at the Universal Exposition at Brussels in 1897 enjoyed the +singular distinction of a larger proportion of awards, having regard to the +number and classes of articles entered than those of other countries. The +worth of such a result in making known our national capacity to supply the +world's markets is obvious. + +Exhibitions of this international character are becoming more frequent as +the exchanges of commercial countries grow more intimate and varied. Hardly +a year passes that this Government is not invited to national participation +at some important foreign center, but often on too short notice to permit +of recourse to Congress for the power and means to do so. My predecessors +have suggested the advisability of providing by a general enactment and a +standing appropriation for accepting such invitations and for +representation of this country by a commission. This plan has my cordial +approval. + +I trust that the Belgian restrictions on the importation of cattle from the +United States, originally adopted as a sanitary precaution, will at an +early day be relaxed as to their present features of hardship and +discrimination, so as to admit live cattle under due regulation of their +slaughter after landing. I am hopeful, too, of favorable change in the +Belgian treatment of our preserved and salted meats. The growth of direct +trade between the two countries, not alone for Belgian consumption and +Belgian products, but by way of transit from and to other continental +states, has been both encouraging and beneficial. No effort will be spared +to enlarge its advantages by seeking the removal of needless impediments +and by arrangements for increased commercial exchanges. + +The year's events in Central America deserve more than passing mention. + +A menacing rupture between Costa Rica and Nicaragua was happily composed by +the signature of a convention between the parties, with the concurrence of +the Guatemalan representative as a mediator, the act being negotiated and +signed on board the United States steamer Alert, then lying in Central +American waters. It is believed that the good offices of our envoy and of +the commander of that vessel contributed toward this gratifying outcome. + +In my last annual message the situation was presented with respect to the +diplomatic representation of this Government in Central America created by +the association of Nicaragua, Honduras, and Salvador under the title of the +Greater Republic of Central America, and the delegation of their +international functions to the Diet thereof. While the representative +character of the Diet was recognized by my predecessor and has been +confirmed during my Administration by receiving its accredited envoy and +granting exequaturs to consuls commissioned under its authority, that +recognition was qualified by the distinct understanding that the +responsibility of each of the component sovereign Republics toward the +United States remained wholly unaffected. + +This proviso was needful inasmuch as the compact of the three Republics was +at the outset an association whereby certain representative functions were +delegated to a tripartite commission rather than a federation possessing +centralized powers of government and administration. In this view of their +relation and of the relation of the United States to the several Republics, +a change in the representation of this country in Central America was +neither recommended by the Executive nor initiated by Congress, thus +leaving one of our envoys accredited, as heretofore, separately to two +States of the Greater Republic, Nicaragua and Salvador, and to a third +State, Costa Rica, which was not a party to the compact, while our other +envoy was similarly accredited to a union State, Honduras, and a nonunion +State, Guatemala. The result has been that the one has presented +credentials only to the President of Costa Rica, the other having been +received only by the Government of Guatemala. + +Subsequently the three associated Republics entered into negotiations for +taking the steps forecast in the original compact. A convention of their +delegates framed for them a federal constitution under the name of the +United States of Central America, and provided for a central federal +government and legislature. Upon ratification by the constituent States, +the 1st of November last was fixed for the new system to go into operation. +Within a few weeks thereafter the plan was severely tested by revolutionary +movements arising, with a consequent demand for unity of action on the part +of the military power of the federal States to suppress them. Under this +strain the new union seems to have been weakened through the withdrawal of +its more important members. This Government was not officially advised of +the installation of the federation and has maintained an attitude of +friendly expectancy, while in no wise relinquishing the position held from +the outset that the responsibilities of the several States toward us +remained unaltered by their tentative relations among themselves. + +The Nicaragua Canal Commission, under the chairmanship of Rear-Admiral John +G. Walker, appointed July 24, 1897, under the authority of a provision in +the sundry civil act of June 4 of that year, has nearly completed its +labors, and the results of its exhaustive inquiry into the proper route, +the feasibility, and the cost of construction of an interoceanic canal by a +Nicaraguan route will be laid before you. In the performance of its task +the commission received all possible courtesy and assistance from the +Governments of Nicaragua and Costa Rica, which thus testified their +appreciation of the importance of giving a speedy and practical outcome to +the great project that has for so many years engrossed the attention of the +respective countries. + +As the scope of the recent inquiry embraced the whole subject, with the aim +of making plans and surveys for a canal by the most convenient route, it +necessarily included a review of the results of previous surveys and plans, +and in particular those adopted by the Maritime Canal Company under its +existing concessions from Nicaragua and Costa Rica, so that to this extent +those grants necessarily hold as essential a part in the deliberations and +conclusions of the Canal Commission as they have held and must needs hold +in the discussion of the matter by the Congress. Under these circumstances +and in view of overtures made to the Governments of Nicaragua and Costa +Rica by other parties for a new canal concession predicated on the assumed +approaching lapse of the contracts of the Maritime Canal Company with those +States, I have not hesitated to express my conviction that considerations +of expediency and international policy as between the several governments +interested in the construction and control of an interoceanic canal by this +route require the maintenance of the status quo until the Canal Commission +shall have reported and the United States Congress shall have had the +opportunity to pass finally upon the whole matter during the present +session, without prejudice by reason of any change in the existing +conditions. + +Nevertheless, it appears that the Government of Nicaragua, as one of its +last sovereign acts before merging its powers in those of the newly formed +United States of Central America, has granted an optional concession to +another association, to become effective on the expiration of the present +grant. It does not appear what surveys have been made or what route is +proposed under this contingent grant, so that an examination of the +feasibility of its plans is necessarily not embraced in the report of the +Canal Commission. All these circumstances suggest the urgency of some +definite action by the Congress at this session if the labors of the past +are to be utilized and the linking of the Atlantic and Pacific oceans by a +practical waterway is to be realized. That the construction of such a +maritime highway is now more than ever indispensable to that intimate and +ready intercommunication between our eastern and western seaboards demanded +by the annexation of the Hawaiian Islands and the prospective expansion of +our influence and commerce in the Pacific, and that our national policy now +more imperatively than ever calls for its control by this Government, are +propositions which I doubt not the Congress will duly appreciate and wisely +act upon. + +A convention providing for the revival of the late United States and +Chilean Claims Commission and the consideration of claims which were duly +presented to the late commission, but not considered because of the +expiration of the time limited for the duration of the commission, was +signed May 24, 1897, and has remained unacted upon by the Senate. The term +therein fixed for effecting the exchange of ratifications having elapsed, +the convention falls unless the time be extended by amendment, which I am +endeavoring to bring about, with the friendly concurrence of the Chilean +Government. + +The United States has not been an indifferent spectator of the +extraordinary events transpiring in the Chinese Empire, whereby portions of +its maritime provinces are passing under the control of various European +powers; but the prospect that the vast commerce which the energy of our +citizens and the necessity of our staple productions for Chinese uses has +built up in those regions may not be prejudiced through any exclusive +treatment by the new occupants has obviated the need of our country +becoming an actor in the scene. Our position among nations, having a large +Pacific coast and a constantly expanding direct trade with the farther +Orient, gives us the equitable claim to consideration and friendly +treatment in this regard, and it will be my aim to subserve our large +interests in that quarter by all means appropriate to the constant policy +of our Government. The territories of Kiao-chow, of Wei-hai-wei, and of +Port Arthur and Talienwan, leased to Germany, Great Britain, and Russia, +respectively, for terms of years, will, it is announced, be open to +international commerce during such alien occupation; and if no +discriminating treatment of American citizens and their trade be found to +exist or be hereafter developed, the desire of this Government would appear +to be realized. + +In this relation, as showing the volume and value of our exchanges with +China and the peculiarly favorable conditions which exist for their +expansion in the normal course of trade, I refer to the communication +addressed to the Speaker of the House of Representatives by the Secretary +of the Treasury on the 14th of last June, with its accompanying letter of +the Secretary of State, recommending an appropriation for a commission to +study the commercial and industrial conditions in the Chinese Empire and +report as to the opportunities for and obstacles to the enlargement of +markets in China for the raw products and manufactures of the United +States. Action was not taken thereon during the late session. I cordially +urge that the recommendation receive at your hands the consideration which +its importance and timeliness merit. + +Meanwhile there may be just ground for disquietude in view of the unrest +and revival of the old sentiment of opposition and prejudice to alien +people which pervades certain of the Chinese provinces. As in the case of +the attacks upon our citizens in Szechuen and at Kutien in 1895, the United +States minister has been instructed to secure the fullest measure of +protection, both local and imperial, for any menaced American interests, +and to demand, in case of lawless injury to person or property, instant +reparation appropriate to the case. War ships have been stationed at +Tientsin for more ready observation of the disorders which have invaded +even the Chinese capital, so as to be in a position to act should need +arise, while a guard of marines has been sent to Peking to afford the +minister the same measure of authoritative protection as the +representatives of other nations have been constrained to employ. + +Following close upon the rendition of the award of my predecessor as +arbitrator of the claim of the Italian subject Cerruti against the Republic +of Colombia, differences arose between the parties to the arbitration in +regard to the scope and extension of the award, of which certain articles +were contested by Colombia, while Italy claimed their literal fulfillment. +The award having been made by the President of the United States, as an act +of friendly consideration and with the sole view to an impartial +composition of the matter in dispute, I could not but feel deep concern at +such a miscarriage, and while unable to accept the Colombian theory that I, +in my official capacity, possessed continuing functions as arbitrator, with +power to interpret or revise the terms of the award, my best efforts were +lent to bring the parties to a harmonious agreement as to the execution of +its provisions. + +A naval demonstration by Italy resulted in an engagement to pay the +liabilities claimed upon their ascertainment; but this apparent disposition +of the controversy was followed by a rupture of diplomatic intercourse +between Colombia and Italy, which still continues, although, fortunately, +without acute symptoms having supervened. Notwithstanding this, efforts are +reported to be continuing for the ascertainment of Colombia's contingent +liability on account of Cerruti's debts under the fifth article of the +award. + +A claim of an American citizen against the Dominican Republic for a public +bridge over the Ozama River, which has been in diplomatic controversy for +several years, has been settled by expert arbitration and an award in favor +of the claimant amounting to about $90,000. It, however, remains unpaid, +despite urgent demands for its settlement according to the terms of the +compact. + +There is now every prospect that the participation of the United States in +the Universal Exposition to be held in Paris in 1900 will be on a scale +commensurate with the advanced position held by our products and industries +in the world's chief marts. + +The preliminary report of Mr. Moses P. Handy, who, under the act approved +July 19, 1897, was appointed special commissioner with a view to securing +all attainable information necessary to a full and complete understanding +by Congress in regard to the participation of this Government in the Paris +Exposition, was laid before you by my message of December 6, 1897, and +showed the large opportunities opened to make known our national progress +in arts, science, and manufactures, as well as the urgent need of immediate +and adequate provision to enable due advantage thereof to be taken. Mr. +Handy's death soon afterwards rendered it necessary for another to take up +and complete his unfinished work, and on January 11 last Mr. Thomas W. +Cridler, Third Assistant Secretary of State, was designated to fulfill that +task. His report was laid before you by my message of June 14, 1898, with +the gratifying result of awakening renewed interest in the projected +display. By a provision in the sundry civil appropriation act of July 1, +1898, a sum not to exceed $650,000 was allotted for the organization of a +commission to care for the proper preparation and installation of American +exhibits and for the display of suitable exhibits by the several Executive +Departments, particularly by the Department of Agriculture, the Fish +Commission, and the Smithsonian Institution, in representation of the +Government of the United States. + +Pursuant to that enactment I appointed Mr. Ferdinand W. Peck, of Chicago, +commissioner-general, with an assistant commissioner-general and a +secretary. Mr. Peck at once proceeded to Paris, where his success in +enlarging the scope and variety of the United States exhibit has been most +gratifying. Notwithstanding the comparatively limited area of the +exposition site--less than one-half that of the World's Fair at +Chicago--the space assigned to the United States has been increased from +the absolute allotment of 157,403 square feet reported by Mr. Handy to some +202,000 square feet, with corresponding augmentation of the field for a +truly characteristic representation of the various important branches of +our country's development. Mr. Peck's report will be laid before you. In my +judgment its recommendations will call for your early consideration, +especially as regards an increase of the appropriation to at least one +million dollars in all, so that not only may the assigned space be fully +taken up by the best possible exhibits in every class, but the preparation +and installation be on so perfect a scale as to rank among the first in +that unparalleled competition of artistic and inventive production, and +thus counterbalance the disadvantage with which we start as compared with +other countries whose appropriations are on a more generous scale and whose +preparations are in a state of much greater forwardness than our own. + +Where our artisans have the admitted capacity to excel, where our inventive +genius has initiated many of the grandest discoveries of these later days +of the century, and where the native resources of our land are as limitless +as they are valuable to supply the world's needs, it is our province, as it +should be our earnest care, to lead in the march of human progress, and not +rest content with any secondary place. Moreover, if this be due to +ourselves, it is no less due to the great French nation whose guests we +become, and which has in so many ways testified its wish and hope that our +participation shall befit the place the two peoples have won in the field +of universal development. + +The commercial arrangement made with France on the 28th of May, 1898, under +the provisions of section 3 of the tariff act of 1897, went into effect on +the 1st day of June following. It has relieved a portion of our export +trade from serious embarrassment. Further negotiations are now pending +under section 4 of the same act with a view to the increase of trade +between the two countries to their mutual advantage. Negotiations with +other governments, in part interrupted by the war with Spain, are in +progress under both sections of the tariff act. I hope to be able to +announce some of the results of these negotiations during the present +session of Congress. + +Negotiations to the same end with Germany have been set on foot. Meanwhile +no effort has been relaxed to convince the Imperial Government of the +thoroughness of our inspection of pork products for exportation, and it is +trusted that the efficient administration of this measure by the Department +of Agriculture will be recognized as a guaranty of the healthfulness of the +food staples we send abroad to countries where their use is large and +necessary. + +I transmitted to the Senate on the 10th of February last information +touching the prohibition against the importation of fresh fruits from this +country, which had then recently been decreed by Germany on the ground of +danger of disseminating the San Jose scale insect. This precautionary +measure was justified by Germany on the score of the drastic steps taken in +several States of the Union against the spread of the pest, the elaborate +reports of the Department of Agriculture being put in evidence to show the +danger to German fruit-growing interests should the scale obtain a lodgment +in that country. Temporary relief was afforded in the case of large +consignments of fruit then on the way by inspection and admission when +found noninfected. Later the prohibition was extended to dried fruits of +every kind, but was relaxed so as to apply only to unpeeled fruit and fruit +waste. As was to be expected, the alarm reached to other countries, and +Switzerland has adopted a similar inhibition. Efforts are in progress to +induce the German and Swiss Governments to relax the prohibition in favor +of dried fruits shown to have been cured under circumstances rendering the +existence of animal life impossible. + +Our relations with Great Britain have continued on the most friendly +footing. Assenting to our request, the protection of Americans and their +interests in Spanish jurisdiction was assumed by the diplomatic and +consular representatives of Great Britain, who fulfilled their delicate and +arduous trust with tact and zeal, eliciting high commendation. I may be +allowed to make fitting allusion to the instance of Mr. Ramsden, Her +Majesty's consul at Santiago de Cuba, whose untimely death after +distinguished service and untiring effort during the siege of that city was +sincerely lamented. + +In the early part of April last, pursuant to a request made at the instance +of the Secretary of State by the British ambassador at this capital, the +Canadian government granted facilities for the passage of four United +States revenue cutters from the Great Lakes to the Atlantic coast by way of +the Canadian canals and the St. Lawrence River. The vessels had reached +Lake Ontario and were there awaiting the opening of navigation when war was +declared between the United States and Spain. Her Majesty's Government +thereupon, by a communication of the latter part of April, stated that the +permission granted before the outbreak of hostilities would not be +withdrawn provided the United States Government gave assurance that the +vessels in question would proceed direct to a United States port without +engaging in any hostile operation. This Government promptly agreed to the +stipulated condition, it being understood that the vessels would not be +prohibited from resisting any hostile attack. + +It will give me especial satisfaction if I shall be authorized to +communicate to you a favorable conclusion of the pending negotiations with +Great Britain in respect to the Dominion of Canada. It is the earnest wish +of this Government to remove all sources of discord and irritation in our +relations with the neighboring Dominion. The trade between the two +countries is constantly increasing, and it is important to both countries +that all reasonable facilities should be granted for its development. + +The Government of Greece strongly urges the onerousness of the duty here +imposed upon the currants of that country, amounting to 100 per cent or +more of their market value. This fruit is stated to be exclusively a Greek +product, not coming into competition with any domestic product. The +question of reciprocal commercial relations with Greece, including the +restoration of currants to the free list, is under consideration. + +The long-standing claim of Bernard Campbell for damages for injuries +sustained from a violent assault committed against him by military +authorities in the island of Haiti has been settled by the agreement of +that Republic to pay him $10,000 in American gold. Of this sum $5,000 has +already been paid. It is hoped that other pending claims of American +citizens against that Republic may be amicably adjusted. + +Pending the consideration by the Senate of the treaty signed June 1897, by +the plenipotentiaries of the United States and of the Republic of Hawaii, +providing for the annexation of the islands, a joint resolution to +accomplish the same purpose by accepting the offered cession and +incorporating the ceded territory into the Union was adopted by the +Congress and approved July 7, 1898. I thereupon directed the United States +steamship Philadelphia to convey Rear-Admiral Miller to Honolulu, and +intrusted to his hands this important legislative act, to be delivered to +the President of the Republic of Hawaii, with whom the Admiral and the +United States minister were authorized to make appropriate arrangements for +transferring the sovereignty of the islands to the United States. This was +simply but impressively accomplished on the 12th of August last by the +delivery of a certified copy of the resolution to President Dole, who +thereupon yielded up to the representative of the Government of the United +States the sovereignty and public property of the Hawaiian Islands. + +Pursuant to the terms of the joint resolution and in exercise of the +authority thereby conferred upon me, I directed that the civil, judicial, +and military powers theretofore exercised by the officers of the Government +of the Republic of Hawaii should continue to be exercised by those officers +until Congress shall provide a government for the incorporated territory, +subject to my power to remove such officers and to fill vacancies. The +President, officers, and troops of the Republic thereupon took the oath of +allegiance to the United States, thus providing for the uninterrupted +continuance of all the administrative and municipal functions of the +annexed territory until Congress shall otherwise enact. + +Following the further provision of the joint resolution, I appointed the +Hons. Shelby M. Cullom, of Illinois, John T. Morgan, of Alabama, Robert R. +Hitt, of Illinois, Sanford B. Dole, of Hawaii, and Walter F. Frear, of +Hawaii, as commissioners to confer and recommend to Congress such +legislation concerning the Hawaiian Islands as they should deem necessary +or proper. The commissioners having fulfilled the mission confided to them, +their report will be laid before you at an early day. It is believed that +their recommendations will have the earnest consideration due to the +magnitude of the responsibility resting upon you to give such shape to the +relationship of those mid-Pacific lands to our home Union as will benefit +both in the highest degree, realizing the aspirations of the community that +has cast its lot with us and elected to share our political heritage, while +at the same time justifying the foresight of those who for three-quarters +of a century have looked to the assimilation of Hawaii as a natural and +inevitable consummation, in harmony with our needs and in fulfillment of +our cherished traditions. + +The questions heretofore pending between Hawaii and Japan growing out of +the alleged mistreatment of Japanese treaty immigrants were, I am pleased +to say, adjusted before the act of transfer by the payment of a reasonable +indemnity to the Government of Japan. + +Under the provisions of the joint resolution, the existing customs +relations of the Hawaiian Islands with the United States and with other +countries remain unchanged until legislation shall otherwise provide. The +consuls of Hawaii here and in foreign countries continue to fulfill their +commercial agencies, while the United States consulate at Honolulu is +maintained for all appropriate services pertaining to trade and the +revenue. It would be desirable that all foreign consuls in the Hawaiian +Islands should receive new exequaturs from this Government. + +The attention of Congress is called to the fact that, our consular offices +having ceased to exist in Hawaii and being about to cease in other +countries coming under the sovereignty of the United States, the provisions +for the relief and transportation of destitute American seamen in these +countries under our consular regulations will in consequence terminate. It +is proper, therefore, that new legislation should be enacted upon this +subject in order to meet the changed conditions. + +The interpretation of certain provisions of the extradition convention of +December 11, 1861, has been at various times the occasion of controversy +with the Government of Mexico. An acute difference arose in the case of the +Mexican demand for the delivery of Jesus Guerra, who, having led a +marauding expedition near the border with the proclaimed purpose of +initiating an insurrection against President Diaz, escaped into Texas. +Extradition was refused on the ground that the alleged offense was +political in its character, and therefore came within the treaty proviso of +nonsurrender. The Mexican contention was that the exception only related to +purely political offenses, and that as Guerra's acts were admixed with the +common crime of murder, arson, kidnaping, and robbery, the option of +nondelivery became void, a position which this Government was unable to +admit in view of the received international doctrine and practice in the +matter. The Mexican Government, in view of this, gave notice January 24, +1898, of the termination of the convention, to take effect twelve months +from that date, at the same time inviting the conclusion of a new +convention, toward which negotiations are on foot. + +In this relation I may refer to the necessity of some amendment of our +existing extradition statute. It is a common stipulation of such treaties +that neither party shall be bound to give up its own citizens, with the +added proviso in one of our treaties, that with Japan, that it may +surrender if it see fit. It is held in this country by an almost uniform +course of decisions that where a treaty negatives the obligation to +surrender the President is not invested with legal authority to act. The +conferment of such authority would be in the line of that sound morality +which shrinks from affording secure asylum to the author of a heinous +crime. Again, statutory provision might well be made for what is styled +extradition by way of transit, whereby a fugitive surrendered by one +foreign government to another may be conveyed across the territory of the +United States to the jurisdiction of the demanding state. A recommendation +in this behalf made in the President's message of 1886 was not acted upon. +The matter is presented for your consideration. + +The problem of the Mexican free zone has been often discussed with regard +to its inconvenience as a provocative of smuggling into the United States +along an extensive and thinly guarded land border. The effort made by the +joint resolution of March 1, 1895, to remedy the abuse charged by +suspending the privilege of free transportation in bond across the +territory of the United States to Mexico failed of good result, as is +stated in Report No. 702 of the House of Representatives, submitted in the +last session, March 11, 1898. As the question is one to be conveniently met +by wise concurrent legislation of the two countries looking to the +protection of the revenues by harmonious measures operating equally on +either side of the boundary, rather than by conventional arrangements, I +suggest that Congress consider the advisability of authorizing and inviting +a conference of representatives of the Treasury Departments of the United +States and Mexico to consider the subject in all its complex bearings, and +make report with pertinent recommendations to the respective Governments +for the information and consideration of their Congresses. + +The Mexican Water Boundary Commission has adjusted all matters submitted to +it to the satisfaction of both Governments save in three important +cases--that of the "Chamizal" at El Paso, Tex., where the two commissioners +failed to agree, and wherein, for this case only, this Government has +proposed to Mexico the addition of a third member; the proposed elimination +of what are known as "Bancos," small isolated islands formed by the cutting +off of bends in the Rio Grande, from the operation of the treaties of 1884 +and 1889, recommended by the commissioners and approved by this Government, +but still under consideration by Mexico; and the subject of the "Equitable +distribution of the waters of the Rio Grande," for which the commissioners +recommended an international dam and reservoir, approved by Mexico, but +still under consideration by this Government. Pending these questions it is +necessary to extend the life of the commission, which expires December 23 +next. + +The coronation of the young Queen of the Netherlands was made the occasion +of fitting congratulations. + +The claim of Victor H. McCord against Peru, which for a number of years has +been pressed by this Government and has on several occasions attracted the +attention of the Congress, has been satisfactorily adjusted. A protocol was +signed May 17, 1898, whereby, the fact of liability being admitted, the +question of the amount to be awarded was submitted to the chief justice of +Canada as sole arbitrator. His award sets the indemnity due the claimant at +$40,000. + +The Government of Peru has given the prescribed notification of its +intention to abrogate the treaty of friendship, commerce, and navigation +concluded with this country August 31, 1887. As that treaty contains many +important provisions necessary to the maintenance of commerce and good +relations, which could with difficulty be replaced by the negotiation of +renewed provisions within the brief twelve months intervening before the +treaty terminates, I have invited suggestions by Peru as to the particular +provisions it is desired to annul, in the hope of reaching an arrangement +whereby the remaining articles may be provisionally saved. + +His Majesty the Czar having announced his purpose to raise the Imperial +Russian mission at this capital to the rank of an embassy, I responded, +under the authority conferred by the act of March 3, 1893, by commissioning +and accrediting the actual representative at St. Petersburg in the capacity +of ambassador extraordinary and plenipotentiary. The Russian ambassador to +this country has since presented his credentials. + +The proposal of the Czar for a general reduction of the vast military +establishments that weigh so heavily upon many peoples in time of peace was +communicated to this Government with an earnest invitation to be +represented in the conference which it is contemplated to assemble with a +view to discussing the means of accomplishing so desirable a result. His +Majesty was at once informed of the cordial sympathy of this Government +with the principle involved in his exalted proposal and of the readiness of +the United States to take part in the conference. The active military force +of the United States, as measured by our population, territorial area, and +taxable wealth, is, and under any conceivable prospective conditions must +continue to be, in time of peace so conspicuously less than that of the +armed powers to whom the Czar's appeal is especially addressed that the +question can have for us no practical importance save as marking an +auspicious step toward the betterment of the condition of the modern +peoples and the cultivation of peace and good will among them; but in this +view it behooves us as a nation to lend countenance and aid to the +beneficent project. + +The claims of owners of American sealing vessels for seizure by Russian +cruisers in Bering Sea are being pressed to a settlement. The equities of +the cases justify the expectation that a measure of reparation will +eventually be accorded in harmony with precedent and in the light of the +proven facts. + +The recommendation made in my special message of April 27 last is renewed, +that appropriation be made to reimburse the master and owners of the +Russian bark Hans for wrongful arrest of the master and detention of the +vessel in February, 1896, by officers of the United States district court +for the southern district of Mississippi. The papers accompanying my said +message make out a most meritorious claim and justify the urgency with +which it has been presented by the Government of Russia. + +Malietoa Laupepa, King of Samoa, died on August 22 last. According to +Article I of the general act of Berlin, "his successor shall be duly +elected according to the laws and customs of Samoa." + +Arrangements having been agreed upon between the signatories of the general +act for the return of Mataafa and the other