People's Pilot, Volume 6, Number 25, Rensselaer, Jasper County, 10 December 1896 — EXECUTIVE VIEWS [ARTICLE]

EXECUTIVE VIEWS

On the Momentous Subjects Before the People. THE PRESIDENT'S ANNUAL MESSAGE Insurgent Sympathizers Will Not Find Very Much Comfort in the Document NO BEOOGNITION FEOM UNCLE SAM the Insurgents Have Not Yet Made Good Their Title-To Be Regarded aa an Independent State—The President Recommends the Retirement of the Greenbacks as a Remedy for the Financial Situation —The Venezuela Boundary Dispute—The Wilson Tariff Bill Favored—Legislation for Control of Trust*. ■ Washington, Dec. 7.—Following is the final message of President Cleveland to congress: To the Congress of the United States: As representatives of the people in the legislative branch of their government you have assembled at a time when the strength and excellence of our free Institutions and the fitness of our citizens to enjoy popular rule have been again made manifest. A political contest involving momentous consequences, fraught with feverish apprehension, and creating aggressiveness so intense as to approach bitterness and passion, has been waged throughout our land and determined by the decree of free and Independent suffrage without disturbance of our tranquillity or the least sign of weakness in our national structure. When we consider these Incidents and contemplate the peaceful obedience and manly submission which have succeeded a heated clash of political opinions we discover abundant evidence of a determination on the part of our countrymen to abide by every verdict of the popular will, and to be controlled at all times by an abiding faith In the agencies established. Thus our people exhibit a ‘ patriotic disposition which entitles them to demand of those who undertake to make and execute their laws such faithful and unselfish service in their behalf as can only be prompted by a serious appreciation of the trust and confidence which the acceptance of public duty invites. The president then says that in obedience to constitutional requirement he submits certain Information as to national affairs with such suggestions as his judgment approves, and that he shall omit details regarding domestic and foreign matters that are contained in departmental and other reports submitted to congress. He then refers to Turkey and 'the Armenians, stating that he would like to assure congress that the European powers having treaty rights to interfere had mitigated the shocking features of the situation. This he says has not been done and that reports of bloody butcheries are still all too frequent. With reference to our own action he says we have left nothing undone to protect those coming under our care, and that our efforts will not be relaxed. The claim of American citizens for indemnity for loss of property will be pressed, although the validity of these demands has not been admitted by Turkey, In spite of the strongest evidence of the actual complicity of Turkish soldiers in the destruction. Happily no American life has been taken. He closes as follows on the subject: I do not believe that the present somber prospect in Turkey will be long permitted to offend the sight of Christendom. It so mars the humane »nd ' enlightened civilization that belongs to the close of the nineteenth century that it seems hardly possible that the earnest demand of good people throughout the Christian world for Its corrective treatment will remain unanswered.

TACKLES THE CUBAN QUESTION. Not Much Comfort for the Followers of Maceo and Gomez. The president then takes up the Cu,ban question, and says: The insurrection in Cuba still continues with all its perplexities. It is difficult to see that any progress has thus far been made towards the pacification -of the island or that the situation of affairs as depicted In my last annual message has in the least improved. If Spain still holds Havana and the seaports and all the considerable towns, the insurgents still roam at will over at least two-thirds of the inland country. If the determination of Spain to put down the insurrection seems but to strengthen with the lapse of time, and is evinced by her unhesitating devotion of largely increased military and naval forces to the task, there is much reason to believe that the insurgents have gained in point of numbers and character and resources, and are none the less inflexible in their resolve not to succumb without practically securing the great objects for which they took up arms. If Spain has not yet re-established her authority, neither have the insurgents yet made good their title to be regarded as an independent state. Indeed, as the contest has gone on the pretense that civil government exists on the Island, except so far as Spain is able to maintain it, hds been practically abandoned. Spain does keep on foot such a government, more or less imperfectly, In the large towns and their Immediate suburbs. But that exception being made, the entire country Is either given over to anarchy or is subject to the military occupation of one or the other party. It is reported, indeed, on reliable authority that at the demand of the commander-In-chlef of the insurgent army the putative Cuban government has now given up all attempt to exercise Its functions, leaving that government confessedly (what there is the best reason for supposing it always to have been, in fact,) a government merely on paper. Were the Spanish armies able to meet their antagonists In the open or pitched battle prompt and decisive results might be looked for, and the immense superiority of the Spanish forces in numbers, discipline and equipments could hardly fail to tell greatly to their advantage. But they are called upon to face a foe that shuns general engagements, that can choose and does choose its own ground, that from the nature of the country Is visible or Invisible at pleasure, and that fights only from ambuscade, and when all the advantage of position and numbers are on its side In a country where all that Is indispensable to life in the w§y of food, clothing and shelter is so easily obtainable, especially by those born and bred on the soil, it is obvious that there is hardly a limit to the time during which hostilities of this sort may be prolonged. Meanwhile, as In all cases of protracted civil strife, the passions of the combatants grow mpre and more inflated and excesses on both sides become more frequent and more deplorable. They are also participated In by bands of marauders who, now In the name of one party and now In the name of the other, as may best suit the occasion, harry the country at will and plunder its wretched inhabitants

