Ligonier Banner., Volume 32, Number 36, Ligonier, Noble County, 9 December 1897 — Page 6

HISANNUAL MESSAGE A | 4 i ¢ - President McKinley Reviews the - Affairs of State. - i2s{4= X - T ' SOME FMPORTANT RECOMMENDATIONS L - 4 ) : s . i : e e = ‘E; ed of Currency Legislation Point*d Out — Sbain Should Have a A Chance—Hawaii Should Be An- - nexed--Other Questions.- . )=i i : 5 S aa - 5 ; o ,ﬁ’(‘ashingtgn:, Dec. 6. — Following is the te¥t of President McKinley’s message to jcingress: | T ' S ' — @5 the Senate and House of-Representa-tifes:. It gives me pleasure to extend greetinfl: to the Fiffy-fifth congress assembled ufi the seat of povernment, with many ot - wijom, senatorsiand representatives, 1 have _ héen associated in the legislatuve service. “fleir meeting’pccurs under felicitous con- ‘ d#tions, justifying .sincere .congratulation * aifk -ealling for our grateful acknowledg- . mint to a beneficent;Providence which has sdrsignally blegsed and prospered us as a | n#tion. Feace and good will with alli the ; ,/p;u'long of the learth continue unbroken. "4Yhe extra session of this congress which _elésed during July last enacted important Tiegislation, and while its full effect has not yet been realized, what it has already ac- - tomplished assures us;of its timeliness and wisdom, To test its permanent value fur“tnep time will be requitred, and the people, _ satisfied with its operation and results thus {ay, are in no mind to withhold from it a . dajr trial. . ; - _ CURRENCY LEGISLATION. : fongress Shauld Not Hesitate to Eno e ter il’pon Revision. Thariff legislation having been settléd by Ihef extra session of congress, the question next pressing for consideration is .that of thet currency. | The work of putting.our fingnces upon a sound basis, difficult as it " .may seem, will appear easier when \\(f& re- - galk the -iﬂinanciéal operations of the governmdnt since 1866. On the 30th day of June “of &hat year we had outstanding demand liaMilities in the sum of $728,868,447.41.. On iheajlst of January, 1879, these liabilities h_ad bedh . reduced to. $443,589,495.88. Of our in-ter{st-bearing wobligations, the figures are evell more striking. On July I, 1866, the prifdejpal of -the interest-bearing debt of Theigavernment was $2,332,331,208. -On the firs§ day of July, 1893, this sum had been redyced to $585§937,100, OF an gggregate pe--duclion of $1,747,294,108y The interest-bear-ing glebt of the Unit;eé States.on the first dayiof December, 1897, was $847,365,620. ‘The govérnment mq;ney now oufstanding "(Dece er 1) consists of-$346,681,016 of United Statts notes, $107,793,280 of treasury netes issu*d by authority of the law of 1890, $384,963,503 of silver certificates, and $61,280,761 of standard silvier dollars. . - . With“the great resources of the government, and with the honprable example of nje‘ dast before us, we ought not to hesi--latgl to enter [upon a currency revision whigh will make our demand obligations - lessfonerous to the government, and relieve - our? financial laws’® from ambiguity and oMeubt Lt ] : L {- No .:.Gl'():llll_d for Distrust. - The ’brief review of what was accomplished. from the close of the war to 1893 Imaakes unreasonable and groundless any r distrust either lof our financial ability or soundness, while the situation from 1893 to 1847 must admonish congress of the im- . médﬁ, te ‘mnecessity of so "legislating as to .make the return-of the conditions then prevailing impassible. There are.many _plank proposed (as a remedy for the evil. Befdre we can ifind the true remedy we - mustg appreciate the real evil. {t is not " that Bur currency of every kind is:not good, + for every dollar of it is good; good because 3 Ihe gf,overnment‘{s pledge is out to keep it - 30, and that pledge ‘'will not be broken. Howgver, -the guaranty of our purpose to _keep ithe pledge will be best shown by “advancing toward its fulfillment. - Evil of thip Present System. The evil of the presént'system is found in thesgreat cost tg the governmént of main- . laining the pariti of our different forms of . monéy—that lis, keeping all of them at par with gold: .We |surely cannot.be longer heedless' of the burden this imposes upon the people, ieven under fairly prosperous conditions, whilel the past four years have 'ﬂemonitra’ied that it is not only an ex_pensivé charge -upon the government but a da-n%erbus menace to the national credit. | MustiProvide Against Bond Issues.. ; Itj'is Inanifest that.we must devise some . plan tn protect the government against bond idsues for repeated redemptions. We . must @gither, ccurtail ' the- opportunity .fol speculdition, made easy by the multiplied redemypgtions of our deméand obligations, or increase the gold reserve for!theit redempJdion. §Ve. have | $900,000,000 of,: currency -*which the governnmient by solemn enact- . ment bas,undertaken to keep at par with gold. Nobody is obliged to redeem ih gold .but the governmient. The Branks,are not Tequired to redeem in gold. " The govern- . ment is ohliged to keep equal with gold all . its. outstanding’ currency and coin qbligaiions, while its receipts are not required . 