Crawfordsville Weekly Journal, Crawfordsville, Montgomery County, 10 December 1897 — Page 7

wwe.y,

si,

National Executive Discusses the Important Subjects Coming Before Congress.

CURRENCY IS TAKEN UP HRST,

He Would Demand Gold in Exchange for Greenbacks and Approves •. Gage's Bank Reform.

Not in :ivor of Any Intervention in Cuba at This Time—Apiiroves t!io Annexation of Hawaii—Remarks oil Sitvor CoinniUsion—Needs c»l* the Navy—Extension o?

Our .Foreign Trade Preservation of the Seals—Internut ionat Arbitral ion.

Washington, Dec. G.—President He-Kinlt-y's lirst message to the congress of the United States is as follows:

To the Senate ami House of Representatives: It gives me pleasure to extend greeting to the Fifty-fifth congress, assembled at the seat of governrnent, 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 acknowledgement to a beneficient "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 ail 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 wlv.ch now most engross us are lifted far above eith-.-t partisanship, prejudice or former sectional differences. They afl'eet every .part of our common country alike, and peimit of n- division on ancient lines.

Questions of foreign policy, of revenue, the soundness of the currency, the inviolabilny of national obligations, the improvement of the public service, appeal to the individual conscience of every earnest citizen, to whatever party m- le belongs or in whatever section of tie1 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 opera-

tion and results thus far, are in no mind to withhold from it a fair trial.

ntur.Nrv thi- .main" oikstio.y.

("alls Attention to Wliat We Have Done and What I-To lie Done. Tariff legislation having been settled by the extra session (if 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 reeail the finacial operations of the government since ISGfi. fThe president then gives a review of the financial operation of the government since the war.] The brief review of what was accomplished lrom the close of the war to I8:e, makes unreasonable and groundless any distrust either of our financial ability or soundness: while the situation from JS93 to 3Snr 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 will not be broken. However, the guaranty of our purpose to keep the pledge will be best shown by advancing towards 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 longer be heedless of the burden this imposes upon the people even under rairly prosperous conditions, while the past four years have demonstrated that it is not only an expensive charge upon the government ut a dangerous menace of 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 opportunitv for speculation, made easy by the multiplied redemptions of our'demand obligations, or increase the gold reserve lor their redemption.

We have $900,000,000 of currency which the government by solemn enactment has undertaken to keep at par with .sold. Nobody is obliged to redeem in gOid but the government. The banks are not required to redeem in gold. The government is obliged to keep equal gold all its outstanding currency and gold OiTiTg.ititins, while its receipts ire not required to be paid in gold. Tt".ev

.ar§ paid in every kind (if monev but gold, and the only means by which the government can with certaintv get gold is by borrowing. can get' it in no other way when it most needs it. Th° government without any fixed gold revenue i^s pledged to maintain gold redemption. which it has stead'fly and faithfully done and which under the auJJiorjty now given it will continue to do so. ...* ^e '£L"U which requites 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 tlms 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 4% per cent, bonds were issued and sold and the proceeds used to pav 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 bond? were used to supply deficient revenues, a considerable portion was required to maintain the gold reserve. Without revenues equal to our expenses there '•vould be no deficit requiring the is-

Buanc 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?

SKRIOl'S QUESTION PROPOUNDED.

Shall We Continue the Present Policy? Recommendation as to Greenback*. 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, jssue more bonds and supply the fcseded gold, or shall we provide other means to prevent these recurring drains upon the gold reserve? If no further leg

islation Is had and the policy pf 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 arequite sufficient to pay all the cxepenses 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 sef apart, and only paid out in exchange for gold. This is an obvious duty. II the holder of the United States note prefers the gold and gets it from the government he should net receive back from a United States note without paying gold in exchange for it. The reason for this