exiled Samoan chiefs, they were +brought from Jaluit by a German war vessel and landed at Apia on September +18 last. + +Whether the death of Malietoa and the return of his old-time rival Mataafa +will add to the undesirable complications which the execution of the +tripartite general act has heretofore developed remains to be seen. The +efforts of this Government will, as heretofore, be addressed toward a +harmonious and exact fulfillment of the terms of the international +engagement to which the United States became a party in 1889. + +The Cheek claim against Siam, after some five years of controversy, has +been adjusted by arbitration under an agreement signed July 6, 1897, an +award of 706,721 ticals (about $187,987.78 ), with release of the Cheek +estate from mortgage claims, having been rendered March 21, 1898, in favor +of the claimant by the arbitrator, Sir Nicholas John Hannen, British chief +justice for China and Japan. + +An envoy from Siam has been accredited to this Government and has presented +his credentials. + +Immediately upon the outbreak of the war with Spain the Swiss Government, +fulfilling the high mission it has deservedly assumed as the patron of the +International Red Cross, proposed to the United States and Spain that they +should severally recognize and carry into execution, as a modus vivendi, +during the continuance of hostilities, the additional articles proposed by +the international conference of Geneva, October 20, 1868, extending the +effects of the existing Red Cross convention of 1864 to the conduct of +naval war. Following the example set by France and Germany in 1870 in +adopting such a modus vivendi, and in view of the accession of the United +States to those additional articles in 1882, although the exchange of +ratifications thereof still remained uneffected, the Swiss proposal was +promptly and cordially accepted by us, and simultaneously by Spain. + +This Government feels a keen satisfaction in having thus been enabled to +testify its adherence to the broadest principles of humanity even amidst +the clash of war, and it is to be hoped that the extension of the Red Cross +compact to hostilities by sea as well as on land may soon become an +accomplished fact through the general promulgation of the additional naval +Red Cross articles by the maritime powers now parties to the convention of +1864. + +The important question of the claim of Switzerland to the perpetual +cantonal allegiance of American citizens of Swiss origin has not made +hopeful progress toward a solution, and controversies in this regard still +continue. + +The newly accredited envoy of the United States to the Ottoman Porte +carries instructions looking to the disposal of matters in controversy with +Turkey for a number of years. He is especially charged to press for a just +settlement of our claims for indemnity by reason of the destruction of the +property of American missionaries resident in that country during the +Armenian troubles of 1895, as well as for the recognition of older claims +of equal justness. + +He is also instructed to seek an adjustment of the dispute growing out of +the refusal of Turkey to recognize the acquired citizenship of Ottoman-born +persons naturalized in the United States since 1869 without prior imperial +consent, and in the same general relation he is directed to endeavor to +bring about a solution of the question which has more or less acutely +existed since 1869 concerning the jurisdictional rights of the United +States in matters of criminal procedure and punishment under Article IV of +the treaty of 1830. This latter difficulty grows out of a verbal +difference, claimed by Turkey to be essential, between the original Turkish +text and the promulgated translation. + +After more than two years from the appointment of a consul of this country +to Erzerum, he has received his exequatur. + +The arbitral tribunal appointed under the treaty of February 2, 1897, +between Great Britain and Venezuela, to determine the boundary line between +the latter and the colony of British Guiana, is to convene at Paris during +the present month. It is a source of much gratification to this Government +to see the friendly resort of arbitration applied to the settlement of this +controversy, not alone because of the earnest part we have had in bringing +about the result, but also because the two members named on behalf of +Venezuela, Mr. Chief Justice Fuller and Mr. Justice Brewer, chosen from our +highest court, appropriately testify the continuing interest we feel in the +definitive adjustment of the question according to the strictest rules of +justice. The British members, Lord Herschell and Sir Richard Collins, are +jurists of no less exalted repute, while the fifth member and president of +the tribunal, M. F. De Martens, has earned a world-wide reputation as an +authority upon international law. + +The claim of Felipe Scandella against Venezuela for arbitrary expulsion and +injury to his business has been adjusted by the revocation of the order of +expulsion and by the payment of the sum of $16,000. + +I have the satisfaction of being able to state that the Bureau of the +American Republics, created in 1890 as the organ for promoting commercial +intercourse and fraternal relations among the countries of the Western +Hemisphere, has become a more efficient instrument of the wise purposes of +its founders, and is receiving the cordial support of the contributing +members of the international union which are actually represented in its +board of management. A commercial directory, in two volumes, containing a +mass of statistical matter descriptive of the industrial and commercial +interests of the various countries, has been printed in English, Spanish, +Portuguese, and French, and a monthly bulletin published in these four +languages and distributed in the Latin-American countries as well as in the +United States has proved to be a valuable medium for disseminating +information and furthering the varied interests of the international +union. + +During the past year the important work of collecting information of +practical benefit to American industries and trade through the agency of +the diplomatic and consular officers has been steadily advanced, and in +order to lay such data before the public with the least delay the practice +was begun in January, 1898, of issuing the commercial reports from day to +day as they are received by the Department of State. It is believed that +for promptitude as well as fullness of information the service thus +supplied to our merchants and manufacturers will be found to show sensible +improvement and to merit the liberal support of Congress. + +The experiences of the last year bring forcibly home to us a sense of the +burdens and the waste of war. We desire, in common with most civilized +nations, to reduce to the lowest possible point the damage sustained in +time of war by peaceable trade and commerce. It is true we may suffer in +such cases less than other communities, but all nations are damaged more or +less by the state of uneasiness and apprehension into which an outbreak of +hostilities throws the entire commercial world. It should be our object, +therefore, to minimize, so far as practicable, this inevitable loss and +disturbance. This purpose can probably best be accomplished by an +international agreement to regard all private property at sea as exempt +from capture or destruction by the forces of belligerent powers. The United +States Government has for many years advocated this humane and beneficent +principle, and is now in position to recommend it to other powers without +the imputation of selfish motives. I therefore suggest for your +consideration that the Executive be authorized to correspond with the +governments of the principal maritime powers with a view of incorporating +into the permanent law of civilized nations the principle of the exemption +of all private property at sea, not contraband of war, from capture or +destruction by belligerent powers. + +The Secretary of the Treasury reports that the receipts of the Government +from all sources during the fiscal year ended June 30, 1898, including +$64,751,223 received from sale of Pacific railroads, amounted to +$405,321,335, and its expenditures to $443,168,582. There was collected +from customs $149,575,062 and from internal revenue $170,900,641. Our +dutiable imports amounted to $324,635,479, a decrease of $58,156,690 over +the preceding year, and importations free of duty amounted to $291,414,175, +a decrease from the preceding year of $90,524,068. Internal-revenue +receipts exceeded those of the preceding year by $24,212,067. + +The total tax collected on distilled spirits was $92,546,999; on +manufactured tobacco, $36,230,522, and on fermented liquors, $39,515,421. +We exported merchandise during the year amounting to $1,231,482,330, an +increase of $180,488,774 from the preceding year. + +It is estimated upon the basis of present revenue laws that the receipts of +the Government for the year ending June 30, 1899, will be $577,874,647, and +its expenditures $689,874,647, resulting in a deficiency of $112,000,000. + +On the 1st of December, 1898, there was held in the Treasury gold coin +amounting to $138,441,547, gold bullion amounting to $138,502,545, silver +bullion amounting to $93,359,250, and other forms of money amounting to +$451,963,981. + +On the same date the amount of money of all kinds in circulation, or not +included in Treasury holdings, was $1,886,879,504, an increase for the year +of $165,794,966. Estimating our population at 75,194,000 at the time +mentioned, the per capita circulation was $25.09. On the same date there +was in the Treasury gold bullion amounting to $138,502,545. + +The provisions made for strengthening the resources of the Treasury in +connection with the war have given increased confidence in the purpose and +power of the Government to maintain the present standard, and have +established more firmly than ever the national credit at home and abroad. A +marked evidence of this is found in the inflow of gold to the Treasury. Its +net gold holdings on November 1, 1898, were $239,885,162 as compared with +$153,573,147 on November 1, 1897, and an increase of net cash of +$207,756,100, November 1, 1897, to $300,238,275, November 1, 1898. The +present ratio of net Treasury gold to outstanding Government liabilities, +including United States notes, Treasury notes of 1890, silver certificates, +currency certificates, standard silver dollars, and fractional silver coin, +November 1, 1898, was 25.35 per cent, as compared with 16.96 per cent, +November 1, 1897. + +I renew so much of my recommendation of December, 1897, as follows: That +when any of the United States notes are presented for redemption in gold +and are redeemed in gold, such notes shall be kept and set apart and only +paid out in exchange for gold. This is an obvious duty. If the holder of +the United States note prefers the gold and gets it from the Government, he +should not receive back from the Government a United States note without +paying gold in exchange for it. The reason for this is made all the more +apparent when the Government issues an interest-bearing debt to provide +gold for the redemption of United States notes--a non-interest-bearing +debt. Surely it should not pay them out again except on demand and for +gold. If they are put out in any other way, they may return again, to he +followed by another bond issue to redeem them--another interest-bearing +debt to redeem a non-interest-bearing debt. This recommendation was made in +the belief that such provisions of law would insure to a greater degree the +safety of the present standard, and better protect our currency from the +dangers to which it is subjected from a disturbance in the general business +conditions of the country. + +In my judgment the present condition of the Treasury amply justifies the +immediate enactment of the legislation recommended one year ago, under +which a portion of the gold holdings should be placed in a trust fund from +which greenbacks should be redeemed upon presentation, but when once +redeemed should not thereafter be paid out except for gold. + +It is not to be inferred that other legislation relating to our currency is +not required; on the contrary, there is an obvious demand for it. + +The importance of adequate provision which will insure to our future a +money standard related as our money standard now is to that of our +commercial rivals is generally recognized. + +The companion proposition that our domestic paper currency shall be kept +safe and yet be so related to the needs of our industries and internal +commerce as to be adequate and responsive to such needs is a proposition +scarcely less important. The subject, in all its parts, is commended to the +wise consideration of the Congress. + +The annexation of Hawaii and the changed relations of the United States to +Cuba, Puerto Rico, and the Philippines resulting from the war, compel the +prompt adoption of a maritime policy by the United States. There should be +established regular and frequent steamship communication, encouraged by the +United States, under the American flag, with the newly acquired islands. +Spain furnished to its colonies, at an annual cost of about $2,000,000, +steamship lines communicating with a portion of the world's markets, as +well as with trade centers of the home Government. The United States will +not undertake to do less. It is our duty to furnish the people of Hawaii +with facilities, under national control, for their export and import trade. +It will be conceded that the present situation calls for legislation which +shall be prompt, durable, and liberal. + +The part which American merchant vessels and their seamen performed in the +war with Spain demonstrates that this service, furnishing both pickets and +the second line of defense, is a national necessity, and should be +encouraged in every constitutional way. Details and methods for the +accomplishment of this purpose are discussed in the report of the Secretary +of the Treasury, to which the attention of Congress is respectfully +invited. + +In my last annual message I recommended that Congress authorize the +appointment of a commission for the purpose of making systematic +investigations with reference to the cause and prevention of yellow fever. +This matter has acquired an increased importance as a result of the +military occupation of the island of Cuba and the commercial intercourse +between this island and the United States which we have every reason to +expect. The sanitary problems connected with our new relations with the +island of Cuba and the acquisition of Puerto Rico are no less important +than those relating to finance, commerce, and administration. It is my +earnest desire that these problems may be considered by competent experts +and that everything may be done which the most recent advances in sanitary +science can offer for the protection of the health of our soldiers in those +islands and of our citizens who are exposed to the dangers of infection +from the importation of yellow fever. I therefore renew my recommendation +that the authority of Congress may be given and a suitable appropriation +made to provide for a commission of experts to be appointed for the purpose +indicated. + +Under the act of Congress approved April 26, 1898, authorizing the +President in his discretion, "upon a declaration of war by Congress, or a +declaration by Congress that war exists," I directed the increase of the +Regular Army to the maximum of 62,000, authorized in said act. + +There are now in the Regular Army 57,862 officers and men. In said act it +was provided-- + +That at the end of any war in which the United States may become +involved the Army shall be reduced to a peace basis by the transfer +in the same arm of the service or absorption by promotion or honorable +discharge, under such regulations as the Secretary of War may establish, of +supernumerary commissioned officers and the honorable discharge or transfer +of supernumerary enlisted men; and nothing contained in this act shall be +construed as authorizing the permanent increase of the commissioned or +enlisted force of the Regular Army beyond that now provided by the law in +force prior to the passage of this act, except as to the increase of +twenty-five majors provided for in section 1 hereof. The importance of +legislation for the permanent increase of the Army is therefore manifest, +and the recommendation of the Secretary of War for that purpose has my +unqualified approval. There can be no question that at this time, and +probably for some time in the future, 100,000 men will be none too many to +meet the necessities of the situation. At all events, whether that number +shall be required permanently or not, the power should be given to the +President to enlist that force if in his discretion it should be necessary; +and the further discretion should be given him to recruit for the Army +within the above limit from the inhabitants of the islands with the +government of which we are charged. It is my purpose to muster out the +entire Volunteer Army as soon as the Congress shall provide for the +increase of the regular establishment. This will be only an act of justice +and will be much appreciated by the brave men who left their homes and +employments to help the country in its emergency. + +In my last annual message I stated: The Union Pacific Railway, main line, +was sold under the decree of the United States court for the district of +Nebraska on the 1st and 2d of November of this year. The amount due the +Government consisted of the principal of the subsidy bonds, $27,236,512, +and the accrued interest thereon, $31,211,711.75, making the total +indebtedness $58,448,223.75. The bid at the sale covered the first-mortgage +lien and the entire mortgage claim of the Government, principal and +interest. This left the Kansas Pacific case unconcluded. By a decree of the +court in that case an upset price for the property was fixed at a sum which +would yield to the Government only $2,500,000 upon its lien. The sale, at +the instance of the Government, was postponed first to December 15, 1897, +and later, upon the application of the United States, was postponed to the +16th day of February, 1898. + +Having satisfied myself that the interests of the Government required that +an effort should be made to obtain a larger sum, I directed the Secretary +of the Treasury, under the act passed March 3, 1887, to pay out of the +Treasury to the persons entitled to receive the same the amounts due upon +all prior mortgages upon the Eastern and Middle divisions of said railroad +out of any money in the Treasury not otherwise appropriated, whereupon the +Attorney-General prepared a petition to be presented to the court, offering +to redeem said prior liens in such manner as the court might direct, and +praying that thereupon the United States might be held to be subrogated to +all the rights of said prior lien holders and that a receiver might be +appointed to take possession of the mortgaged premises and maintain and +operate the same until the court or Congress otherwise directed. Thereupon +the reorganization committee agreed that if said petition was withdrawn and +the sale allowed to proceed on the 16th of February, 1898, they would bid a +sum at the sale which would realize to the Government the entire principal +of its debt, $6,303,000. + +Believing that no better price could be obtained and appreciating the +difficulties under which the Government would labor if it should become the +purchaser of the road at the sale, in the absence of any authority by +Congress to take charge of and operate the road I directed that upon the +guaranty of a minimum bid which should give the Government the principal of +its debt the sale should proceed. By this transaction the Government +secured an advance of $3,803,000 over and above the sum which the court had +fixed as the upset price, and which the reorganization committee had +declared was the maximum which they would pay for the property. + +It is a gratifying fact that the result of these proceedings against the +Union Pacific system and the Kansas Pacific line is that the Government has +received on account of its subsidy claim the sum of $64,751,223.75, an +increase of $18,997,163.76 over the sum which the reorganization committee +originally agreed to bid for the joint property, the Government receiving +its whole claim, principal and interest, on the Union Pacific, and the +principal of its debt on the Kansas Pacific Railroad. + +Steps had been taken to foreclose the Government's lien upon the Central +Pacific Railroad Company, but before action was commenced Congress passed +an act, approved July 7, 1898, creating a commission consisting of the +Secretary of the Treasury, the Attorney-General, and the Secretary of the +Interior, and their successors in office, with full power to settle the +indebtedness to the Government growing out of the issue of bonds in aid of +the construction of the Central Pacific and Western Pacific bond-aided +railroads, subject to the approval of the President. + +No report has yet been made to me by the commission thus created. Whatever +action is had looking to a settlement of the indebtedness in accordance +with the act referred to will be duly submitted to the Congress. + +I deem it my duty to call to the attention of Congress the condition of the +present building occupied by the Department of Justice. The business of +that Department has increased very greatly since it was established in its +present quarters. The building now occupied by it is neither large enough +nor of suitable arrangement for the proper accommodation of the business of +the Department. The Supervising Architect has pronounced it unsafe and +unsuited for the use to which it is put. The Attorney-General in his report +states that the library of the Department is upon the fourth floor, and +that all the space allotted to it is so crowded with books as to +dangerously overload the structure. The first floor is occupied by the +Court of Claims. The building is of an old and dilapidated appearance, +unsuited to the dignity which should attach to this important Department. + +A proper regard for the safety, comfort, and convenience of the officers +and employees would justify the expenditure of a liberal sum of money in +the erection of a new building of commodious proportions and handsome +appearance upon the very advantageous site already secured for that +purpose, including the ground occupied by the present structure and +adjoining vacant lot, comprising in all a frontage of 201 feet on +Pennsylvania avenue and a depth of 136 feet. + +In this connection I may likewise refer to the inadequate accommodations +provided for the Supreme Court in the Capitol, and suggest the wisdom of +making provision for the erection of a separate building for the court and +its officers and library upon available ground near the Capitol. + +The postal service of the country advances with extraordinary growth. +Within twenty years both the revenues and the expenditures of the +Post-Office Department have multiplied threefold. In the last ten years +they have nearly doubled. Our postal business grows much more rapidly than +our population. It now involves an expenditure of $100,000,000 a year, +numbers 73,000 post-offices, and enrolls 200,000 employees. This remarkable +extension of a service which is an accurate index of the public conditions +presents gratifying evidence of the advancement of education, of the +increase of communication and business activity, and of the improvement of +mail facilities leading to their constantly augmenting use. + +The war with Spain laid new and exceptional labors on the Post-Office +Department. The mustering of the military and naval forces of the United +States required special mail arrangements for every camp and every +campaign. The communication between home and camp was naturally eager and +expectant. In some of the larger places of rendezvous as many as 50,000 +letters a day required handling. This necessity was met by the prompt +detail and dispatch of experienced men from the established force and by +directing all the instrumentalities of the railway mail and post-office +service, so far as necessary, to this new need. Congress passed an act +empowering the postmaster-General to establish offices or branches at every +military camp or station, and under this authority the postal machinery was +speedily put into effective operation. + +Under the same authority, when our forces moved upon Cuba, Puerto Rico, and +the Philippines they were attended and followed by the postal service. +Though the act of Congress authorized the appointment of postmasters where +necessary, it was early determined that the public interests would best be +subserved, not by new designations, but by the detail of experienced men +familiar with every branch of the service, and this policy was steadily +followed. When the territory which was the theater of conflict came into +our possession, it became necessary to reestablish mail facilities for the +resident population as well as to provide them for our forces of +occupation, and the former requirement was met through the extension and +application of the latter obligation. I gave the requisite authority, and +the same general principle was applied to this as to other branches of +civil administration under military occupation. The details are more +particularly given in the report of the postmaster-General, and, while the +work is only just begun, it is pleasing to be able to say that the service +in the territory which has come under our control is already materially +improved. + +The following recommendations of the Secretary of the Navy relative to the +increase of the Navy have my earnest approval: + +1. Three seagoing sheathed and coppered battle ships of about 13,500 tons +trial displacement, carrying the heaviest armor and most powerful ordnance +for vessels of their class, and to have the highest practicable speed and +great radius of action. Estimated cost, exclusive of armor and armament, +$3,600,000 each. + +2. Three sheathed and coppered armored cruisers of about 12,000 tons trial +displacement, carrying the heaviest armor and most powerful ordnance for +vessels of their class, and to have the highest practicable speed and great +radius of action. Estimated cost, exclusive of armor and armament, +$4,000,000 each. + +3. Three sheathed and coppered protected cruisers of about 6,000 tons trial +displacement, to have the highest practicable speed and great radius of +action, and to carry the most powerful ordnance suitable for vessels of +their class. Estimated cost, exclusive of armor and armament, $2,150,000 +each. + +4. Six sheathed and coppered cruisers of about 2,500 tons trial +displacement, to have the highest speed compatible with good cruising +qualities, great radius of action, and to carry the most powerful ordnance +suited to vessels of their class. Estimated cost, exclusive of armament, +$1,141,800 each. + +I join with the Secretary of the Navy in recommending that grades of +admiral and vice-admiral be temporarily revived, to be filled by officers +who have specially distinguished themselves in the war with Spain. + +I earnestly urge upon Congress the importance of early legislation +providing for the taking of the Twelfth Census. This is necessary in view +of the large amount of work which must be performed in the preparation of +the schedules preparatory to the enumeration of the population. + +There were on the pension rolls on June 30, 1898, 993,714 names, an +increase of nearly 18,000 over the number on the rolls on the same day of +the preceding year. The amount appropriated by the act of December 22, +1896, for the payment of pensions for the fiscal year of 1898 was +$140,000,000. Eight million seventy thousand eight hundred and seventy-two +dollars and forty-six cents was appropriated by the act of March 31, 1898, +to cover deficiencies in army pensions, and repayments in the sum of +$12,020.33, making a total of $148,082,892.79 available for the payment of +pensions during the fiscal year 1898. The amount disbursed from that sum +was $144,651,879.80, leaving a balance of $3,431,012.99 unexpended on the +30th of June, 1898, which was covered into the Treasury. There were 389 +names added to the rolls during the year by special acts passed at the +second session of the Fifty-fifth Congress, making a total of 6,486 +pensioners by Congressional enactments since 1861. + +The total receipts of the Patent Office during the past year were +$1,253,948.44. The expenditures were $1,081,633.79, leaving a surplus of +$172,314.65. + +The public lands disposed of by the Government during the year reached +8,453,896.92 acres, an increase of 614,780.26 acres over the previous year. +The total receipts from public lands during the fiscal year amounted to +$2,277,995.18, an increase of $190,063.90 over the preceding year. The +lands embraced in the eleven forest reservations which were suspended by +the act of June 4, 1897, again became subject to the operations of the +proclamations of February 22, 1897, creating them, which added an estimated +amount of 19,951,360 acres to the area embraced in the reserves previously +created. In addition thereto two new reserves were created during the +year--the Pine Mountain and Zaca Lake Reserve, in California, embracing +1,644,594 acres, and the Prescott Reserve, in Arizona, embracing 10,240 +acres--while the Pecos River Reserve, in New Mexico, has been changed and +enlarged to include 120,000 additional acres. + +At the close of the year thirty forest reservations, not including those of +the Afognak Forest and the Fish-Culture Reserve, in Alaska, had been +created by Executive proclamations under section 24 of the act of March 3, +1891, embracing an estimated area of 40,719,474 acres. + +The Department of the Interior has inaugurated a forest system, made +possible by the act of July, 1898, for a graded force of officers in +control of the reserves. This system has only been in full operation since +August, but good results have already been secured in many sections. The +reports received indicate that the system of patrol has not only prevented +destructive fires from gaining headway, but has diminished the number of +fires. + +The special attention of the Congress is called to that part of the report +of the Secretary of the Interior in relation to the Five Civilized Tribes. +It is noteworthy that the general condition of the Indians shows marked +progress. But one outbreak of a serious character occurred during the year, +and that among the Chippewa Indians of Minnesota, which happily has been +suppressed. + +While it has not yet been practicable to enforce all the provisions of the +act of June 28, 1898, "for the protection of the people of the Indian +Territory, and for other purposes," it is having a salutary effect upon the +nations composing the five tribes. The Dawes Commission reports that the +most gratifying results and greater advance toward the attainment of the +objects of the Government have been secured in the past year than in any +previous year. I can not too strongly indorse the recommendation of the +commission and of the Secretary of the Interior for the necessity of +providing for the education of the 30,000 white children resident in the +Indian Territory. + +The Department of Agriculture has been active in the past year. Explorers +have been sent to many of the countries of the Eastern and Western +hemispheres for seeds and plants that may be useful to the United States, +and with the further view of opening up markets for our surplus products. +The Forestry Division of the Department is giving special attention to the +treeless regions of our country and is introducing species specially +adapted to semiarid regions. Forest fires, which seriously interfere with +production, especially in irrigated regions, are being studied, that losses +from this cause may be avoided. The Department is inquiring into the use +and abuse of water in many States of the West, and collating information +regarding the laws of the States, the decisions of the courts, and the +customs of the people in this regard, so that uniformity may be secured. +Experiment stations are becoming more effective every year. The annual +appropriation of $720,000 by Congress is supplemented by $400,000 from the +States. Nation-wide experiments have been conducted to ascertain the +suitableness as to soil and climate and States for growing sugar beets. The +number of sugar factories has been doubled in the past two years, and the +ability of the United States to produce its own sugar from this source has +been clearly demonstrated. + +The Weather Bureau forecast and observation stations have been extended +around the Caribbean Sea, to give early warning of the approach of +hurricanes from the south seas to our fleets and merchant marine. + +In the year 1900 will occur the centennial anniversary of the founding of +the city of Washington for the permanent capital of the Government of the +United States by authority of an act of Congress approved July 16, 1790. In +May, 1800, the archives and general offices of the Federal Government were +removed to this place. On the 17th of November, 1800, the National Congress +met here for the first time and assumed exclusive control of the Federal +district and city. This interesting event assumes all the more significance +when we recall the circumstances attending the choosing of the site, the +naming of the capital in honor of the Father of his Country, and the +interest taken by him in the adoption of plans for its future development +on a magnificent scale. + +These original plans have been wrought out with a constant progress and a +signal success even beyond anything their framers could have foreseen. The +people of the country are justly proud of the distinctive beauty and +government of the capital and of the rare instruments of science and +education which here find their natural home. + +A movement lately inaugurated by the citizens to have the anniversary +celebrated with fitting ceremonies, including, perhaps, the establishment +of a handsome permanent memorial to mark so historical an occasion and to +give it more than local recognition, has met with general favor on the part +of the public. + +I recommend to the Congress the granting of an appropriation for this +purpose and the appointment of a committee from its respective bodies. It +might also be advisable to authorize the President to appoint a committee +from the country at large, which, acting with the Congressional and +District of Columbia committees, can complete the plans for an appropriate +national celebration. + +The alien contract law is shown by experience to need some amendment; a +measure providing better protection for seamen is proposed; the rightful +application of the eight-hour law for the benefit of labor and of the +principle of arbitration are suggested for consideration; and I commend +these subjects to the careful attention of the Congress. + +The several departmental reports will be laid before you. They give in +great detail the conduct of the affairs of the Government during the past +year and discuss many questions upon which the Congress may feel called +upon to act. + +*** + +State of the Union Address +William McKinley +December 5, 1899 + +To the Senate and House of Representatives: + +At the threshold of your deliberations you