People's Pilot, Volume 2, Number 25, Rensselaer, Jasper County, 9 December 1892 — Page 2

THE MESSAGE.

President Harrison Reviews Governmental Affairs. Ee Declares the Present One of the Most Prosperous of Eras. To the Protective System, He Thinks, Much of This Is Due. The Result of the Election, However, Means a New Policy. Revision of the Tariff Law fihould Be Left to the New Congress. No Recommendations on the Silver Que*, tlon—The Finances Reciprocity—- » Foreign Relations, Etc. PRESIDENT HARRISON’S MESSAGE. Washington, Dec. 6.—The following is the full text of President Harrison’s message to congress: TO THE SENATE AND HOUSE OT REPRESENTATIVES; In submitting my annual message to congress, I have great satisfaction in being able to say that the general conditions affecting the commercial ana industrial interests of the United States are in the highest degree favorable. A comparison of the existing conditions with those of the most favored period in the history of the country will 1 believe show that so high a degree of prosperity and so general a diffusion of the comforts of life were never before enjoyed by our people. Wealth of the Country. tota l wealth of the country in 1800 wa* 159.616,068. In 1890 it amounted to 162,8101010,000, an increase of 287 per cent Railway Statistics. The total mileage of railways in the United States in 1860 was 30,626; in 1890 it was 107,741, an increase of 448 per cent; and it is estimated that there will be about 4.000 miles of track added by the close of the year 1892. The Census. The official returns of the eleventh census and those of the tenth census for seventy-five leading cities furnish the basis for the following comparisons: In 1880 the capital invested In manufacturing was 6-1,232,839,670. In 1890, the capital Invested in manufacturing was 82,900,735,884. In 1880, the number of employes was 1,301,383. In 1890, the number of employes was 2,251,134. In 1880, the wages earned were 1601,966,778. In 1890, the wages earned were 91,221,170,454. In 1880, the value of the product was 82,711,579,899. In 1890, the value of the product was 84,860,286,837. lam informed by the superintendent of the •census that the omission of certain Industries In 1880 which were included in 1890 accounts in .-part for the remarkable increase thus shown. But, after making full allowance for differences ■of method and deducting the returns for all Industries not included in the census of 1880, there remain in the reports from these 76 cities increase in the capital employed of 81.622,745,<104; in The value of the product of 82,024,236,166; in wages earned of 8077,943,929, and In the number of wage earners employed of 866,829. The wago earnings not only show an increased aggregate, but an increase per capita from 8386 in 1880 to 8647 in 1890, or 41.71 per cent. The new industrial plants established since October 6,1899, and up to October 22,1892, as partially reported in the American Economist, number 345, and the extension of existing plants 108; the new capital invested amounts to 840,449,050 and the number of additional employes to 37,285. The Cotton Industry. The Textile World for July, 1892, states that during the first six months of the present cal- I endar year 135 new factories were built, of which 40 are cotton mills, 48 knitting mills, 26 woolen mills, 15 silk mills, 4 plush mills and 2 . linen mills. Of the 40 cotton mills 21 have been ■ rbuilt in the southern states. Mr. A. B. Shepperson, of the New York cotton exchange, estimates the. number of working spindles in the union September 1, 1892, at 15,290,000, an increase of 260,000 over the year 1891. The consumption of cotton by American mills in 1891 was 2,396,500 bales and in 1892 2,584,000 bales, an increase of 188,000 bales. From the year 1869 to 189 t inclusive, there has been an increase In ' the consumption of cotto ■ in Europe of 02 per ■cent., while during the san tperiod the Increase in the consumption in the United States has Jbeen about 150 per cent. Tin Plats. The report of Ira Ayer, special agent of the •treasury department, shows that at the date of September.3o, 1892, there were thirty-two com- I panles mahufacturing tin and tin plate In the | United States and fourteen companies building 1 new works for sack manufacture. The estf.mated investment in buildings and plants at the • close of the fiscal year, June 30, 1893, if existing • conditions were to be continued, was 86,000,000 • and the estimated rate of production 200,000,000 pounds per annum. The actual production of the quarter_ended September 30, 1892, was 10.--.952,725 pounds. I ‘ Some Labor Statistics. The report of Labor Commissioner Peck, xn New York, shows that during the year 1891. in about .0,000 manufacturing establishments in that state embraced within the special inquiry made by him, and representing sixty-seven different industries. there was a net increase over the year 1890 of 631,315,130.68 in the valdeof the product and of 86,377,925.09 in the amount of wages paid. The’report of the commissioner of laboi for the state of Massachusetts shows that 3,745 industries in that state paid 8129,416,248 in wages ■during the year 1891, against 8126,030,303 in 1890, an increase of 83.335,945. and that there was an increase of 89,932,490 in the amount of capital and of 7,346 in the number of persons employed in the same period. Pig Iron. During the last six months of the year 189? and the first six months of 1892 the total propig tron was 9,710,819 tons, as against 9,029,703 tons in thefyear 1890, which was the largest annual production ever attained. For the same twelve months of 1891-92 the production of Bessemer ingots was 3,878,581 tons, an increase of 189,710 gross tons over the production of 3,688.871 gross tons in 1890. The production of Bessemer steel rails for the first six months of 1892 was 772,436 gross tons, as against 7u2,Cao gross tons during the last six months of i the year 1891. ’