10 be paid in gold; They are paid in every - kind of money but gold, and the only means by ‘which :the governinent can with cer- ' tainty get gold is by borrowing, It can get it in no other wdy when it- most needs it. The governmeént without ‘any fixed gold . »Feyenue is pledged to maintain gold re- = demnption, which it has steadily and faithyﬁ}l._?;t»-‘. done, and which -under the authoriy tyripow given it will continue to do. . . -,thg iasw. which requires the government f«ag‘er*havmg redeemed its United States R es to pay them out again as durrent _lumds demands a constant replénishment . "ofithe gold reserve. This is especially -sc in times of business panic¢, and when the pevenues are insufficient to meet the expenses of the government. At such ‘timi the -governin § ; . e _ governinent has no other way to supDy its defieit and maintain redemptionkbut through the increase of its bonded debt, as during the administration of o , 5 STRLETRES . my predecesTt T 3 aasloHoD [of 414 per-cent. bomds - Were issudd and sold, and the proceeds used to pay th? expenses of the.government in excess oft the revenues and sustain the gold reserve. While it is true’that the greater part of the proceeds of these bonds ~ Wwas.usedito supply deficient revenues, a - consideralle portifh was required to main.tal‘gx;.%}};é gbld resdfve. = ' = o "With our revenues equal to o . : .+ there Wwould be mo Hefeit requinig the ie £, “oondas. if 4 "o ¢ ,¢ falls below 'swo,qm%élot ew ~Vlenished except by selling more bonds? Is there any oiher way practicable under - £xisting law? The serious question then is: . Shall we continue the poliey that has been . pursued in the past—that is, when the £old . - reserve reaches tlie point of danger issue _more bonds and supply the needed gold, or - shall W%g?, provide .other means to prevent . ihese réturring drains-upon the gold re- . Berve? .If no further legislation is had and the policy of selling bonds is te be continu'(::d,‘ then congress should give .the secretary of the treasury authority to sell bonds - a;»}o{ls",,or short Deriods, bearinga less‘raté of in Lgrest -than is now authorized by law. - % An Obvious Duty. -1 earnestly recommend as soon. receipts of the government areogﬁitzzess%;hf? - Hicient to pay.all the 'expérses 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 _euf in exchange for! gold. + This is an ob- . Vicus duty. If the holder_ of the United Stdtes note prefers the gold and gets it - frém t,'hg government. he should not receive back frem 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 lan interest-bearing, debt to provide gold . for the Fademption ¢f United States notes—- ~ a ‘noninterest-bearing debt. Surely it shouid -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 re- ~ deem them—another interest-bearing débt - o redeem a noninterest-bearing debt. - ; Indorses Secretary Gage's Plan, - . The_secrétary of the treasury has out- _ lined a pian iMgreat detail for tl;e pu?rggste - of removing the threatened recurrence of . a depleted gold reserve and saving us from “future embarrassmenit on that account. To . ‘this plan I invite your careful considera_lsdon.’ I concur with the secretary of the .. treasury in his recommendation that na- ~ tional banks be allowed to issue notes fo ~ the face value of the bonds which they hatve deposited for circulation, and-that the ~lax on circulating notes fa\guredu by deposit .of sueh bonds be reduced to one-half of one - per cent . &)er annum, * I ‘also join him in - zecommending that authority be given for . the establishment af national banks with - !gzmmum capital of $25,000. This will ~_¢rable the smaller.villages and agricun;url;;.] ~ regions of the. country to be supplied with . eurrency to meet their needs. . Irecomménd ~that the issue of natignal bank notes be re- - stricteéd to the denomiination of ten dollars . mud .upwards. If t!hi sug’gesﬁons I -have ;%jkﬁféin _made shall have the approval of ﬁm@@&*ﬁtgyé@G’algkfx{'egﬁmme'ga that na- - tivnal bank: required to redeem their o e - ebieeeeed e . " TME CUBAN QUESTION. . The Time Not Ripe for Intervention e ~w"ja’fﬁ€?”%‘»¥: Chiy o :“M“ Agg.w. e

