Jasper County Democrat, Volume 3, Number 35, Rensselaer, Jasper County, 8 December 1900 — • THE PRESIDENTS MESSAGE TO CONGRESS • [ARTICLE]

• THE PRESIDENTS MESSAGE TO CONGRESS •

PRESIDENT M’KINLEY’S fourth aunual message was read to both houses’ of Congress soon after the assembling of that body on Monday. It was presented In the usual manner and received by Senator Frye, as President pro tem. of the Senate, and Speaker Henderson, of the House. The message entire contains nearly 18,<300 words, and In It the President discusses all the questions that were passed on by the voters in November. It treats of our colonial policy, the needs of the army and navy, the question of the Nicaraguan Canal, the part we have played in China, and treats the question of imperialism as settled. The message asks for the passage of a bill for the civil government of the Philippines and for the ratification of the Hay-Pauncefote treaty. It strongly urges the passage of a ship-subsidy bill and a reduction in the wae- revenues. It firmly urges economy, so far as compatible with the expenditures needed to carry out the nation’s policy at home and abroad. The message follows: To the Senate anil 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 intrenched 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 124 years of trial here its stability and security', and its cfliciency ns the best instrument of national development and the best safeguard to human rights. Oricin of Chinese Trouble*. 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 anti-foreign 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 Tniping rebellion and the opening of Chinese ports to foreign trade and settlement disturbed alike the homogeneity and the seclusion of China. 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. , 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, liecame 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 Pekin strove in vain to check this movement. Protest was followed by demand and demand by renewed protest, to be met with pWfunctory edicts from the palace and evasive and futile assurauces from the tsung-li-yamen. 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 ail the other treaty governments, were soon appreciated by this government, causing it pro- 1 found solicitude. The United States from the earliest days of foreign intercourse with Chinn bad followed a policy of peace, omitting no occasion to testify \ go**d will, to further the extension of law- < ful trade, to respect the sovereignty of its government, and to issue 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. United Action of the Powers, 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 Pekin to promote the administrative reforms so greatly needed for strengthening the imperial government and maintaining the integrity of China, in which avc bVdevcd the whole western world to ! be alike concerned. To these ends I caused to be addressed to the several I powers occupying territory and maintain-1 lug spheres of infiuencc in China the cir-1 culnr proposals of 181)9, inviting from! them declarations of their intentions and j views ns to the desirability of the adoption of measures insuring the beuetirs of ! equality of treatment of all foreign trade j throughout China. With gratifying unanimity the re- i eprmses coincided in this common policy, I enabling me to see in ‘the successful ter- 1 munition of these negotiations proof of ! friendly spirit which animates the various powers interested in the isntrnuimcled de- ! velopmcnt of commerce and industry in 1 the Chinese Empire ns a source-of vast I benefit to the \pbole commercial world. | The marine guard, which had been sent j to Pekin in the autumn of 1899 for the ! protection of the legation, was withdrawn i at the earliest practicable moment, and ! all pending questions were remitted, as ! far as we were concerned, to the ordinary I resorts of diplomatic Intercourse. The Chinese government proved, however, unable to check the rising strength of the Boxers nnd appeared to he a prey j to internal dissensions. In the unequal j the anti-foreign influences soon j gained the ascendancy under the leadership of Prince Tuan. Attacks upon foreigners, destruction of their property and slaughter of native converts were reported from all side's. The tsiing-lbyameu, already permeated with hostile sympathies, could make no effective response to the appeals of the legations. At this critical juncture, iu the early spring of this jenr, a proposul wns made by the other powers that a combined fleet should be assembled in Chinese waters as a moral demonstration tinder coyer of which to exact of the Chiuese government respect for foreign treaty rights and the suppression of the Boxera.