Export* and Imports. The total value of our foreign trade (exports d y rin K the last fiscal year was 81.837,680,610, an increase of. $128,283,604 over the previous fiscal year. The average annual value of our imports and exports of merchanflscal y ears Prior to 1891 was $1,457,322,019. It will be observed that our foreign trade for 1892 exceeded this annual average value by $400,358,591, an increase of 27.47 per cent. The significance and value of this increase are shown by the fact that the exoess in the trade of 1892 over 1891 was wholly in the value of exports, for there was a decrease In the value of imports of $17,513,754. The value of our exports during the fiscal year 1892 reached the highest figure in the history of the government, amounting to $1,030,278,148, exceeding by $145,797,338 the exports of cee . dlnKthapValue 01 the imports by $202,875,686. A comparison of the value of our exports for 1892 with the annual average for the ten years prior to 1891 shows an excess of $265,142,071, or of 34.65 per cent. The value of our Imports ■of merchandise for 1892, which was 1829,402,462, also exceeded the annual average value of the ten years prior to 1891 by $135,215,940 During the fiscal year 1892 the value of;imports free of duty amounted to $457,999,668, the largest aggregate In the history of our commerce. The value of imports of merchandise entered free of duty in 1892 was 55.35 per cent, of the total value of imports. as compared with 43.35 per cent, in 1891. and 66 per cent, in 1896. Internal Commerce. In our coastwise trade a most encouraging development is in progress, there having been in the last four years an increase of 16 per cent. In Internal commerce the statistics show that no such period of prosperity has ever before existed. The freight carried in the coastwise trade of the great lakes in 1890 aggregated 28,195,959 tons. ••••... - On the Mississippi, Missouri and Ohio rivers and the tributaries in the same year the traffic aggregated 29,405,046 tons and the total vessel "tonnage passing through the Detroit river during that year was 21,684,000 tons. The vessel tonnage entered and cleared in the* foreign trade of London during 1890 amounted to 13,480,■JWvons, and of Liverpool 10,941,800 tons, a total tfor these two great shipping ports of 21,422,568 tops, only slightly in excess of the vessel tonnage passing through the Detroit river. And it should be said that the season of the Detroit river was but 228 days, while, of course, in London and Liverpool the season was of the entire year. The vessel tonnage passing through the St. Mary's canal of the flscal year 1892 amounted to 9.828,874 tons, and the freight , tonnage of the Detroit river is estimated for that year at 25.000,ti00 tons, against 23,209,619 totM in 1891. The aggregate traffic on our ralxroad.- for the year 1891 amounted to 704,398,009

I tons of freight, compared with 691.144,437 {QUIB 1890, an increase of 1J,0M,!7* tons (taring* liankit. Another indication of the general prosperity of the country is found in the fact that the number of depositors in savings banks increased from 603.879 in 1861 to 4.258,833 in ISM an increase of 513 per cent., and the amount of deposits from 8149.277,504 in 1860 to 81,524,844,606 In 1890. an increase of 921 per cent In 1891 the amount of deposits in savings banks wan 81,623,079,749. It is estimated that 90 per cent of these deposits represent the savings of wage earners. The bank clearances for five months ending September 30. 1891, amounted to 841,049,390,808. For the same months in 1892 they amounted to 845,189,601.947. an excess for the nine months of 81,140,211.139. An Era of Prosperity. There never has been a time in our history when work was so abundant or when wares were as high, whether measured by the currency in which they are paid or by their power to supply the necessaries and comforts of life. It is true that the market prices of cotton and wheat have been low. It is one of the unfavorable incidents of agriculture that the farmer cannot produce upon orders: he must sow and reap in ignorance of the aggregate production of the year and is peculiarly subject to the depreciation which follows overproduction. But, while the fact I have stated is true as to the crops mentioned, the general average of prices has been such as to give to agriculture a falx participation in the governmen t prosperity. Value of Farm Products. . The value of our total farm products has increased from 81,301,646.866 in 1800 to 84,600.000,000 In 1891, as estimated by statisticians, an increase of 230 per cent. The number of hogs January 1, 1891, was 50,025,106 and their value 8210,193,925; on January 1, 1892, the number was 52,398,019 and the value 8241,031,415. On January 1, 1891, the number of cattle was 36,875.648 and the value 8544,127,908; on January 1, 1892. the number was 37,661,219 and the value 8570,749,156.