for their own advantage. Such a condition of things would inevitably entail immense destruction of property, even if it was the policy of both parties to prevent it as far as practicable. But while such seemed to be the original policy of the Spanish government it has now apparently abandoned it, and is acting upon the same theory as the insurgents, namely: that the exigencies of the contest require the wholesale annihilation of property that it may not prove of use and advantage of the enemy. The president then goes on to say that the result of this policy will be the ruin of the entire island, and refers to our money Interest In Cuba, estimated at from 530,000,000 to $50,000,000; also to the difficulty and oost of preventing filibustering, with the people’s sympathies all with the rebels, together with the continual appeals tor the protection by the United States of CubanAmericans. He says that the United States has been very forbearing in the matter, and that no other nation would have stood off so long. He continues as follows: , It was at first proposed that belligerent rights should be accorded to the Insurgents—a proposition no longer urged because untimely and \n practical operation clearly perilous and injurious to our own interests. It has since been and is now sometimes contended that the Independence of the Insurgents should be recognized. But Imperfect and restricted as the Spanish government on the island may be no other exists there —unless the will of the military officer in temporary command of a particular district can ,be dignified as a species of government. It Is now also suggested that the United States should buy the island —a Suggestion possibly worthy of consideration If there were any evidence of a desire or willingness on the part of Spain to entertain such a proposal. It is urged finally, that all other metods failing, the existing Internecine strife in Cuba should be terminated by our intervention, even at the cost of a war between the United States and Spain—a war which Its advocates confidently prophesy could be neither large in Its proportions nor doubtful In its Issue. The correctness of this forecast need be neither affirmed nor denied. The United States has nevertheless a character to maintain as a nation, which plainly dictates that right and not might should be the rule of Its conduct. * * *

Proceeding the president refers to the determination of Spain to Insist that the rebels shall lay down their arms before she grants the reforms which he gives her credit for being willing to grant, and thinks that determination not reasonable and adds: It was intimated by this government to the government of Spain some months ago that If a satisfactory measure of home rule were tendered the Cuban insurgents and would be accepted by them upon a guaranty of its execution, the United States would endeavor to find a way not objectionable to Spain of furnishing such guaranty. While no definite response to this Intimation has yet been received from the Spanish government, it is believed to be not altogether unwelcome, while no reason Is perceived why It should not be approved by the Insurgents. * * * Whatever circumstances may arise our policy and our interests would constrain us to object to the acquisition of the island or the interference with' its control by any other power. It should be added that it cannot be reasonably assumed that the hitherto expectant attitude of the United States will be Indefinitely maintained * * * When the Inability of Spain to deal successfully with the Insurrection has become manifest, and it is demonstrated that her sovereignty Is extinct In Cuba for all purposes of Its rightful existence, and when a hopeless struggle for its re-establishment has degenerated into a strife which means nothing more than the useless sacrifice of life and the utter destruction of the very subject matter of the conflict, a situation will be presented In which our obligations to the sovereignty of Spain will be superseded by higher obligations,' which we can hardly hesitate to recognize and discharge. Deferring the choice of ways and methods until the time for action arrives, we should make them depend upon the precise conditions then existing; and they should not be determined upon without giving careful heed to every consideration Involving our honor and Interest, or the International duty we owe to Spain. Until we face the contingencies suggested, or the situation is by other Incidents imperatively changed, we should continue in the line of conduct heretofore pursued, thus in all circumstances exhibiting our obedience to the requirements of public law and our regard for the duty enjoined upon us by the position we occupy in the family of nations. VENZUELAN BOUNDARY QUESTION. An Incident That Is Nearly Closed—Som# Tall* About Seals. The Venezuelan boundary question has ceased to be a matter of difference between Great Britain and the United States, their respective governments haviqg agreed upon the substantial provisions of a treaty between Great Britain and Venezuela submitting the whole controversy to arbitration. The provisions of the treaty are so eminently just and fair, that the assent of Venezuela thereto may confidently be anticipated. Negotiations for a treaty of general arbitration for all differences between Great Britain and the United States are far advanced and promise to reach a successful cansummation at an early date. With the foregoing the whole subject is dismissed and the president takes up the subject of reform in the consular service, which he advocates on merit system lines, and also urges the providing of residences for our ambassadors abroad. Then he takes up the seal question and says: We have during the past year labored faithfully and against unfavorable conditions to secure better preservation of seal life in the Behring sea. Both the United States and Great Britain have lately dispatched commissioners to these waters to study the habits and condition of the seal herd and the causes of their rapid decrease. Upon the reports of these commissioners, soon to be submitted, and with the exercise of patience and good sense on the part of all interested parties, It Is earnestly hoped that hearty co-opera-tion may be secured for the protection against threatened extinction of seal life in the northern Pacific and Behring sea. SUBJECT OF GREAT INTEREST Takes Up the Tariff and Argues In Favor of the Wilson Bill. The president next takes up domestic finances and prefaces his suggestions with a statement of the national balance sheet, and of ■ collecting the revenue, exports of gold and Imports of same, together with the production of precious metals at home and abroad. He shows a deficit for the year of $25,203,245.70. He then refers to all the departments of government in turn and finally takes up the tariff as follows: I desire to recur to the statements elsewhere made concerning the governments’s receipts and expenditures for the purpose of venturing upon some suggestions touching our present tariff law and its operation. This statute took effect on the 26th day of August, 1894. Whatever may be its shortcomings cub