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 Pekin for the protection of the American legation. Other powers took similar action, until some 400 men" were assembled in the capital as legation guards. Still the peril Increased and 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. Two days later the Taku forts were captured after a sanguinary conflict. Severance of communication with Pekin followed, and the isolation of the legation was complete. Heroism of the Legations. By June 10 the legations were cut off. An identical note from the yaiiien ordered each minister to leave Pekin, under apromised eseort, 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 on 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 into 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 u siege, which at once began. “From June 20 until July 17,” writes Minister Conger, “there was scarcely an honr 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 nround the legations and on the overlooking palace walls, and thousands of 3-inch shot and shell were fired, destroying some buildings and damaging all. 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-opera-tion Mr. Conger awards unstinted praise, the British legation was made a veritable fortress, l’t was held to the last, and proved an invaluable acquisition, because : .t commanded the water gate through which the relief column entered. During the siege the defenders lost sixty-five killed, 135 wounded and seven by disease —the last being all. children. 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 com-mander-in-chief. 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 Wit Ting Fang. Mr. Conger’s reply, dispatched from IVkin 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. Joint Relief Expedition. This news stimulated the preparations for a joint relief expedition in numbers sufficient to overcome the resistance which for h month had been organizing between Taku and the capital. Re-en-forcements 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 Col. Liscurn nnd afterward of Gem Chaffee. Toward the end the July the movement began. A severe conflict followed at Tientsin. in which Col. Liscurn was killed. The city was stormed and partly destroyed. _ Another battle was fought and won at Yang-tsuu. 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-C’how, which capitulated without a contest. Aug. 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 ntwl unusual surroundings, showed the same valor, discipline and good conduct nnd gave proof of the same high degree of intelligence and efficiency whirh have distinguished them in every emergency. The imperial family nnd 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. The policy of the United States through nil this trying period was clearly announced and scrupulously carried on. A circular note to the powers dated July 3 proclaimed otir attitude. Treating the conditions iu the North ns one of virtual anarchy, in which the great provinces of tlic Hotith and Southwest had no share, we regarded the local authorities iu the latter quarters as representing the Chinese people with whom we sought to remain in pence and friendship. Our declared alms involved no war against the Chinese nation. We adhered to the legitimate office of rescuing tin* imperiled legation, obtaining redress for wrongs already suffered, securing wherever possible the safety of American life and property in China, nnd preventing a spread of the disorders or their recurrence. As was then snid, "the policy of the government of the United States is to seek a solution which may bring about permanent safety nnd peace to China, preserve Chinese territorial nnd administrative entity, protect ull rights gnuran-te-i-d to friendly powers by treaty and international law, and safeguard for the world the principle of equal and impar-

tial trade with all parts of the Chinese empire.” We forego no jot of our undoubted right to exact exemplary and deterrent punishment of the responsible authors and abettors of the 'criminal nets 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. General bases of negotiations 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 to act upon such additional designation of the guilty persons as the foreign ministers at I’ekin may he 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. America at Paris Fair. 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 naturul productions, industry, science and the arts, submitted iu generous rivalry to a judgment made all tiie more searching because of that rivalry. . The extraordinary increase nnd the activity with which our inventors 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. Despite the drawbacks the contribution of the United States was not only the largest foreign display, but was among the earliest iu place and the most orderly in arrangement. Am'cable Foreign Relations. Good will prevails in our relations with the German empire. 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. 