American Tollers Well off. If any are discontentea with their state here; If any believe that the wages or prices, the returns tor honest toil are inadequate, they should not fail to remember that there is no other country in the world where the coiMitions tha't seem to them hard would not be accepted as highly prosperous. The English agriculturist would We glad to exchange the returns of his labor for those of the American farmer and the Manchester workmen their wages for those of their fellows st Fall river. « - Due to Protection. I beheve that the protective system which now tor something like thirty years has prevailed In our legislation has been a mighty instrument for the development of our national wealth and a most powerful agency tn protecting the homes of our workingmen from the invasion of want. I have felt a most solicitous interest to preserve to our working people rates of wages that would not only give dally bread, but supply a comfortable margin for those home attractions and family comforts and enjoyments without which life is neither hopeful nor sweet They are American citizens—a part of the great people for whom our constitution and govdrnmentwere framed and instituted—and it cannot be a perversion of that constitution to so legislate as to preserve in their homes the comfort, independence, loyalty and sense of interest in the government which are essential to good citizenship in peace and which will bring this stalwart throng, as in 1861, to the defense of the flag when it is assailed. A New Tariff Policy Demanded. It is not my purpose to renew here the argument in favor of a protective tariff. Tbe result of the recent election must be accepted as having introduced a new policy. We must assume that the present tariff, constructed upon the lines of protection, Is to be repeated ahd that there is to be substituted for it a tariff law constructed solely with reference to revenue; that the duty is to be higher because the increase will keep open an American mill or keep up the wages of an American workman, but that in every case such a rate of duty is to be imposed as will bring to the treasury of the United States the largest returns of revenue. The contention has not been between schedules, but between principles, and It would be offensive to suggest that the prevailing party will not carry Into legislation the principles advocated by it ana the pledges given to the people. The tariff bills passed by the'house of representatives at the last session were, as I supposed, even in the opinion of their promoters, inadequate, and justified only by the fact that the senate and house of representatives were not in abcord, and that a general revision coula not, therefore, be undertaken. Democrats Should Revise the Tariff. I recommend that the whole subject of tariff revision be left to the incoming congress. It is matter of regret that this work must be delayed for at least three months: for the threat of great tariff changes introduces so much uncertainty that an amount, not easily estimated, of business inaction and of diminished production will necessarily result It is possible, also, that this uncertainty may result in decreased revenues from eustc.'ns duties, for our merchants will make cautious orders for foreign goods in view of the prospect of tariff reductions and tho uncertainty as to when they will take effect. Those whp have advocated a protective tariff can well afford to have their disastrous forecasts of a change of policy disappointed. If a system of customs duties can be framed that will set the idle wheels and looms of Europe in motion and crowd our warehouses with foreign-made goods, and at the same time keep our. own mills busy; that will give us an increased participation in the “markets of the world” of greater value than the home market we surrender: that will give increased work to foreign workmen upon products to be consumed by our people without diminishing the amount of work to be done h<*re; that will enable the American manufacturer to pay to his workmen from 50 to 100 per cent more in wages than is paid in the foreign mill and yet to compete in our market and In foreign markets with the foreign producer; that will further reduce the cost of articles of wear and food without reducing the wages of those who produce them; that can be celebrated, after its effects have been realized, as its expectation has been, in European as well as in American cities, the authors and promoters of It will be entitled to the highest praise. Will Await Results. We have had in our history several experiences of the contrasted effects of a revenue and bf a protective tariff, but this generation has not felt them, and the experience of one generation is not highly instructive to the next The friends of the protective system, with undiminished confidence in the principles they have advocated, will await the results of the new experiment. The strained and too often disturbed relations existing between tho employes and tue employers in our great manufacturing establishments have not been favorable to a calm consideration by the wage-earner of the effect upon wages of the protective system. The facts I that his wages were the highest paid in like callings in the world and that a maintenance of this rate of wages, in the absence of protective duties upon the product of his labor, was impossible, were obscured by the passion evoked by these contests. He may now be able to review the question in the light of his personal experience under the operation of a tariff for revenue only. If that experience shall demonstrate that present rates of wages are thereby maintained or increased, either absolutely or in their purchasing power, and that the aggregate volume ot work to te done sh i this country is increased, or even maintained, so that there are more or m many days' work in . a year at as good or better wages f>r the Ameri lean workmen as has been tine ease under the i protective system, every one will. rejolee A , general process of wage reduction »aanotbseootemplaied by any patriotic citizen with- ; out the gravest apprehension It may be, lni deed, I believe, is possible for the American I manufacturer to compete suwewsfujly with MA i foreign rival In many branches of production, ] without the defense of projective duties, if the ’ pay rolls are equalized; but the conflict that j stands between the producer and that result ' and the distress of our working peapie when it I is attained, are not pleasant to contemplate. ; The Society of the Unemployed, now holding its ; frequent and threatening parades in the streets of foreign cities, should not be allowed to ac- ' quire an American domicile. The Administration.

The reports of the heads of the several executive departments, which are herewith submitted, have very naturally included a resume of the whole work of the administration with the transactions of the last flscal year. The attention. not only of congress, but of the country, is again invited to the methods ot administrating which have been pursued and the results which Msve been attained. Public revenues amounting to $1,414,079,292.28 have been collected and disbursed without loss from misappropriation, withput a single defalcation of such importance as to attract the public attention, arid at a diminished per cent of cost for collection. The public business has not only been transacted with fidelity but progressively and with a view of giving to the people in the fullest possible degree the benefits of a service established and maintained for their protection and comfort Foreign Relations. Ow relations with other nations are now undisturbed by any serious controversy. The complicated and threatening differences with Germany and England relating to SamoAn affairs, with England in relation to the seal fisheries in ttie Behring sea, and with Chill growlug out of the Baltimore affair, have been adjusted. Reciprocity. There have been negotiated and concluded, under section 3 of the tariff law, commercial agreements relating toxecipreeal trade with