less in common with those now éxisting ' have confronted this government at vari- | ous 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-con- | trol; of organized resistance to the mother: country; of depression after distress and | warfare and of inef:fectual,setlglement to be followed by renewed revolt. For no endur= ing 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 embar- | rassments of the home government might | lead to the tra’nﬁfer of Cuba to a continen- ! tal power called forth, between 1823 and } 1860, various emphatic declgrations of the policy of the United States to permit no dis- | turbance of Cuba’s connection with Spain ‘ unless in the direction of independence or | acquisition by us through purphase: nor | has there-been any'change of this declared policy. since upon the part of the government,. : ; Ty The Present Insurrection. : 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 existjng conditions cannot but fill this government and the American.people | with the gravest apprehension. There is sno desire on the part jof our, people-to profit by the misfortunes «of Spain. We have only the desire to see the Cubhans prosperous and ‘contented, enjoying that measure of self control/which is the in--alienable 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 gsubmission of the rebels to the rhot}}er country.” Then only. could sSpain act in the premised direction of her own motion and after her own plafs. l : Not Civilized Warfare., . . 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 ilaid waste amd their dwellihgs destroyed.” This policy the ' late cabinet of Spain justified as a.neces- - sary measure of war and as a means of cut-ting-off suplies from the insurgents. It bhas utterly failed as a war measure. It was not civilized warfare. It was extermination. i ; - ¢ Protests Entered. : Against this abuse of the rights of warI 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 Octeber, last 22 ‘prisoners, citizens of the United States, had been given their freedom. For the relief of our own citizens suffering beca‘\ﬁse of the conflict the aid of congress was sought in a special message, and under the appropriation of April 4, 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. Minister Woodford’s Instructions, The instructions .given to our new min_ister to Spain before his departure for his post directed him to impress upon that government the sincere wish of the United States to lemf its aid toward the ending of the war din Cuba by reaching a peaceful and lasting resnlt%just and honorabhle alike to gpa‘in -and tb 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 6ur government was constrained to seriausly inquire if the time was not ripe when Spain of her own voli-: tion, moved by her own interests and every* seritiment of humanity, should put a Stop to this .destructive war and make pro-. posals of settlement honorable to herself -and just to her Cuban eotony. It wasurged that as’d 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 order within the borders of the island; that we could not-eontemplate an indefiNite periéd for the accomplishment of this result. - ! i B : - . No Humiliation Suggested. ‘No solution was. proposed to.which the slightest ridea 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 somesafe way might be speedily provided and permanent péace restored. It so chanced that the consideration of this offer, addressed to the sameé Sparish administration whiagh had declined ' the tendérs of my predecessor, and which for more than two ‘years had poured men and treasure into Cuba in the fruitless effort to suprpéss the revolt fell to others. -, Between the departure of Gen. 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 hebore, that ~cabinet gave place within a few days thereafter to ‘a new administrdtion under the leatership of Sagasta.. . oo - : .+ Spzin Promises Muac¢h. = - 'm"l‘he reply to our note was received on the 23d day of October. It is in the'direction of a bétter understanding. It appreciates the friendly purposes of this government. It admits that our country is deeply affectéd by the war in Cuba, and that its desires for peace are just. Ft declares that the present Spanish government is bound by _e(rery considération to a change of policy that should satisfy the United Stiktes and pacify Cuba within a reasonable time.- . To this end Spain has decided to put intoeffect the Dolitical reforms heretoforeé advocated by the present premier without haiting 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 aceom- ' panied by political ,action leading to the autonomy of Cuba while guarding Bpanish’ sovereignty. This, it is claimed; will result in investing Cuba- with.a distinet person--ality; the island to be governed by an executive and bj: a loeal council or chamber, reserving to Spain the control of'the for--eign relations, the army and navy and the judicial administration. To- accomplish this the present government proposes to modity existing legislation by deeree, leaving .the Spanish cortes, . with the aid of Cuban senators and deputies, to solve the economic proklem and properly: distribute the existing debt.. In the absence of 4adeclaration of ‘the measure that this gov-. ernment proposes to take in carrying out its pl‘of‘fe;' of good offices it suggests that Spain be left free to conduct military operations. and grant polg‘tic‘al reforms, while the United States, for its part, shall enforce its neutral obligations and cut off the assistance which it is aéserted the'insurgents receive from this ¢ountry. The ‘suppuosition of an indefinite prolongation of the war is dgnied. It .is asserted that the western provinces are already well-nigh reclaimed: that the planting of cane and topacco therein has Een resumed, and that -by force of arms d new and ample reforras very early and complete pacification is heped for. P s X o . Have Not Failed in Our Duty. The immediaté -amelioration of existing conditions under the new administration of Cuban affairs. is predicted, and therewith all the disturbdnce and all occasion for any change of attitude on the part of the’ United States. Discussion of the question of the international duties and respousibilities of the United States, as Spain understands them, is presented, with an appar.ent 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. That it has successfully brevented the departure of a sjngle 'military expe- | dition or ‘armed vessel from our shores in ‘violation of our laws would seem to be z} 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 perfermed obligation, due re‘sponse’to this charge has been made in diplomatic course. s o . The Untried Measures, . Of the untried measures there remajn only: Recognition of . the insurgénts as pelligerents; recognition of the independence of Cuba, neutral jntervention to end ‘the war by imposing a rational compromise pbetween the tontestants, and interventiog in favor of one or the other party. 1 speak not of forcible annexation, for that cannot be ’thoughd( sof, bk i)y our code of -morality. would ‘be criminal aggression, | Recognition of Insurgents, - ’:‘R'?iﬁggnition _of the belligereney of the | cuban insurgents has often. been can. gatasd 8s o possiie if not inevitable sty (S 0 L TUEAIO to the PrAVIOUS [on FReIE | BLEMEB S, BHA during the prepens Wat. Lam