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 under its new burdens. The work of making 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. But, however necessary such an expedient may* have been to tide over the grave emergencies of the situation, it is at best hut au unsatisfactory makeshift, which should not be suffered to delay the speedy aml complete establishment of the frontier line to which we are entitled under the ltusso-American treaty for the cession of Alaska. For Transisthmian Canal. The all inqportnnt matter of nu iuteroeeunlc 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 nonexeentiou In October. l-Sbl), the government of Nicaragua has since supplemented that action by declaring the so-styled Kyre-Cragin option void for nonpayment of the stipulated advance. Protests in relation to these acts have been tiled In the State Department and are under consideration. Overtures for a convention to effect the building of a canal under the Hospices of the United States are under consideration. I commend to the early attention of the Senate the convention with Great P.rltnln to facilitate the construction of such a canal and to remove any ohJt>etlou which might arise out of the convention commonly culled the Clayton-Bulwer treaty. The long standing contention with Portugal growing out of the seizure of the Delagoa Bay Hallway has been at last determined by a favorable award of the tribunal of arbitration at Berne, to which It was submitted. Another illustration of the pollcv 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 Sen to determination by T. M. C. Alter, a distinguished statesman and jurist of the Netherlands. Large Revenue Surplus. It Is gratifying to lie able to state that the surplus revenues for the fiscal year ended June So, PJCO. were $71).527,(*i0.15. For the six preceding years we hud only deficits, the aggregate or which from 1894 to 1899 inclusive amounted to $283,022,991.14. 't he receipts for the year front all sources, exclusive of postal revenues, aggregated v 5d7.240.851.50, and expenditures fur all purposes. except for the administration of the Postal Department, aggregated $487,713.701.T1. The receipts from customs w.-re $233, 164,871.10. an increase over the preceding year of $27.036,;t5y.41. The receipts from Internal revenue were $295,327,920 70, an increase of $21,890,765.25 over ISO'.). The receipts from miscellaneous sources were $58,748,053.07, as against $30,304,070.02 for the previous year. It Is gratifying also to note that during the year a considerable reduction Is shown iu tho expenditures of the government. The War Department expenditure* for the fiscal year 11*0 were $134,774,767.78, a reduction of $05,004),486.00 over those of 1899. in the N«vj* Department the expenditures wire $55,033,077.72 for the year 1000. as against $03,042,104.25 for the preceding year, a decrease of $7,080,020.53. In the expenditures ou account of Indians there was a decrease Iu WOO over 1800 of $2,630,001.38, and In the civil nnd nil seel In neons expenses for loot) there wns a reduction of $13,4)8,005 74. Because of the excess of revenues over expenditures the Secretary of the Treasury was enabled to apply bonds nnd other securities to the sinking fund to the amount of s*d,. 544.-ft50.00. The Secretary of the Treasure estimates that the receipts for the current fiscal year will aggregate $550.000.00u and tho expenditures $300,000,(MX), leaving nit excess of revenues over expenditures of sso,600.000. Tile present oondit-ion of the Treasury is one of undoubted strength. The available cash balance Nov. .'lO wns $139,303,704.50. The cash balance, Including the present gold reserve of $150,000,000, Is $289,303,.04.50. It will lie the duty ns I atn sure It will be the disposition of the Congress to provide whatever further legislation is needed to lit sure the continued parity under all comlillons between our two forms of metallic money, silver ami gold. Our surplus revenues have permitted tlie Secretary of the Treasury since the close of tho fiscal year to call in the funded loan of 181 H continued nt 2 per cent, lu the sum of $25,304,54*). To and Including Nov. 30 $23,458,14*) of these bonds have been paid. The law of March 14, It**), provided for refunding Into 2 per cent thirty-year bonds, payable, principal nml Interest, In gold coin of the present standard value, that portion of the public debt represented by the 3 per bond* of 1008, the 4 per cents of 1007 nnd tlie 5 per cents of 11*)4, of which there was outstanding nt the date of said law $830,140,030. The holder* of the old bonds presented them for exchange lietween March 14 and Nov. 30 to the amount of $364,043,750. The net saving to the government tin these transactions aggregate* $0,100,160. Another effect of the operation, as stated by the Secretary, Is to reduce the charge upon the Treusury for the payment of Interval from the date* of re-

funding to Feb. 1, 1004, by the sum of more thau $7,000,000 annually. * Growth of National Banka. .The beneficial effect of the financial act of I.jOO, as far as It to the modification of the national hanking act. Is already apparent. The provision for tjte Incorporation of national banks with a capital of not less than $25,000 In places not exceeding 3,000 Inliabltants 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 Nov. 30 309 national hanks, of which 260 were with capital less than $50,000 and 103 with capital of $50,000 or more. I recommend that the Congress at Its present session reduce the internal revenue tuxes Imposed to meet the expenses of the war with Spain in the sum of thirty millions of dollars. I specially urge that there lie included In whatever reduction is made the legacy tax, bequests for public uses of a literary, educatiouai or charitable character. Aid for Merchant Marine. 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. Besides realizing proper national aspiration this will mean the establishment nnd healthy growth along all our coasts of a distinctive liatlonul industry, expanding the field for profitable employment of labor and capital. In again urging immediate action by the Congress on measures to promote American shipping and foreign trade, I direct attention to the recommendation on the subject In previous messages, and particularly to the opinion expressed iu the message of 1899: ‘ "I atn 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 tile products of agriculture and manufacture.” Regulation'of Trusts. In my last annual message to the Congress I culled attention to the necessity for early action to remedy such evils as might lie found to exist iu connection with combinations of capital organized into trusts, and again invite attention to my discussion ofthe 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 lie desired. It is to be hoped that such uniformity, founded in a wise and just discrimination lietween what Is injurious and what is useful nnd necessary in business operations, may lie obtained, anil that means may lie found for the Congress, within the* limitations of its constitutional power, so to supplement an effective code of State legislation tis to make a complete system of laws throughout the United States adequate to coin pel a general observance of the salutary rules to which I have referred.” The whole question is so 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 arc within Federal Jurisdiction should be promptly applied by the Congress. Affairs in Fhiiippines. 