are called to mourn with your +countrymen the death of Vice-President Hobart, who passed from this life on +the morning of November 21 last. His great soul now rests in eternal peace. +His private life was pure and elevated, while his public career was ever +distinguished by large capacity, stainless integrity, and exalted motives. +He has been removed from the high office which he honored and dignified, +but his lofty character, his devotion to duty, his honesty of purpose, and +noble virtues remain with us as a priceless legacy and example. + +The Fifty-sixth Congress convenes in its first regular session with the +country in a condition of unusual prosperity, of universal good will among +the people at home, and in relations of peace and friendship with every +government of the world. Our foreign commerce has shown great increase in +volume and value. The combined imports and exports for the year are the +largest ever shown by a single year in all our history. Our exports for +1899 alone exceeded by more than a billion dollars our imports and exports +combined in 1870. The imports per capita are 20 per cent less than in 1870, +while the exports per capita are 58 per cent more than in 1870, showing the +enlarged capacity of the United States to satisfy the wants of its own +increasing population, as well as to contribute to those of the peoples of +other nations. + +Exports of agricultural products were $784,776,142. Of manufactured +products we exported in value $339,592,146, being larger than any previous +year. It is a noteworthy fact that the only years in all our history when +the products of our manufactories sold abroad exceeded those bought abroad +were 1898 and 1899. + +Government receipts from all sources for the fiscal year ended June 30, +1899, including $11,798,314,14, part payment of the Central Pacific +Railroad indebtedness, aggregated $610,982,004.35. Customs receipts were +$206,128,481.75, and those from internal revenue $273,437,161.51. + +For the fiscal year the expenditures were $700,093,564.02, leaving a +deficit of $89,111,559.67. + +The Secretary of the Treasury estimates that the receipts for the current +fiscal year will aggregate $640,958,112, and upon the basis of present +appropriations the expenditures will aggregate $600,958,112, leaving a +surplus of $40,000,000. + +For the fiscal year ended June 30, 1899, the internal-revenue receipts were +increased about $100,000,000. + +The present gratifying strength of the Treasury is shown by the fact that +on December 1, 1899, the available cash balance was $278,004,837.72, Of +which $239,744,905.36 was in gold coin and bullion. The conditions of +confidence which prevail throughout the country have brought gold into more +general use and customs receipts are now almost entirely paid in that +coin. + +The strong position of the Treasury with respect to cash on hand and the +favorable showing made by the revenues have made it possible for the +Secretary of the Treasury to take action under the provisions of section +3694, Revised Statutes, relating to the sinking fund. Receipts exceeded +expenditures for the first five months of the current fiscal year by +$13,413,389.91, and, as mentioned above, the Secretary of the Treasury +estimates that there will be a surplus of approximately $40,000,000 at the +end of the year. Under such conditions it was deemed advisable and proper +to resume compliance with the provisions of the sinking-fund law, which for +eight years has not been done because of deficiencies in the revenues. The +Treasury Department therefore offered to purchase during November +$25,000,000 of the 5 per cent loan of 1904, or the 4 per cent funded loan +of 1907, at the current market price. The amount offered and purchased +during November was $18,408,600. The premium paid by the Government on such +purchases was $2,263,521 and the net saving in interest was about +$2,885,000. The success of this operation was sufficient to induce the +Government to continue the offer to purchase bonds to and including the 23d +day of December, instant, unless the remainder of the $25,000,000 called +for should be presented in the meantime for redemption. + +Increased activity in industry, with its welcome attendant--a larger +employment for labor at higher wages--gives to the body of the people a +larger power to absorb the circulating medium. It is further true that year +by year, with larger areas of land under cultivation, the increasing volume +of agricultural products, cotton, corn, and wheat, calls for a larger +volume of money supply. This is especially noticeable at the +crop-harvesting and crop-moving period. + +In its earlier history the National Banking Act seemed to prove a +reasonable avenue through which needful additions to the circulation could +from time to time be made. Changing conditions have apparently rendered it +now inoperative to that end. The high margin in bond securities required, +resulting from large premiums which Government bonds command in the market, +or the tax on note issues, or both operating together, appear to be the +influences which impair its public utility. + +The attention of Congress is respectfully invited to this important matter, +with the view of ascertaining whether or not such reasonable modifications +can be made in the National Banking Act as will render its service in the +particulars here referred to more responsive to the people's needs. I again +urge that national banks be authorized to organize with a capital of +$25,000. + +I urgently recommend that to support the existing gold standard, and to +maintain "the parity in value of the coins of the two metals (gold and +silver) and the equal power of every dollar at all times in the market and +in the payment of debts," the Secretary of the Treasury be given additional +power and charged with the duty to sell United States bonds and to employ +such other effective means as may be necessary to these ends. The authority +should include the power to sell bonds on long and short time, as +conditions may require, and should provide for a rate of interest lower +than that fixed by the act of January 14, 1875. While there is now no +commercial fright which withdraws gold from the Government, but, on the +contrary, such widespread confidence that gold seeks the Treasury demanding +paper money in exchange, yet the very situation points to the present as +the most fitting time to make adequate provision to insure the continuance +of the gold standard and of public confidence in the ability and purpose of +the Government to meet all its obligations in the money which the civilized +world recognizes as the best. The financial transactions of the Government +are conducted upon a gold basis. We receive gold when we sell United States +bonds and use gold for their payment. We are maintaining the parity of all +the money issued or coined by authority of the Government. We are doing +these things with the means at hand. Happily at the present time we are not +compelled to resort to loans to supply gold. It has been done in the past, +however, and may have to be done in the future. It behooves us, therefore, +to provide at once the best means to meet the emergency when it arises, and +the best means are those which are the most certain and economical. Those +now authorized have the virtue neither of directness nor economy. We have +already eliminated one of the causes of our financial plight and +embarrassment during the years 1893, 1894, 1895, and 1896. Our receipts now +equal our expenditures; deficient revenues no longer create alarm Let us +remove the only remaining cause by conferring the full and necessary power +on the Secretary of the Treasury and impose upon him the duty to uphold the +present gold standard and preserve the coins of the two metals on a parity +with each other, which is the repeatedly declared policy of the United +States. + +In this connection I repeat my former recommendations that a portion of the +gold holdings shall be placed in a trust fund from which greenbacks shall +be redeemed upon presentation, but when once redeemed shall not thereafter +be paid out except for gold. + +The value of an American merchant marine to the extension of our commercial +trade and the strengthening of our power upon the sea invites the immediate +action of the Congress. Our national development will be one-sided and +unsatisfactory so long as the remarkable growth of our inland industries +remains unaccompanied by progress on the seas. There is no lack of +constitutional authority for legislation which shall give to the country +maritime strength commensurate with its industrial achievements and with +its rank among the nations of the earth, + +The past year has recorded exceptional activity in our shipyards, and the +promises of continual prosperity in shipbuilding are abundant. Advanced +legislation for the protection of our seamen has been enacted. Our coast +trade, under regulations wisely framed at the beginning of the Government +and since, shows results for the past fiscal year unequaled in our records +or those of any other power. We shall fail to realize our opportunities, +however, if we complacently regard only matters at home and blind ourselves +to the necessity of securing our share in the valuable carrying trade of +the world. + +Last year American vessels transported a smaller share of our exports and +imports than during any former year in all our history, and the measure of +our dependence upon foreign shipping was painfully manifested to our +people. Without any choice of our own, but from necessity, the Departments +of the Government charged with military and naval operations in the East +and West Indies had to obtain from foreign flags merchant vessels essential +for those operations. + +The other great nations have not hesitated to adopt the required means to +develop their shipping as a factor in national defense and as one of the +surest and speediest means of obtaining for their producers a share in +foreign markets. Like vigilance and effort on our part cannot fail to +improve our situation, which is regarded with humiliation at home and with +surprise abroad. Even the seeming sacrifices, which at the beginning may be +involved, will be offset later by more than equivalent gains. + +The expense is as nothing compared to the advantage to be achieved. The +reestablishment of our merchant marine involves in a large measure our +continued industrial progress and the extension of our commercial triumphs. +I am satisfied the judgment of the country favors the policy of aid to our +merchant marine, which will broaden our commerce and markets and upbuild +our sea-carrying capacity for the products of agriculture and manufacture; +which, with the increase of our Navy, mean more work and wages to our +countrymen, as well as a safeguard to American interests in every part of +the world. + +Combinations of capital organized into trusts to control the conditions of +trade among our citizens, to stifle competition, limit production, and +determine the prices of products used and consumed by the people, are +justly provoking public discussion, and should early claim the attention of +the Congress. + +The Industrial Commission, created by the act of the Congress of June 18, +1898, has been engaged in extended hearings upon the disputed questions +involved in the subject of combinations in restraint of trade and +competition. They have not yet completed their investigation of this +subject, and the conclusions and recommendations at which they may arrive +are undetermined. + +The subject is one giving rise to many divergent views as to the nature and +variety or cause and extent of the injuries to the public which may result +from large combinations concentrating more or less numerous enterprises and +establishments, which previously to the formation of the combination were +carried on separately. + +It is universally conceded that combinations which engross or control the +market of any particular kind of merchandise or commodity necessary to the +general community, by suppressing natural and ordinary competition, whereby +prices are unduly enhanced to the general consumer, are obnoxious not only +to the common law but also to the public welfare. There must be a remedy +for the evils involved in such organizations. If the present law can be +extended more certainly to control or check these monopolies or trusts, it +should be done without delay. Whatever power the Congress possesses over +this most important subject should be promptly ascertained and asserted. + +President Harrison in his annual message of December 3, 1889, says: Earnest +attention should be given by Congress to a consideration of the question +how far the restraint of those combinations of capital commonly called +"trusts" is matter of Federal jurisdiction. When organized, as they often +are, to crush out all healthy competition and to monopolize the production +or sale of an article of commerce and general necessity they are dangerous +conspiracies against the public good, and should be made the subject of +prohibitory and even penal legislation. An act to protect trade and +commerce against unlawful restraints and monopolies was passed by Congress +on the 2d of July, 1890. The provisions of this statute are comprehensive +and stringent. It declares every contract or combination, in the form of a +trust or otherwise, or conspiracy in the restraint of trade or commerce +among the several States or with foreign nations, to be unlawful. It +denominates as a criminal every person who makes any such contract or +engages in any such combination or conspiracy, and provides a punishment by +fine or imprisonment. It invests the several circuit courts of the United +States with jurisdiction to prevent and restrain violations of the act, and +makes it the duty of the several United States district attorneys, under +the direction of the Attorney General, to institute proceedings in equity +to prevent and restrain such violations. It further confers upon any person +who shall be injured in his business or property by any other person or +corporation by reason of anything forbidden or declared to be unlawful by +the act, the power to sue therefore in any circuit court of the United +States without respect to the amount in controversy, and to recover +threefold the damages by him sustained and the costs of the suit, including +reasonable attorney fees. It will be perceived that the act is aimed at +every kind of combination in the nature of a trust or monopoly in restraint +of interstate or international commerce. + +The prosecution by the United States of offenses under the act of 1890 has +been frequently resorted to in the Federal courts, and notable efforts in +the restraint of interstate commerce, such as the Trans-Missouri Freight +Association and the joint Traffic Association, have been successfully +opposed and suppressed. + +President Cleveland in his annual message of December 7, 1896--more than +six years subsequent to the enactment of this law--after stating the +evils of these trust combinations, says: Though Congress has attempted to +deal with this matter by legislation, the laws passed for that purpose thus +far have proved ineffective, not because of any lack of disposition or +attempt to enforce them, but simply because the laws themselves as +interpreted by the courts do not reach the difficulty. If the +insufficiencies of existing laws can be remedied by further legislation, it +should be done. The fact must be recognized, however, that all Federal +legislation on this subject may fall short of its purpose because of +inherent obstacles, and also because of the complex character of our +governmental system, which, while making the Federal authority supreme +within its sphere, has carefully limited that sphere by metes and bounds +which cannot be transgressed. The decision of our highest court on this +precise question renders it quite doubtful whether the evils of trusts and +monopolies may be adequately treated through Federal action, unless they +seek directly and purposely to include in their objects transportation or +intercourse between States or between the United States and foreign +countries. It does not follow, however, that this is the limit of the +remedy that may be applied. Even though it may be found that Federal +authority is not broad enough to fully reach the case, there can be no +doubt of the power of the several States to act effectively in the +premises, and there should be no reason to doubt their willingness to +judiciously exercise such power. The State legislation to which President +Cleveland looked for relief from the evils of trusts has failed to +accomplish fully that object. This is probably due to a great extent to the +fact that different States take different views as to the proper way to +discriminate between evil and injurious combinations and those associations +which are beneficial and necessary to the business prosperity of the +country. The great diversity of treatment in different States arising from +this cause and the intimate relations of all parts of the country to each +other without regarding State lines in the conduct of business have made +the enforcement of State laws difficult. + +It is apparent that uniformity of legislation upon this subject in the +several States is much to be desired. It is to be hoped that such +uniformity founded in a wise and just discrimination between what is +injurious and what is useful and necessary in business operations may be +obtained and that means may be found for the Congress within the +limitations of its constitutional power so to supplement an effective code +of State legislation as to make a complete system of laws throughout the +United States adequate to compel a general observance of the salutary rules +to which I have referred. + +The whole question is so important and far-reaching that I am sure no part +of it will be lightly considered, but every phase of it will have the +studied deliberation of the Congress, resulting in wise and judicious +action. + +A review of our relations with foreign States is presented with such +recommendations as are deemed appropriate. + +The long-pending boundary dispute between the Argentine Republic and Chile +was settled in March last by the award of an arbitral commission, on which +the United States minister at Buenos Ayres served as umpire. + +Progress has been made toward the conclusion of a convention of extradition +with the Argentine Republic. Having been advised and consented to by the +United States Senate and ratified by Argentina, it only awaits the +adjustment of some slight changes in the text before exchange. + +In my last annual message I adverted to the claim of the Austro-Hungarian +Government for indemnity for the killing of certain Austrian and Hungarian +subjects by the authorities of the State of Pennsylvania, at Lattimer, +while suppressing an unlawful tumult of miners, September 10, 1897. In view +of the verdict of acquittal rendered by the court before which the sheriff +and his deputies were tried for murder, and following the established +doctrine that the Government may not be held accountable for injuries +suffered by individuals at the hands of the public authorities while acting +in the line of duty in suppressing disturbance of the public peace, this +Government, after due consideration of the claim advanced by the +Austro-Hungarian Government, was constrained to decline liability to +indemnify the sufferers. + +It is gratifying to be able to announce that the Belgian Government has +mitigated the restrictions on the importation of cattle from the United +States, to which I referred in my last annual message. + +Having been invited by Belgium to participate in a congress, held at +Brussels, to revise the provisions of the general act Of July 2, 1890, for +the repression of the African slave trade, to which the United States was a +signatory party, this Government preferred not to be represented by a +plenipotentiary, but reserved the right of accession to the result. Notable +changes were made, those especially concerning this country being in the +line of the increased restriction of the deleterious trade in spirituous +liquors with the native tribes, which this Government has from the outset +urgently advocated. The amended general act will be laid before the Senate, +with a view to its advice and consent. + +Early in the year the peace of Bolivia was disturbed by a successful +insurrection. The United States minister remained at his post, attending to +the American interests in that quarter, and using besides his good offices +for the protection of the interests of British subjects in the absence of +their national representative. On the establishment of the new Government, +our minister was directed to enter into relations therewith. + +General Pando was elected President of Bolivia on October 23. + +Our representative has been instructed to use all permissible friendly +endeavors to induce the Government of Bolivia to amend its marriage laws so +as to give legal status to the non-Catholic and civil marriages of aliens +within its jurisdiction, and strong hopes are entertained that the Bolivian +law in this regard will be brought, as was that of Peru some years ago, +into harmony with the general practice of modern States. + +A convention of extradition with Brazil, signed May 14, 1897, has been +ratified by the Brazilian Legislature. + +During the past summer two national ships of the United States have visited +Brazilian ports on a friendly mission and been cordially received. The +voyage of the Wilmington up the Amazon River gave rise to a passing +misunderstanding, owing to confusion in obtaining permission to visit the +interior and make surveys in the general interest of navigation, but the +incident found a ready adjustment in harmony with the close relations of +amity which this Government has always sedulously sought to cultivate with +the commonwealths of the Western Continent. + +The claim growing out of the seizure of the American-owned newspaper "The +Panama Star and Herald" by the authorities of Colombia has been settled, +after a controversy of several years, by an agreement assessing at $30,000 +the indemnity to be paid by the Colombian Government, in three installments +of $10,000 each. + +The good will of Colombia toward our country has been testified anew by the +cordial extension of facilities to the Nicaraguan Canal Commission in their +approaching investigation of the Panama Canal and other projected routes +across the Isthmus of Darien. + +Toward the end of October an insurrectionary disturbance developed in the +Colombian Republic. This movement has thus far not attained any decisive +result and is still in progress. + +Discussion of the questions raised by the action of Denmark in imposing +restrictions on the importation of American meats has continued without +substantial result in our favor. + +The neighboring island Republic of Santo Domingo has lately been the scene +of revolution, following a long period of tranquility. It began with the +killing of President Heureaux in July last, and culminated in the +relinquishment by the succeeding Vice-President of the reins of government +to the insurgents. The first act of the provisional government was the +calling of a presidential and constituent election. Juan Isidro Jimenez, +having been elected President, was inaugurated on the 14th of November. +Relations have been entered into with the newly established Government. + +The experimental association of Nicaragua, Honduras, and Salvador, tinder +the title of the Greater Republic of Central America, when apparently on +the threshold of a complete federal organization by the adoption of a +constitution and the formation of a national legislature, was disrupted in +the last days of November, 1898, by the withdrawal of Salvador. Thereupon +Nicaragua and Honduras abandoned the joint compact, each resuming its +former independent sovereignty. This was followed by the reception of +Minister Merry by the Republics of Nicaragua and Salvador, while Minister +Hunter in turn presented his credentials to the Government of Honduras, +thus reverting to the old distribution of the diplomatic agencies of the +United States in Central America for which our existing statutes provide. A +Nicaraguan envoy has been accredited to the United States. + +An insurrectionary movement, under General Reyes, broke out at Bluefields +in February last, and for a time exercised actual control in the Mosquito +Territory. The Detroit was promptly sent thither for the protection of +American interests. After a few weeks the Reyes government renounced the +conflict, giving place to the restored supremacy of Nicaragua. During the +interregnum certain public dues accruing under Nicaraguan law were +collected from American merchants by the authorities for the time being in +effective administrative control. Upon the titular government regaining +power, a second payment of these dues was demanded. Controversy arose +touching the validity of the original payment of the debt to the de facto +regent of the territory. An arrangement was effected in April last by the +United States minister and the foreign secretary of Nicaragua whereby the +amounts of the duplicate payments were deposited with the British consul +pending an adjustment of the matter by direct agreement between the +Governments of the United States and Nicaragua. The controversy is still +unsettled. + +The contract of the Maritime Canal Company of Nicaragua was declared +forfeited by the Nicaraguan Government on the Tenth of October, on the +ground of nonfulfillment within the ten years' term stipulated in the +contract. The Maritime Canal Company has lodged a protest against this +action, alleging rights in the premises which appear worthy of +consideration. This Government expects that Nicaragua will afford the +protestants a full and fair hearing upon the merits of the case. + +The Nicaragua Canal Commission, which had been engaged upon the work of +examination and survey for a ship-canal route across Nicaragua, having +completed its labors and made its report, was dissolved on May P, and on +June To a new commission, known as the Isthmian Canal Commission, was +organized under the terms of the act approved March 3, 1899, for the +purpose of examining the American Isthmus with a view to determining the +most practicable and feasible route for a ship canal across that Isthmus, +with its probable cost, and other essential details. + +This Commission, under the presidency of Rear-Admiral John G. Walker, U. S. +N. (retired), entered promptly upon the work intrusted to it, and is now +carrying on examinations in Nicaragua along the route of the Panama Canal, +and in Darien from the Atlantic, in the neighborhood of the Atrato River, +to the Bay of Panama, on the Pacific side. Good progress has been made, but +under the law a comprehensive and complete investigation is called for, +which will require much labor and considerable time for its accomplishment. +The work will be prosecuted as expeditiously as possible and a report made +at the earliest practicable date. + +The great importance of this work cannot be too often or too strongly +pressed upon the attention of the Congress. In my message of a year ago I +expressed my views of the necessity of a canal which would link the two +great oceans, to which I again invite your consideration. The reasons then +presented for early action are even stronger now. + +A pleasing incident in the relations of this Government with that of Chile +occurred in the generous assistance given to the war ship Newark when in +distress in Chilean waters. Not alone in this way has the friendly +disposition of Chile found expression. That country has acceded to the +convention for the establishment of the Bureau of the American Republics, +in which organization every independent State of the continent now shares. + +The exchange of ratifications of a convention for the revival of the United +States and Chilean Claims Commission and for the adjudication of claims +heretofore presented but not determined during the life of the previous +Commission has been delayed by reason of the necessity for fresh action by +the Chilean Senate upon the amendments attached to the ratification of the +treaty by the United States Senate. This formality is soon to be +accomplished. + +In view of disturbances in the populous provinces of northern China, where +are many of our citizens, and of the imminence of disorder near the capital +and toward the seaboard, a guard of marines was landed from the Boston and +stationed during last winter in the legation compound at Peking. With the +restoration of order this protection was withdrawn. + +The interests of our citizens in that vast Empire have not been neglected +during the past year. Adequate protection has been secured for our +missionaries and some injuries to their property have been redressed. + +American capital has sought and found various opportunities of competing to +carry out the internal improvements which the Imperial Government is wisely +encouraging, and to develop the natural resources of the Empire. Our trade +with China has continued to grow, and our commercial rights under existing +treaties have been everywhere maintained during the past year, as they will +be in the future. + +The extension of the area open to international foreign settlement at +Shanghai and the opening of the ports of Nanking, Tsing-tao (Kiao chao), +and Ta-lien-wan to foreign trade and settlement will doubtless afford +American enterprise additional facilities and new fields, of which it will +not be slow to take advantage. + +In my message to Congress of December 5, 1898, I urged that the +recommendation which had been made to the Speaker of the House of +Representatives by the Secretary of the Treasury on the 14th of June, 1898, +for an appropriation for a commission to study the commercial and +industrial conditions in the Chinese Empire and report as to the +opportunities for, and obstacles to, the enlargement of markets in China +for the raw products and manufactures of the United States, should receive +at your hands the consideration which its importance and timeliness +merited, but the Congress failed to take action. + +I now renew this recommendation, as the importance of the subject has +steadily grown since it was first submitted to you, and no time should be +lost in studying for ourselves the resources of this great field for +American trade and enterprise. + +The death of President Faure in February last called forth those sincere +expressions of sympathy which befit the relations of two Republics as +closely allied by unbroken historic ties as are the United States and +France. + +Preparations for the representation of the industries, arts, and products +of the United States at the World's Exposition to be held in Paris next +year continue on an elaborate and comprehensive scale, thanks to the +generous appropriation provided by Congress and to the friendly interest +the French Government has shown in furthering a typical exhibit of American +progress. + +There has been allotted to the United States a considerable addition of +space, which, while placing our country in the first rant among exhibitors, +does not suffice to meet the increasingly urgent demands of our +manufacturers. The efforts of the Commissioner General are ably directed +toward a strictly representative display of all that most +characteristically marks American achievement in the inventive arts, and +most adequately shows the excellence of our natural productions. + +In this age of keen rivalry among nations for mastery in commerce, the +doctrine of evolution and the rule of the survival of the fittest must be +as inexorable in their operation as they are positive in the results they +bring about. The place won in the struggle by an industrial people can only +be held by unrelaxed endeavor and constant advance in achievement. The +present extraordinary impetus in every line of American exportation and the +astounding increase in the volume and value of our share in the world's +markets may not be attributed to accidental conditions. + +The reasons are not far to seek. They lie deep in our national character +and find expression year by year in every branch of handicraft, in every +new device whereby the materials we so abundantly produce are subdued to +the artisan's will and made to yield the largest, most practical, and most +beneficial return. The American exhibit at Paris should, and I am confident +will, be an open volume, whose lessons of skillfully directed endeavor, +unfaltering energy, and consummate performance may be read by all on every +page, thus spreading abroad a clearer knowledge of the worth of our +productions and the justice of our claim to an important place in the marts +of the world. To accomplish this by judicious selection, by recognition of +paramount merit in whatever walk of trade or manufacture it may appear, and +by orderly classification and attractive installation is the task of our +Commission. + +The United States Government building is approaching completion, and no +effort will be spared to make it worthy, in beauty of architectural plan +and in completeness of display, to represent our nation. It has been +suggested that a permanent building of similar or appropriate design be +erected on a convenient site, already given by the municipality, near the +exposition grounds, to serve in commemoration of the part taken by this +country in this great enterprise, as an American National Institute, for +our countrymen resorting to Paris for study. + +I am informed by our Commissioner-General that we shall have in the +American sections at Paris over 7,000 exhibitors, from every State ill our +country, a number ten times as great as those which were represented at +Vienna in 1873, six times as many as those in Paris in 1878, and four times +as many as those who exhibited in Paris in 1889. This statement does not +include the exhibits from either Cuba, Puerto Rico, or Hawaii, for which +arrangements have been made. + +A number of important international congresses on special topics affecting +public interests are proposed to be held in Paris next summer in connection +with the exposition. Effort will be made to have the several technical +branches of our administration efficiently represented at those +conferences, each in its special line, and to procure the largest possible +concourse of State representatives, particularly at the Congresses of +Public Charity and Medicine. + +Our relations with Germany continue to be most cordial. The increasing +intimacy of direct association has been marked during the year by the +granting permission in April for the landing on our shores of a cable from +Borkum Emden, on the North Sea, by way of the Azores, and also by the +conclusion on September 2 of a Parcels Post Convention with the German +Empire. In all that promises closer relations of intercourse and commerce +and a better understanding between two races having so many traits in +common, Germany can be assured of the most cordial cooperation of this +Government and people. We may be rivals in many material paths, but our +rivalry should be generous and open, ever aiming toward the attainment of +larger results and the mutually beneficial advancement of each in the line +of its especial adaptabilities. + +The several governments of the Empire seem reluctant to admit the natural +excellence of our food productions and to