opinion by c‘onc;urrg%t 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 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 consideér the conditions under which so important a measure must needs rest for justification. It is to be seriously considered whether the Cuban insurrection _pogesses beyond dispute the attributes of statehood, which alone 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 influehces and consequences of the struggle upon the internal Dbolicy of the recognizing state. 5

Quotes President Grant.

The utterances of President Grant in his memorable message of December 7, 1875, are signally relevant to the present situa-tion-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 demarnds 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 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 * * > ‘lt is possible that the acts of fogreign 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 reiport. The question of according or of withholding rights of belligerency must be judged in evéry case,, in view of the particular attending facts. Unless\justiﬁe}i by necessity it is always and justly regarded as an unfriendly act and a gratuitous demonstration of moral support to the rebellion. 1t is necessary, and it is required, when the interests and rights of another government or of its people are so-far affected hy a pending civil conflict as to require a definition of its- relations to the parties thereto. But this conflict must be one which is recognized in the sense of ins ternational law as war.

Recognition Not Justified.

‘“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 recognizeéd by publicists qnd writers on international law, and which have been observed by nations of dignity, honesty and power, when free from sensitive or gselfish and unworthy motives, I fail to find in the insurrection the existence of such a substantial political organization, real, .palpable and manifest to tne world, having the forms and capable of the ordinary functions of government toward its own people and to other states, with ¢ourts for li?he administration of justice, with a local habitation, possessing such organization of force, such material, such eccupation 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 wiould aim to elevate it. ) " “TPhe 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 war upon the ocean is apt to precipitate upon the vessels, both commercial and rational and upon 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 beas unwise and premature, as 1 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 diffieult and complicated duties, and regitires 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 vessels of the United States to detention and to possible seizure; it would give rise to conuntless vexatious questions, would release the paren{ government from responsibility for acts done by the in‘surgerits, and would invest Spain with th right to exercise the supervision recognizeg by our Lre@t{ of 1795 over our commerce on .the seas, a very large pdrt of which, in its traffic .between’ the” Atlantic. and the gulf states and betweeh all of them and the states on the Pagific, pa3ses through the waters which wash the -shoéres of Cuba. ‘The eéxercise off this supervision could scarce fail to-lead,'if not to abuses, ¢ertainly to collisions perilous to the peaceful relations of the two states. There can be little doubt as 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.’”’ - What Recognition Would Mean.

" Turning to the-practical aspects of arecognition of belligerency and.reviewing. its inconveniences and positive’dangers, still further pertinent considerations.appear. In the codewf nations there is n 6 such thing ‘as a naked recognition. of belligerency unaccompanied by the assumption of international neutrality. -Such recognition will not confer upon either party to a domestic eonflict a -status not heretofore actually possessed or effect the relation ef 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 declaring state. Itassumes the ingernational obligations of'a neutral. in. the presence of a public-state of war. It warns all citizens ‘and others within the jurisliction, of the procldimant-that theyv «violate those righteous obligations at their own peril and cannot expect to be shielded. from the consequenices. The right of visit: and search on the geas and seizure-of \;fssels and cargoes, and contraband of war and good prize under admiralty law must under intcrnational law. be admitted as a legitimate consequence oOf a proclamation of belligerency. While according the equal belligerent rights defined by public law ta’ each party in our ports disfavors would be imposed- on_both, which while nominally equal would weigh heavily in behalf- ofSpain, herself. Possessipg a navy and controlling the ports of Cuba her maritime rights could be asserted not only for the military investment of the island but upto 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 - internatjonal neutrality we would perforce assume. : "Regarded, at Present, as Unwise. . The enforcement of this enlarged and onerous code of neutrality Would'or}ly be influential within our own jurisdiction by land and sea, and applicable by our own instrumentalities. 1t could impart to the United States no. jurisdietion between, Spain and the insurgents. It woeuld give the. TUnited 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 thése reasons 1 regard the recognition of the belligerency of ‘the Cuban insurgents as now unwise, and therefore inadmiksable. Should that steé‘i hereafter be deemed wise as a measure of right and duty, the executive will take it. o - . Intervention, o 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 sug:rvened in the policy of Spain toward Cuba? A new government has taken office in_the mother i country. It is pledied in advance to the declaration that all the efforts of the world. cannot. suffice to maintain peace in Cuba by the bayonet; that vague promises of re-. fofm 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 pne in harmony with a new gol_icy.whiclr shall no longer aim to drive the Cubans to the ‘‘horrible alternative of taking to the thicket ,or,sugg-umb_m? 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 ;u;on@:my to the colony and to cr;@;,q a virtua emtitﬁ and self-con-trolled administration, shall Jo} gonserye: and affirm the 801 ﬂ . Spain by a

Lies in Honorable Paths. | - 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 resump-| tion 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 pro-| mulgated. i i 1 Should Give Spain a Chance. 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 hag existed it has made earnest of the sincerity of its professions is'undeniable. I shall not impugi its sincerity, nor should impatience Le suffered to embarrass it in the task it has undertaken. It is honestly due Spair 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 proteetion 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 diplomatie correspondence during both this and the preceding administration. ' Will Ngt Hesitate to Act. 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 mdx;;pensahle condifion 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 civilizatiorrand 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. ! } ANNEXATION OF HAWAIL -