made all the more appaj-enf

wnen the government issues an inter-est-bearing debt to provide gold for the redemption of United States notes—a non-interest beating debt. Surely it should not pay them out again except on demand and for gold. If they art put out in any other nay they mav re turn again to be followed by anothet bond issue to redeem them—another in-terest-bearing debt to redeem a noninterest 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 tin" government without any of the usua' and necessary banking powers to hell 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. Tbs ought to be stopped. II we are to have an era of prosperitv ir. the country with sufficient receipts foi the expenses of the government we may feel no immediate embarrassment frotr our present currency but the danget still exists, and will be ever present menacing us so long as the existing system continues. And. besides, it if in times of adequate revenues and business tranquility that the government should prepare for the worst. We can not avoid without serious consequence 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 concui with the secretary of the treasury in his recommendation that national banks be allowed to issue notes to the fact value of the bonds which they have deposited for ciruculation. and that the tnx on circulating notes secured by deposit of such bond." be reduced to onehalf of 1 per cent, per annum. I alsc join him in recommending that authority be given for the establishment of national banks with a minimum capital of Si-'ri.OOO. This will enable the smaller villages and agricultural regions of the country to be suprilita with currencv to meet their needs. 1 recommend that the issue of nation al bank notes be restricted to the denomination J10 ar.d upwards. If the suggestions I have herein made shall have the approval of congress, then 1 would recommend that national banks be required to redeem their notes in gold.

ONSI I»!{.-» THE (THAN I'lllllil.KM,

Tell- the Story of Hie V:-ar of Un-.. rt"»t and Discontent. The most important problem with which ibis 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 haveconfronted this government at various times in thcpast. The story of Cuba for many years has been one of unrest: growing" discontent an eflert toward a larger enjoyment of liberty and self-control of organized resistance to the mothei 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 Cubs to a continental power called forth, between IS. and 1S00. various emphatic declarations of the policy of the United States to permit no disturbance of Cuba 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 I SOS lasted for ten y*ears, despite the strenuoiu- efforts of the successive peninsular governments to suppress it. Then as now the government of the United States testified it.s 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 enhattiied burdens of neutrality on the government.

In 1S7S 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. lS!iD. It is not mv purpose at this time to recall its remarkable increnpe or

characterize itstena-

tfiOUs resistance against the enormous forces massed against it by Spain. The revolt and the efforts to subdue it have 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 cannot but. fill tliis 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.

CONCENTRATION IS A FAII.I."I{E.

Was Not Civilized Warfare Inst met ions Given to Minister Woodford. 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 said: "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 premised direction of her own motion and after her own plans. The cruel policy of concentration was initiated Feb. 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. Thispolicy the late cabinet of Spain justified as a necessary measii»e of war and as a means of cutting off supplies from the insurgents. It has utterly failed as a war measure.

I It was not civilized warfare. It was extermination. Against this abuse of theriglits of war I have feu constrained on repeated occasions to tnter the firm and earnest protest of this government. i***I felt it my first duty to make instant demand for the release or speedy trial of all American citizensunder a nest.

The instructions given to our new minister to Spain lu fore 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. Those 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 governme v. 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 t.. 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 bo required to wait only a reasonable time for the mother country to establish its authority and restore order within the borders of the island: that we could not contemplate as indefinite period for the accomplishment of this result. ?\o sbluTinn TVas TroposId 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 speedilyprovided and permanent peace restored. It so chanced that the consideration of this of er, addressed to the same Spanish administration which had declined th's 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 Statesmen who Uad shaped 'be policy of his country fell bv the Sand of an assassin, and although the cabinet of the late premier still held office and received from our envoy the proposals he bore that abinet gave place within a few days thereafter to a new administration under the leadership of Sagasta.

REI'I.Y THAT SAC A ST A \IAIII".

Ackknowledge* llur Interest and Outlinea New Policy. The rejkly io our note was received or the* 2i!d day of October. It is in the direction ol' a better understanding. It appreciatesihe friendly purposes of this government. It admits that our country is deeply a fueled by the war in Cuba and that its desires for peace are just It declares that the present Spanish government is bound by everv consideration to a change of policy that should satisfy the United States and pacify Cuba within a. reasonable lime. To this end Spam has decided to put into effect the polictieal 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 said, will continue, but will be humanand 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, wili result in investing Cuba with a distinct personality: the island to be governed by an executive and by 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 modifv existing legislation by decrees, leaving the Spanish cortes. with the aid of Cuban senators and deputies, to solve tht economic problem and properlv distribute the existing debt.