accept the evidence we constantly +tender of the care with which their purity is guarded by rigid inspection +from the farm, through the slaughterhouse and the packing establishments, +to the port of shipment. Our system of control over exported food staples +invites examination from any quarter and challenges respect by its +efficient thoroughness. + +It is to be hoped that in time the two Governments will act in common +accord toward the realization of their common purpose to safeguard the +public health and to insure the purity and wholesomeness of all food +products imported by either country from the other. Were the Congress to +authorize an invitation to Germany, in connection with the pending +reciprocity negotiations, for the constitution of a joint commission of +scientific experts and practical men of affairs to conduct a searching +investigation of food production and exportation in both countries and +report to their respective legislatures for the adoption of such remedial +measures as they might recommend for either, the way might be opened for +the desirable result indicated. + +Efforts to obtain for American life insurance companies a full hearing as +to their business operations in Prussia have, after several years of +patient representation, happily succeeded, and one of the most important +American companies has been granted a concession to continue business in +that Kingdom. + +I am also glad to announce that the German insurance companies have been +readmitted by the superintendent of insurance to do business in the State +of New York. + +Subsequent to the exchange of our peace treaty with Spain, Germany acquired +the Caroline Islands by purchase, paying therefore $5,000,000. Assurances +have been received from the German Government that the rights of American +missionaries and traders there will be considerately observed. + +In my last annual message I referred to the pending negotiations with Great +Britain in respect to the Dominion of Canada. By means of an executive +agreement, a joint High Commission had been created for the purpose of +adjusting all unsettled questions between the United States and Canada, +embracing twelve subjects, among which were the questions of the fur seals, +the fisheries of the coast and contiguous inland waters, the Alaskan +boundary, the transit of merchandise in bond, the alien labor laws, mining +rights, reciprocity in trade, revision of the agreement respecting naval +vessels in the Great Lakes, a more complete marking of parts of the +boundary, provision for the conveyance of criminals, and for wrecking and +salvage. + +Much progress had been made by the Commission toward the adjustment of many +of these questions, when it became apparent that an irreconcilable +difference of views was entertained respecting the delimitation of the +Alaskan, boundary. In the failure of an agreement as to the meaning of +Articles III and IV of the treaty of 1825 between Russia and Great Britain, +which defined the boundary between Alaska and Canada, the American +Commissioners proposed that the subject of the boundary be laid aside, and +that the remaining questions of difference be proceeded with, some of which +were so far advanced as to assure the probability of a settlement. This +being declined by the British Commissioners, an adjournment was taken until +the boundary should be adjusted by the two Governments. The subject has +been receiving the careful attention which its importance demands, with the +result that a modus vivendi for provisional demarcations in the region +about the head of Lynn Canal has, been agreed upon; and it is hoped that +the negotiations now in progress between the two Governments will end in an +agreement for the establishment and delimitation of a permanent boundary. + +Apart from these questions growing out of our relationship with our +northern neighbor, the most friendly disposition and ready agreement have +marked the discussion of numerous matters arising in the vast and intimate +intercourse of the United States with Great Britain. + +This Government has maintained an attitude of neutrality in the unfortunate +contest between Great Britain and the Boer States of Africa. We have +remained faithful to the precept of avoiding entangling alliances as to +affairs not of our direct concern. Had circumstances suggested that the +parties to the quarrel would have welcomed any kindly expression of the +hope of the American people that war might be averted, good offices would +have been gladly tendered. The United States representative at Pretoria was +early instructed to see that all neutral American interests be respected by +the combatants. This has been an easy task in view of the positive +declarations of both British and Boer authorities that the personal and +property rights of our citizens should be observed. + +Upon the withdrawal of the British agent from Pretoria the United States +consul was authorized, upon the request of the British Government and with +the assent of the South African and Orange Free State Governments, to +exercise the customary good offices of a neutral for the care of British +interests. In the discharge of this function, I am happy to say that +abundant opportunity has been afforded to show the impartiality of this +Government toward both the combatants. + +For the fourth time in the present decade, question has arisen with the +Government of Italy in regard to the lynching of Italian subjects. The +latest of these deplorable events occurred at Tallulah, Louisiana, whereby +five unfortunates of Italian origin were taken from jail and hanged. + +The authorities of the State and a representative of the Italian Embassy +having separately investigated the occurrence, with discrepant results, +particularly as to the alleged citizenship of the victims, and it not +appearing that the State had been able to discover and punish the violators +of the law, an independent investigation has been set on foot, through the +agency of the Department of State, and is still in progress. The result +will enable the Executive to treat the question with the Government of +Italy in a spirit of fairness and justice. A satisfactory solution will +doubtless be reached. + +The recurrence of these distressing manifestations of blind mob fury +directed at dependents or natives of a foreign country suggests that the +contingency has arisen for action by Congress in the direction of +conferring upon the Federal courts jurisdiction in this class of +international cases where the ultimate responsibility of the Federal +Government may be involved. The suggestion is not new. In his annual +message of December 9, 1891, my predecessor, President Harrison, said: It +would, I believe, be entirely competent for Congress to make offenses +against the treaty rights of foreigners domiciled in the United States +cognizable in the Federal courts. This has not, however, been done, and the +Federal officers and courts have no power in such cases to intervene either +for the protection of a foreign citizen or for the punishment of his +slayers. It seems to me to follow, in this state of the law, that the +officers of the State charged with police and judicial powers in such cases +must, in the consideration of international questions growing out of such +incidents, be regarded in such sense as Federal agents as to make this +Government answerable for their acts in cases where it would be answerable +if the United States had used its constitutional power to define and punish +crimes against treaty rights. A bill to provide for the punishment of +violations of treaty rights of aliens was introduced in the Senate March 1, +1892, and reported favorably March 30. Having doubtless in view the +language of that part of Article III of the treaty of February 26, 1871, +between the United States and Italy, which stipulates that "The citizens +of each of the high contracting parties shall receive, in the States and +Territories of the other, most constant protection and security for their +persons and property, and shall enjoy in this respect the same rights and +privileges as are or shall be granted to the natives, on their submitting +themselves to the conditions imposed upon the natives," the bill so +introduced and reported provided that any act committed in any State or +Territory of the United States in violation of the rights of a citizen or +subject of a foreign country secured to such citizen or subject by treaty +between the United States and such foreign country and constituting a crime +under the laws of the State or Territory shall constitute a like crime +against the United States and be cognizable in the Federal courts. No +action was taken by Congress in the matter. + +I earnestly recommend that the subject be taken up anew and acted upon +during the present session. The necessity for some such provision +abundantly appears. Precedent for constituting a Federal jurisdiction in +criminal cases where aliens are sufferers is rationally deducible from the +existing statute, which gives to the district and circuit courts of the +United States jurisdiction of civil suits brought by aliens where the +amount involved exceeds a certain sum. If such jealous solicitude be shown +for alien rights in cases of merely civil and pecuniary import, how much +greater should be the public duty to take cognizance of matters affecting +the lives and the rights of aliens tinder the settled principles of +international law no less than under treaty stipulation, in cases of such +transcendent wrong-doing as mob murder, especially when experience has +shown that local justice is too often helpless to punish the offenders. + +After many years of endeavor on the part of this Government to that end the +Italian Government has consented to enter into negotiations for a +naturalization convention, having for one of its objects the regulation of +the status of Italians (except those of an age for active military service) +who, having been naturalized in the United States, may revisit Italy. It is +hoped that with the mutually conciliatory spirit displayed a successful +conclusion will be reached. + +The treaty of commerce and navigation between the United States and Japan +on November 22, 1894, took effect in accordance with the terms of its XIXth +Article on the 17th of July last, simultaneously with the enforcement of +like treaties with the other powers, except France, whose convention did +not go into operation until August 4, the United States being, however, +granted up to that date all the privileges and rights accorded to French +citizens under the old French treaty. By this notable conventional reform +Japan's position as a fully independent sovereign power is assured, control +being gained of taxation, customs revenues, judicial administration, +coasting trade, and all other domestic functions of government, and foreign +extra-territorial rights being renounced. + +Comprehensive codes of civil and criminal procedure according to western +methods, public instruction, patents and copyrights, municipal +administration, including jurisdiction over the former foreign settlements, +customs tariffs and procedure, public health, and other administrative +measures have been proclaimed. The working of the new system has given rise +to no material complaints on the part of the American citizens or +interests, a circumstance which attests the ripe consideration with which +the change has been prepared. + +Valuable assistance was rendered by the Japanese authorities to the United +States transport ship Morgan City while stranded at Kobe. Permission has +been granted to land and pasture army horses at Japanese ports of call on +the way to the Philippine Islands. These kindly evidences of good will are +highly appreciated. + +The Japanese Government has shown a lively interest in the proposition of +the Pacific Cable Company to add to its projected cable lines to Hawaii, +Guam, and the Philippines a branch connection with the coast of Japan. It +would be a gratifying consummation were the utility of the contemplated +scheme enhanced by bringing Japan and the United States into direct +telegraphic relation. + +Without repeating the observations of my special message of February 10, +1899, concerning the necessity of a cable to Manila. I respectfully invite +attention to it. + +I recommend that, in case the Congress should not take measures to bring +about this result by direct action of the Government, the Postmaster +General be authorized to invite competitive bids for the establishment of a +cable; the company making the best responsible bid to be awarded the +contract; the successful company to give ample bonds to insure the +completion of the work within a reasonable time. + +The year has been marked by constant increase in the intimacy of our +relations with Mexico and in the magnitude of mutually advantageous +interchanges. This Government has omitted no opportunity to show its strong +desire to develop and perpetuate the ties of cordiality now so long happily +unbroken. + +Following the termination on January 20, 1899, by Mexico of the convention +of extradition of December 11, 1861, a new treaty more in accordance with +the ascertained needs of both countries was signed February 22, 1899, and +exchanged in the City of Mexico on the 22d of April last. Its operation +thus far has been effective and satisfactory. A recent case has served to +test the application of its IVth Article, which provides that neither party +shall be bound to deliver up its own citizens, but that the executive +authority of each shall have the power to deliver them up if in its +discretion it be deemed proper to do so. + +The extradition of Mrs. Mattie Rich, a citizen of the United States, +charged with homicide committed in Mexico, was after mature consideration +directed by me in the conviction that the ends of justice would be thereby +subserved. Similar action, on appropriate occasion, by the Mexican +Executive will not only tend to accomplish the desire of both Governments +that grave crimes go not unpunished, but also to repress lawlessness along +the border of the two countries. The new treaty stipulates that neither +Government shall assume jurisdiction in the punishment of crimes committed +exclusively within the territory of the other. This will obviate in future +the embarrassing controversies which have heretofore arisen through +Mexico's assertion of a claim to try and punish an American citizen for an +offense committed within the jurisdiction of the United States. + +The International Water Boundary Commission, organized by the convention of +March 1, 1889, for the adjustment of questions affecting the Rio Grande +frontier, has not yet completed its labors. A further extension of its term +for one year, until December 24, 1899, was effected by a convention signed +December z, 1898, and exchanged and proclaimed in February last. + +An invitation extended to the President of Mexico to visit Chicago in +October, on the occasion of laying the corner stone of the United States +Government building in that city, was cordially accepted by him, with the +necessary consent of the Mexican Congress, but the illness of a member of +his family prevented his attendance. The Minister of Foreign Relations, +however, came as the personal representative of President Diaz, and in that +high character was duly honored. + +Claims growing out of the seizure of American sealing vessels in Bering Sea +have been under discussion with the Government of Russia for several years, +with the recent happy result of an agreement to submit them to the decision +of a single arbitrator. By this act Russia affords proof of her adherence +to the beneficent principle of arbitration which her plenipotentiaries +conspicuously favored at The Hague Disarmament Conference when it was +advocated by the representatives of the United States. + +A suggestion for a permanent exposition of our products and manufactures in +Russia, although not yet fully shaped, has been so cordially welcomed by +the Imperial Government that it may not inaptly take a fitting place in +whatever legislation the Congress may adopt looking to enlargement of our +commercial opportunities abroad. + +Important events have occurred in the Samoan Islands. The election, +according to the laws and customs of Samoa, of a successor to the late +King, Malietoa Laupepa, developed a contest as to the validity of the +result, which issue, by the terms of the General Act, was to be decided by +the Chief justice. Upon his rendering a judgment in favor of Malietoa Tanu, +the rival chief, Mataafa, took up arms. The active intervention of American +and British war ships became imperative to restore order, at the cost of +sanguinary encounters. In this emergency a joint commission of +representatives of the United States, Germany, and Great Britain was sent +to Samoa to investigate the situation and provide a temporary remedy. By +its active efforts a peaceful solution was reached for the time being, the +kingship being abolished and a provisional government established. +Recommendations unanimously made by the commission for a permanent +adjustment of the Samoan question were taken under consideration by the +three powers parties to the General Act. But the more they were examined +the more evident it became that a radical change was necessary in the +relations of the powers to Samoa. + +The inconveniences and possible perils of the tripartite scheme of +supervision and control in the Samoan group by powers having little +interest in common in that quarter beyond commercial rivalry had been once +more emphasized by the recent events. The suggested remedy of the joint +Commission, like the scheme it aimed to replace amounted to what has been +styled a tridominium, being the exercise of the functions of sovereignty by +an unanimous agreement of three powers. The situation had become far more +intricate and embarrassing from every point of view than it was when my +predecessor, in 1894, summed up its perplexities and condemned the +participation in it of the United States. + +The arrangement under which Samoa was administered had proved impracticable +and unacceptable to all the powers concerned. To withdraw from the +agreement and abandon the islands to Germany and Great Britain would not be +compatible with our interests in the archipelago. To relinquish our rights +in the harbor of Pago Pago, the best anchorage in the Pacific, the +occupancy of which had been leased to the United States in 1878 by the +first foreign treaty ever concluded by Samoa, was not to be thought of +either as regards the needs of our Navy or the interests of our growing +commerce with the East. We could not have considered any proposition for +the abrogation of the tripartite control which did not confirm us in all +our rights and safeguard all our national interests in the islands. + +Our views commended themselves to the other powers. A satisfactory +arrangement was concluded between the Governments of Germany and of +England, by virtue of which England retired from Samoa in view of +compensations in other directions, and both powers renounced in favor of +the United States all their rights and claims over and in respect to that +portion of the group lying to the east of the one hundred and seventy-first +degree of west longitude, embracing the islands of Tutuila, Ofoo, Olosenga, +and Manua. I transmit to the Senate, for its constitutional action thereon, +a convention, which besides the provisions above mentioned also guarantees +us the same privileges and conditions in respect to commerce and commercial +vessels in all of the islands of Samoa as those possessed by Germany. + +Claims have been preferred by white residents of Samoa on account of +injuries alleged to have been suffered through the acts of the treaty +Governments in putting down the late disturbances. A convention has been +made between the three powers for the investigation and settlement of these +claims by a neutral arbitrator, to which the attention of the Senate will +be invited. + +My annual message of last year was necessarily devoted, in great part to a +consideration of the Spanish War and of the results it wrought and the +conditions it imposed for the future. I am gratified to announce that the +treaty of peace has restored friendly relations between the two powers. +Effect has been given to its most important provisions. The evacuation of +Puerto Rico having already been accomplished on the XIVth of October, 1898, +nothing remained necessary there but to continue the provisional military +control of the island until the Congress should enact a suitable government +for the ceded territory. Of the character and scope of the measures to that +end I shall treat in another part of this message. + +The withdrawal of the authority of Spain from the island of Cuba was +effected by the 1st of January, so that the full re-establishment of peace +found the relinquished territory held by us in trust for the inhabitants, +maintaining, under the direction of the Executive, such government and +control therein as should conserve public order, restore the productive +conditions of peace so long disturbed by the instability and disorder which +prevailed for the greater part of the preceding three decades, and build up +that tranquil development of the domestic state whereby alone can be +realized the high purpose, as proclaimed in the joint resolution adopted by +the Congress on the 19th of April, 1898, by which the United States +disclaimed any disposition or intention to exercise sovereignty, +jurisdiction, or control over Cuba, except for the pacification thereof, +and asserted its determination when that was accomplished to leave the +government and control of the island to its people. The pledge contained in +this resolution is of the highest honorable obligation and must be sacredly +kept. + +I believe that substantial progress has been made in this direction. All +the administrative measures adopted in Cuba have aimed to fit it for a +regenerated existence by enforcing the supremacy of law and justice; by +placing wherever practicable the machinery of administration in the hands +of the inhabitants; by instituting needed sanitary reforms; by spreading +education; by fostering industry and trade; by inculcating public morality, +and, in short, by taking every rational step to aid the Cuban people to +attain to that plane of self-conscious respect and self-reliant unity which +fits an enlightened community for self-government within its own sphere, +while enabling it to fulfill all outward obligation. + +This nation has assumed before the world a grave responsibility for the +future good government of Cuba. We have accepted a trust the fulfillment of +which calls for the sternest integrity of purpose and the exercise of the +highest wisdom. The new Cuba yet to arise from the ashes of the past must +needs be bound to us by ties of singular intimacy and strength if its +enduring welfare is to be assured. Whether those ties shall be organic or +conventional, the destinies of Cuba are in some rightful form and manner +irrevocably linked with our own, but how and how far is for the future to +determine in the ripeness of events. Whatever be the outcome, we must see +to it that free Cuba be a reality, not a name, a perfect entity, not a +hasty experiment bearing within itself the elements of failure. Our +mission, to accomplish which we took up the wager of battle, is not to be +fulfilled by turning adrift any loosely framed commonwealth to face the +vicissitudes which too often attend weaker States whose natural wealth and +abundant resources are offset by the incongruities of their political +organization and the recurring occasions for internal rivalries to sap +their strength and dissipate their energies. The greatest blessing which +can come to Cuba is the restoration of her agricultural and industrial +prosperity, which will give employment to idle men and re-establish the +pursuits of peace. This is her chief and immediate need. + +On the 19th of August last an order was made for the taking of the census +in the island, to be completed on the 30th of November. By the treaty of +peace the Spanish people on the island have until April 11, 1900, to elect +whether they will remain citizens of Spain or become citizens of Cuba. +Until then it cannot be definitely ascertained who shall be entitled to +participate in the formation of the government of Cuba. By that time the +results of the census will have been tabulated and we shall proceed to +provide for elections which will commit the municipal governments of the +island to the officers elected by the people. The experience thus acquired +will prove of great value in the formation of a representative convention +of the people to draft a constitution and establish a general system of +independent government for the island. In the meantime and so long as we +exercise control over the island the products of Cuba should have a market +in the United States on as good terms and with as favorable rates of duty +as are given to the West India Islands under treaties of reciprocity which +shall be made. + +For the relief of the distressed in the island of Cuba the War Department +has issued supplies to destitute persons through the officers of the Army, +which have amounted to 5,493,000 rations, at a cost Of $1,417,554.07. + +To promote the disarmament of the Cuban volunteer army, and in the interest +of public peace and the welfare of the people, the sum Of $75 was paid to +each Cuban soldier borne upon the authenticated rolls, on condition that he +should deposit his arms with the authorities designated by the United +States. The sum thus disbursed aggregated $2,547,750, which was paid from +the emergency fund provided by the act of January 5, 1899, for that +purpose. + +Out of the Cuban island revenues during the six months ending June 30, +1899, $1,712,014.20 was expended for sanitation, $293,881.70 for charities +and hospitals, and $88,944.03 for aid to the destitute. + +Following the exchange of ratifications of the treaty of peace the two +Governments accredited ministers to each other, Spain sending to Washington +the Duke of Arcos, an eminent diplomatist, previously stationed in Mexico, +while the United States transferred to Madrid Hon. Bellamy Storer, its +minister at Brussels. This was followed by the respective appointment of +consuls, thereby fully resuming the relations interrupted by the war. In +addition to its consular representation in the United States, the Spanish +Government has appointed consuls for Cuba, who have been provisionally +recognized during the military administration of the affairs of that +island. + +Judicial intercourse between the courts of Cuba and Puerto Rico and of +Spain has been established, as provided by the treaty of peace. The Cuban +political prisoners in Spanish penal stations have been and are being +released and returned to their homes, in accordance with Article VI of the +treaty. Negotiations are about to be had for defining the conventional +relations between the two countries, which fell into abeyance by reason of +the war. I trust that these will include a favorable arrangement for +commercial reciprocity under the terms of sections 3 and 4 of the current +tariff act. In these, as in all matters of international concern, no effort +will be spared to respond to the good disposition of Spain, and to +cultivate in all practicable ways the intimacy which should prevail between +two nations whose past history has so often and in so many ways been marked +by sincere friendship and by community of interests. + +I would recommend appropriate legislation in order to carry into execution +Article VII of the Treaty of Peace with Spain, by which the United States +assured the payment of certain claims for indemnity of its citizens against +Spain. + +The United States minister to Turkey continues, under instructions, to +press for a money payment in satisfaction of the just claims for injuries +suffered by American citizens in the disorders of several years past and +for wrongs done to them by the Ottoman authorities. Some of these claims +are of many years' standing. This Government is hopeful of a general +agreement in this regard. + +In the Turkish Empire the situation of our citizens remains unsatisfactory. +Our efforts during nearly forty years to bring about a convention of +naturalization seem to be on the brink of final failure through the +announced policy of the Ottoman Porte to refuse recognition of the alien +status of native Turkish subjects naturalized abroad since 1867. Our +statutes do not allow this Government to admit any distinction between the +treatment of native and naturalized Americans abroad, so that ceaseless +controversy arises in cases where persons owing in the eye of international +law a dual allegiance are prevented from entering Turkey or are expelled +after entrance. Our law in this regard contrasts with that of the European +States. The British act, for instance, does not claim effect for the +naturalization of an alien in the event of his return to his native +country, unless the change be recognized by the law of that country or +stipulated by treaty between it and the naturalizing State. + +The arbitrary treatment, in some instances, of American productions in +Turkey has attracted attention of late, notably in regard to our flour. +Large shipments by the recently opened direct steamship line to Turkish +ports have been denied entrance on the score that, although of standard +composition and unquestioned purity, the flour was pernicious to health +because of deficient "elasticity" as indicated by antiquated and +untrustworthy tests. Upon due protest by the American minister, and it +appearing that the act was a virtual discrimination against our product, +the shipments in question were admitted. In these, as in all instances, +wherever occurring, when American products may be subjected in a foreign +country, upon specious pretexts, to discrimination compared with the like +products of another country, this Government will use its earnest efforts +to secure fair and equal treatment for its citizens and their goods. +Failing this, it will not hesitate to apply whatever corrective may be +provided by the statutes. + +The International Commission of Arbitration, appointed under the +Anglo-Venezuelan treaty of 1897, rendered an award on October 3 last, +whereby the boundary line between Venezuela and British Guiana is +determined, thus ending a controversy which has existed for the greater +part of the century. The award, as to which the arbitrators were unanimous, +while not meeting the extreme contention of either party, gives to Great +Britain a large share of the interior territory in dispute and to Venezuela +the entire mouth of the Orinoco, including Barima Point and the Caribbean +littoral for some distance to the eastward. The decision appears to be +equally satisfactory to both parties. + +Venezuela has once more undergone a revolution. The insurgents, under +General Castro, after a sanguinary engagement in which they suffered much +loss, rallied in the mountainous interior and advanced toward the capital. +The bulk of the army having sided with the movement, President Andrade +quitted Caracas, where General Castro set up a provisional government with +which our minister and the representatives of other powers entered into +diplomatic relations on the 20th of November, 1899. + +The fourth section of the Tariff Act approved July 24, 1897, appears to +provide only for commercial treaties which should be entered into by the +President and also ratified by the Senate within two years from its +passage. Owing to delays inevitable in negotiations of this nature, none of +the treaties initiated under that section could be concluded in time for +ratification by the Senate prior to its adjournment on the 4th of March +last. Some of the pending negotiations, however, were near conclusion at +that time, and the resulting conventions have since been signed by the +plenipotentiaries. Others, within both the third and fourth sections of the +act, are still under consideration. Acting under the constitutional power +of the Executive in respect to treaties, I have deemed it my duty, while +observing the limitations of concession provided by the fourth section, to +bring to a conclusion all pending negotiations, and submit them to the +Senate for its advice and consent. + +Conventions of reciprocity have been signed during the Congressional recess +with Great Britain for the respective colonies of British Guiana, Barbados, +Bermuda, Jamaica, and Turks and Caicos Islands, and with the Republic of +Nicaragua. + +Important reciprocal conventions have also been concluded with France and +with the Argentine Republic. + +In my last annual message the progress noted in the work of the diplomatic +and consular officers in collecting information as to the industries and +commerce of other countries, and in the care and promptitude with which +their reports are printed and distributed, has continued during the past +year, with increasingly valuable results in suggesting new sources of +demand for American products and in pointing out the obstacles still to be +overcome in facilitating the remarkable expansion of our foreign trade. It +will doubtless be gratifying to Congress to learn that the various agencies +of the Department of State are co-operating in these endeavors with a zeal +and effectiveness which are not only receiving the cordial recognition of +our business interests, but are exciting the emulation of other +Governments. In any rearrangement of the great and complicated work of +obtaining official data of an economic character which Congress may +undertake it is most important, in my judgment, that the results already +secured by the efforts of the Department of State should be carefully +considered with a view to a judicious development and increased utility to +our export trade. + +The interest taken by the various States forming the International Union of +American Republics in the work of its organic bureau is evidenced by the +fact that for the first time since its creation in 1890 all the Republics +of South and Central America are now represented in it. + +The unanimous recommendation of the International American Conference, +providing for the International Union of American Republics, stated that it +should continue in force during a term of ten years from the date of its +organization, and no country becoming a member of the union should cease to +be a member until the end of said period of ten years, and unless twelve +months before the expiration of said period a majority of the members of +the union had given to the Secretary of State of the United States official +notice of their wish to terminate the union at the end of its first period, +that the union should continue to be maintained for another period of ten +years, and thereafter, under the same conditions, for successive periods of +ten years each. + +The period for notification expired on July 14, 1899, without any of the +members having given the necessary notice of withdrawal. Its maintenance is +therefore assured for the next ten years. In view of this fact and of the +numerous questions of general interest and common benefit to all of the +Republics of America, some of which were considered by the first +International American Conference, but not finally settled, and others +which have since then grown to importance, it would seem expedient that the +various Republics