X . Dignity and Honor Reguire Contirm~

ation of the Treaty. | By a special message dated the 16th. day of June last, I laid before the senate a treaty signed that day by the plenipotaries 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 shoud be. While consistently disavowing.from a very early period any aggressive policy of absorption in regard to the Hawaliian 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 domina‘tion or influence of.another power than the TUnited States. Under these circumstances the logic of events required that annexation, heretofore offered but declined, should in the ripencss of time comé about as the natural result of the strengthening ties that bind us to those islands, and be realized by the frec wiil of the Hawiian state. " That freaty 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 .ex'tension- 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 systemr therein, are all matters which the treaty has wisely relegated to the congress. . Should Be Confirméd. -

If the tréaty 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 i% loeal matters with the largest political liberties as an integral part of our nation, will be accorded to the Hawaiians. No less is due te a people 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 beody politic. - ;

CENTRAL AMERICAN REPUBLICS. Our Diplomatic Relations with Them ! ~=Nicaraguan Canal, As to the representation of this government to Nicaragua, Salvador and Costa Rica, T have concluded that Mr. William L. Merrick, 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 reeeive Mr. Merrick 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 there their right to reveive 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. The Nicaraguan Canal. A subject ..of ‘large importance to eur country and increasing appreciation on the part of the péople is the completion of the great highway of trade between the Atlantic and Pacific- known™ as the Nicaraguan 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 ens tire work of construction of such canal,” is now employed in the undertaking. Inthe 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,

MONETARY COMMISSION. Unable to Secure Satisfactory Results from Its Labors: ; Under the provisions of the act of congress approved- March 3, 1897, for the promotion of an international agreement respeeting bimetallism, 1 appointed on the 14th day of April, 1897, Hon. Edward O. Wolcott, of Colorado; Hon. Adlai-Ei. 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 cooperation of European countries in the international settlement of the qg;es.; tion, but up to this time have not been able to secure an agreement contemplated by their mission, '],ghe gratifying action of our great sister reﬁmbllc of France in joining this country in the attempt to bring about an agreement among the Rrincipal commercial nations of Europe whereby a fixed and relative value between gold and silver shall be secured, furnished assurance- that we are not alone among the larger nations of tg\e world in realizing the international character of the problem and in the desire of reaching some wige and ?ractical solution of it. : .The British government has published a xﬁsuu;ﬁ of the steps taken jointly by the Freneh ambassador in London and the special envoys of .h%‘gzm& d States, with whom our ambassador at London activeA cHoperated g the presentation of thle ?‘&“N’éég

will be laid before congress. Our special envoys have not made their final report, as further negotiatons between the representatives of this government and the govf ernments 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. o RECIPROCITY. * Steps Taken to Improve Trade Relations With Other Countries. i 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 Hon. John A. Kasson, of IdWga, a special commissioner plenipotentiary to undertake the requisite negotiati{msa witd foreign countrieés 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. - THE SEALS.. Progress of Negotiation Looking to Their Better FProtection. ¥ 33 The efforts which had been made during the two previous years by my predecessor to secure better protection to the fur seals in the Northern Pacific.ocean and Behring séa, were’ renewed at an early date by this administration and have been pursued with earnestness. Upon my invitation the governments of Japan and Kussia sent | delegates to Washington and an international conference was held during the months of October and Novemper last, wherein. it was unanimously agreed that under the existing regulations this species of useful animals was threatened with extinction and that an international agree-; ment 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 commissicners of GGreat Britain and Canada who had during the past two years visited the Pribylof islands, and who met in c¢onference similar commissioners onithe 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 méasures without delay for the preserva-. tion and restgoration 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. O INTERNATIONAL ARBITRATION. The Subject Demands Due Considerai tion by Congress. ; £ ¢ International arbitration cannot be omitted from the list of subjects claiming our consideration. KEvents havegnly 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 con-~ stant encouragement. ‘ g OUR NAVY. . Present Condition Well Adapted to - Our Necessities. The present immediately effectiveness of the navy consists of four battle ships of the first class, two of the second and 48 other vessels, ranging from armored cruisers to torpedo boats. There are under construction five battle ships of the first class, 16 torpedo boats and one submarine boat. No provision has yet been made for the armor of three of the fivé battle ships, as it has been impossible to obtain it at the price fixed by congress. Itis of great importance that congress provide this armor, as until then the ships are of no fighting wvalue. The present naval force, especially in view of its increase by the ships now under construction, while n'ot ds 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 ladapted to the necessities of the country. | The great increase of the navy-Which has taken place in recent years was justified by ,§gle requ{ireme‘nts_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 isfan 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 therefare " incapable of use. ‘lmmediate ‘steps should be taken to provide three 31‘ four docks of this capacity on the Atlantic coast, at least one on the Pacific coast and a floating dock on the gulf. This. is the rTecommendation of a yery 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 %dfl_itions are also necessary to.our navy vards for the repair and care of our larger number of vessels. As there are now, on thé stocks five battleships of the largest class, Which can not be completed for a .year-or t&o, I concur with-the recommen--dation of the secretary of the navy for an appropriation authorizing the construction of one battleship 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. . -