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 w ith 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 ns long as insurrection continues the military arm must necessarily be supreme, i stuted my purpose, until the Congress shall have made known 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 iu all other places where our flag rightfully floats. Progress In the hoped-for direction has been favorable. 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 arohlpehv go. Desiring to bring this about, I appointed In March last a ctvil commission composed of William H. Taft of Ohio, I'rof. Dean C. Worcester of Michigan, Luke K. Wright of Tennessee, Henry C. Ide of Vermont and l'rof. Bernard Moses of California. The alms of their mission and the scope of their authority are clearly *et forth In my instructions of April 7, 1!**), addressed to the Secretary of War to be transmitted to them: In the message transmitted to the Congress on the sth of Decemlnw, 1899, 1 stud, speaking of the Philippine Islands: ”As long as the insurrection continues the military arm must necessarily he suor mio. But there is no reason why steps should not be tnken from time :o time »o Inaugurate governments essentially popular in their form as fast as territory is held nnd controlled by our troops. To this end I have appointed the commission named above to continue and perfect the work of organizing ami establishing civil government already commenced by the military authorities, subject lu all respects to any laws which Congress may hereafter enact. 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, lu which the natives of the Islands, both lu the cities and In the rural communities, ahull lie afforded the opportunity to maunge 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. Administration of the Islands. ‘Flit* next subject in order of Importance should be the organization of government in the larger administrative divisions corresponding to countries, departments or provinces In which the common Interests of many or several municipalities falling within the same tribal lines or thy same natural geographical limits may best be subserved by a common udmlulstration. Beginning with the Ist day of September. 1!*H), the authority to exercise, subject to my approval, through the Secretary of War, that part of the power of government In the I’hlllppluc Islands which Is of a legislative nature Is to be transferred from the military governor of the Islands to this commission, to bo thereafter exercised by them in the place uud steml of the military governor. In the establishment of munlclpnl governments the commission will take as the basis of Its work the governments established by the military governor under Ills order of Aug. 8, 1899, uud under the report of the board constituted by the military governor by his order of Jnu. 29, I!*)ii, to formulate and report a plan of municipal government. Nutivc Officials Preferred. The many different degrees of civilization and varieties of custom ami capacity among the people of the different islands preclude very definite instruction ns to the part which the people shall take in the selection of their own officers, but these general rules are to bo observed: That in all eases the municipal officers who administer the local affairs of the people are to he selected by the people, and that whatever officers of more exterfded Jurisdiction are to he selected lit any way, natives of the Islands sre to be preferred, ami If they eon lie found competent and willing to perform the duties they ure to receive the offices in preference to tiny ottierH It will be 'necessary to fill some office# for the present with Americans which after a time may well be filled by native* of the Islands. In nil the 'forms of government nnd administrative provisions which they are authorised to prescribe the commission should bear In mind that the government which they are eatahllshlug Is designed not for enr satisfaction or for the expression of our theoretical views, hut for the happiness, peace and prosperity of the people of the i’hlllpplne Islands, and the measures adopt-

ed should be made to conform to their customs, their habits, and even their 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 he 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 ure also certain practical rules of government which we have found to be essential to the preservation of these great principles of liberty nnd law, nnd that these principles and these rules of government must be established anil 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. Status of Landholders. It will be the duty of the commission to make a thorough Investigation into the titles to the large tracts of land held or claimedby 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 ha/e caused strife and bloodshed In the past. 