the following countries: Brazil. Dominican RsPUMM, for Cuba and Puerto Rico, Guatental*. Salvador, the German empire. Great Britain for certain West Indian colonies and British Guiana, Nicaragua, Honduras and Aus-tria-Hungary Of these, those with Guatemala, Salvador, the German empire, Great Britain, Nicaragua, Honduras and Austria-Hungary have been concluded since my last annual messags. Under these trade arrangements a free or unfavored admission has been secured in every ease for an Important list of American products. Especial care has been taken to secure markets for farm products in order to relieve the great underlying industry of the depression which ths lack of an adequate foreign market for our surplus often brings. An opening has also been made for manufactured products that will undoubtedly,' if this policy is maintained, greatly augment oar export trade. The full benefits of these arrangements cannot be realized instantly. New lines of trade are to be opened. The commercial traveler must survey the field. The manufacturer must adapt his goods to the new markets and facilities for exchange must be established. This work has been well begun, our merchants and manufacturers have entered the new fields with courage and enterprise. In the case of food products, and especially with Cuba, the trade did not need to wait and the immediate results have been most gratifying. If this policy and those trade arrangements can be continued in force and aided by the establishment of American steatnsMp lines, I do not doubt that we shall, within a short period, secure fully one-third of the total trade of the countries of Central and South America, which now amounts to about 8600,000,000 annually. In 1885 we had only 8 per cent, of this trade. The following statistics show the Increase in our trade with the countries with which we have reciprocal trade agreements from the date when such agreements went into effect up to September 30, 1892, the increase being in some almost wholly and in others in an important degree the result ot these agreements. The domestic exports to Germany and Austria-Hungary have increased in value from 847,673.756 to 867,993,064, an increase of 810,319,308, or 2L63 per cent With American countries the value of our exports has increased from 844,160,285 to 854,613,698, an Increase of 810,453.313, er 23.67 per cent The total increase in tne value of exports to all the countries with which we have reciprocity agreements has been 820,772,621. This increase is chiefly in wheat, flour, meat and dairy products, and in manufactures of iron, steel ana lumber. There has been a large Increase in the value of .imports"from all these countries since the commercial agreements went into effect, amounting to 874,294,525, but it has been entirely in imports from the American countries, consisting mostly of su„ar, coffee, India rubber and crude drugs. The alarmed attention of our European competitors for the South American market has been attracted to this new American policy and to our acquisition and their loss of South American trade. The Seal Question. A treaty providing for the arbitration Of the dispute between Great Britain and the United States as to, the killing of seals in the Behring sea was concluded on the 29th of February last. This treaty was accompanied by an agreement prohibiting Pelagic sealing pending the arbitration, and a vigorous effort was made during this season to drive out all poaching sealers from the Behring sea. Six naval vessels, three revenue cutters and one vessel from the fish commission, all under command of Commander Evans, of the navy, were sent into the sea, which was systematically patrolled. Some seizures were made and it is believed that the catch in the Behring sea by poachers amounted to less than 500 seals. It is true, however, that in the North Pacific, white the seal herds were on their way to the passes between the Aleutian islands, a very large number, probably 35.000, were taken. The existing statutes of the United States do not restrain our citizens from taking seals in tho Pacific ocean, and perhaps should not, unless the prohibition can be extended to the citizens ot other nations. I recommend that power be given to the president (by proclamation) to prohibit the taking of seals in the North Pacific by American vessels, in case either as the result ot the findings of tho tribunal of arbitration, or otherwise, the restraints can be applied to the vessels of all countries. The case of the United States for the tribunal of arbitration has been prepared with great care and industry by Hon. John W. Foster, and the counsel who represent this government express confidence that a result substantially establishing eur claims and preserving this great industry for the benefit of all nations will be attained. Relations with Canada. During the past year a suggestion was received through the British minister that the Canadian government would like to confer as to the possibility of enlarging, upon terms of mutual advantage, the commercial exchanges of Canada and of the United States and a conference was held at Washington, with Mr* Blaine acting for this government and the British minister at this capital and three members of the Dominion cabinet acting as commissioners on the part of Gfbat Britain The conference developed the fact that the Canadian government was only prepared to offer to the United States, in exchange for the concessions asked, the admission of natural products. The statement was frankly made that favored rates could not be given to the United State, as against the mother country. This admission, which was foreseen, necessarily terminated the conference upon this question. The benefits of an exchange of natural products would be almost wholly with the people of Canada. Some other topics of interest were considered in the conference, and have resulted in the making of a convention for examining the Alaskan boundary and the waters of Passamaquoddy bay adjacent to Eastport, Me., and in the initiation of an arrangement for the protection of fish Jife in the Coterminous and neighboring waters of oar northern border. The controversy as to tolls upon the Welland canal, which was presented to congress at the last session by special message, having failed of adjustment, I felt constrained to exorcise the authority conferred upon me by the act of July 26, 1892, and to proclaim a suspension of the free use of St Mary’s Falls canal to cargoes in transit to ports in Canada. The secretary of the treasury established such tolls as were thought to be equivalent to the exactions unjustly levied upon our commerce in the Canadian canals.

If. as we must suppose, the political relations of Canada and the disposition of the Canadian government are to remain unchanged, a somewhat radical revision of our trade relations should, I think, be made. Our relations must continue to be intimate, and they should be friendly. I regret to say, however, that in many of the controversies, notably those as to the fisheries on the Atlantic, the sealing interests on the Pacific and the canal tolls, our negotiations with Great Britain have continuously been thwarted or retarded by unreasonable and unfriendly objections and protests from Canada. In the matter of the canal tolls,our treaty rights were flagrantly disregarded. It is hardly too much to say that the Canadian Pacific and other railway lines which parallel our northern boundary are sustained by commerce having either its origin or terminus, or both, in the United States. Cananian railroads compete with those of the United States for-our traffic, and without the restraints of our interstate commerce act. Their cars pass almost without detention into and out of our territory. The Canadian Pacific railway brought into the United States from China and Japan via British Columbia during the year ended June 3), 1892, 23,239,689 pounds of freight, and it carried from the United States to be shipped to China and Japan via British Columbia 24,068.346 pounds of freight There were also shipped from the United States over this road from eastern port* of the Ualted State* to our Pacific port* during the same year 13,912,073 pounds of freight and there were received over this road at the United States eastern ports from ports on the Pacific «oast 13,293,315 pounds of freight Mr. Joseph Nimtno, Jr., former chief of the bureau of statistics, before the United States select committee on relations with Canada. April 26. ‘IB9O, said that the value of goods thus transported between different points in the United States across Canadian territory probably amounts to $100,000,000 a year. There is no disposition on the part of the people or government of the United State* totaterfere in the smallpat degree with the political relations of Canada. That question iswholly with her own people. It is time for us, however, to consider whether, if the present state of things and trend of things is to continue, our interchanges upon lines of land transportation should not be put upon a different basis, and our entire independence of Canadian canals and of the St. Lawrence, as an outlet to the sea secured by the construction of an American canal around the falls of Niagara and the opening of ship communication between the great lakes and one of our own sea ports. We should not hesitate to avail ourselves of our great natural trade advantages. We should withdraw the support which is given to the. railroads and steamship lines of Canada by a traffic -that properly belongs to us, and no longer furnish the earnings which lighten the otherwise crushing weight of the enormous public subsidies that have been given to them. Ihe subject of the power of the treasury to deal with this matter without further legislation has been under consideration, but circumstances have postponed a conclusion. It is probable that a consideration of the propriety of a modification or abrogation of the article of the treaty of Washington relating to the transit of goods in bond is involved in any complete solutlon of the question. Peace with Chill. Congress at the last session was kept advised or the progress of the serious and for a time threatening differences between the United States and Chili. It gives me now great gratification to report that the Chilian government,