ALASKA. ) Material Changes in Territorial Laws [ Are Necessary. . The territory of Alaska requires the - prompt and early . attention of congress. The conditions now existing démand matgrial 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 been’extended to' Alaska and all entries thus far made in that district are upon- special surveys. The act of congress €xtending 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 eniry of lands for town site purposes and also for the purchase of not exceeding 160 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 specificallly named. : i ‘As it is to_the interest of the government to encourage the settlement of the country and its duty te follow up its citizeéns with the benefit of legal machinery, ‘I earnestly urge upon congress the establishment of a system of government with such flexibility as will enable it to adjust itlgelf to the future areas of greatest population. : - I Relief Is Needed, e 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. : o THE INDIANS. Weeds of White Residents,ilth’e Territory Must Be Considered. ° | For a number of years past it has been apparent that the conditions under which }he five civilized tribes were established n the Indian territory under treaty proisions with the United States, with the ight of self-government and ' the ex‘clusion of qsll white persons from within heir 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 ivilized tribes, as shown by the last census, E’s 45,494, a‘r‘xﬁ this number has not materialy increased, while the white po‘%lmon is estimated at from 200,000 to 250,000, whieh, by permission of the Indian government, as settled in the territory. The present rea of the Indian territory contains 25,4 694,564 acres, much of which is very fer‘tile land. The United States citizens residing in-the territory, most of whom have one there by invitation or with the conent of the tribal authoritiés, have made ermanent homes for themselves, Numerpus towns have been built in which from 500 to 5,000 white D&o%lﬂww r.e!tﬁse' Valuable residences and business houses have “been erected in many of them. Large busiR O s Saree S

ment 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 schoodl age, but the ddors of the schools of the nation’s are shut against them and what education they get is by private contribution. -No preévision for the protection of the life or property of these - white citizens is made by the tribal governments and courts. - : An Indian Aristocracy. |

The secretary of the interior reports that leading Indians have absorbed great tracts of land to the exclus’tion of the cornmon 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 treaties with these nations: have for the most part become impossible of execution. Nor has it been possible for the tribal goy-. ernments 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 haye long believed that the best interests of the Indians lof the five civilized tribes would be found in American citizership, with all the rights and privileges which belong to that condition. : : ) i The Dawes Commission., -

By seetion 16 of the act of March 3, 1853, the spresident . was authorized .to appoint’ three commissioners to enter into negotia-. tions with the Cherokee, Choctaw, Chickasaw, Muskogee (or Creek) and Seminole nations. commonly known. as.the Five Civ=--ilized 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. mow held> by any and all -such .nations oOr: 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 na-’ tions or tribes respectively as may be en-. titled to the same, or by such other. method as may be agrecd upon between the sev-, eral nations and tribes. aforesaid,-or each of them with the United- States, -withra view to such arn-adjustment upon the basis of justice and equity as may, with the eon= sent of the said nations of Indians, so far as may be necessary, be requisite and suit-. able to enable the altimate creatiorn of a state or states of the union, which shall embrace the lands within said Indian territory.., 8 ) £Y e .The commission met :much opposition from the beginning. . The Indians were very slow to act. and those in control mani= fested a decided disinclination -‘to- meet with. favor the propositions submitted to them, A little more th'an three years after this organization the commission effected an agreement .with the- Choctaw nation alone. The Chickasaws, however, ‘refused, 'to agree. to itsiterms, and as they have a common interest with the Choetaws inthe lands of said nafions, the agreement with the latter nation could have no efs fect without .the consent- of the former. Oa April 23, 1597, the commission e ected .an agreement with both tribes—theghoctaws and Chickasdws. 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. Onthe 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 Ilive Civilized tribes, and | with the Seminoles, the smallest in point. of numbers and territory. - s 1 concur with the secretary of the interior that there can be no cure for the evils en~ gendered by: the perversion of these great frusts excepting by their resumption by the government which created them. = -