In the absence of a declaration of th= measures that this government propose* to take in carrying out its proffer of good offices it suggests that Spain bleft free to conduct military operationsand grant political reforms: while tin United States, for its part, shall enforcits neutral obligations and cut off Miassistance which it is asserted the jn. surgents receive from this countrv. The supposition of an indefinite prolongation of the war is denied. It is asserted that the western provinces are alreadv ,-r nigh reclaimed that the plaining cane and tobacco therein has been sumed. and that by force of arms and new and ample reforms very earlv

complete pacification is hoped The immediate amelioration of existing conditions under the new administnition of Cuban affairs is predicted, and therewithal the disturbance and all casion for any change of attitude on tin part of the United States.

Discussion of the question of the international duties and responsibilitiej of the United States as Spain understands them is presented with an apparent disposition to charge us with failure in this regard. This charge jc 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 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 sufficient answer. But of this aspect the Spani.fh note it is not necessary speak further now. Firm in the e.j! victifn cf a wholly performed obligation. due response to this ch u-ge has. been made in dipiomau'c course

cf to

i.n-

Throughout all these horrors and' dangtrs to our own peace this government has never broken over or 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 war so demand.

MEASl'ltES AS YET UNTRIED.

Refers to Congressional Actions and Rec ognition of Cnbon Helligereney.

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 bv imposing a rational compromise between the insurgents, and intervention in favor of one or the other party. I speak not of forcible annexation, for that cannot 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 the state of belligerency in Cuba, and during the extra session the renate voted a joint resolution of like import, which, however was not brought to a vote in the house of representatives.

In tha presence of these significant

.V!'«•

expresslons of the sentiment of the logIslativebranch it behooves the executive to soberly consider the conditions under which so important a measure must needs rest for justification. It is *•-. be seriously considered whether the Cuban insurrection possesses beyond dispute the attributes of statehood which alone an demand the recognition of belligerency ifi its favor. Possession, in short. :f 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 mportant fnctorstoward thedetermination of the problem of belligerency than ire the influences and consequences of the struggle upon the internal polity 5f the recognizing state. [The president then quotes approvingly the utterances of President Grant in his message -if Dec. 7. lS7.r. when be paid that recognition of the independ-

E'tioe

of Cuba was indefensible at that time and that belligerence was a fact that the Cuban situation then did not present.

Turning to the practical aspects of a recognition of belligerency anil reviewing its inconveniences and positive dangers still further pertinent considerations appear. In the code of nations :here is no such thing as a naked recognition of beliigeieney unaccompanied jy the assumption of international neu:rallty. Such recognition without more will not confer upon either party to domestic conflict a status not heretofore actually possessed, or affect the relation of either party to other states. The act of recognition usually takes the Jorm of a solemn proclamation of neutrality which recites the de facto condition of belligerency as its motive. It announces a domestic law of neutrality the declaring state. It assumes the Jiternational obligations of a neutral in the presence of a public state of war. It warns all citizens and others within :he jurisdiction of the proclaimant that -hey violate those righteous obligations at their own peril, and cannot expect :o lie shielded from the consequences.

The right of visit and search on the seas and seizures of vessels and cargoes as 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 me equal licTiigelent rights cleTlneft ny intblic law to each party in our ports, ilisfavoi^r would be imposed on both which, while nominally" equal, would iveigh heavily in behalf of Spain herself. Possessing a navy and controlling the ports of Cuba her maritime rights rould be asserted not only for the military investment of the island but up to the margin of our own territorial waters, and a condition (if things would ?xist 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 oniy be influential within our own jurisdiction by land and sea and applicable by our o\Vr. instrumentalities. It could impart to the United States no jurisdiction Viet ween 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 those reasons 'I regard the recognition of the belligerency of the Cuban insurgents as now unwise and therefore inadmipsable. Should that step hereafter be deemed wise as a measure of right and duty the executive will take it.

AS TO HUMANITARIAN GROUND.

Reasons Advanced' Why the United States Should Hold Its Hand. Intervention upon humanitarian grounds has been frequently suggested, and has not failed to receive my most anxious ar.d earnest consideration. But should such a step be now taken when it is apparent that a hopeful change lias 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 cannot 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-contrt lk administration, shall yet assert 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 save 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 vuin 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 Spam the fidelity ol a eontented dependency.