constituting the Union should be invited to hold at an +early date another conference in the capital of one of the countries other +than the United States, which has already enjoyed this honor. + +The purely international character of the work being done by the bureau and +the appreciation of its value are further emphasized by the active +co-operation which the various Governments of the Latin. American Republics +and their diplomatic representatives in this capital are now exhibiting and +the zealous endeavors they are making to extend its field of usefulness, to +promote through it commercial intercourse, and strengthen the bonds of +amity and confidence between its various members and the nations of this +continent. + +The act to encourage the holding of the Pan-American Exposition on the +Niagara frontier, within the county of Erie or Niagara, in the State of New +York, in the year 1901, was approved on March 3, 1899. + +This exposition, which will be held in the city of Buffalo, in the near +vicinity of the great Niagara cataract, and within a day's journey of which +reside 40, 000, 000 Of our people, will be confined entirely to the Western +Hemisphere. Satisfactory assurances have already been given by the +diplomatic representatives of Great Britain, Mexico, the Central and South +American Republics, and most of the States of the United States that these +countries and States will make an unique, interesting, and instructive +exhibit, peculiarly illustrative of their material progress during the +century which is about to close. + +The law provides an appropriation Of $500,000 for the purpose of making an +exhibit at the exposition by the Government of the United States from its +Executive Departments and from the Smithsonian Institution and National +Museum, the United States Commission of Fish and Fisheries, the Department +of Labor, and the Bureau of the American Republics. To secure a complete +and harmonious arrangement of this Government exhibit a board of management +has already been created, and charged with the selection, purchase, +preparation, transportation, arrangement, and safe-keeping of the articles +and materials to be exhibited. This board has been organized and has +already entered upon the performance of its duties, as provided for by the +law. + +I have every reason to hope and believe that this exposition will tend more +firmly to cement the cordial relations between the nations on this +continent. + +In accordance with an act of Congress approved December 21, 1898, and under +the auspices of the Philadelphia Commercial Museum, a most interesting and +valuable exposition of products and manufactures especially adapted to +export trade was held in Philadelphia from the 14th of September to the 1st +of December, 1899. The representative character of the exhibits and the +widespread interest manifested in the special objects of the undertaking +afford renewed encouragement to those who look confidently to the steady +growth of our enlarged exportation of manufactured goods, which has been +the most remarkable fact in the economic development of the United States +in recent years. A feature of this exposition which is likely to become of +permanent and increasing utility to our industries is the collection of +samples of merchandise produced in various countries with special reference +to particular markets, providing practical object lessons to United States +manufacturers as to qualities, styles, and prices of goods such as meet the +special demands of consumers and may be exported with advantage. + +In connection with the exposition an International Commercial Congress was +held, upon the invitation of the Philadelphia Commercial Museum, +transmitted by the Department of State to the various foreign Governments, +for an exchange of information and opinions with the view to the promotion +of international trade. This invitation met with general and cordial +acceptance, and the Congress, which began its sessions at the exposition on +the 13th of October proved to be of great practical importance, from the +fact that it developed a general recognition of the interdependence of +nations in trade and a most gratifying spirit of accommodation with +reference to the gradual removal of existing impediments to reciprocal +relations, without injury to the industrial interests of either party. + +In response to the invitation of His Majesty, the Emperor of Russia, +delegates from twenty-six countries were assembled at The Hague on the 18th +of May, as members of a conference in the interest of peace. The commission +from the United States consisted of the Hon. Andrew D. White, the Hon. Seth +Low, the Hon. Stanford Newel, Captain Alfred T. Mahan, of the United States +Navy, Captain William Crozier, of the United States Army, and the Hon. +Frederick W. Holls, secretary. The occasion seemed to be opportune for the +serious consideration of a plan for the pacific adjustment of international +differences, a subject in which the American people have been deeply +interested for many years, and a definite project for a permanent +international tribunal was included in the instructions to the delegates of +the United States. + +The final act of the conference includes conventions upon the amelioration +of the laws and customs of war on land, the adaptation to maritime warfare +of the principles of the Geneva Convention of 1864, and the extension of +judicial methods to international cases. The Convention for the Pacific +Settlement of International Conflicts embodies the leading features of the +American plan, with such modifications as were rendered necessary by the +great diversity of views and interests represented by the delegates. The +four titles of the convention provide for the maintenance of general peace, +the exercise of good offices and mediation, the formation of commissions of +inquiry, and international arbitration. + +The mediation provided for by the convention is purely voluntary and +advisory, and is intended to avoid any invasion or limitation of the +sovereign rights of the adhering States. The commissions of inquiry +proposed consists of delegations to be specifically constituted for +particular purposes by means of conventions between the contesting parties, +having for their object the clear understanding of international +differences before resorting to the use of force. The provision for +arbitration contemplates the formation of a permanent tribunal before which +disputed cases may be brought for settlement by the mutual consent of the +litigants in each separate case. The advantages of such a permanent +tribunal over impromptu commissions of arbitration are conceived to be the +actual existence of a competent court, prepared to administer justice, the +greater economy resulting from a well-devised system, and the accumulated +judicial skill and experience which such a tribunal would soon possess. + +While earnestly promoting the idea of establishing a permanent +international tribunal, the delegation of the United States was not +unmindful of the inconveniences which might arise from an obtrusive +exercise of mediation, and in signing the convention carefully guarded the +historic position of the United States by the following declaration: +Nothing contained in this convention shall be so construed as to require +the United States of America to depart from its traditional policy of not +intruding upon, interfering with, or entangling itself in the political +questions or policy or internal administration of any foreign state; nor +shall anything contained in the said convention be construed to imply a +relinquishment by the United. States of America of its traditional attitude +toward purely American questions. Thus interpreted, the Convention for the +Pacific Settlement of International Conflicts may be regarded as realizing +the earnest desire of great numbers of American citizens, whose deep sense +of justice, expressed in numerous resolutions and memorials, has urged them +to labor for this noble achievement. The general character of this +convention, already signed by the delegates of more than twenty sovereign +States, further commends it to the favorable action of the Senate of the +United States, whose ratification it still awaits. + +Since my last annual message, and in obedience to the acts of the Congress +of April 22 and 26, 1898, the remaining volunteer force enlisted for the +Spanish War, consisting Of 34,834 regulars and 110,202 volunteers, with +over 5,000 volunteer officers, has been discharged from the military +service. Of the volunteers, 667 officers and 14,831 men were serving in the +Philippines, and 1,650 of the regulars, who were entitled to be mustered +out after the ratification of the treaty of peace. They voluntarily +remained at the front until their places could be filled by new troops. +They were returned home in the order in which they went to Manila, and are +now all of them out of the service and in the ranks of citizenship. I +recommend that the Congress provide a special medal of honor for the +volunteers, regulars, sailors, and marines on duty in the Philippines who +voluntarily remained in the service after their terms of enlistment had +expired. + +By the act of March 2, 1899, Congress gave authority to increase the +Regular Army to a maximum not exceeding 65,000 enlisted men, and to enlist +a force of 5,000 volunteers, to be recruited from the country at large. By +virtue of this authority the Regular Army has been increased to the number +of 61,999 enlisted men and 2,248 officers, and new volunteer regiments have +been organized aggregating 33,050 enlisted men and 1,524 officers. Two of +these volunteer regiments are made up of colored men, with colored line +officers. The new troops to take the places of those returning from the +Philippines have been transported to Manila to the number of 581 officers +and 26,322 enlisted men of the Regular Army and 594 officers and 15,388 +enlisted men of the new volunteer force, while 504 officers and 14, 119 men +of the volunteer force are on the ocean en route to Manila. + +The force now in Manila consists Of 905 officers and 30,578 regulars, and +594 officers and 15,388 of the volunteers, making an aggregate of 1,499 +officers and 45,966 men. When the troops now under orders shall reach +Manila the force in the archipelago will comprise 2,051 officers and 63,483 +men. The muster out of the great volunteer army organized for the Spanish +War and the creation of a new army, the transportation from Manila to San +Francisco of those entitled to discharge and the transportation of the new +troops to take their places have been a work of great magnitude well and +ably done, for which too much credit cannot be given the War Department. + +During the past year we have reduced our force in Cuba and Puerto Rico, In +Cuba we now have 334 officers and 10,796 enlisted men; In Puerto Rico, 87 +officers and 2,855 enlisted men and a battalion of 400 men composed of +native Puerto Ricans; while stationed throughout the United States are 910 +officers and 17,317 men, and in Hawaii 12 officers and 453 enlisted men. + +The operations of the Army are fully presented in the report of the +Secretary of War. I cannot withhold from officers and men the highest +commendation for their soldierly conduct in trying situations, their +willing sacrifices for their country, and the integrity and ability with +which they have performed unusual and difficult duties in our island +possessions. + +In the organization of the volunteer regiments authorized by the act of +March 2, 1899, it was found that no provision had been made for chaplains. +This omission was doubtless from inadvertence. I recommend the early +authorization for the appointment of one chaplain for each of said +regiments. These regiments are now in the Philippines, and it is important +that immediate action be had. + +In restoring peaceful conditions, orderly rule, and civic progress in Cuba, +Puerto Rico, and, so far as practicable, in the Philippines, the +rehabilitation of the postal service has been an essential and important +part of the work. It became necessary to provide mail facilities both for +our forces of occupation and for the native population. To meet this +requirement has involved a substantial reconstruction. The existing systems +were so fragmentary, defective, and inadequate that a new and comprehensive +organization had to be created. American trained officials have been +assigned to the directing and executive positions, while natives have been +chiefly employed in making up the body of the force. In working out this +plan the merit rule has been rigorously and faithfully applied. + +The appointment of Director-General of Posts of Cuba was given to an expert +who had been Chief Post-Office Inspector and Assistant Postmaster-General, +and who united large experience with administrative capacity. For the +postmastership at Havana the range of skilled and available men was +scanned, and the choice fell upon one who had been twenty years in the +service as deputy postmaster and postmaster of a large city. This principle +governed and determined the selection of the American officials sent not +only to Cuba, but to Puerto Rico and the Philippines, and they were +instructed to apply it so far as practicable in the employment of the +natives as minor postmasters and clerks. The postal system in Cuba, though +remaining under the general guidance of the Postmaster-General, was made +essentially independent. It was felt that it should not be a burden upon +the postal service of the United States, and provision was made that any +deficit in the postal revenue should be a charge upon the general revenues +of the island. + +Though Puerto Rico and the Philippines hold a different relation to the +United States, yet, for convenience of administration, the same principle +of an autonomous system has been extended to them. The development of the +service in all of the islands has been rapid and successful. It has moved +forward on American lines, with free delivery, money order, and registry +systems, and has given the people mail facilities far greater and more +reliable than any they have ever before enjoyed. It is thus not only a +vital agency of industrial, social, and business progress, but an important +influence in diffusing a just understanding of the true spirit and +character of American administration. + +The domestic postal service continues to grow with extraordinary rapidity. +The expenditures and the revenues will each exceed $100,000,000 during the +current year. Fortunately, since the revival of prosperous times the +revenues have grown much faster than the expenditures, and there is every +indication that a short period will witness the obliteration of the annual +deficit. In this connection the report of the Postmaster-General embodies a +statement of some evils which have grown up outside of the contemplation of +law in the treatment of some classes of mail matter which wrongly exercise +the privilege of the pound rate, and shows that if this matter had been +properly classified and had paid the rate which it should have paid, +instead of a postal deficit for the last fiscal year of $6,610,000, there +would have been on one basis a surplus of $17,637,570, and on another Of +$5,733,836. The reform thus suggested, in the opinion of the +Postmaster-General, would not only put the postal service at once on a +self-sustaining basis, but would permit great and valuable improvements, +and I commend the subject to the consideration of the Congress. + +The Navy has maintained the spirit and high efficiency which have always +characterized that service, and has lost none of the gallantry in heroic +action which has signalized its brilliant and glorious past. The Nation has +equal pride in its early and later achievements. Its habitual readiness for +every emergency has won the confidence and admiration of the country. The +people are interested in the continued preparation and prestige of the Navy +and will justify liberal appropriations for its maintenance and +improvement. The officers have shown peculiar adaptation for the +performance of new and delicate duties which our recent war has imposed. + +It cannot be doubted that Congress will at once make necessary provision +for the armor plate for the vessels now under contract and building. Its +attention is respectfully called to the report of the Secretary of the +Navy, in which the subject is fully presented. I unite in his +recommendation that the Congress enact such special legislation as may be +necessary to enable the Department to make contracts early in the coming +year for armor of the best quality that can be obtained in this country for +the Maine, Ohio, and Missouri, and that the provision of the act of March +3, 1899, limiting the price of armor to $300 per ton be removed. + +In the matter of naval construction Italy and Japan, of the great powers, +laid down less tonnage in the year 1899 than this country, and Italy alone +has less tonnage under construction. I heartily concur in the +recommendations for the increase of the Navy, as suggested by the +Secretary. + +Our future progress and prosperity depend upon our ability to equal, if not +surpass, other nations in the enlargement and advance of science, industry, +and commerce. To invention we must turn as one of the most powerful aids to +the accomplishment of such a result. The attention of the Congress is +directed to the report of the Commissioner of Patents, in which will be +found valuable suggestions and recommendations. + +On the 30th of June, 1899, the pension roll of the United States numbered +991,519. These include the pensioners of the Army and Navy in all our wars. +The number added to the rolls during the year was 40,991. The number +dropped by reason of death, remarriage, minors by legal limitation, failure +to claim within three years, and other causes, was 43, 186, and the number +of claims disallowed was 107,919. During the year 89,054 pension +certificates were issued, of which 37,077 were for new or original +pensions. The amount disbursed for army and navy pensions during the year +was $138,355,052.95, which was $1,651,461.61 less than the sum of the +appropriations. + +The Grand Army of the Republic at its recent national encampment held in +Philadelphia has brought to my attention and to that of the Congress the +wisdom and justice of a modification of the third section of the act of +June 27, 1890, which provides pensions for the widows of officers and +enlisted men who served ninety days or more during the War of the Rebellion +and were honorably discharged, provided that such widows are without other +means of sup, port than their daily labor and were married to the soldier, +sailor, or marine on account of whose service they claim pension prior to +the date of the act. + +The present holding of the Department is that if the widow's income aside +from her daily labor does not exceed in amount what her pension would be, +to wit, $96 per annum, she would be deemed to be without other means of +support than her daily labor, and would be entitled to a pension under this +act; while if the widow's income independent of the amount received by her +as the result of her daily labor exceeds $96, she would not be pensionable +under the act. I am advised by the Commissioner of Pensions that the amount +of the income allowed before title to pension would be barred has varied +widely under different administrations of the Pension Office, as well as +during different periods of the same administration, and has been the cause +of just complaint and criticism. + +With the approval of the Secretary of the Interior the Commissioner of +Pensions recommends that, in order to make the practice at all times +uniform and to do justice to the dependent widow, the amount of income +allowed independent of the proceeds of her daily labor should be not less +than $250 per annum, and he urges that the Congress shall so amend the act +as to permit the Pension Office to grant pensionable status to widows under +the terms of the third section of the act of June 27, 1890, whose income +aside from the proceeds of daily labor is not in excess of $250 per annum. +I believe this to be a simple act of justice and heartily recommend it. + +The Dawes Commission reports that gratifying progress has been made in its +work during the preceding year. The field-work of enrollment of four of the +nations has been completed. I recommend that Congress at an early day make +liberal appropriation for educational purposes in the Indian Territory. + +In accordance with the act of Congress approved March 3, 1899. the +preliminary work in connection with the Twelfth Census is now fully under +way. The officers required for the proper administration of the duties +imposed have been selected. The provision for securing a proper enumeration +of the population, as well as to secure evidence of the industrial growth +of the Nation, is broader and more comprehensive than any similar +legislation in the past. The Director advises that every needful effort is +being made to push this great work to completion in the time limited by the +statute. It is believed that the Twelfth Census will emphasize our +remarkable advance in all that pertains to national progress. + +Under the authority of the act of Congress approved July 7, 1898, the +commission consisting of the Secretary of the Treasury, the +Attorney-General, and the Secretary of the Interior has made an agreement +of settlement, which has had my approval, of the indebtedness to the +Government growing out of the issue of bonds to aid in the construction of +the Central Pacific and Western Pacific railroads. The agreement secures +to the Government the principal and interest of said bonds, amounting to +$58,812,715.48. There has been paid thereon $11,762,543.12, which has been +covered into the Treasury, and the remainder, payable within ten years, +with interest at the rate Of 3 per cent per annum, payable semiannually, is +secured by the deposit of an equal amount of first-mortgage bonds of the +Pacific Railway companies. The amounts paid and secured to be paid to the +Government on account of the Pacific Railroad subsidy claims are: Union +Pacific, cash - $58,448,223.75 + +Kansas Pacific, cash - 6,303,000.00 + +Central and Western Pacific, cash - 11,798,314.14 + +Notes, secured - 47,050,172.36 + +Kansas Pacific--dividends for deficiency due United States, cash - +821,897.70 - + +*** + +State of the Union Address +William McKinley +December 3, 1900 + +To the Senate and House of Representatives: + +At the outgoing of the old and the incoming of the new century you begin +the last session of the Fifty-sixth Congress with evidences on every hand +of individual and national prosperity and with proof of the growing +strength and increasing power for good of Republican institutions. Your +countrymen will join with you in felicitation that American liberty is more +firmly established than ever before, and that love for it and the +determination to preserve it are more universal than at any former period +of our history. + +The Republic was never so strong, because never so strongly entrenched in +the hearts of the people as now. The Constitution, with few amendments, +exists as it left the hands of its authors. The additions which have been +made to it proclaim larger freedom and more extended citizenship. Popular +government has demonstrated in its one hundred and twenty-four years of +trial here its stability and security, and its efficiency as the best +instrument of national development and the best safeguard to human rights. + +When the Sixth Congress assembled in November, 1800, the population of the +United States was 5,308,483. It is now 76,304,799. Then we had sixteen +States. Now we have forty-five. Then our territory consisted Of 909,050 +square miles. It is now 3,846,595 square miles. Education, religion, and +morality have kept pace with our advancement in other directions, and while +extending its power the Government has adhered to its foundation principles +and abated none of them in dealing with our new peoples and possessions. A +nation so preserved and blessed gives reverent thanks to God and invokes +His guidance and the continuance of His care and favor. + +In our foreign intercourse the dominant question has been the treatment of +the Chinese problem. Apart from this our relations with the powers have +been happy. + +The recent troubles in China spring from the antiforeign agitation which +for the past three years has gained strength in the northern provinces. +Their origin lies deep in the character of the Chinese races and in the +traditions of their Government. The Taiping rebellion and the opening of +Chinese ports to foreign trade and settlement disturbed alike the +homogeneity and the seclusion of China. + +Meanwhile foreign activity made itself felt in all quarters, not alone on +the coast, but along the great river arteries and in the remoter districts, +carrying new ideas and introducing new associations among a primitive +people which had pursued for centuries a national policy of isolation. + +The telegraph and the railway spreading over their land, the steamers +plying on their waterways, the merchant and the missionary penetrating year +by year farther to the interior, became to the Chinese mind types of an +alien invasion, changing the course of their national life and fraught with +vague forebodings of disaster to their beliefs and their self-control. + +For several years before the present troubles all the resources of foreign +diplomacy, backed by moral demonstrations of the physical force of fleets +and arms, have been needed to secure due respect for the treaty rights of +foreigners and to obtain satisfaction from the responsible authorities for +the sporadic outrages upon the persons and property of unoffending +sojourners, which from time to time occurred at widely separated points in +the northern provinces, as in the case of the outbreaks in Sze-chuen and +Shan-tung. + +Posting of antiforeign placards became a daily occurrence, which the +repeated reprobation of the Imperial power failed to check or punish. These +inflammatory appeals to the ignorance and superstition of the masses, +mendacious and absurd in their accusations and deeply hostile in their +spirit, could not but work cumulative harm. They aimed at no particular +class of foreigners; they were impartial in attacking everything foreign. + +An outbreak in Shan-tung, in which German missionaries were slain, was the +too natural result of these malevolent teachings. + +The posting of seditious placards, exhorting to the utter destruction of +foreigners and of every foreign thing, continued unrebuked. Hostile +demonstrations toward the stranger gained strength by organization. + +The sect, commonly styled the Boxers, developed greatly in the provinces +north of the Yang-Tse, and with the collusion of many notable officials, +including some in the immediate councils of the Throne itself, became +alarmingly aggressive. No foreigner's life, outside of the protected treaty +ports, was safe. No foreign interest was secure from spoliation. + +The diplomatic representatives of the powers in Peking strove in vain to +check this movement. Protest was followed by demand and demand by renewed +protest, to be met with perfunctory edicts from the Palace and evasive and +futile assurances from the Tsung-li Yamen. The circle of the Boxer +influence narrowed about Peking, and while nominally stigmatized as +seditious, it was felt that its spirit pervaded the capital itself, that +the Imperial forces were imbued with its doctrines, and that the immediate +counselors of the Empress Dowager were in full sympathy with the +antiforeign movement. + +The increasing gravity of the conditions in China and the imminence of +peril to our own diversified interests in the Empire, as well as to those +of all the other treaty governments, were soon appreciated by this +Government, causing it profound solicitude. The United States from the +earliest days of foreign intercourse with China had followed a policy of +peace, omitting no occasions to testify good will, to further the extension +of lawful trade, to respect the sovereignty of its Government, and to +insure by all legitimate and kindly but earnest means the fullest measure +of protection for the lives and property of our law-abiding citizens and +for the exercise of their beneficent callings among the Chinese people. + +Mindful of this, it was felt to be appropriate that our purposes should be +pronounced in favor of such course as would hasten united action of the +powers at Peking to promote the administrative reforms so greatly needed +for strengthening the Imperial Government and maintaining the integrity of +China, in which we believed the whole western world to be alike concerned. +To these ends I caused to be addressed to the several powers occupying +territory and maintaining spheres of influence in China the circular +proposals of 1899, inviting from them declarations of their intentions and +views as to the desirability of the adoption of measures insuring the +benefits of equality of treatment of all foreign trade throughout China. + +With gratifying unanimity the responses coincided in this common policy, +enabling me to see in the successful termination of these negotiations +proof of the friendly spirit which animates the various powers interested +in the untrammeled development of commerce and industry in the Chinese +Empire as a source of vast benefit to the whole commercial world. + +In this conclusion, which I had the gratification to announce as a +completed engagement to the interested powers on March 20, 1900, I +hopefully discerned a potential factor for the abatement of the distrust of +foreign purposes which for a year past had appeared to inspire the policy +of the Imperial Government, and for the effective exertion by it of power +and authority to quell the critical antiforeign movement in the northern +provinces most immediately influenced by the Manchu sentiment. + +Seeking to testify confidence in the willingness and ability of the +Imperial administration to redress the wrongs and prevent the evils we +suffered and feared, the marine guard, which had been sent to Peking in the +autumn of 1899 for the protection of the legation, was withdrawn at the +earliest practicable moment, and all pending questions were remitted, as +far as we were concerned, to the ordinary resorts of diplomatic +intercourse. + +The Chinese Government proved, however, unable to check the rising strength +of the Boxers and appeared to be a prey to internal dissensions. In the +unequal contest the antiforeign influences soon gained the ascendancy under +the leadership of Prince Tuan. Organized armies of Boxers, with which the +Imperial forces affiliated, held the country between Peking and the coast, +penetrated into Manchuria up to the Russian borders, and through their +emissaries threatened a like rising throughout northern China. + +Attacks upon foreigners, destruction of their property, and slaughter of +native converts were reported from all sides. The Tsung-li Yamen, already +permeated with hostile sympathies, could make no effective response to the +appeals of the legations. At this critical juncture, in the early spring of +this year, a proposal was made by the other powers that a combined fleet +should be assembled in Chinese waters as a moral demonstration, under cover +of which to exact of the Chinese Government respect for foreign treaty +rights and the suppression of the Boxers. + +The United States, while not participating in the joint demonstration, +promptly sent from the Philippines all ships that could be spared for +service on the Chinese coast. A small force of marines was landed at Taku +and sent to Peking for the protection of the American legation. Other +powers took similar action, until some four hundred men were assembled in +the capital as legation guards. + +Still the peril increased. The legations reported the development of the +seditious movement in Peking and the need of increased provision for +defense against it. While preparations were in progress for a larger +expedition, to strengthen the legation guards and keep the railway open, an +attempt of the foreign ships to make a landing at Taku was met by a fire +from the Chinese forts. The forts were thereupon shelled by the foreign +vessels, the American admiral taking no part in the attack, on the ground +that we were not at war with China and that a hostile demonstration might +consolidate the antiforeign elements and strengthen the Boxers to oppose +the relieving column. + +Two days later the Taku forts were captured after a sanguinary conflict. +Severance of communication with Peking followed, and a combined force of +additional guards, which was advancing to Peking by the Pei-Ho, was checked +at Langfang. The isolation of the legations was complete. + +The siege and the relief of the legations has passed into undying history. +In all the stirring chapter which records the heroism of the devoted band, +clinging to hope in the face of despair, and the undaunted spirit that led +their relievers through battle and suffering to the goal, it is a memory of +which my countrymen may be justly proud that the honor of our flag was +maintained alike in the siege and the rescue, and that stout American +hearts have again set high, in fervent emulation with true men of other +race and language, the indomitable courage that ever strives for the cause +of right and justice. + +By June 19 the legations were cut off. An identical note from the, Yamen +ordered each minister to leave Peking, under a promised escort, within +twenty-four hours. To gain time they replied, asking prolongation of the +time, which was afterwards granted, and requesting an interview with the +Tsung-li Yamen on the following day. No reply being received, on the +morning of the 20th the German minister, Baron von Ketteler, set out for +the Yamen to obtain a response, and oil the way was murdered. + +An attempt by the legation guard to recover his body was foiled by the +Chinese. Armed forces turned out against the legations. Their quarters were +surrounded and attacked. The mission compounds were abandoned, their +inmates taking refuge in the British legation, where all the other +legations and guards gathered for more effective defense. Four hundred +persons were crowded in its narrow compass. Two thousand native converts +were assembled in a nearby palace under protection of the foreigners. Lines +of defense were strengthened, trenches dug, barricades raised, and +preparations made to stand a siege, which at once began. + +From June 20 until July 17, writes Minister Conger, "there was scarcely +an hour during which there was not firing upon some part of our lines and +into some of the legations, varying from a single shot to a general and +continuous attack along the whole line." Artillery was placed around the +legations and on the over-looking palace walls, and thousands Of 3-inch +shot and shell were fired, destroying some buildings and damaging all. So +thickly did the balls rain, that, when the ammunition of the besieged ran +low, five quarts of Chinese bullets were gathered in an hour in one +compound and recast. + +Attempts were made to burn the legations by setting neighboring houses on +fire, but the flames were successfully fought off, although the Austrian, +Belgian, Italian. and Dutch legations were then and subsequently burned. +With the aid of the