Toemy v 5 - THE PACIFIC RAILWAYS, . Should Government Become a Bidder ‘ for the Kansas Pacifie? : The Union Pacific railway, main.line was sold under the decree. of the United States court for the district of Nebraska on the Ist and 2d of November of this yvear. The amount due the government consisted of the principal of the subsidy bonds, $27,226,512, 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 ‘lgovernmeént holds a second mortgage lien, has betn postponed at the instance of the government to December 16, 1897. The debt of this divigion of the Union Pacifie railway to the government on November 1, 1897, was the princiﬁal of the subsidy bonds, $6,303,000, and the unpaid and accrued interest thereon, $6,526,690.33, making -a total of "$12,929,60.33.- The sale %f this road was. originally advertised for November 4, but for the purpose of securing the .utmost’ public notice of the ev%t it was postponed until December 16 a a second advertisement of the sale was made. By the: decree of the court the upset priece on the sale 'of the Kansas Pacific-will yield to the government the sum_ of $2,500,000 ove* all prior liens, costs and charges. If no other 7or better bid is made this sum'.is all that the government will receive on'its ctaim of nearly $13,000,060. 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 Qresented therefore is whether the government shall unde ihe authority given it by the act of Marchg, 887, purchase or redeem the road in the event that a bid is not made by private parties covering the entire government claim, ol To qualify the government to pbid at thae 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. Paymeht at the sale is as. follows: Upon the acceptance of the bid, a sum which with the amount already deposited shall equal 15 per .cent. of tha bid;" the balance_in inst’aHments,of 25 per cent., 30 40 and 50 days after the confirma-. tion of the sale. The lien on.the Kansas Pacific prior to that of the government on the 30th of July, 1897, principgl and interest amounted to $7,281,048.11. The government, therefore, should it become the high= est 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 tréasury 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 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. s » 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 te lay .before ¢ongress those: facts for its condideration and action before the consummation of the sale. =lt is clear to my mind that the government should not permit the property to beisold at a price which will wvield ‘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 itg claim, should become a bidder, and thereby the owner-of thé prop= erty, I submit to the congress for action.-

CIVIL SERVICE. * ) Distinet Advance Made in Operation 2 of the Lavw. E s The important bianch of our government known as the ciyil service, the practical improvement of which haslong-been a subject of earnest discussion, has of late years received increased legislative and executive approval. During the. past few months the servide has been placed upon a still firmer basis of business met?ods 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 examinattons for admittance to the service -enlarged and at the same time rendered less technical and more practi%al; 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 any way - 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 eivil service reform system, preventing stagnation and deadwood and Kkeeping everg employe 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. GOVERNMENT EXPENSES. ' . Appropriations Must Be Kept Within : _ ' the Receipts. o I am forced by the length of this message to omit many important ,referenc‘ea . to affairs of the government with which congress will have to deal at the gresentgés--— sion.yTheY are tull{} 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 depar‘tng?‘}awm‘. I am sure, have vour careful' scrutiny. : While the congress may not find it an easy task to reduce the expenses Ql.tiih%rgqummeng -it should not encourage their increase. 'These ex~ gjansés will, in :my?:f:;jaa&:n admit of a decrease in many branches :‘ﬂﬁzﬁ:’f‘i}. rnment without injury to the publ vice.