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. It ntay 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. Fledge of American Army. The articles <)f 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 tho American army." 1 believe this pledge has been faithfully kept. Coincidentally with the enwauee of the commission upon Its labors I caused to be issued by General Mao Arthur, the military governor of the Philippines, on June 21, 1900, j) proclamation of amnesty in generous terms, of which many of the Insurgents took advantage, among them a number of Important leaders. —— This commission made great progress from the outset. As early as Aug. 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 Spautsu rule; that economy ami efficiency lu tue military administration have created a surplus fund of $0,000,000, available for needed public improvements, that a stringent civil service raw is lu 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 uj) au enduring, self-supporting and self-admin-istering community in those far Fastern seas. 1 would impress upon tile Congress that whatever legislation may be enacted in respect to the I'liillppiue islands should he along these generous lines. The fortune of war has thrown upon this nation au 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. The civil government of Porto Itlco provided for by the act of Congress approved April 12, 1900, is lu successful operation. The courts have been establisued. The Governor and his associates, working intelligently and harmouiously, are meeting with commendable success. t)u the oth of November a geueral election tvns held in the island for members of the legislature, aud the body elected has been called to convene ou 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 Porto Rico, and that he be directed to ascertain the location and quantity of lauds the title to which remained in the crown of Spain at the date of cessiou of Porto Rico to the United States. Constitution for Cuba. Ou the 25th of July, 1900, I directed that a call be Issued for au election In Cuba for members of a constitutional convention to frame a constitution as a basis for a stable and independent government iu the island. The election was held on the 15th of September. find the convention usembled ou the sth of November, li**), aud is now iu session. In calling the convention to order the Military Governor of Cuba made the following statement: _"lt will be yettr duty, first, to frame and adopt a constitution for .Cuba, anti when that has been done to formulate what in your opinion ought to be tfie relations between Cuba and the United States. "The constitution must be adequate to secure a Stable, orderly an.l free g uernnn-nt. "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 ou its part as shall lead to a final and authoritative agreement bet weed the people of tile two countries to the tiromot lon of their common Interests. "Ail friends of Cuba will follow your deliberations with the deepest interest, earnestly deslriug 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 ajjd dictatorship is that iu the former every representative of the people, in whatever office, confines hliuself 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 (lowers are strictly limited by the terms of that order.” When the convention concludes Its labor l will trnusmlt to the Congress the constitution as framed by the convention for Its consideration and for such action ns It may deem advisable. I renew the recommendation made In my special message of Feb. 10, 18ts.), as to the necessity for cable Communication between the United States and Hawaii, with extension to Manila. 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. Our Military Condition. The present Strength of the army is 100.009 men—os,ooo regulars and 35,000 Volunteers. Under the act of March-2. 1899, on June 30 next the present volunteer force will lie discharged and the regular army will be reduced to 2,447 officers ami 29,025 enlisted men. Ip 1888 a itoard of officers convened by President Cleveland adopted n 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 tlitH) regular appropriations have been made amr the work of fortification has steadily progressed. Mure than $00,060,000 have bpen Invested in a great number of forts nnd 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 iu Its use. The number of men necessary to perform this duty alone Is ascertained by tne War Department at a minimum ailowauce to be 18,-

420. There afie fifty-eight or more military posts iu the United States other than the coast defeuse fortifications. The number of these posts Is being constantly Increased b.V the Congress. More thau $22,000,000 have been expended In building and equipment, aud they can ouly be cared for by tne regular army. The posts now iu existence and others to be built provide for accommodations troops"* f * ull y garrisoned require 26,000 We have iu Cuba between 5,000 and 6,000 troops*. For the present our troops lu that Island cannot be withdrawn or materially diminished, aud 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 Forto Itlco we have reduced.the garrisons to 1,630, which Includes 890-native troops. There is no room for further reduction here. We will he required to keep a considerable force In the Philippine Islands for some time to ome. From the best Information obtainable we shall need there for the Immediate future from 50,000 to 60,000 men. lam sure the number may be reduced as the Insurgents shall come to acknowledge the authority of the United Mates, of which there are assurlug indications. It must be apparent that to will require an army of about 60.000. and that during present conditions in Cuba and the Philippines the l*rt shlent should have authority to /ojee to the present number of 100,000. Included In this number authority “hot; Id be given to raise native troops In the I hlllpplnes up to 15,t 00. which the Taft commission believes will be more effective In detecting and suppressing guerrillas, ‘assassins and ladrones thau cur own soldlerp. Postal Fervice Grows. The continued and rapid growth $f 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 (leliverv. At the hegntnlng of the fiseat year 1899-1900 the number of routes iu operation was only 391, and most of these had been running less than twelve mouths. On the 15th Of November. 