in • nrant friendly and honorable epfnt: has tendered and pakl as an indemnity to the families of the sailors of the Baltimore who were killed and to those who were Injured in the outbreak in the city of Valparaiso, the sum of 175,000. This has been accepted, not only as an Indemnity for a wrong done, but as a moat gratifying evidence thaw the government of Chili greatly appreciates the disposition of this government te act in a spirit of the most resolute fairness and friendliness in our intercourse with that brave people. A further and conclusive evidence of the mutual respect and confldeneenow existing is furnished by the fact that a convention submitting to arbitration the mutual claims of the citizens of the respective governments has been agreed upon. Some of these claims have been pending for many years and have been the occasion of much unsatisfactory diplomatic corresjondence. • Friendship for Sister Republics. I have endeavored in every way to assure our sister republics of Central and South America that the United States government and its people have only the most friendly disposition toward them all. We do not covet their territory. We have no disposition to be oppressive or exacting in our dealings with any of them, even the weakest. Our interests and our hopes for them aU He in the direction of stable governments by their people and of the largest development of their great commercial resources. •The mutual benefits of enlarged commercial exchanges and of a more familiar and friendly intercourse between our peoples we desire, and in this have sought their I have believed, however, while holding these sentiments in the greatest sincerity, that we must insist unon a just responsibility for any injuries inflicted upon our official representatives or upon our citizens. This insistence, kindly and justly but firmly made, will, I believe, promote peace and mutual respect.

Hawaii. i Our relations with Hawaii have been such as to attract an increased interest, and must continue to do so. I deem it of great importance that the projected submarine cable, a survey for which has been made, should be promoted. Both for naval and commercial uses we should have quick communication with Honolulu. We should before this have availed ourselves of the concession, made many years ago, to this government, for a harbor and naval station at Pearl river. Many evidences of the friendliness of the Hawaiian government have been given in the past, and it is gratifying to beHeve that the advantage and necessity of a continuance of very close relations is appreciated. Italy Is Friendly. The friendly act of this government in ex* pressing to the government of Italy its reprobation and abhorrence of the lynching of Italian subjects in New Orleans by the payment of 125,000 francs, or *24,380.90. was accepted by the king of Italy with every manifestation of gracious appreciation, and the incident has been highly promotlve of mutual respect and good will The French In Africa. In consequence of the action of the French government in proclaiming a pi electorate over certain tribal districts of the west coast of Africa, eastward of the San Pedro river. I have felt constrained to make protest against this encroachment upen the territory of a republic which was founded by cStizens of the United States and toward jyhlch this country has for many years held- the intimate relation of a friendly counselor. Good Will for Mexico. The recent disturbances of the public peace by lawless foreign marauders on the Mexican frontier have afforded this government an opportunity to testify its good will for Mexico and its earnest purpose to fulfill the obligations of internationaljfriendsbip by pursuing and dispersing the evil-doers. The work of relocating the boundary of the treaty of Guadaloupe Hidalgo, westward from El Paso, is progressing favorably. Spdin. Our intercourse with Spain continues on a friendly footing. I regret, however, not to be able to report as yet the adjustment of the claims of the American missionaries arising from the disorders at Ponape in the Caroline islands, but I anticipate a satisfactory adjustment in view of renewed and urgent representations to the government at Madrid. Intolerance in Turkey. The treatment of the religious and educational establishments of American citizens in Turkey has of late called for a more than usual share of attention. A tendency to curtail the toleration which has so beneficially prevailed is discernable and has called forth the earnest remonstrance of this government Harassing regulations in regard to schools and churches have been attempted in certain localities, but not without due protest and the assertion of the Inherent and conventional rights of our countrymen. Violations of domicile and search of the persons and effects of citizens of the United States by apparently irresponsible officials in the Asiatic vilayets have from time to time been reported. An aggravated instance of iniury to the property of American missionaries at lourdeur in the province of Konia, called forth an urgent claim for reparation which I am pleased to say was promptly heeded by the government of Porte. InterferAice with the trading ventures of our citizens in Asia Minor is also reported and the lack of:consuldr representation In that region is a serious drawback to instant and effective protection. I cannot believe that these incidents represent a settled policy and shall not cease to urge the adoption of proper remedies. International Copyright. International copyright has been extended to Italy by proclamation in conformity with the act of March 8, 1891, upon assurance being given that Italian law permits the citizens or the United States the benefit of copyright on substantially the same basis as to subjects of Italy. By a special convention, proclaimed January 15, 1892, reciprocal provisions of copyright have been applied between the United States ana Germany. Negotiations are in progress with other countries to the same end. The Nicaraguan Canal. I repeat with great earnestness the recommendations which I have made in several previous messages that prompt and adequate support be given to the American company engaged in the construction of the Nicaragua ship canal. It is impossible to overstate the value from every standpoint of this great enterprise, and I hope that there may be time, even in this congress. to give to it an impetus that will insure the early completion of the canal and secure to the United States its proper relation to it when completed.