Interesting Information Concern~ing Natlonal Banks. =~ . - Comptroller of the Currency Tells of the Growth of the System, and - | Arguesat Length in Favor of ' 'Bank Note Circulation. i .., Washington, Dec. 6.—The annual report ;i of James H. Eckels, comptroller.of the ccurrency, for .the year ended October 31, 1897, opens_with a brief review of the history of the legislation which constitutes & the present national bank act and invites the attention of congress to amendments to the law recommended in former reports without specifically repeating them, . e ‘On the subject of barnk note circulation the comptroller says: ‘lt is noticeable that in'all the changes which have been wrought ° in the national-currency act from its inception to the present time the feature subject - to criticism, but which was intended should constitute the principal benefit to be con- . ferred, has remained comparatively unchanged, -namely, the note-issuing function. “"Whatever justification there was in “the first instance for restricting the issuing of notes against the bonds of the govérnment, deposited with the treasurer of the United "States to 90 per cent. of the- - ‘value thereof, long since ceased. Im the report of every camptroller of the currency during .the past 20 years the wisdom of changing the existing law so-that the !ban_ks, and,through them the communities in which. located, might have the ad- ’ ditional benefit of an.added loanable capital has been urged. Despite all this the . law still remains without amendmeént. Not ‘ only should the bank act be amended in this particular, but congr:ss should se- ! riously consider such a change in the methlod of bank note issues as will enable the- - banks of the country -to more a_dequately | meet the demands of trade and commerce in all sections of the country. The busi--1 ness of banking, -like-every other form of investment, must be made attractive to capital. -If it is placed upon a footing |-difféerent from other undertakings, embar- ! rassed -through. unnecessary restrictions and deprived of proper sources of r-ofit, the -result cannot: be ptherwise ‘han that | investable capital will seek other means of | employment, and.to such an extent deprive. the people of the benefits of the agency most requisite to commercial activity. - - “It is considered by every great commer.cial government except the United States to .be the sole province of banks to issue the ‘paper which circulates as currency. The belief in a_bank note currency as being better and safer than a government paper currency prevailed unquestioned in this country until, under the apparent exigencies of the war, the government undertodk.to issue paper currency. Even i.ader such ‘circumstances the promise was always given, however; thaf it should be re= ‘tired at the earliest practicable moment and the admission freely made that it was { neither a wise measure nor a safe form of currency. Between the competition of the | government note issues on the ctne hand and the unnecessary restrictions, imposed by.law upon the other, together with the increasing price of bonds required to-be ,deposited as security, the note-issuing . ‘fupction of the banks has been permitted to become merely an incident to the conduct of the national banking associations lot, the country, ot v ‘lt has. been seriously suggested thore than once that the bank note issues be done - ‘away with and all paper be issued by the- - instead. The danger of such a course is nat to be overestimated. ‘rhe experiencé of every ‘government has been that governmental currency paper is a source of weakness and danger. In the United States, where there has been the. nearest approach to success, with the volume of- the federal paper comparatively limited in amount; the credit of the gov!ernment has been more than once.put in jeopardy through it and the business in- } teresws of the country subjected to unnec- | essary-loss and confusion. ' : . “The-argument that the government, bet- - ter than the banks, can provide for the redemption’ of - paper note issues will not stand the test of a-careful analysis. The government- has 'ne means for caring: for its demand liabilities except through borrowing and through the levying of taxes. 1 Upon the other hand, the banks have assets which can be promptly converted into cash to meet their outstanding notes when pre- - ‘sented. Their ability to command gold has 'always been beyond that of the government, for in each financial exigency whichhas confronted the government the banks ‘I have furnished to it-the amounts necessary to maintain its solvency. It is impossible to believe that with a system of .bank :-note issues based in part upon securities and in part upon bank assets the ‘country cannot be provided with a sound, safe and elastic bank note issue, always commensurate with and responsive to the _demands of frade. - , 1 The total number 6f national banks organized sincé the system was put into operation in 1863 is shewn to-have been 5,095. On October 31 last there were in active operation 3,617, having an authorized capital of $630,230,295. The total outstanding circulation of the banks.then in operation was $929,199,880, of which $202,994,555 was secured by bonds of the United States and the bal- - ance by lawful money deposited with the -treasurer of the United States. The totalcirculation outstanding of all national: -banks ¢on October 31 last was $230,131,005, of which amount $1,558,800 was secured by | bonds 'held for account of insolvent and liquidating banks and $26,205,325 by lawful moriey deposited for thelyﬁccount and by active banks reducing circulation. The net decrease in the amount of circulation secured. by bonds’ during the year was $12,584,334 and the gross decrease in the total { eirculation was $4,851,292. . During the year 1.44 banks were organized with an aggre- . gate capital stock of $6,420,000. During the--year 71 banks went into voluntary liquidation. There was paid to creditors of insolvent banks during the year<513,169,781 in dividends.: - | - ' “The magnitude of this unequaled record,” tne report says, “will ] e more forcibly illustrated if considered in the light'of - -what has o}‘)ee_n accomplished heretofore in “the wdy of dividend payments to the creditors of insolvent institutions. In 1893 there 1 was paid in dividends $3,433,646: in 1344, 33,124,577; in 1895, $3,380,552; in 1896, $2,451,959,-and in 1897, $13,169,781, making a total of dividends paid within the five years from 1893 -to 1897 of $27,560,515, or 3614 per cent. of all the dividends that have ever been paid to creditors: of insolvent national banks. “From: 1863 to 1897 there has been paid in " dividends. -$75,935,925, and in the year em‘braced im this report $13,169,781, or 17 1-3 per cent. of all the dividends that have been “paid during the period of 84 years of the existence of the system, Since October 31, the end of the report yeal’. 17 additional div--idends have been ordered amounting n the aggregate to about's62s.o6o-' it ; | “The report contains the la‘t.g‘st compiled L statistics relative to the world’s monetary systems and the stock of gold, silver and paper currency. A very interesting fea- — fure of this statement is the per capita amount of each kind of money in the . countries named. The per capita averages in the -principal countries of the world are as follows: - United States, $23.790; United ‘Kingdom, $20.65; Krance, $34.48; Germany, $18.95; Austria-Hungary, $9.33, and Russia, | $8.95.. cafom oo an g e g . Burned to a Crisp. : ’ - Nickerson, Kan., Dec. 6.—While temporarily insane, Mrs. M. E. Ross, an | elderly woman, saturated her clothing with kerosene and set them afire. She was burned to a crisp. Her husband | and daughter, in trying to extinguish the flames, were seriously and perhaps fatally burned. : o -~ . Fire Causes-Heavy Loss. e . - St. Louis, Dec. 6.—A special to the Republic from Tulsa, L. T, says: Fire originating in the general merchandise ‘store of Price & Gillette Sunday after‘noon destroyed over $lOO,OOO worth of | property. - Sl ad gt g A PG S R 1 e e - e Be Hunged, { Springfield, 1l Dee. 6.—Thejm~§i&;: ‘the trial of James Mingle for themm% 1 @er of the infant child of Mary Briscoe f Seca iy She z : Y 9 P LY au iR returned a verdict at 10:15 o’clock Sat- } | urday night finding the defendant } guilty of murder and fixing the penalty atdeathy .. .0 B NPT e e« | Against Ratifieation. | Guthrie, O. T, Dec. 6.—At Saturday’s - | election in the €hickasaw nation, the J o= Y s e T I