native converts, directed by the missionaries, to whose +helpful co-operation Mr. Conger awards unstinted praise, the British +legation was made a veritable fortress. The British minister, Sir Claude +MacDonald, was chosen general commander of the defense, with the secretary +of the American legation, Mr. E. G. Squiers, as chief of staff. + +To save life and ammunition the besieged sparingly returned the incessant +fire of the Chinese soldiery, fighting only to repel attack or make an +occasional successful sortie for strategic advantage, such as that of +fifty-five American, British, and Russian marines led by Captain Myers, of +the United States Marine Corps, which resulted in the capture of a +formidable barricade on the wall that gravely menaced the American +position. It was held to the last, and proved an invaluable acquisition, +because commanding the water gate through which the relief column entered. + +During the siege the defenders lost 65 killed, 135 wounded, and 7 by +disease, the last all children. + +On July 14 the besieged had their first communication with the Tsung-li +Yamen, from whom a message came inviting to a conference, which was +declined. Correspondence, however, ensued and a sort of armistice was +agreed upon, which stopped the bombardment and lessened the rifle fire for +a time. Even then no protection whatever was afforded, nor any aid given, +save to send to the legations a small supply of fruit and three sacks of +flour. + +Indeed, the only communication had with the Chinese Government related to +the occasional delivery or dispatch of a telegram or to the demands of the +Tsung-li Yamen for the withdrawal of the legations to the coast under +escort. Not only are the protestations of the Chinese Government that it +protected and succored the legations positively contradicted, but +irresistible proof accumulates that the attacks upon them were made by +Imperial troops, regularly uniformed, armed, and officered, belonging to +the command of Jung Lu, the Imperial commander in chief. Decrees +encouraging the Boxers, organizing them tinder prominent Imperial officers, +provisioning them, and even granting them large sums in the name of the +Empress Dowager, are known to exist. Members of the Tsung-li Yamen who +counseled protection of the foreigners were beheaded. Even in the distant +provinces men suspected of foreign sympathy were put to death, prominent +among these being Chang Yen-hoon, formerly Chinese minister in Washington. + +With the negotiation of the partial armistice of July 14, a proceeding +which was doubtless promoted by the representations of the Chinese envoy in +Washington, the way was opened for the conveyance to Mr. Conger of a test +message sent by the Secretary of State through the kind offices of Minister +Wu Ting-fang. Mr. Conger's reply, dispatched from Peking on July 18 through +the same channel, afforded to the outside world the first tidings that the +inmates of the legations were still alive and hoping for succor. + +This news stimulated the preparations for a joint relief expedition in +numbers sufficient to overcome the resistance which for a month had been +organizing between Taku and the capital. Reinforcements sent by all the +co-operating Governments were constantly arriving. The United States +contingent, hastily assembled from the Philippines or dispatched from this +country, amounted to some 5,000 men, under the able command first of the +lamented Colonel Liscurn and afterwards of General Chaffee. + +Toward the end of July the movement began. A severe conflict followed at +Tientsin, in which Colonel Liscurn was killed. The city was stormed and +partly destroyed. Its capture afforded the base of operations from which to +make the final advance, which began in the first days of August, the +expedition being made up of Japanese, Russian, British, and American troops +at the outset. + +Another battle was fought and won at Yangtsun. Thereafter the disheartened +Chinese troops offered little show of resistance. A few days later the +important position of Ho-si-woo was taken. A rapid march brought the united +forces to the populous city of Tung Chow, which capitulated without a +contest. + +On August 14 the capital was reached. After a brief conflict beneath the +walls the relief column entered and the legations were saved. The United +States soldiers, sailors, and marines, officers and men alike, in those +distant climes and unusual surroundings, showed the same valor, discipline, +and good conduct and gave proof of the same high degree of intelligence and +efficiency which have distinguished them in every emergency. + +The Imperial family and the Government had fled a few days before. The city +was without visible control. The remaining Imperial soldiery had made on +the night of the 13th a last attempt to exterminate the besieged, which was +gallantly repelled. It fell to the occupying forces to restore order and +organize a provisional administration. + +Happily the acute disturbances were confined to the northern provinces. It +is a relief to recall and a pleasure to record the loyal conduct of the +viceroys and local authorities of the southern and eastern provinces. Their +efforts were continuously directed to the pacific control of the vast +populations under their rule and to the scrupulous observance of foreign +treaty rights. At critical moments they did not hesitate to memorialize the +Throne, urging the protection of the legations, the restoration of +communication, and the assertion of the Imperial authority against the +subversive elements. They maintained excellent relations with the official +representatives of foreign powers. To their kindly disposition is largely +due the success of the consuls in removing many of the missionaries from +the interior to places of safety. In this relation the action of the +consuls should be highly commended. In Shan-tung and eastern Chi-li the +task was difficult, but, thanks to their energy and the cooperation of +American and foreign naval commanders, hundreds of foreigners, including +those of other nationalities than ours, were rescued from imminent peril. + +The policy of the United States through all this trying period was clearly +announced and scrupulously carried out. A circular note to the powers dated +July 3 proclaimed our attitude. Treating the condition in the north as one +of virtual anarchy, in which the great provinces of the south and southeast +had no share, we regarded the local authorities in the latter quarters as +representing the Chinese people with whom we sought to remain in peace and +friendship. Our declared aims involved no war against the Chinese nation. +We adhered to the legitimate office of rescuing the imperiled legation, +obtaining redress for wrongs already suffered, securing wherever possible +the safety of American life and property in China, and preventing a spread +of the disorders or their recurrence. + +As was then said, "The policy of the Government of the United States is to +seek a solution which may bring about permanent safety and peace to China, +preserve Chinese territorial and administrative entity, protect all rights +guaranteed to friendly powers by treaty and international law, and +safeguard for the world the principle of equal and impartial trade with all +parts of the Chinese Empire." + +Faithful to those professions which, as it proved, reflected the views and +purposes of the other co-operating Governments, all our efforts have been +directed toward ending the anomalous situation in China by negotiations for +a settlement at the earliest possible moment. As soon as the sacred duty of +relieving our legation and its dependents was accomplished we withdrew from +active hostilities, leaving our legation under an adequate guard in Peking +as a channel of negotiation and settlement--a course adopted by others of +the interested powers. Overtures of the empowered representatives of the +Chinese Emperor have been considerately entertained. + +The Russian proposition looking to the restoration of the Imperial power in +Peking has been accepted as in full consonance with our own desires, for we +have held and hold that effective reparation for wrongs suffered and an +enduring settlement that will make their recurrence impossible can best be +brought about under an authority which the Chinese nation reverences and +obeys. While so doing we forego no jot of our undoubted right to exact +exemplary and deterrent punishment of the responsible authors and abettors +of the criminal acts whereby we and other nations have suffered grievous +injury. + +For the real culprits, the evil counselors who have misled the Imperial +judgment and diverted the sovereign authority to their own guilty ends, +full expiation becomes imperative within the rational limits of retributive +Justice. Regarding this as the initial condition of an acceptable +settlement between China and the powers, I said in my message of October 18 +to the Chinese Emperor: I trust that negotiations may begin so soon as we +and the other offended Governments shall be effectively satisfied of Your +Majesty's ability and power to treat with just sternness the principal +offenders, who are doubly culpable, not alone toward the foreigners, but +toward Your Majesty, under whose rule the purpose of China to dwell in +concord with the world had hitherto found expression in the welcome and +protection assured to strangers. Taking, as a point of departure, the +Imperial edict appointing Earl Li Hung Chang and Prince Ching +plenipotentiaries to arrange a settlement, and the edict of September 25, +whereby certain high officials were designated for punishment, this +Government has moved, in concert with the other powers, toward the opening +of negotiations, which Mr. Conger, assisted by Mr. Rockhill, has been +authorized to conduct on behalf of the United States. + +General bases of negotiation formulated by the Government of the French +Republic have been accepted with certain reservations as to details, made +necessary by our own circumstances, but, like similar reservations by other +powers, open to discussion in the progress of the negotiations. The +disposition of the Emperor's Government to admit liability for wrongs done +to foreign Governments and their nationals, and to act upon such additional +designation of the guilty persons as the foreign ministers at Peking may be +in a position to make, gives hope of a complete settlement of all questions +involved, assuring foreign rights of residence and intercourse on terms of +equality for all the world. + +I regard as one of the essential factors of a durable adjustment the +securement of adequate guarantees for liberty of faith, since insecurity of +those natives who may embrace alien creeds is a scarcely less effectual +assault upon the rights of foreign worship and teaching than would be the +direct invasion thereof. + +The matter of indemnity for our wronged citizens is a question of grave +concern. Measured in money alone, a sufficient reparation may prove to be +beyond the ability of China to meet. All the powers concur in emphatic +disclaimers of any purpose of aggrandizement through the dismemberment of +the Empire. I am disposed to think that due compensation may be made in +part by increased guarantees of security for foreign rights and immunities, +and, most important of all, by the opening of China to the equal commerce +of all the world. These views have been and will be earnestly advocated by +our representatives. + +The Government of Russia has put forward a suggestion, that in the event of +protracted divergence of views in regard to indemnities the matter may be +relegated to the Court of Arbitration at The Hague. I favorably incline to +this, believing that high tribunal could not fail to reach a solution no +less conducive to the stability and enlarged prosperity of China itself +than immediately beneficial to the powers. + +Ratifications of a treaty of extradition with the Argentine Republic were +exchanged on June 2 last. + +While the Austro-Hungarian Government has in the many cases that have been +reported of the arrest of our naturalized citizens for alleged evasion of +military service faithfully observed the provisions of the treaty and +released such persons from military obligations, it has in some instances +expelled those whose presence in the community of their origin was asserted +to have a pernicious influence. Representations have been made against this +course whenever its adoption has appeared unduly onerous. + +We have been urgently solicited by Belgium to ratify the International +Convention of June, 1899, amendatory of the previous Convention of 1890 in +respect to the regulation of the liquor trade in Africa. Compliance was +necessarily withheld, in the absence of the advice and consent of the +Senate thereto. The principle involved has the cordial sympathy of this +Government, which in the reversionary negotiations advocated more drastic +measures, and I would gladly see its extension, by international agreement, +to the restriction of the liquor traffic with all uncivilized peoples, +especially in the Western Pacific. + +A conference will be held at Brussels December 11, 1900, under the +Convention for the protection of industrial property, concluded at Paris +March 20, 1883, to which delegates from this country have been appointed. +Any lessening of the difficulties that our inventors encounter in obtaining +patents abroad for their inventions and that our farmers, manufacturers, +and merchants may have in the protection of their trade-marks is worthy of +careful consideration, and your attention will be called to the results of +the conference at the proper time. + +In the interest of expanding trade between this country and South America, +efforts have been made during the past year to conclude conventions with +the southern republics for the enlargement of postal facilities. Two such +agreements, signed with Bolivia on April 24, of which that establishing the +money-order system is undergoing certain changes suggested by the +Post-Office Department, have not yet been ratified by this Government. A +treaty of extradition with that country, signed on the same day, is before +the Senate. + +A boundary dispute between Brazil and Bolivia over the territory of Acre is +in a fair way of friendly adjustment, a protocol signed in December, 1899, +having agreed on a definite frontier and provided for its demarcation by a +joint commission. + +Conditions in Brazil have weighed heavily on our export trade to that +country in marked contrast to the favorable conditions upon which Brazilian +products are admitted into our markets. Urgent representations have been +made to that Government on the subject and some amelioration has been +effected. We rely upon the reciprocal justice and good will of that +Government to assure to us a further improvement in our commercial +relations. + +The Convention signed May 24, 1897, for the final settlement of claims left +in abeyance upon the dissolution of the Commission of 1893, was at length +ratified by the Chilean Congress and the supplemental Commission has been +organized. + +It remains for the Congress to appropriate for the necessary expenses of +the Commission. + +The insurrectionary movement which disturbed Colombia in the latter part of +1899 has been practically suppressed, although guerrillas still operate in +some departments. The executive power of that Republic changed hands in +August last by the act of Vice-President Marroquin in assuming the reins of +government during the absence of President San Clemente from the capital. +The change met with no serious opposition, and, following the precedents in +such cases, the United States minister entered into relations with the new +defacto Government on September 17. + +It is gratifying to announce that the residual questions between Costa Rica +and Nicaragua growing out of the Award of President Cleveland in 1888 have +been adjusted through the choice of an American engineer, General E. P. +Alexander, as umpire to run the disputed line. His task has been +accomplished to the satisfaction of both contestants. + +A revolution in the Dominican Republic toward the close of last year +resulted in the installation of President Jimenez, whose Government was +formally recognized in January. Since then final payment has been made of +the American claim in regard to the Ozama bridge. + +The year of the exposition has been fruitful in occasions for displaying +the good will that exists between this country and France. This great +competition brought together from every nation the best in natural +productions, industry, science, and the arts, submitted in generous rivalry +to a judgment made all the more searching because of that rivalry. The +extraordinary increase of exportations from this country during the past +three years and the activity with which our inventions and wares had +invaded new markets caused much interest to center upon the American +exhibit, and every encouragement was offered in the way of space and +facilities to permit of its being comprehensive as a whole and complete in +every part. + +It was, however, not an easy task to assemble exhibits that could fitly +illustrate our diversified resources and manufactures. Singularly enough, +our national prosperity lessened the incentive to exhibit. The dealer in +raw materials knew that the user must come to him; the great factories were +contented with the phenomenal demand for their output, not alone at home, +but also abroad, where merit had already won a profitable trade. + +Appeals had to be made to the patriotism of exhibitors to induce them to +incur outlays promising no immediate return. This was especially the case +where it became needful to complete an industrial sequence or illustrate a +class of processes. One manufacturer after another had to be visited and +importuned, and at times, after a promise to exhibit in a particular +section had been obtained, it would be withdrawn, owing to pressure of +trade orders, and a new quest would have to be made. + +The installation of exhibits, too, encountered many obstacles and involved +unexpected cost. The exposition was far from ready at the date fixed for +its opening. The French transportation lines were congested with offered +freight. Belated goods had to be hastily installed in unfinished quarters +with whatever labor could be obtained in the prevailing confusion. Nor was +the task of the Commission lightened by the fact that, owing to the scheme +of classification adopted, it was impossible to have the entire exhibit of +any one country in the same building or more than one group of exhibits in +the same part of any building. Our installations were scattered on both +sides of the Seine and in widely remote suburbs of Paris, so that +additional assistants were needed for the work of supervision and +arrangement. + +Despite all these drawbacks the contribution of the United States was not +only the largest foreign display, but was among the earliest in place and +the most orderly in arrangement. Our exhibits were shown in one hundred and +one out of one hundred and twenty-one classes, and more completely covered +the entire classification than those of any other nation. In total number +they ranked next after those of France, and the attractive form in which +they were presented secured general attention. + +A criterion of the extent and success of our participation and of the +thoroughness with which our exhibits were organized is seen in the awards +granted to American exhibitors by the international jury, namely, grand +prizes, 240; gold medals, 597; silver medals, 776; bronze medals, 541, and +honorable mentions, 322--2,476 in all, being the greatest total number +given to the exhibit of any exhibiting nation, as well as the largest +number in each grade. This significant recognition of merit in competition +with the chosen exhibits of all other nations and at the hands of juries +almost wholly made up of representatives of France and other competing +countries is not only most gratifying, but is especially valuable, since it +sets us to the front in international questions of supply and demand, while +the large proportion of awards in the classes of art and artistic +manufactures afforded unexpected proof of the stimulation of national +culture by the prosperity that flows from natural productiveness joined to +industrial excellence. + +Apart from the exposition several occasions for showing international good +will occurred. The inauguration in Paris of the Lafayette Monument, +presented by the school children of the United States, and the designing of +a commemorative coin by our Mint and the presentation of the first piece +struck to the President of the Republic, were marked by appropriate +ceremonies, and the Fourth of July was especially observed in the French +capital. + +Good will prevails in our relations with the German Empire. An amicable +adjustment of the long-pending question of the admission of our +life-insurance companies to do business in Prussia has been reached. One of +the principal companies has already been readmitted and the way is opened +for the others to share the privilege. + +The settlement of the Samoan problem, to which I adverted in my last +message, has accomplished good results. Peace and contentment prevail in +the islands, especially in Tutuila, where a convenient administration that +has won the confidence and esteem of the kindly disposed natives has been +organized under the direction of the commander of the United States naval +station at Pago-Pago. + +An Imperial meat inspection law has been enacted for Germany. While it may +simplify the inspections, it prohibits certain products heretofore +admitted. There is still great uncertainty as to whether our well-nigh +extinguished German trade in meat products can revive tinder its new +burdens. Much will depend upon regulations not yet promulgated, which we +confidently hope will be free from the discriminations which attended the +enforcement of the old statutes. + +The remaining link in the new lines of direct telegraphic communication +between the United States and the German Empire has recently been +completed, affording a gratifying occasion for exchange of friendly +congratulations with the German Emperor. + +Our friendly relations with Great Britain continue. The war in Southern +Africa introduced important questions. A condition unusual in international +wars was presented in that while one belligerent had control of the seas, +the other had no ports, shipping, or direct trade, but was only accessible +through the territory of a neutral. Vexatious questions arose through Great +Britain's action in respect to neutral cargoes, not contraband in their own +nature, shipped to Portuguese South Africa, on the score of probable or +suspected ultimate destination to the Boer States. + +Such consignments in British ships, by which alone direct trade is kept up +between our ports and Southern Africa, were seized in application of a +municipal law prohibiting British vessels from trading with the enemy +without regard to any contraband character of the goods, while cargoes +shipped to Delagoa Bay in neutral bottoms were arrested on the ground of +alleged destination to enemy's country. Appropriate representations on our +part resulted in the British Government agreeing to purchase outright all +such goods shown to be the actual property of American citizens, thus +closing the incident to the satisfaction of the immediately interested +parties, although, unfortunately, without a broad settlement of the +question of a neutral's right to send goods not contraband per se to a +neutral port adjacent to a belligerent area. + +The work of marking certain provisional boundary points, for convenience of +administration, around the head of Lynn Canal, in accordance with the +temporary arrangement of October, 1899, Was completed by a joint survey in +July last. The modus vivendi has so far worked without friction, and the +Dominion Government has provided rules and regulations for securing to our +citizens the benefit of the reciprocal stipulation that the citizens or +subjects of either power found by that arrangement within the temporary +jurisdiction of the other shall suffer no diminution of the rights and +privileges they have hitherto enjoyed. But however necessary such an +expedient may have been to tide over the grave emergencies of the +situation, it is at best but an unsatisfactory makeshift, which should not +be suffered to delay the speedy and complete establishment of the frontier +line to which we are entitled under the Russo-American treaty for the +cession of Alaska. + +In this relation I may refer again to the need of definitely marking the +Alaskan boundary where it follows the one hundred and forty-first meridian. +A convention to that end has been before the Senate for some two years, but +as no action has been taken I contemplate negotiating a new convention for +a joint determination of the meridian by telegraphic observations. These, +it is believed, will give more accurate and unquestionable results than the +sidereal methods heretofore independently followed, which, as is known, +proved discrepant at several points on the line, although not varying at +any place more than 700 feet. + +The pending claim of R. H. May against the Guatemalan Government has been +settled by arbitration, Mr. George F. B. Jenner, British minister at +Guatemala, who was chosen as sole arbitrator, having awarded $143,750.73 in +gold to the claimant. + +Various American claims against Haiti have been or are being advanced to +the resort of arbitration. + +As the result of negotiations with the Government of Honduras in regard to +the indemnity demanded for the murder of Frank H. Pears in Honduras, that +Government has paid $10,000 in settlement of the claim of the heirs. + +The assassination of King Humbert called forth sincere expressions of +sorrow from this Government and people, and occasion was fitly taken to +testify to the Italian nation the high regard here felt for the memory of +the lamented ruler. + +In my last message I referred at considerable length to the lynching of +five Italians at Tallulah. Notwithstanding the efforts of the Federal +Government, the production of evidence tending to inculpate the authors of +this grievous offense against our civilization, and the repeated inquests +set on foot by the authorities of the State of Louisiana, no punishments +have followed. Successive grand juries have failed to indict. The +representations of the Italian Government in the face of this miscarriage +have been most temperate and just. + +Setting the principle at issue high above all consideration of merely +pecuniary indemnification, such as this Government made in the three +previous cases, Italy has solemnly invoked the pledges of existing treaty +and asked that the justice to which she is entitled shall be meted in +regard to her unfortunate countrymen in our territory with the same full +measure she herself would give to any American were his reciprocal treaty +rights contemned. + +I renew the urgent recommendations I made last year that the Congress +appropriately confer upon the Federal courts jurisdiction in this class of +international cases where the ultimate responsibility of the Federal +Government may be involved, and I invite action upon the bills to +accomplish this which were introduced in the Sen. ate and House. It is +incumbent upon us to remedy the statutory omission which has led, and may +again lead, to such untoward results. I have pointed out the necessity and +the precedent for legislation of this character. Its enactment is a simple +measure of previsory justice toward the nations with which we as a +sovereign equal make treaties requiring reciprocal observance. + +While the Italian Government naturally regards such action as the primary +and, indeed, the most essential element in the disposal of the Tallulah +incident, I advise that, in accordance with precedent, and in view of the +improbability of that particular case being reached by the bill now +pending, Congress make gracious provision for indemnity to the Italian +sufferers in the same form and proportion as heretofore. + +In my inaugural address I referred to the general subject of lynching in +these words: Lynching must not be tolerated in a great and civilized +country like the United States; courts, not mobs, must execute the +penalties of the law. The preservation of public order, the right of +discussion, the integrity of courts, and the orderly administration of +justice must continue forever the rock of safety upon which our Government +securely rests. This I most urgently reiterate and again invite the +attention of my countrymen to this reproach upon our civilization. + +The closing year has witnessed a decided strengthening of Japan's relations +to other states. The development of her independent judicial and +administrative functions under the treaties which took effect July 17, +1899, has proceeded without international friction, showing the competence +of the Japanese to hold a foremost place among modern peoples. + +In the treatment of the difficult Chinese problems Japan has acted in +harmonious concert with the other powers, and her generous cooperation +materially aided in the joint relief of the beleaguered legations in Peking +and in bringing about an understanding preliminary to a settlement of the +issues between the powers and China. Japan's declarations in favor of the +integrity of the Chinese Empire and the conservation of open world trade +therewith have been frank and positive. As a factor for promoting the +general interests of peace, order, and fair commerce in the Far East the +influence of Japan can hardly be overestimated. + +The valuable aid and kindly courtesies extended by the Japanese Government +and naval officers to the battle ship Oregon are gratefully appreciated. + +Complaint was made last summer of the discriminatory enforcement of a +bubonic quarantine against Japanese on the Pacific coast and of +interference with their travel in California and Colorado under the health +laws of those States. The latter restrictions have been adjudged by a +Federal court to be unconstitutional. No recurrence of either cause of +complaint is apprehended. + +No noteworthy incident has occurred in our relations with our important +southern neighbor. Commercial intercourse with Mexico continues to thrive, +and the two Governments neglect no opportunity to foster their mutual +interests in all practicable ways. + +Pursuant to the declaration of the Supreme Court that the awards of the +late joint Commission in the La Abra and Weil claims were obtained through +fraud, the sum awarded in the first case, $403,030.08, has been returned to +Mexico, and the amount of the Weil award will be returned in like manner. + +A Convention indefinitely extending the time for the labors of the United +States and Mexican International (Water) Boundary Commission has been +signed. + +It is with satisfaction that I am able to announce the formal notification +at The Hague, on September 4, of the deposit of ratifications of the +Convention for the Pacific Settlement of International Disputes by sixteen +powers, namely, the United States, Austria, Belgium, Denmark, England, +France, Germany, Italy, Persia, Portugal, Roumania, Russia, Siam, Spain, +Sweden and Norway, and the Netherlands. Japan also has since ratified the +Convention. + +The Administrative Council of the Permanent Court of Arbitration has been +organized and has adopted rules of order and a constitution for the +International Arbitration Bureau. In accordance with Article XXIII of the +Convention providing for the appointment by each signatory power of persons +of known competency in questions of international law as arbitrators, I +have appointed as members of this Court, Hon. Benjamin Harrison, of +Indiana, ex-President of the United States; Hon. Melville W. Fuller, of +Illinois, Chief justice of the United States; Hon. John W. Griggs, of New +Jersey, Attorney General of the United States; and Hon. George Gray, of +Delaware, a judge of the circuit court of the United States. + +As an incident of the brief revolution in the Mosquito district of +Nicaragua early in 1899 the insurgents forcibly collected from American +merchants duties upon imports. On the restoration of order the Nicaraguan +authorities demanded a second payment of such duties on the ground that +they were due to the titular Government and that their diversion had aided +the revolt. + +This position was not accepted by us. After prolonged discussion a +compromise was effected under which the amount of the second payments was +deposited with the British consul at San Juan del Norte in trust until the +two Governments should determine whether the first payments had been made +under compulsion to a de facto authority. Agreement as to this was not +reached, and the point was waived by the act of the Nicaraguan Government +in requesting the British consul to return the deposits to the merchants. + +Menacing differences between several of the Central American States have +been accommodated, our ministers rendering good offices toward an +understanding. + +The all-important matter of an interoceanic canal has assumed a new phase. +Adhering to its refusal to reopen the question of the forfeiture of the +contract of the Maritime Canal Company, which was terminated for alleged +nonexecution in October, 1899, the Government of Nicaragua has since +supplemented that action by declaring the so styled Eyre-Cragin option void +for nonpayment of the stipulated advance. Protests in relation to these +acts have been filed in the State Department and are under consideration. +Deeming itself relieved from existing engagements, the Nicaraguan +Government shows a disposition to deal freely with the canal question +either in the way of negotiations with the United States or by taking +measures to promote the waterway. + +Overtures for a convention to effect the building of a canal under the +auspices of the United States are under consideration. In the meantime, the +views of the Congress upon the general subject, in the light of the report +of the Commission appointed to examine the comparative merits of the +various trans-Isthmian ship-canal projects, may be awaited. + +I commend to the early attention of the Senate the Convention with Great +Britain to facilitate the construction of such a canal and to remove any +objection which might arise out of the Convention commonly called the +Clayton-Bulwer Treaty. + +The long-standing contention with Portugal, growing out of the seizure of +the Delagoa Bay Railway, has been at last determined by a favorable award +of the tribunal of arbitration at Berne, to which it was submitted. The +amount of the award, which was deposited in London awaiting arrangements by +the Governments of the United States and Great Britain for its disposal, +has recently been paid over to the two Governments. + +A lately signed Convention of Extradition with Peru as amended by the +Senate has been ratified by the Peruvian Congress. + +Another illustration of the policy of this Government to refer +international disputes to impartial arbitration is seen in the agreement +reached with Russia to submit the claims on behalf of American sealing +vessels seized in Bering Sea to determination by Mr. T. M. C. Asser, a +distinguished statesman and jurist of the Netherlands. + +Thanks are due to the Imperial Russian Government for the kindly