The Monetary Conference. The congress has been already advised that the invitations of this government for the assembling oi an international monetary conference to consider the question of an enlarged issue of silver was accepted by the nations to which they were issued. The conference assembled at Brussels on the 22nd of November and has entered upon the consideration of this great question. I have not doubted, and have taken occasion to express that oelief, as well in the invitations issued for this conference as in my public messages, that the free coinage of silver upon an agreed international ratio would greatly promote the interests of our people and equally those of other nations. It is too early to predict what result may be accom plishcd by the conference. If any temporary check or delay intervenes I believe that very soon commercial conditions will compel the now reluctant governments to unite with us in this movement to secure the enlargement of the volume of money needed for the transaction of the business of the world. Our Finances. The report of the secretary of the treasury will attract especial interest in view of the many misleading statements that have been made as to the state of the public revenues. Throe preliminary facts should not only be stated, but emphasized, before looking into details: First-—That the public debt has been reduced since March 4. 1889, #259,074,200, and the annual interest charge, *11,684,469. Second—That there have been paid out for pensions during this administration up to November 1, 1892, *432,663,178.70, an excess of *114,466,386.09 over the sum expended during the period from March 1, 1885, to March 1,1889. Third —That under the existing tariff up to December 1 about #93,000,000 of revenues, which would have been collected upon .iniported sugars if the duty had been maintained, has gone into the pockets of the people and not into the public treasury as before. If there are any who still think that the surplus should have been kept out of circulation by boarding it in the treasury, or deposited in favored banks without interest, while the government continued to pay to these very banks interest upon the bonds deposited as security for the deposits, or who thinkthat the extended pension legislation was a public robbery, or that the duties upon sugar should have been maintained, lam content to leave the argument where it now rests, while we wait to see whether these criticisms will take the form of legislation. Receipts and Expenditures. The revenues for the fiscal year ending June 30, 1892, from all sources were *125,868.260.22, and the expenditures for all purposes were #415,953.806.56, leaving a balance of *9,914,453.66. There were paid during the year upon the public debt #40,570,467.98. The surplus in the treasury and bank redemption fund, passed by the act of July 14, 1890, to the general fund, furnished in large part the cash available and used for the payments made upon the public debt Compared with the year 1891, our receints from customs duties fell off *42,069,241.08, while our receipts from internal revenue increased #8,281823.13, leaving the net loss of revenue from these principal sources #33,784,417.95. The net loss of revenue from all sources was *32,675,972.81. The revenues, estimated and actual, for the fiscal year ending June 30, 1893, are placed by

tte secretary, at »4«A3«,» M, and the expenditar y at *461,336,350.44, Shewing a surplus of receipts over expenditures of. K,OR>4MO. The cash balance in the treasury at the end of the fi«al year it Is estimated will be BO.WWI* So far aa these figures are based upon estiaates of receipts and expenditures for the ,e----maliring months of the current fiscal year there are not only the usual elements of uncertainty but some added elements. New revenue legislation. or even the expectation of it, may seriously reduce the public revenues during the period of uncertainty and during the process of business adjustment to the new conditions when they become known. But the secretary has very wisely refrained from guessing as to the effect of possible changes In our revenue laws, since the scope of those changes and the time of their taking effect cannot in any degree be forecast or foretold by him. His estimates must be baqed upon existing laws and upon a continuance of existing business conditions, except so far as these conditions may be affec/tad by causes other than new legislation. The estimated receipts for the fiscal year ending Jr-e 30, 1894, are *490,121,365.38 and the estimate ppropriatlons *457,261,335.33, leaving an surplus of receipts over the expenditures of *32,860,033.05. This does not include any payment to the sinking fund. In the recommendation of the secretary that the sinking fund law be repealed I concur. The redemption of bonds since the passage of the law to June 30, 1892, has already exceeded the requirements by the sum of *990,510,681.49. The retirement .of bonds in the future before maturity should be a matter of convenience, not ot compulsion. We should not collect revenue for that purpose, but only use any casual surplus. To the balance of *32,860,030 05, of receipts over expenditures for the year 1894, should be added the estimated surplus at the beginning of the year, *20,992.377.03, and from this aggregate there must be deducted, as stated by the secretary, about *44,000,*00, of estimated unexpended appropriations. Cause of the Draiu. The public confidence in the purpose and ability of the government to maintain the parity of all our money issues, whether coin or paper, must remain unshaken. The demand for gold in Europe and the consequent calls upon us are in a considerable degree the result of the efforts of some of the European governments to increase their gold reserves, and these efforts by appropriate legislation upon our port The conditions that have created this drain of the treasury gold are in an important degree political, ana not commercial. In view of the tact that a general revision of our revenue laws in the near future seems to be probable, it would be better that any changes should be a part of that revision rather than of a temporary nature. The Silver Question. During the last fiscal year the secretary purchased under the act of July 14, 1890, 54,355,743 ounces of silver, and issued in payment therefor *51,100,608 in notes. The total purchases since the passage of the act have been 120,479,and lhe aggregate of notes issued *116,783,590. The average price paid for silver during the year was 94 cents per ounce, the highest price being 41.02« July 1, 1891, and the lowest *0.83 March 21, 1892. In view of the fact that the monetary conference is now sitting ana that no conclusion has as yet been reached, I withhold any recommendation as to the legislation upon this subject. The War Department. The report of the secretary of war brings again to the attention of congress some important suggestions as to the reorganization of the infantry and artillery arms pt the service, which his predecessors have before urged that they be pressed. Our army is small, but its organization should all the more be put upon the most approved modern basis. The conditions upon what we have called the “frontier” have heretofore required the malntentCnce of many small army posts, but now the policy of centralization is obviously the right one. The new posts should have the proper strategic relations to the only “frontiers,” we now have, those of the sea coast and of the northern and part of our southern boundary. I do not think that any question of advantage in localities or states should determine the location of the new posts. The organization and the enlargements of the bureau of military information which the secretary has effected is a work the usefulness of which will become every year more apparent. The work of building heavyguns and the construction of coast defenses has been well begun and should be carried on without check. Department of Justice. The report of the attorney general is by law submitted directly to congress, but I cannot refrain from saying that he has conducted the increasing work of the department of justice with great professional skill He has in several directions secured from the courts decisions giving increased protection to the officers of the United States and bringing some classes of crime that escaped local cognizance and punishment unto the tribunals of the United States, where they could be tried with Impartiality. The numerous applications for executive clemency presented in behalf of persons convicted in the United States courts and given penitentiary sentences have called my attention to a fact referred to by the attorney general in His report, namely, that a time allowance for good behavior for such prisoners is prescribed by the federal statutes only where the state in which the penitentiary is located had made no such provision. Prisoners are given the benefit of the provisions of the state law regulating the penitentiary to which they may be sent These are various, some perhaps too liberal and some perhaps - too Illiberal. The result is that a sentence for five years means one thing if the prisoner is sent to one state for confinement and quite a different thing it he Is sent to another. I recommend that a uniform credit for good behavior .be prescribed by congress. I have before expressed my concurrence in the recommendation of the attorney general that degrees of murder should be recognized in federal states as tljey are, I believe, in all ot the states. These grades are founded on various distinctions in crime. The recognition of them would enable the courts to exercise some discretion in apportioning pun'shment and would greatly relieve the executive of what is coming to be a very heavy burden—the examination of these cases on application for commutation. The aggregate of claims pending against the government ta the court of claims is enormous. Claims to the amount of nearly *400,000,000 for the taking of or injury to the property of persons claiming to be loyal during the war are now before the court for examination. When to these are added the Indian depredation claims, and the French spoliation claims an aggregate is reached that is indeed startling. In the defense of these claims the government is at a disadvantage. The claimants have preserved their evidence, whereas the government has to send agents to rummage lor what they can find. This difficulty is peculiarly great where the fact to be established is the disloyalty of the claimant during the war. • If this great threat against our revenues is to have no other check certainly congress should supply the department of justice with appropriations sufficiently liberal to secure the best legal talent in the defense of thesb claims and to pursue its vague search for evidence effectively.