1000, the number hail increased to reaching into forty-four States and 1 crijitortes _ and serving a population of 1.801,024. Ry the close of the current fiscal ye i ar about 4,000 routes will have bin established, providing for the daily delivery of mails at the scattered homes of about3,soo - 000 of rural population. This service-amel-iorates the isolation of farm life, conduces to good roads and quickens nnd extends the dissemination of general Information. Its actual application has shown that it increases postal receipts and can be accompanied by redu£jJons in other branches of the service, sc that the augmented revenues and the at compllshed savings together materially hmiuoo tho not cost. \ ory ofljoient sorviro bn« boon romloroij by the navy in connection with the insurrection in the I hilippiues 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 avpTded V ® sovernment armor plant Public Land Areas. The total urea of public lands as given by the Secretary cf the Interior is approximately 1,971.881.662 acres, of which bn'9.50,889 acres are undisposed of and 154,745 - iB2 acres have been re.-erv. (1 for .various purdtoseSj. Xhe public lands disposed of during the year amount to 13,453,887.96 acres Including 62.423.69 acres of Indian lauds’, an iiicmifsi* us 4.271.474.50 ovi-r the precediusr year, the total receipts front the sale of hinds during the fiscal year were $4,3791.58.10, au increase cf $1,300,620.76 over the preceding year. At the end of the fiscal year there were on the pension roll 993,225 names, a net Increase of 2,010 over the fiscal year 1899. Ihe number added to the rolls during the year was 45.344. The amount disbursed for army pensions during the year was $134,‘<*|.o97. 24, and for navy pensions $3.701,. 0.hj.41, a total of $1.38,402,130.05, leaving an unexpended balance of $5,542,768 25 to be Covered into the treasury, which shows an increase over tin* previous year's exnenditurc of $107,077.79,—There were 684 names added to the rolls during the year by special acts passed at the first session of the fiftysixth Congress. Fro stress of Hawaii. Much interesting information is given in the report of the Governor of Hawaii as to the progress aud development of the Islands during tile 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, 1160, the date of the approval of the act providing a government for the territory, and thereafter. The latest Hawaiian census, taken in the year 18!*). gives a total population of 109,029, of which 31,019 were native Hawaiian*. »he number of Americans reported was 8.485. The results of the Federal census, taken this year, shows rite islands to have a total population of 154,601, showing an Increase over that reported in 1896 of 44,!)5l or 41.” per cent. There has been marked progress iu the educational, agricultural and railroad development of the Islands. 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 iu mines and forests, • lie number cf Its agriculturists, their farms mid products, its educational aud religious opportunities, as well as questions per,aiulug to sociological conditions. The growth of population during the last decade amounts to over 13 t <FJ0,UW. a g Tutor uuiuerleal Increase than in any previous census lu the history of the country. Department of Agriculture. The Department of Agriculture has been extending its work during the past year, 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 (duns for the care, preservation ami 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 arid regions. Our island possessions are being considered that their peoples may lie helped to (produce the tropical products now so extensively brought Into the Fulted Htates. Inquiry into method* of Improving cur roads ha* • active during the year: help lias been given to many localities mid scientific Investigation of material in the States and Territories has been Inaugurated. An extensive exhibit at Burls of the products of agriculture has made the peonies of many countries more familiar with the varied products of our Held* and their comparative excellence. That there may be secured the best service possible lu the Philippine Island*, l have Issued. umlei date of Nov. II). lit*), the following order: "The United States Civil Sendee Commission Is directed to rentier such assistance as may he practicable to the Civil Service Hoard, created under tin' act of the United states )iif.ippliip. Up ntuilssion, f«>r thei-stnb-Ushment ami maintenance of an honest and efficient civil service in the Philippine Islands. and, for that purpose to conduct exumluatbpiis for the civil service of the Philip, pine Islands, upon the request of the Civil Service Bouril of said Islands, under such regulations as may be agreed tipi n hv the said board and the said United Slates'Civil Service Commission.” In our great prosperity we must guard against the danger It Invites of extravagance In government expenditures aud appropriations, and the chosen representatives of the people will. I doubt not. furnish an example In their legislation of th.it wise economy which In n season cf plenty husbands for the future. Our growing power brings with it temptations aud (perils requiring constant vlgOenee Pi avoid. It must not be used to Invite conflicts, nor for oppression, hot for the more cffeetlvp« maintenance of those principles of cppialltjr and Justice upon which our Institutions and happiness depend. Let us keep always In mlud that the founplatlon of otir government la liberty; ita superstructure peace. WILLIAM M KINLKY. Executive Mansion. Dec. 8, 1860.