aid +rendered by its authorities in eastern Siberia to American missionaries +fleeing from Manchuria. + +Satisfactory progress has been made toward the conclusion of a general +treaty of friendship and intercourse with Spain, in replacement of the old +treaty, which passed into abeyance by reason of the late war. A new +convention of extradition is approaching completion, and I should be much +pleased were a commercial arrangement to follow. I feel that we should not +suffer to pass any opportunity to reaffirm the cordial ties that existed +between us and Spain from the time of our earliest independence, and to +enhance the mutual benefits of that commercial intercourse which is natural +between the two countries. + +By the terms of the Treaty of Peace the line bounding the ceded Philippine +group in the southwest failed to include several small islands lying +westward of the Sulus, which have always been recognized as under Spanish +control. The occupation of Sibutd and Cagayan Sulu by our naval forces +elicited a claim on the part of Spain, the essential equity of which could +not be gainsaid. In order to cure the defect of the treaty by removing all +possible ground of future misunderstanding respecting the interpretation of +its third article, I directed the negotiation of a supplementary treaty, +which will be forthwith laid before the Senate, whereby Spain quits all +title and claim of title to the islands named as well as to any and all +islands belonging to the Philippine Archipelago lying outside the lines +described in said third article, and agrees that all such islands shall be +comprehended in the cession of the archipelago as fully as if they had been +expressly included within those lines. In consideration of this cession the +United States is to pay to Spain the sum of $100,000. + +A bill is now pending to effect the recommendation made in my last annual +message that appropriate legislation be had to carry into execution Article +VII of the Treaty of Peace with Spain, by which the United States assumed +the payment of certain claims for indemnity of its citizens against Spain. +I ask that action be taken to fulfill this obligation. + +The King of Sweden and Norway has accepted the joint invitation of the +United States, Germany, and Great Britain to arbitrate claims growing out +of losses sustained in the Samoan Islands in the course of military +operations made necessary by the disturbances in 1899. + +Our claims upon the Government of the Sultan for reparation for injuries +suffered by American citizens in Armenia and elsewhere give promise of +early and satisfactory settlement. His Majesty's good disposition in this +regard has been evinced by the issuance of an irade for rebuilding the +American college at Harpoot. + +The failure of action by the Senate at its last session upon the commercial +conventions then submitted for its consideration and approval, although +caused by the great pressure of other legislative business, has caused much +disappointment to the agricultural and industrial interests of the country, +which hoped to profit by their provisions. The conventional periods for +their ratification having expired, it became necessary to sign additional +articles extending the time for that purpose. This was requested on our +part, and the other Governments interested have concurred with the +exception of one convention, in respect to which no formal reply has been +received. + +Since my last communication to the Congress on this subject special +commercial agreements under the third section of the tariff act have been +proclaimed with Portugal, with Italy, and with Germany. Commercial +conventions tinder the general limitations of the fourth section of the +same act have been concluded with Nicaragua, with Ecuador, with the +Dominican Republic, with Great Britain on behalf of the island of Trinidad, +and with Denmark on behalf of the island of St. Croix. These will be early +communicated to the Senate. Negotiations with other Governments are in +progress for the improvement and security of our commercial relations. + +The policy of reciprocity so manifestly rests upon the principles of +international equity and has been so repeatedly approved by the people of +the United States that there ought to be no hesitation in either branch of +the Congress in giving to it full effect. + +This Government desires to preserve the most just and amicable commercial +relations with all foreign countries, unmoved by the industrial rivalries +necessarily developed in the expansion of international trade. It is +believed that the foreign Governments generally entertain the same purpose, +although in some instances there are clamorous demands upon them for +legislation specifically hostile to American interests. Should these +demands prevail I shall communicate with the Congress with the view of +advising such legislation as may be necessary to meet the emergency. + +The exposition of the resources and products of the Western Hemisphere to +be held at Buffalo next year promises important results not only for the +United States but for the other participating countries. It is gratifying +that the Latin-American States have evinced the liveliest interest, and the +fact that an International American Congress will be held in the City of +Mexico while the exposition is in progress encourages the hope of a larger +display at Buffalo than might otherwise be practicable. The work of +preparing an exhibit of our national resources is making satisfactory +progress under the direction of different officials of the Federal +Government, and the various States of the Union have shown a disposition +toward the most liberal participation in the enterprise. + +The Bureau of the American Republics continues to discharge, with the +happiest results, the important work of promoting cordial relations between +the United States and the Latin-American countries, all of which are now +active members of the International Union. The Bureau has been instrumental +in bringing about the agreement for another International American +Congress, which is to meet in the City of Mexico in October, 1901. The +Bureau's future for another term of ten years is assured by the +international compact, but the congress will doubtless have much to do with +shaping new lines of work and a general policy. Its usefulness to the +interests of Latin-American trade is widely appreciated and shows a +gratifying development. + +The practical utility of the consular service in obtaining a wide range of +information as to the industries and commerce of other countries and the +opportunities thereby afforded for introducing the sale of our goods have +kept steadily in advance of the notable expansion of our foreign trade, and +abundant evidence has been furnished, both at home and abroad, of the fact +that the Consular Reports, including many from our diplomatic +representatives, have to a considerable extent pointed out ways and means +of disposing of a great variety of manufactured goods which otherwise might +not have found sale abroad. + +Testimony of foreign observers to the commercial efficiency of the consular +corps seems to be conclusive, and our own manufacturers and exporters +highly appreciate the value of the services rendered not only in the +printed reports but also in the individual efforts of consular officers to +promote American trade. An increasing part of the work of the Bureau of +Foreign Commerce, whose primary duty it is to compile and print the +reports, is to answer inquiries from trade organizations, business houses, +etc., as to conditions in various parts of the world, and, notwithstanding +the smallness of the force employed, the work has been so systematized that +responses are made with such promptitude and accuracy as to elicit +flattering encomiums. The experiment of printing the Consular Reports daily +for immediate use by trade bodies, exporters, and the press, which was +begun in January, 1898, continues to give general satisfaction. + +It is gratifying to be able to state that the surplus revenues for the +fiscal year ended June 30, 1900, were $79,527,060.18. For the six preceding +years we had only deficits, the aggregate of which from 1894 to 1899, +inclusive, amounted to $283,022,991.14. The receipts for the year from all +sources, exclusive of postal revenues, aggregated $567,240,851.89, and +expenditures for all purposes, except for the administration of the postal +department, aggregated $487,713,791.71. The receipts from customs were +$233,164,871.16, an increase over the preceding year Of $27,036,389.41. The +receipts from internal revenue were $295,327,926.76, an increase Of +$21,890,765.25 over 1899. The receipts from miscellaneous sources were +$38,748,053.97, as against $36,394,976.92 for the previous year. + +It is gratifying also to note that during the year a considerable reduction +is shown in the expenditures of the Government. The War Department +expenditures for the fiscal year 1900 were $134,774,767.78, a reduction of +$95,066,486.69 over those of 1899. In the Navy Department the expenditures +were $55,953,077.72 for the year 1900, as against $63,942,104.25 for the +preceding year, a decrease of $7,989,026.53. In the expenditures on account +of Indians there was a decrease in 1900 over 1899 Of $2,630,604.38; and in +the civil and miscellaneous expenses for 1900 there was a reduction Of +$13,418,065.74. + +Because of the excess of revenues over expenditures the Secretary of the +Treasury was enabled to apply bonds and other securities to the sinking +fund to the amount Of $56,544,556.06. The details of the sinking fund are +set forth in the report of the Secretary of the Treasury, to which I invite +attention. The Secretary of the Treasury estimates that the receipts for +the current fiscal year will aggregate $580,000,000 and the expenditures +$500,000,000, leaving an excess of revenues over expenditures of +$80,000,000. The present condition of the Treasury is one of undoubted +strength. The available cash balance November 30 was $139,303,794.50. Under +the form of statement prior to the financial law of March 14 last there +would have been included in the statement of available cash gold coin and +bullion held for the redemption of United States notes. + +If this form were pursued, the cash balance including the present gold +reserve of $150,000,000, would be $289,303,794.50. Such balance November +30, 1899, was $296,495,301.55. In the general fund, which is wholly +separate from the reserve and trust funds, there was on November 30, +$70,090,073.15 in gold coin and bullion, to which should be added +$22,957,300 in gold certificates subject to issue, against which there is +held in the Division of Redemption gold coin and bullion, making a total +holding of free gold amounting to $93,047,373.15. + +It will be the duty as I am sure it will be the disposition of the Congress +to provide whatever further legislation is needed to insure the continued +parity under all conditions between our two forms of metallic money, silver +and gold. + +Our surplus revenues have permitted the Secretary of the Treasury since the +close of the fiscal year to call in the funded loan of 1891 continued at 2 +per cent, in the sum of $25,364,500. To and including November 30, +$23,458,100 Of these bonds have been paid. This sum, together with the +amount which may accrue from further redemptions under the call, will be +applied to the sinking fund. + +The law of March 14, 1900, provided for refunding into 2 per cent +thirty-year bonds, payable, principal and interest, in gold coin of the +present standard value, that portion of the public debt represented by the +3 per cent bonds of 1908, the 4 percents Of 1907, and the 5 percents of +1904, Of which there was outstanding at the date of said law $839,149,930, +The holders of the old bonds presented them for exchange between March 14 +and November 30 to the amount of $364,943,750. The net saving to the +Government on these transactions aggregates $9,106,166. + +Another effect of the operation, as stated by the Secretary, is to reduce +the charge upon the Treasury for the payment of interest from the dates of +refunding to February 1, 1904, by the sum of more than seven million +dollars annually. From February 1, 1904, to July 1, 11907, the annual +interest charge will be reduced by the sum of more than five millions, and +for the thirteen months ending August 1, 1908, by about one million. The +full details of the refunding are given in the annual report of the +Secretary of the Treasury. + +The beneficial effect of the financial act of 1900, so far as it relates to +a modification of the national banking act, is already apparent. The +provision for the incorporation of national banks with a capital of not +less than $25,000 in places not exceeding three thousand inhabitants has +resulted in the extension of banking facilities to many small communities +hitherto unable to provide themselves with banking institutions under the +national system. There were organized from the enactment of the law up to +and including November 30, 369 national banks, of which 266 were with +capital less than $50,000, and 103 with capital of $50,000 or more. + +It is worthy of mention that the greater number of banks being organized +under the new law are in sections where the need of banking facilities has +been most pronounced. Iowa stands first, with 30 banks of the smaller +class, while Texas, Oklahoma, Indian Territory, and the middle and western +sections of the country have also availed themselves largely of the +privileges under the new law. + +A large increase in national bank-note circulation has resulted from the +provision of the act which permits national banks to issue circulating +notes to the par value of the United States bonds deposited as security +instead of only go per cent thereof, as heretofore. The increase in +circulating notes from March 14 to November 30 is $77,889,570. + +The party in power is committed to such legislation as will better make the +currency responsive to the varying needs of business at all seasons and in +all sections. + +Our foreign trade shows a remarkable record of commercial and industrial +progress. The total of imports and exports for the first time in the +history of the country exceeded two billions of dollars. The exports are +greater than they have ever been before, the total for the fiscal year 1900 +being $1,394,483,082, an increase over 1899 of $167,459,780, an increase +over 1898 of $163,000,752, over 1897 Of $343,489,526, and greater than 1896 +by $511,876,144. + +The growth of manufactures in the United States is evidenced by the fact +that exports of manufactured products largely exceed those of any previous +year, their value for 1900 being $433,851,756, against $339,592,146 in +1899, an increase of 28 per cent. + +Agricultural products were also exported during 1900 in greater volume than +in 1899, the total for the year being $835,858,123, against $784,776,142 in +1899. + +The imports for the year amounted to $849,941,184, an increase over 1899 of +$152,792,695. This increase is largely in materials for manufacture, and is +in response to the rapid development of manufacturing in the United States. +While there was imported for use in manufactures in 1900 material to the +value of $79,768,972 in excess of 1899, it is reassuring to observe that +there is a tendency toward decrease in the importation of articles +manufactured ready for consumption, which in 1900 formed 15.17 per cent of +the total imports, against 15.54 per cent in 1899 and 21.09 per cent in +1896. + +I recommend that the Congress at its present session reduce the +internal-revenue taxes imposed to meet the expenses of the war with Spain. +in the sum of thirty millions of dollars. This reduction should be secured +by the remission of those taxes which experience has shown to be the most +burdensome to the industries of the people. + +I specially urge that there be included in whatever reduction is made the +legacy tax on bequests for public uses of a literary, educational, or +charitable character. + +American vessels during the past three years have carried about 9 per cent +of our exports and imports. Foreign ships should carry the least, not the +greatest, part of American trade. The remarkable growth of our steel +industries, the progress of shipbuilding for the domestic trade, and our +steadily maintained expenditures for the Navy have created an opportunity +to place the United States in the first rank of commercial maritime powers. + +Besides realizing a proper national aspiration this will mean the +establishment and healthy growth along all our coasts of a distinctive +national industry, expanding the field for the profitable employment of +labor and capital. It will increase the transportation facilities and +reduce freight charges on the vast volume of products brought from the +interior to the seaboard for export, and will strengthen an arm of the +national defense upon which the founders of the Government and their +successors have relied. In again urging immediate action by the Congress on +measures to promote American shipping and foreign trade, I direct attention +to the recommendations on the subject in previous messages, and +particularly to the opinion expressed in the message of 1899: I am +satisfied the judgment of the country favors the policy of aid to our +merchant marine, which will broaden our commerce and markets and upbuild +our sea-carrying capacity for the products of agriculture and manufacture, +which, with the increase of our Navy, mean more work and wages to our +countrymen, as well as a safeguard to American interests in every part of +the world. The attention of the Congress is invited to the recommendation +of the Secretary of the Treasury in his annual report for legislation in +behalf of the Revenue-Cutter Service, and favorable action is urged. + +In my last annual message to the Congress I called attention to the +necessity for early action to remedy such evils as might be found to exist +in connection with combinations of capital organized into trusts, and again +invite attention to my discussion of the subject at that time, which +concluded with these words: It is apparent that uniformity of legislation +upon this subject in the several States is much to be desired. It is to be +hoped that such uniformity, founded in a wise and just discrimination +between what is injurious and what is useful and necessary in business +operations, may be obtained, and that means may be found for the Congress, +within the limitations of its constitutional power, so to supplement an +effective code of State legislation as to make a complete system of laws +throughout the United States adequate to compel a general observance of the +salutary rules to which I have referred. + +The whole question is so important and far-reaching that I am sure no part +of it will be lightly considered, but every phase of it will have the +studied deliberation of the Congress, resulting in wise and judicious +action. Restraint upon such combinations as are injurious, and which are +within Federal jurisdiction, should be promptly applied by the Congress. + +In my last annual message I dwelt at some length upon the condition of +affairs in the Philippines. While seeking to impress upon you that the +grave responsibility of the future government of those islands rests with +the Congress of the United States, I abstained from recommending at that +time a specific and final form of government for the territory actually +held by the United States forces and in which as long as insurrection +continues the military arm must necessarily be supreme. I stated my +purpose, until the Congress shall have made the formal expression of its +will, to use the authority vested in me by the Constitution and the +statutes to uphold the sovereignty of the United States in those distant +islands as in all other places where our flag rightfully floats, placing, +to that end, at the disposal of the army and navy all the means which the +liberality of the Congress and the people have provided. No contrary +expression of the will of the Congress having been made, I have steadfastly +pursued the purpose so declared, employing the civil arm as well toward the +accomplishment of pacification and the institution of local governments +within the lines of authority and law. + +Progress in the hoped-for direction has been favorable. Our forces have +successfully controlled the greater part of the islands, overcoming the +organized forces of the insurgents and carrying order and administrative +regularity to all quarters. What opposition remains is for the most part +scattered, obeying no concerted plan of strategic action, operating only by +the methods common to the traditions of guerrilla warfare, which, while +ineffective to alter the general control now established, are still +sufficient to beget insecurity among the populations that have felt the +good results of our control and thus delay the conferment upon them of the +fuller measures of local self-government, of education, and of industrial +and agricultural development which we stand ready to give to them. + +By the spring of this year the effective opposition of the dissatisfied +Tagals to the authority of the United States was virtually ended, thus +opening the door for the extension of a stable administration over much of +the territory of the Archipelago. Desiring to bring this about, I appointed +in March last a civil Commission composed of the Hon. William H. Taft, of +Ohio; Prof. Dean C. Worcester, of Michigan; the Hon. Luke I. Wright, of +Tennessee; the Hon. Henry C. Ide, of Vermont, and Prof. Bernard Moses, of +California. The aims of their mission and the scope of their authority are +clearly set forth in my instructions of April 7, 1900, addressed to the +Secretary of War to be transmitted to them: + +In the message transmitted to the Congress on the 5th of December, 1899, I +said, speaking of the Philippine Islands: "As long as the insurrection +continues the military arm must necessarily be supreme. But there is no +reason why steps should not be taken from time to time to inaugurate +governments essentially popular in their form as fast as territory is held +and controlled by our troops. To this end I am considering the advisability +of the return of the Commission, or such of the members thereof as can be +secured, to aid the existing authorities and facilitate this work +throughout the islands." + +To give effect to the intention thus expressed, I have appointed Hon. +William H. Taft, of Ohio; Prof. Dean C. Worcester, of Michigan; Non. Luke +I. Wright, of Tennessee; Hon. Henry C. Ide, of Vermont, and Prof. Bernard +Moses, of California, Commissioners to the Philippine Islands to continue +and perfect the work of organizing and establishing civil government +already commenced by the military authorities, subject in all respects to +any laws which Congress may hereafter enact. + +The Commissioners named will meet and act as a board, and the Hon. William +H. Taft t is designated as president of the board. It is probable that the +transfer of authority from military commanders to civil officers will be +gradual and will occupy a considerable period. Its successful +accomplishment and the maintenance of peace and order in the meantime will +require the most perfect co-operation between the civil and military +authorities in the islands, and both should be directed during the +transition period by the same Executive Department. The Commission will +therefore report to the Secretary of War, and all their action will be +subject to your approval and control. + +You will instruct the Commission to proceed to the city of Manila, where +they will make their principal office, and to communicate with the Military +Governor of the Philippine Islands, whom you will at the same time direct +to render to them every assistance within his power in the performance of +their duties. Without hampering them by too specific instructions, they +should in general be enjoined, after making themselves familiar with the +conditions and needs of the country, to devote their attention in the first +instance to the establishment of municipal governments, in which the +natives of the islands, both in the cities and in the rural communities, +shall be afforded the opportunity to manage their own local affairs to the +fullest extent of which they are capable and subject to the least degree of +supervision and control which a careful study of their capacities and +observation of the workings of native control show to be consistent with +the maintenance of law, order, and loyalty. + +The next subject in order of importance should be the organization of +government in the larger administrative divisions corresponding to +counties, departments, or provinces, in which the common interests of many +or several municipalities falling within the same tribal lines, or the same +natural geographical limits, may best be subserved by a common +administration. Whenever the Commission is of the opinion that the +condition of affairs in the islands is such that the central administration +may safely be transferred from military to civil control they will report +that conclusion to you, with their recommendations as to the form of +central government to be established for the purpose of taking over the +control. + +Beginning with the 1st day of September, 1900, the authority to exercise, +subject to my approval, through the Secretary of War, that part of the +power of government in the Philippine Islands which is of a legislative +nature is to be transferred from the Military Governor of the islands to +this Commission, to be thereafter exercised by them in the place and stead +of the Military Governor, under such rules and regulations as you shall +prescribe, until the establishment of the civil central government for the +islands contemplated in the last foregoing paragraph, or until Congress +shall otherwise provide. Exercise of this legislative authority will +include the making of rules and orders, having the effect of law, for the +raising of revenue by taxes, customs duties, and imposts; the appropriation +and expenditure of public funds of the islands; the establishment of an +educational system throughout the islands; the establishment of a system +to secure an efficient civil service; the organization and establishment of +courts; the organization and establishment of municipal and departmental +governments, and all other matters of a civil nature for which the Military +Governor is now competent to provide by rules or orders of a legislative +character. + +The Commission will also have power during the same period to appoint to +office such officers under the judicial, educational, and civil-service +systems and in the municipal and departmental governments as shall be +provided for. Until the complete transfer of control the Military Governor +will remain the chief executive head of the government of the islands, and +will exercise the executive authority now possessed by him and not herein +expressly assigned to the Commission, subject, however, to the rules and +orders enacted by the Commission in the exercise of the legislative powers +conferred upon them. In the meantime the municipal and departmental +governments will continue to report to the Military Governor and be subject +to his administrative supervision and control, under your direction, but +that supervision and control will be confined within the narrowest limits +consistent with the requirement that the powers of government in the +municipalities and departments shall be honestly and effectively exercised +and that law and order and individual freedom shall be maintained. + +All legislative rules and orders, establishments of government, and +appointments to office by the Commission will take effect immediately, or +at such times as they shall designate, subject to your approval and action +upon the coming in of the Commission's reports, which are to be made from +time to time as their action is taken. Wherever civil governments are +constituted under the direction of the Commission such military posts, +garrisons, and forces will be continued for the suppression of insurrection +and brigandage and the maintenance of law and order as the Military +Commander shall deem requisite, and the military forces shall be at all +times subject, under his orders, to the call of the civil authorities for +the maintenance of law and order and the enforcement of their authority. + +In the establishment of municipal governments the Commission will take as +the basis of their work the governments established by the Military +Governor under his order of August 8, 1899. and under the report of the +board constituted by the Military Governor by his order of January 29, +1900, to formulate and report a plan of municipal government, of which His +Honor Cayetano Arellano, President of the Audiencia, was chairman, and they +will give to the conclusions of that board the weight and consideration +which the high character and distinguished abilities of its members +justify. + +In the constitution of departmental or provincial governments they will +give especial attention to the existing government of the island of Negros, +constituted, with the approval of the people of that island, under the +order of the Military Governor of July 22, 1899, and after verifying, so +far as may be practicable, the reports of the successful working of that +government they will be guided by the experience thus acquired so far as it +may be applicable to the condition existing in other portions of the +Philippines. They will avail themselves, to the fullest degree practicable, +of the conclusions reached by the previous Commission to the Philippines. + +In the distribution of powers among the governments organized by the +Commission, the presumption is always to be in favor of the smaller +subdivision, so that all the powers which can properly be exercised by the +municipal government shall be vested in that government, and all the powers +of a more general character which can be exercised by the departmental +government shall be vested in that government, and so that in the +governmental system, which is the result of the process, the central +government of the islands, following the example of the distribution of the +powers between the States and the National Government of the United States, +shall have no direct administration except of matters of purely general +concern, and shall have only such supervision and control over local +governments as may be necessary to secure and enforce faithful and +efficient administration by local officers. + +The many Different degrees of civilization and varieties of custom and +capacity among the people of the different islands preclude very definite +instruction as to the part which the people shall take in the selection of +their own officers; but these general rules are to be observed: That in all +cases the municipal officers, who administer the local affairs of the +people, are to be selected by the people, and that wherever officers of +more extended jurisdiction are to be selected in any way, natives of the +islands are to be preferred, and if they can be found competent and willing +to perform the duties, they are to receive the offices in preference to any +others. + +It will be necessary to fill some offices for the present with Americans +which after a time may well be filled by natives of the islands. As soon as +practicable a system for ascertaining the merit and fitness of candidates +for civil office should be put in force. An indispensable qualification for +all offices and positions of trust and authority in the islands must be +absolute and unconditional loyalty to the United States, and absolute and +unhampered authority and power to remove and punish any officer deviating +from that standard must at all times be retained in the hands of the +central authority of the islands. + +In all the forms of government and administrative provisions which they are +authorized to prescribe the Commission should bear in mind that the +government which they are establishing is designed not for our +satisfaction, or for the expression of our theoretical views, but for the +happiness, peace, and prosperity of the people of the Philippine Islands, +and the measures adopted should be made to conform to their customs, their +habits, and even heir prejudices, to the fullest extent consistent with the +accomplishment of the Indispensable requisites of just and effective +government. + +At the same time the Commission should bear in mind, and the people of the +islands should be made plainly to understand, that there are certain great +principles of government which have been made the basis of our governmental +system which we deem essential to the rule of law and the maintenance of +individual freedom, and of which they have, unfortunately, been denied the +experience possessed by us; that there are also certain practical rules of +government which we have found to be essential to the preservation of these +great principles of liberty and law, and that these principles and these +rules of government must be established and maintained in their islands for +the sake of their liberty and happiness, however much they may conflict +with the customs or laws of procedure with which they are familiar. + +It is evident that the most enlightened thought of the Philippine Islands +fully appreciates the importance of these principles and rules, and they +will inevitably within a short time command universal assent. Upon every +division and branch of the government of the Philippines, therefore, must +be imposed these inviolable rules: + +That no person shall be deprived of life, liberty, or property without due +process of law; that private property shall not be taken for public use +without just compensation; that in all criminal prosecutions the accused +shall enjoy the right to a speedy and public trial, to be informed of the +nature and cause of the accusation, to be confronted with the witnesses +against him, to have compulsory process for obtaining witnesses in his +favor, and to have the assistance of counsel for his defense; that +excessive bail shall not be required, nor excessive fines imposed, nor +cruel and unusual punishment inflicted; that no person shall be put twice +in jeopardy for the same offense, or be compelled in any criminal case to +be a witness against himself; that the right to be secure against +unreasonable searches and seizures shall not be violated; that neither +slavery nor involuntary servitude shall exist except as a punishment for +crime; that no bill of attainder or ex-post facto law shall be passed; that +no law shall be passed abridging the freedom of speech or of the press, or +the rights of the people to peaceably assemble and petition the Government +for a redress of grievances; that no law shall be made respecting an +establishment of religion, or prohibiting the free exercise thereof, and +that the free exercise and enjoyment of religious profession and worship +without discrimination or preference shall forever be allowed. + +It will be the duty of the Commission to make a thorough investigation into +the titles to the large tracts of land held or claimed by individuals or by +religious orders; into the justice of the claims and complaints made +against such landholders by the people of the island or any part of the +people, and to seek by wise and peaceable measures a just settlement