The Postal Service. The report ot the postmaster general shows a most gratifying increase and a most efficient and progressive management of the great business of that department. The remarkable increase in revenues, in the number of post offices and in the miles of mall interchange furnishes further evidences of the high state of prosperity which our people are enjoying. New offices mean new hamlets, towns routes mean the extension of our border settlements and increased revenues mean an active commerce. The postmaster general reviews the whole ported of his administration of the office and brings some of his statistics down to the month of November last. The postal revenues have increased during the last year nearly *5,000,600. The deficit for the year ending June 30, 1892, is *818,841 less than the deficiency of the preceding year. The deficiency of the present fiscal year, it is estimated, wIU be reduced to *1,552,423, which will not only be extinguished during the next fiscal year, but a surplus of nearly *1,060,000 should then be shown. In these calculations the payments to be made under the contracts for ocean mail service have not been Included. There have been added 1,590 new mail routes during the year, with a mileage of 8,663 miles, and the total number of new miles of mall trips added during the year is nearly 17,000,000. The number of miles of mail journeys added during ths last four yearsrts about 76.0J0,000, this addition being 21,000.006 of miles more than were in operation in the whole country in 1861. . oi P° Bt °®ces has been increased by 2.790 during the year: and during the past four years and up to October 29 last the total increase in the number of offices has been nearly 9,000. The number of free delivery offices has been nearly doubled in the past four years, and the number of money order offices more than doubled within that tune. For the three years ended June 30. 1892, the postal revenue amounted to *197,744,359, which was an increase of 852,2*3,150 over the revenue for the three years ended June 30,1888, the increase during the last three years being more than threfe and a half limes as great as “J® i ”® rea $® durln s the three years ended June 30. 1898. No such increase as that shown for the past three years has over previously appeared in the revenues of the department. The postmaster general has extended to the post offices in the larger cities the merit system of promotion, introduced by my direction into the department here, and it has resulted there, as in the departments, in a large volume of work and that better done. Foreign Mail Service. Ever since our merchant marine was driven from the sea by the rebel cruisers during the war of the rebellion, the United States thus