Decrees in application of the foreshadowed reforms have alreadv been promulgated. The full text of these decrees has not been received, but as furnished Ir a telegraphic summary from our minister are: [The president here summc.-izes the scheme of autonomy, which has been already widelyprinted in the press.] That the government of Sagasta has entered tlpcn a course from which recession with honor is impossible can hardly be questioned that in the few weeks that it has existed it has made earnest of the Sincerity of its professions is undeniable. 1 shall not impugn its sincereity, 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 of 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 lias any knowledge. The near future will demonstrate whether the indispensable condition of a righ.eotis peace, just alike to the Cubans and to Spain, as well as equitable to our interests ~o 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 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 Viy upright and patriotic considerations, moved neither by pa.wsion nor selfishness. the government will continue its watchful are 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 flic support and approval of til-- civilized world.

UAVOIIS YWAIIAN ANNEXATION.

Says That Every Considerat Ion of Honor and IHgnily Kei|iiires the Same.

By a special message dated the lfith 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 ^e. While consistently disavowing from a very early period any aggressive policy of absorption in regard to the Hawaiian group, a long series cf 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 thepassage 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 30th of September last, and only 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 qualify 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 e_ congress.

IT The '7T- i7T" TS mVr. rtK every consideration of dignity and honor requires. the wisdom of congress will see to it that, avoiding abrupt assimilation of elements perhaps hardlv 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 peop'e who, after nearly five years of demonstrated capacity to fulfill the obligations of self governing statehood, come of their own 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 labore*rs emigrating to the islands under the Ha-waiian-Japanese convention of 18SS are in a satisfactory stage of settlement by negotiation. This government has not been invited to mediate, aiid on the other hand has sought no intervention in that matter further than to cvinoo 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 Hawaiia's national life through annexation might impair privileges to which -'apan honorably laid claim, have giv place to confidence in the uprifentr.rss of this government and in the sincerity of its purpose to deal with all possible ulterior questions in the broadest spirit of friendliness.

TVOJLCOTTS MISSION FOR SII.YEK.

President Hopes That It May Vet Kehiilt in nil Agreement. Under the provisions of the act of' congress approved March 3, 1S!)7, for the promotion of an international agree-j ment respeciing bimetallism, I appoint-! td on the Mth day of April, 1S!»7, Hon.. Edward O. Wolcott, of Colorado Hon Adlai E. Stevcr.son,of Illinois, and lfon

Charles J. Paine, of Massachusetts, as •special envoys to represent the United' States. They- have been diligent in' their efforts to secure the co-op~oi'.'ition' of European countries in the International settlement of the questli n. but up to this time have not been able to secure ari agreement contemplated by their mission. The gratifving at^on 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 goid and silver shall be secured, furnishes assurances1 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. I

The British government has published a resume of the steps taken jointly bv the French ambassador in Iondon anil 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 I and in contemplation. They believe that doubts which have been raised in cer-! a in a in it maintaining the stability of the parity between the metals, and kindred questions, may yet be solved by further negotiations.

While it gives me satisfaction to state that the special envoys have already demonstrated their ability and fitness to deal with the subject, 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 th« use of

both rncfals upon a basis which shall work no injustice to any cla.«s of oui citizens.

EXTENSION OF FORElfiN TKAUR.

Negotiation of Heeiproelty Trentiefi—Tlt« Seal One8tlon—Arbitration. In order to execute as nearly as pos» sible the provisions of the third and .- fourth sections of the revenue act approved July _•). Ifi97.1 1 appointed th Hon. John A. Kasson, of Iowa, a special commissioner plenipotentiary to undertake the requisite negotiations witk foreign countries desiring to avail themselves of these provisions. The negotiations are now proceeding with several governments, both Europeat and American. It is believed that by careful exercise of the powers conferred by that act some grievances of our ow and of other countries in our mutual trade relations liiay be either remove* or largely alleviated, and that the volume of our eommertial exchanges niaj. be enlarged with advantage to bolk contracting parties.