of the +controversies and redress of wrongs which have caused strife and bloodshed +in the past. In the performance of this duty the Commission is enjoined to +see that no injustice is done; to have regard for substantial rights and +equity, disregarding technicalities so far as substantial right permits, +and to observe the following rules: + +That the provision of the Treaty of Paris pledging the United States to the +protection of all rights of property in the islands, and as well the +principle of our own Government which prohibits the taking of private +property without due process of law, shall not be violated; that the +welfare of the people of the islands, which should be a paramount +consideration, shall be attained consistently with this rule of property +right; that if it becomes necessary for the public interest of the people +of the islands to dispose of claims to property which the Commission finds +to be not lawfully acquired and held disposition shall be made thereof by +due legal procedure, in which there shall be full opportunity for fair and +impartial hearing and judgment; that if the same public interests require +the extinguishment of property rights lawfully acquired and held due +compensation shall be made out of the public treasury therefore; that no +form of religion and no minister of religion shall be forced upon any +community or upon any citizen of the islands; that, upon the other hand, no +minister of religion shall be interfered with or molested in following his +calling, and that the separation between State and Church shall be real, +entire, and absolute. + +It will be the duty of the Commission to promote and extend, and, as they +find occasion, to improve the system of education already inaugurated by +the military authorities. In doing this they should regard as of first +importance the extension of a system of primary education which shall be +free to all, and which shall tend to fit the people for the duties of +citizenship and for the ordinary avocations of a civilized community. This +instruction should be given in the first instance in every part of the +islands in the language of the people. In view of the great number of +languages spoken by the different tribes, it is especially important to the +prosperity of the islands that a common medium of communication may be +established, and it is obviously desirable that this medium should be the +English language. Especial attention should be at once given to affording +full opportunity to all the people of the islands to acquire the use of the +English language. + +It may be well that the main changes which should be made in the system of +taxation and in the body of the laws under which the people are governed, +except such changes as have already been made by the military government, +should be relegated to the civil government which is to be established +under the auspices of the Commission. It will, however, be the duty of the +Commission to inquire diligently as to whether there are any further +changes which ought not to be delayed, and if so, they are authorized to +make such changes subject to your approval. In doing so they are to bear in +mind that taxes which tend 6 penalize or repress industry and enterprise +are to be avoided; that provisions for taxation should be simple, so that +they may be understood by the people; that they should affect the fewest +practicable subjects of taxation which will serve for the general +distribution of the burden. + +The main body of the laws which regulate the rights and obligations of the +people should be maintained with as little interference as possible. +Changes made should be mainly in procedure, and in the criminal laws to +secure speedy and impartial trials, and at the same time effective +administration and respect for individual rights. + +In dealing with the uncivilized tribes of the islands the Commission should +adopt the same course followed by Congress in permitting the tribes of our +North American Indians to maintain their tribal organization and +government, and under which many of those tribes are now living in peace +and contentment, surrounded by a civilization to which they are unable or +unwilling to conform. Such tribal governments should, however, be subjected +to wise and firm regulation, and, without undue or petty interference, +constant and active effort should be exercised to prevent barbarous +practices and introduce civilized customs. + +Upon all officers and employees of the United States, both civil and +military, should be impressed a sense of the duty to observe not merely the +material but the personal and social rights of the people of the islands, +and to treat them with the same courtesy and respect for their personal +dignity which the people of the United States are accustomed W require from +each other. + +The articles of capitulation of the city of Manila on the 13th of August, +1898, concluded with these words: + +"This city, its inhabitants, its churches and religious worship, its +educational establishments, and its private property of all descriptions, +are placed under the special safeguard of the faith and honor of the +American Army." + +I believe that this pledge has been faithfully kept. As high and sacred an +obligation rests upon the Government of the United States to give +protection for property and life, civil and religious freedom, and wise, +firm, and unselfish guidance in the paths of peace and prosperity to all +the people of the Philippine Islands. I charge this Commission to labor for +the full performance of this obligation, which concerns the honor and +conscience of their country, in the firm hope that through their labors all +the inhabitants of the Philippine Islands may come to look back with +gratitude to the day when God gave victory to American arms at Manila and +set their land under the sovereignty and the protection of the people of +the United States. + +Coincidently with the entrance of the Commission upon its labors I caused +to be issued by General MacArthur, the Military Governor of the +Philippines, on June 21, 1900, a proclamation of amnesty in generous terms, +of which many of the insurgents took advantage, among them a number of +important leaders. + +This Commission, composed of eminent citizens representing the diverse +geographical and political interests of the country, and bringing to their +task the ripe fruits of long and intelligent service in educational, +administrative, and judicial careers, made great progress from the outset. +As early as August 21, 1900, it submitted a preliminary report, which will +be laid before the Congress, and from which it appears that already the +good effects of returning order are felt; that business, interrupted by +hostilities, is improving as peace extends; that a larger area is under +sugar cultivation than ever before; that the customs revenues are greater +than at any time during the Spanish rule; that economy and efficiency in +the military administration have created a surplus fund of $6,000,000, +available for needed public improvements; that a stringent civil-service +law is in preparation; that railroad communications are expanding, opening +up rich districts, and that a comprehensive scheme of education is being +organized. + +Later reports from the Commission show yet more encouraging advance toward +insuring the benefits of liberty and good government to the Filipinos, in +the interest of humanity and with the aim of building up an enduring, +self-supporting, and self-administering community in those far eastern +seas. I would impress upon the Congress that whatever legislation may be +enacted in respect to the Philippine Islands should be along these generous +lines. The fortune of war has thrown upon this nation an unsought trust +which should be unselfishly discharged, and devolved upon this Government a +moral as well as material responsibility toward these millions whom we have +freed from an oppressive yoke. + +I have on another occasion called the Filipinos the wards of the nation. +Our obligation as guardian was not lightly assumed; it must not be +otherwise than honestly fulfilled, aiming first of all to benefit those who +have come under our fostering care. It is our duty so to treat them that +our flag may be no less beloved in the mountains of Luzon and the fertile +zones of Mindanao and Negros than it is at home, that there as here it +shall be the revered symbol of liberty, enlightenment, and progress in +every avenue of development. + +The Filipinos are a race quick to learn and to profit by knowledge He would +be rash who, with the teachings of contemporaneous history in view, would +fix a limit to the degree of culture and advancement yet within the reach +of these people if our duty toward them be faithfully performed. + +The civil government of Puerto Rico provided for by the act of the Congress +approved April 12, 1900 is in successful operation The courts have been +established. The Governor and his associates, working intelligently and +harmoniously, are meeting with Commendable success. + +On the 6th of November a general election was held in the island for +members of the Legislature, and the body elected has been called to convene +on the first Monday of December. + +I recommend that legislation be enacted by the Congress conferring upon the +Secretary of the Interior supervision over the public lands in Puerto Rico, +and that he be directed to ascertain the location and quantity of lands the +title to which remained in the Crown of Spain at the date of cession of +Puerto Rico to the United States, and that appropriations necessary for +surveys be made, and that the methods of the disposition of such lands be +prescribed by law. + +On the 25th of July, 1900, I directed that a call be issued for an election +in Cuba for members of a constitutional convention to frame a constitution +as a basis for a stable and independent government in the island. In +pursuance thereof the Military Governor issued the following instructions: +Whereas the Congress of the United States, by its joint resolution of April +20, 1898, declared: + +"That the people of the island of Cuba are, and of right ought to be, free +and independent. + +"That the United States hereby disclaims any disposition or intention to +exercise sovereignty, jurisdiction, or control over said island except for +the pacification thereof, and asserts its determination, when that is +accomplished, to leave the government and control of the island to its +people;" + +And whereas, the people of Cuba have established municipal governments, +deriving their authority from the suffrages of the people given under just +and equal laws, and are now ready, in like manner, to proceed to the +establishment of a general government which shall assume and exercise +sovereignty, jurisdiction, and control over the island: + +Therefore, it is ordered that a general election be held in the island of +Cuba on the third Saturday of September, in the year nineteen hundred, to +elect delegates to a convention to meet in the city of Havana at twelve +o'clock noon on the first Monday of November, in the year nineteen hundred, +to frame and adopt a constitution for the people of Cuba, and as a part +thereof to provide for and agree with the Government of the United States +upon the relations to exist between that Government and the Government of +Cuba, and to provide for the election by the people of officers under such +constitution and the transfer of government to the officers so elected. + +The election will be held in the several voting precincts of the island +under, and pursuant to, the provisions of the electoral law of April 18, +1900, and the amendments thereof. The election was held on the 15th of +September, and the convention assembled on the 5th of November, 1900, and +is now in session. + +In calling the convention to order, the Military Governor of Cuba made the +following statement: As Military Governor of the island, representing the +President of the United States, I call this convention to order. + +It will be your duty, first, to frame and adopt a constitution for Cuba, +and when that has been done to formulate what in your opinion ought to be +the relations between Cuba and the United States. + +The constitution must be adequate to secure a stable, orderly, and free +government. + +When you have formulated the relations which in your opinion ought to exist +between Cuba and the United States the Government of the United States will +doubtless take such action on its part as shall lead to a final and +authoritative agreement between the people of the two countries to the +promotion of their common interests. + +All friends of Cuba will follow your deliberations with the deepest +interest, earnestly desiring that you shall reach just conclusions, and +that by the dignity, individual self-restraint, and wise conservatism which +shall characterize your proceedings the capacity of the Cuban people for +representative government may be signally illustrated. + +The fundamental distinction between true representative government and +dictatorship is that in the former every representative of the people, in +whatever office, confines himself strictly within the limits of his defined +powers. Without such restraint there can be no free constitutional +government. + +Under the order pursuant to which you have been elected and convened you +have no duty and no authority to take part in the present government of the +island. Your powers are strictly limited by the terms of that order. When +the convention concludes its labors I will transmit to the Congress the +constitution as framed by the convention for its consideration and for such +action as it may deem advisable. + +I renew the recommendation made in my special message of February 10, 1899, +as to the necessity for cable communication between the United States and +Hawaii, with extension to Manila. Since then circumstances have strikingly +emphasized this need. Surveys have shown the entire feasibility of a chain +of cables which at each stopping place shall touch on American territory, +so that the system shall be under our own complete control. Manila once +within telegraphic reach, connection with the systems of the Asiatic coast +would open increased and profitable opportunities for a more direct cable +route from our shores to the Orient than is now afforded by the +trans-Atlantic, continental, and trans-Asian lines. I urge attention to +this important matter. + +The present strength of the Army is 100,000 men--65,000 regulars and +35,000 volunteers. Under the act of March 2, 1899, on the 30th of June next +the present volunteer force will be discharged and the Regular Army will be +reduced to 2,447 officers and 29,025 enlisted men. + +In 1888 a Board of Officers convened by President Cleveland adopted a +comprehensive scheme of coast-defense fortifications which involved the +outlay of something over one hundred million dollars. This plan received +the approval of the Congress, and since then regular appropriations have +been made and the work of fortification has steadily progressed. + +More than sixty millions of dollars have been invested in a great number of +forts and guns, with all the complicated and scientific machinery and +electrical appliances necessary for their use. The proper care of this +defensive machinery requires men trained in its use. The number of men +necessary to perform this duty alone is ascertained by the War Department, +at a minimum allowance, to be 18,420. + +There are fifty-eight or more military posts in the United States other +than the coast-defense fortifications. + +The number of these posts is being constantly increased by the Congress. +More than $22,000,000 have been expended in building and equipment, and +they can only be cared for by the Regular Army. The posts now in existence +and others to be built provide for accommodations for, and if fully +garrisoned require, 26,000 troops. Many of these posts are along our +frontier or at important strategic points, the occupation of which is +necessary. + +We have in Cuba between 5,000 and 6,000 troops. For the present our troops +in that island cannot be withdrawn or materially diminished, and certainly +not until the conclusion of the labors of the constitutional convention now +in session and a government provided by the new constitution shall have +been established and its stability assured. + +In Puerto Rico we have reduced the garrisons to 1,636, which includes 879 +native troops. There is no room for further reduction here. + +We will be required to keep a considerable force in the Philippine Islands +for some time to come. From the best information obtainable we will need +there for the immediate future from 45,000 to 60,000 men. I am sure the +number may be reduced as the insurgents shall come to acknowledge the +authority of the United States, of which there are assuring indications. + +It must be apparent that we will require an army of about 60,000, and that +during present conditions in Cuba and the Philippines the President should +have authority to increase the force to the present number of 100,000. +Included in this number authority should be given to raise native troops in +the Philippines up to 15,000, which the Taft Commission believe will be +more effective in detecting and suppressing guerrillas, assassins, and +ladrones than our own soldiers. + +The full discussion of this subject by the Secretary of War in his annual +report is called to your earnest attention. + +I renew the recommendation made in my last annual message that the Congress +provide a special medal of honor for the volunteers, regulars, sailors, and +marines on duty in the Philippines who voluntarily remained in the service +after their terms of enlistment had expired. + +I favor the recommendation of the Secretary of War for the detail oil +officers from the line of the Army when vacancies occur in the +Adjutant-General's Department, Inspector-General's Department, +Quartermaster's Department, Subsistence Department, Pay Department, +Ordnance Department, and Signal Corps. + +The Army cannot be too highly commended for its faithful and effective +service in active military operations in the field and the difficult work +of civil administration. + +The continued and rapid growth of the postal service is a sure index of the +great and increasing business activity of the country. Its most striking +new development is the extension of rural free delivery. This has come +almost wholly within the last year. At the beginning of the fiscal year +1899, 1900 the number of routes in operation was only 391, and most of +these had been running less than twelve months. On the 15th of November, +1900, the number had increased to 2,614, reaching into forty-four States +and Territories, and serving a population of 1,801,524. The number of +applications now pending and awaiting action nearly equals all those +granted up to the present time, and by the close of the current fiscal year +about 4,000 routes will have been established, providing for the daily +delivery of mails at the scattered homes of about three and a half millions +of rural population. + +This service ameliorates the isolation of farm life, conduces to good +roads, and quickens and extends the dissemination of general information. +Experience thus far has tended to allay the apprehension that it would be +so expensive as to forbid its general adoption or make it a serious burden. +Its actual application has shown that it increases postal receipts, and can +be accompanied by reductions in other branches of the service, so that the +augmented revenues and the accomplished savings together materially reduce +the net cost. The evidences which point to these conclusions are presented +in detail in the annual report of the Postmaster-General, which with its +recommendations is commended to the consideration of the Congress. The full +development of this special service, however, requires such a large outlay +of money that it should be undertaken only after a careful study and +thorough understanding of all that it involves. + +Very efficient service has been rendered by the Navy in connection with the +insurrection in the Philippines and the recent disturbance in China. + +A very satisfactory settlement has been made of the long-pending question +of the manufacture of armor plate. A reasonable price has been secured and +the necessity for a Government armor plant avoided. + +I approve of the recommendations of the Secretary for new vessels and for +additional officers and men which the required increase of the Navy makes +necessary. I commend to the favorable action of the Congress the measure +now pending for the erection of a statue to the memory of the late Admiral +David D. Porter. I commend also the establishment of a national naval +reserve and of the grade of vice-admiral. Provision should be made, as +recommended by the Secretary, for suitable rewards for special merit. Many +officers who rendered the most distinguished service during the recent war +with Spain have received in return no recognition from the Congress. + +The total area of public lands as given by the Secretary of the Interior is +approximately 1,071,881,662 acres, of which 917,135,880 acres are +undisposed of and 154,745,782 acres have been reserved for various +purposes. The public lands disposed of during the year amount to +13,453,887.96 acres, including 62,423.09 acres of Indian lands, an increase +Of 4,271,474.80 over the preceding year. The total receipts from the sale +of public lands during the fiscal year were $4,379,758.10, an increase of +$1,309,620.76 over the preceding year. + +The results obtained from our forest policy have demonstrated its wisdom +and the necessity in the interest of the public for its continuance and +increased appropriations by the Congress for the carrying on of the work. +On June 30, 1900, there were thirty-seven forest reserves, created by +Presidential proclamations under section 24 Of the act of March 3, 1891, +embracing an area Of 46,425,529 acres. + +During the past year the Olympic Reserve, in the State of Washington, was +reduced 265,040 acres, leaving its present area at 1,923,840 acres. The +Prescott Reserve, in Arizona, was increased from 10,240 acres to 423,680 +acres, and the Big Horn Reserve, in Wyoming, was increased from 1,127,680 +acres to 1,180,800 acres. A new reserve; the Santa Ynez, in California, +embracing an area of 145,000 acres, was created during this year. On +October 10, 1900, the Crow Creek Forest Reserve, in Wyoming, was created, +with an area of 56,320 acres. + +At the end of the fiscal year there were on the pension roll 993,529 names, +a net increase Of 2,010 over the fiscal year 1899. The number added to the +rolls during the year was 45,344. The amount disbursed for Army pensions +during the year was $134,700,597.24 and for Navy pensions $3,761,533.41, a +total of $138,462,130.65, leaving an unexpended balance of $5,542,768.25 to +be covered into the Treasury, which shows an increase over the previous +year's expenditure Of $107,077.70. There were 684 names added to the rolls +during the year by special acts passed at the first session of the +Fifty-sixth Congress. + +The act of May 9, 1900, among other things provides for an extension of +income to widows pensioned under said act to $250 per annum. The Secretary +of the Interior believes that by the operations of this act the number of +persons pensioned under it will increase and the increased annual payment +for pensions will be between $3,000,000 and $4,000,000. + +The Government justly appreciates the services of its soldiers and sailors +by making pension payments liberal beyond precedent to them, their widows +and orphans. + +There were 26,540 letters patent granted, including reissues and designs, +during the fiscal year ended June 30, 1900; 1,660 trademarks, 682 labels, +and 93 prints registered. The number of patents which expired was 19,988. +The total receipts for patents were $1,358,228.35. The expenditures were +$1,247,827.58, showing a surplus Of $110,400.77 + +The attention of the Congress is called to the report of the Secretary of +the Interior touching the necessity for the further establishment of +schools in the Territory of Alaska, and favorable action is invited +thereon. + +Much interesting information is given in the report of the Governor of +Hawaii as to the progress and development of the islands during the period +from July 7, 1898, the date of the approval of the joint resolution of the +Congress providing for their annexation, up to April 30, 1900, the date of +the approval of the act providing a government for the Territory, and +thereafter. + +The last Hawaiian census, taken in the year 1896, gives a total population +of 109,020, Of Which 31,019 were native Hawaiians. The number of Americans +reported was 8,485. The results of the Federal census, taken this year, +show the islands to have a total population Of 154,001, showing an increase +over that reported in 1896 of 44,981, or 41.2 per cent. + +There has been marked progress in the educational, agricultural, and +railroad development of the islands. + +In the Territorial act of April 30, 1900, section 7 of said act repeals +Chapter 34 Of the Civil Laws of Hawaii whereby the Government was to assist +in encouraging and developing the agricultural resources of the Republic, +especially irrigation. The Governor of Hawaii recommends legislation +looking to the development of such water supply as may exist on the public +lands, with a view of promoting land settlement. The earnest consideration +of the Congress is invited to this important recommendation and others, as +embodied in the report of the Secretary of the Interior. + +The Director of the Census states that the work in connection with the +Twelfth Census is progressing favorably. This national undertaking, ordered +by the Congress each decade, has finally resulted in the collection of an +aggregation of statistical facts to determine the industrial growth of the +country, its manufacturing and mechanical resources, its richness in mines +and forests, the number of its agriculturists, their farms and products, +its educational and religious opportunities, as well as questions +pertaining to sociological conditions. + +The labors of the officials in charge of the Bureau indicate that the four +important and most desired subjects, namely, population, agricultural, +manufacturing, and vital statistics, will be completed within the limit +prescribed by the law of March 3, 1899. + +The field work incident to the above inquiries is now practically finished, +and as a result the population of the States and Territories, including the +Hawaiian Islands and Alaska, has been announced. The growth of population +during the last decade amounts to over 13,000,000, a greater numerical +increase than in any previous census in the history of the country. + +Bulletins will be issued as rapidly as possible giving the population by +States and Territories, by minor civil divisions. Several announcements of +this kind have already been made, and it is hoped that the list will be +completed by January 1. Other bulletins giving the results of the +manufacturing and agricultural inquiries will be given to the public as +rapidly as circumstances will admit. + +The Director, while confident of his ability to complete the different +branches of the undertaking in the allotted time, finds himself embarrassed +by the lack of a trained force properly equipped for statistical work, thus +raising the question whether in the interest of economy and a thorough +execution of the census work there should not be retained in the Government +employ a certain number of experts not only to aid in the preliminary +organization prior to the taking of the decennial census, but in addition +to have the advantage in the field and office work of the Bureau of trained +assistants to facilitate the early completion of this enormous +undertaking. + +I recommend that the Congress at its present session apportion +representation among the several States as provided by the Constitution. + +The Department of Agriculture has been extending its work during the past +year, reaching farther for new varieties of seeds and plants; co-operating +more fully with the States and Territories in research along useful lines; +making progress in meteorological work relating to lines of wireless +telegraphy and forecasts for ocean-going vessels; continuing inquiry as to +animal disease; looking into the extent and character of food adulteration; +outlining plans for the care, preservation, and intelligent harvesting of +our woodlands; studying soils that producers may cultivate with better +knowledge of conditions, and helping to clothe desert places with grasses +suitable to our and regions. Our island possessions are being considered +that their peoples may be helped to produce the tropical products now so +extensively brought into the United States. Inquiry into methods of +improving our roads has been active during the year; help has been given to +many localities, and scientific investigation of material in the States and +Territories has been inaugurated. Irrigation problems in our semiarid +regions are receiving careful and increased consideration. + +An extensive exhibit at Paris of the products of agriculture has made the +peoples of many countries more familiar with the varied products of our +fields and their comparative excellence. + +The collection of statistics regarding our crops is being improved and +sources of information are being enlarged, to the end that producers may +have the earliest advices regarding crop conditions. There has never been a +time when those for whom it was established have shown more appreciation of +the services of the Department. + +In my annual message of December 5, 1898, I called attention to the +necessity for some amendment of the alien contract law. There still remain +important features of the rightful application of the eight-hour law for +the benefit of labor and of the principle of arbitration, and I again +commend these subjects to the careful attention of the Congress. + +That there may be secured the best service possible in the Philippine +Islands, I have issued, under date of November 30, 1900, the following +order: The United States Civil Service Commission is directed to render +such assistance as may be practicable to the Civil Service Board, created +under the act of the United States Philippine Commission, for the +establishment and maintenance of an honest and efficient civil service in +the Philippine Islands, and for that purpose to conduct examinations for +the civil service of the Philippine islands, upon the request of the Civil +Service Board of said islands, under such regulations as may be agreed upon +by the said Board and the said United States Civil Service Commission. The +Civil Service Commission is greatly embarrassed in its work for want of an +adequate permanent force for clerical and other assistance. Its needs are +fully set forth in its report. I invite attention to the report, and +especially urge upon the Congress that this important bureau of the public +service, which passes upon the qualifications and character of so large a +number of the officers and employees of the Government, should be supported +by all needed appropriations to secure promptness and efficiency. + +I am very much impressed with the statement made by the heads of all the +Departments of the urgent necessity of a hall of public records. In every +departmental building in Washington, so far as I am informed, the space for +official records is not only exhausted, but the walls of rooms are lined +with shelves, the middle floor space of many rooms is filled with the +cases, and garrets and basements, which were never intended and are +unfitted for their accommodation, are crowded with them. Aside from the +inconvenience there is great danger, not only from fire, but from the +weight of these records upon timbers not intended for their support. There +should be a separate building especially designed for the purpose of +receiving and preserving the annually accumulating archives of the several +Executive Departments. Such a hall need not be a costly structure, but +should be so arranged as to admit of enlargement from time to time. I +urgently recommend that the Congress take early action in this matter. + +I transmit to the Congress a resolution adopted at a recent meeting of the +American Bar Association concerning the proposed celebration of John +Marshall Day, February 4, 1901. Fitting exercises have been arranged, and +it is earnestly desired by the committee that the Congress may participate +in this movement to honor the memory of the great jurist. + +The transfer of the Government to this city is a fact of great historical +interest. Among the people there is a feeling of genuine pride in the +Capital of the Republic. + +It is a matter of interest in this connection that in 1800 the population +of the District of Columbia was 14,093; to-day it is 278,718. The +population of the city of Washington was then 3,210; to-day it is 218,196. + +The Congress having provided for "an appropriate national celebration of +the Centennial Anniversary of the Establishment of the Seat of the +Government in the District of Columbia," the committees authorized by it +have prepared a programme for the 12th of December, 1900, which date has +been selected as the anniversary day. Deep interest has been shown in the +arrangements for the celebration by the members of the committees of the +Senate and House of Representatives, the committee of Governors appointed +by the President, and the committees appointed by the citizens and +inhabitants of the District of Columbia generally. The programme, in +addition to a reception and other exercises at the Executive Mansion, +provides commemorative exercises to be held jointly by the Senate and House +of Representatives in the Hall of the House of Representatives, and a +reception in the evening at the Corcoran Gallery of Art in honor of the +Governors of the States and Territories. + +In our great prosperity we must guard against the danger it invites of +extravagance in Government expenditures and appropriations; and the chosen +representatives of the people will, I doubt not, furnish an example in +their legislation of that wise economy which in a season of plenty husbands +for the future. In this era of great business activity and opportunity +caution is not untimely. It will not abate, but strengthen, confidence. It +will not retard, but promote, legitimate industrial and commercial +expansion. Our growing power brings with it temptations and perils +requiring constant vigilance to avoid. It must not be used to invite +conflicts, nor for oppression, but for the more effective maintenance of +those principles of equality and justice upon which our institutions and +happiness depend. Let us keep always in mind that the foundation of our +Government is liberty; its superstructure peace. + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY WILLIAM MCKINLEY *** + +This file should be named sumck11.txt or sumck11.zip +Corrected EDITIONS of our eBooks get a new NUMBER, sumck12.txt +VERSIONS based on separate sources get new LETTER, sumck10a.txt + +Project Gutenberg eBooks are often created from several printed +editions, all of which are confirmed as Public Domain in the US +unless a copyright notice is included. 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