paytag an rmrartfcj annual Mbute to fotteigd countries in lhe ahape of ta&tt and pakMge moneys, our grain and meats Save been taken at our own docks, ind our large import* there UM down by foreign strip masters. An increasing torrent of American travel to Europe has contributed a vast sum annually to the dividends ot foreign ship owners. The balance of trade shown by the books of our custom houses has been largely reduced and in many years altogether extinguished by this constant strain. In the year 1892 only 12“ per cent, of our imports were brought in American vessels. Theas great foreign steamships maintained by our traffic are many of them under contracts with their respective governments by which in time of war they will become a part of their armed naval establishments. Profiting by our commerce in peace, they will become the most formidable destroyers of our commerce in time of war. I have felt and have before expressed the feeling that this condition ot things was both intolerable and disgraceful A wholesome change ot policy and one having in it much promise, as it seems to me, was begun by the law of March 3, 1891. Under this law contracts have been made by the postmaster general for eleven mail routes. The expenditure involved by these contracts for the next fiscal year approximates *954,123.33. As one of the results already reachedrsixteen American steamships, an aggregate tonnage of 57,490 tons, costing *7,400,000, havt been built or contracted to be built in American ship yards. The estimated tonnage of all steamships required under existing contracts is 165,802, and when the full service required by these contracts is established there will be forty-one mail steamers under the American flag, with the probability of further necessary additions in the Brazilian and Argentine service. The contracts recently let for trans-Atlantic service will result in the construction of five ships of ten thsusand tons each, costing *9,000,000 or *10,000,009, and will add, with the City of New York and City of Paris, to which the treasury department was authorized by legislation at the last session to give American registry, seven of the swiftest vessels upop the sea to our naval reserve. The contracts made with the lines sailing to Central and South American ports have increased the frequency and shortened the time of the trips, added new ports of call, and sustained some lines that otherwise would almost certainly have been withdrawn. The service to Buenos Ayres is the first to the Argentine Republic under the American flag. The service to Southampton, Boulogne and Antwerp is also new, and ts to be begun with steamships City of New York and City .of Paris in February next. I earnestly urge a continuance of the policy inaugurated by this legislation and that the appropriations required to meet the obligations of the government under the contracts may be made promptly, so that the lines that have entered into these engagements may not be embarrassed. We have had, by reason of connections with the transcontinental railway lines constructed through our own territory, some advantages in the ocean trade of the Pacific that we did not possess on the Atlantic. The construction of the Canadian Pacific railway and the establishment under large subventions from Canada and England of fast steamship service from Vancouver with Japan and China seriously threaten our shipping interests in the Pacific. This Une of English steamers receives, as is stated by the commissioner ot navigation, a direct subsidy bf *400,090 annually, or *30,767 Ser trip for thirteen voyages, in edition to some further aid from the admiralty in connection with contracts under which the vessels may be used for naval purposes. The competing American Pacific mail line, under the act of March 3,1891, receives only *6,389 per round trip Efforts have been making within the last year, as I urn informed, to establish under similar conditions a line between Vancouver and some Australian port with a view to seizing there a trade in which .we have had a large interest. The commissioner of navigation states that a very large per cent, of our imports from Asia are now brought to us by English steamships and their connecting railways in Canada. With a view of promoting this trade, especially in tea, Canada has imposed a discriminating duty of 10per cent, upon tea and coffee brought into the dominion from the United States. If this unequal contest between American lines, without subsidy, or with diminished subsidies, and the English Canadian line to which I have referred is to continue, I think we should at least see that the tacilities for customs entry and transportation. across our territory are not such as to make the Canadian route a favored one. and ' that the discrimination as to duties, to which I have referred, is met by a like discrimination as to the importation of these articles from Canada

Our Merchant Marine. No subject, I think, more nearly touches the pride, the power and the prosperity of our country than this of the development of our merchant marine upon the sea. If we could enter into conference with other*competitors and all would agree to withhold government aid we could perhaps take our chances with the rest, but our great competitors have established and maintained their lines by governmenrisubsidies until now they have practically excluded us from participation. In my opinion no choice is left to us but to pursue. Moderately at least, the same lines. The Navy. The report of the secretary of the navy exhibits great progress in the construction of our new navy. When the present secretary entered upon his duties only three modern steel vessels were in commission. The vessels since put in commission and to be put in commission during the winter will make a total of nineteen during his administration of the department. During the current year ten war vessels and three navy tugs have been launched and during the four years twenty-five vessels will have been launched. Two other large ships and a torpedo boat are under contract and the work upon thorn well advanced, and the four monitors are fcwaitlng only the 1 arrival of their armor which has been unexpectedly delayed or they would have been before thia ip commission. t /(Contracts have been let during this administration under the appropriations for the in Crease for tie navy including new vessels and their appurtenances to the amount of *35,000,000, and there has been expended during the same period for labor at navy yards upon similar work 58,000,000 without the smallest scandal or charge of fraud or partiality. The enthusiasm an t interest of our naval officers, both of the staff and line, have been greatly kindled. They have responded magnificently to the confidence of congress and have demonstrated to the world an unexcelled capacity in construction, in ordnance, and in everything involved in the building, equipping, and sailing of great warships. At the beginning of Secretary Tracy’s administration several difficult problems remained to be grappled with and solved before the efficiency m action of our ships could be secured. It is believed that as the result of new processes in the construction of armor plates our later snips will be clothed with defensive plates of higher resisting power than are found on any war vessel’ afloat. We were without torpedoes. Tests have been made to ascertain the relative efficiency ot different constructions, a torpedo has been adopted and the work of construction is being carried on successfully. We were without armor-piercing shells and without a shop constructed and equipped for the construction of them We are now making what is believed to be a projectile superior to any before in use. A smokeless powder has been developed and a slow-burning powder for guns of large caliber. A high explosive, capable of use In shells fired from service guns, has been found, and the manufacture of gun cotton has been developed, so that the question of supply is no longer in doubt. The development of a naval militia, which has been organized in eight states and brought into cordial and cooperative relations with the navy, ts another important achievement. There are now enlisted in these organizations 1.800 men and they are likely (o be greatly extended. I recommend such legislation and appropriations as will encourage and develop this naavement The recommendations of the secretary will, I do not doubt, receive the friendly consideration es Congress, for he has enjoyed, as he has deserved, the confidence of all those interested in the development of ou» navy without any division upon partisan lines. I earnestly express the hope that a work which has made such noble progress may not now be stayed. The wholesome influence for the peace and the increased sense of security which our citizens domiciled in other lands feel when these magnificent ships under • the American flag appear is already most gratefully apparent. The ships from our navy which will appear in tWF great naval parade next April in the harbor vs New York will be a convincing demonstration to the world that the United States is again a naval power. The Interior. The work of the interior department, always very burdensome, has even larger than ever before, during the administration of Secretary Noble. The disability pension law, the taking of the Eleventh census, the opening of vast areas of Indian lands to settlement, the organization of Oklahoma, and the i-ygotiations for the cession ot Indflin lands furnish some of the particulars ot the increased work: and the results achieved testify to the ability,. fidelity and industry of the bead of the department and his efficient assistants. * Indian Lands. Several important agreements for the cession of Indian lands negotiated by the commission appointed under the act of March 2. 1889. are awaiting the action of congress. Perhaps the most important cf these is that for the cession of the Cherokee strip. This regicn has been the source of great vexation to the executive