The efforts which had been mad« during the two previous years by rnj predecessor to secure better proteetior to tin? fur Kealn in the north P.iciflt ocean and Behring sea were renewed n.' an early date by this administration and ha\e been pursued with earnestness. Upi'ui my invitation the governments of Japan and iliissia sent delegates to Washington and an interna* tional conference was held during th* months of October and November last, wherein it was unanimously agreed that under the existing regulations thll species of useful animals wim threat* ened with extinction and that an international agreement of all the interested powers was necessary for their ade.-.-quate protection.

The government of Great Britain riiT not see proper to be represented at tliif conference, but subsequently sent tc Washington as delog-'tes the expert commissioners of CiT-nt Britain ant' Canada, who had during the past two years visited the Pribilof islands, amt who met in conference similar eonimistsioners on the part of the United States.: The result of tills conference was an agreement on important facts connected with the condition of the seal here? heretofore in dispute, which shoulc place beyond controversy the duty ot the governments concerned to adopt* measures without delay for fie- preservation and restoration of the herd. Negotiations to this end tire now In prog--ress. the result of which 1 hope to be.able to report to congress at an earlj, day.

International arbitration can not lie omitted from the list of subjects claiming our consideration. Events havt only served to strength the genera! views on the question expressed in inaugural address. The best sentirneur of the civilized world is moving toward the settlement of differences betweer nations without resorting to the horrors of Mar. Treaties embodying those humane principles on broad lines, withnur In any way imperiling our interests oi our honor, shall have my constant encouragement.

NAVY NOW IN NEEI) OF DOCKS.:

A Iso of Armor and I'ro.jeetlles—Remark! on Civil Serviee Keloi in. The great increase of the navy whlct" has taken place in recent years was jusified by the requirements for national defense and has received public approbatiem. The time has now arrived, however, when this increase should foj a time take the form of increased facilities commensurate with the increase ol our naval vessels. It is an unfortunate fact that there is only one dock on the Pacific, coast capable of docking oui largest ships, and only one on the Atlantic coast, and that the hitter lias for the last six or seven months been under repair and therefore incapable oi 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 dor:lc on the gulf.

There should also be ample provision made for powder and projectiles and other munitions of war, ami for an increased number of otlUers and enlisted men. Some additions are also necessary to our navy yards for the repaii and care of our larger number of vossels. 1 concur with the recommendation of the secretary of the navy for an appropriation authorizing the construction of one battles iip foi the Pacific coast, and also that several torpedo boats be authorized in connec.--tion with our general system of coast defense. [The president also calls attention to the need -if armor for three battleships now building, and wliict could not be obtained at the price de--man-led by congress.]

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 in--creased legislative and executive ap-. proval. During the past few months the service has been placed upon a atil:' firmer basis of business methods amcJ personal merit. While the right of our veteran soldieis to reinstatement jn de•k~ •fig -TiSTS TTTTTi underlet!,. inissais for merely politjtal reasons? have been carefully guarded against. ar.d a distinct advn.nce has--been made by giving a hearing before: dismissal upon all easels 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 any way impairitie: the pvwer of removal, which should Ttlwftys l:p exercised In fuses of ineflW .' eiency and incompetency.

Much, of ejyrse, still remains to h'/r accompllsho'l hefr.i'e the system can he made reasonably perfect for our needs. There are places now in the classified service which ought to be exempted, and others not classified may properlybe included. I shall not hesitate to exempt eases which I think have been improperly included in the classified serviee, or include those which in my judgment will best promote the public service. The system has the approval ot the people and it will be my endeavor, to uphold and extend it.

INDIANS REQUIRE ATTENTION.

Solntion of the Problem In Imlividua]' Owner»hl|i—Nicaragua Canal. With reference to the Indian question the preseident says: "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- thei* borders, have undergone so complete a change as to render the continuance, of the system thus inaugurated practically impossible." He then quotes ap-. provingly Henry L. Dawes, \vho says: "Individual ownership is in theli (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."

He urges better government for.Alaska, and speaks a good word for t~bm Nicaragua canal: advocates an adequate United States exhibit at the .Faris exposition in 1900 calls attention.-'^-., vors improvement of the national-qua*, antine laws to guard against yeliow fever, and refers congress for information on other subjects to the departmental reports.

... vl