a complete measure of tariff reform it must be conceded that it has opened the way to a freer and greater exchange of commodities between us and other countries, and thus furnished a wider market for our products and manufactures. The only entire fiscal year during whleh this law has been in force ended on the 30th day of June, 1896. In that year our imports Increased over those of the previous year more than $6,600,000, while the value of the domestic products we exported and which found markets abroad was nearly $70,000,000 more than during the preceding year. Those who Insist that the cost to our people of articles coming to them from abroad for their needful use should only be Increased through tariff charges to an extent necessary to meet the expenses of the government, as well as those who olalm that tariff charges may be laid upon such articles beyond the necessities of government revenue, and with the additional purpose of so increasing their price in our markets as to gtve American manufacturers and producers better and more profitable opportunities, must agree that our tariff laws are only primarily Justified as sources of revenue to enable the government to meet the necessary expenses of Its maintenance. Considered as to Its sufficiency tn this respect the present law can by no means fall under Just condemnation. During the only complete fiscal year of its operation It has yielded nearly $8,000,000 more revenue than was received from tariff duties In the preceding year. There was, nevertheless, a deficit between our receipts and expenditures of a little more than $26,000,000. This, however, was not unexpected. The situation was such in December, seven months before the close of the fiscal year, that the secretary of the treasury foretold a deficiency of $17,000,000. The great and increasing apprehension and timidity in business circles and the depression In all activities intervening since that time, resulting from causes, perfectly well understood and entirely disconnected with our tariff law or its operation, seriously checked the Imports we would have otherwise received, and readily account for the difference between this estimate of the secretary and the actual deficiency, as well as for a continued deficit. Indeed, it must be confessed that we could , hardly have had a more unfavorable period than the last two years for the collection of tariff revenue. We can not reasonably hope that our recuperation from this business depression will be sudden, but It has already set In with a promise of acceleration and continuance. , I believe our present tariff law, If allowed a fair opportunity, will In the near future yield a revenue which, with reasonable economical expenditures, will overcoihe all deficiencies. In the meantime no deficit that has occurred or may occur need excite or disturb us. To meet any such deficit we have In the treasury, In addition to a gold reserve of $100,000,000, a surplus of more than $128,000,000 applicable to the payment of the expenses of the government, and which must, unless expended for that purpose, remain a useless hoard, or If not extravagantly wasted must In any event be perverted from the purpose of Its exaction from our people. The payment, therefore, of any deficiency in the revenue from this fund is nothing more than Its proper and legitimate use. The government thus applying a surplus fortunately in Its treasury to the payment of expenses not met by its current revenues Is not at all to be likened to a man living beyond hla Income and thus incurring debt or encroaching on Its principal It Is not one of the functions of our government to accumulate and make additions to a fund not needed for Immediate expenditure. With Individuals It Is thfe chief I object of struggle and effort. The apI plication of an accumulated fund by I the government to the payment of Its running expenses is a duty. An Individual living beybnd his income and embarrassing himself with debt, or drawing upon his accumulated fund of principal is either unfortunate or Improvident. The distinction Is between a government charged with the duty of expending for the benefit of the people and for proper purposes all the money It receives from any source, and the individual who is expected to manifest a natural desire to aviod debt or to aceumlate as much as possible, and to live within the Income derived from such accumulations, to the end that they may be Increased, or at least remain unimpaired for the future use and enjoyment of himself and the objects of his love and affection who may survive him. It is Immeasurably better to appropriate our surplus to the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravagant expenditures. I suppose it will not be denied that under the present law our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly. This is a matter of supreme importance, since it is the palpable duty of every just government to make the burdens of taxation as light as possible. The people should not be required to relinquish this privilege of cheap living except under the stress of their government’s necessity made plainly manifest.

DISCUSSES FINANCIAL AFFAIRS And Repeat* That the Remedy I* the Retirement of Greenbacks. This reference to the condition and prospects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods. They have been frequently pressed upon the attention of congress In previous executive communications and the inevitable danger of their continued toleration pointed out. Without now repeating these details I cannot refrain from again earnestly presenting the necessity of the prompt reform of a system opposed to every rule of sound finance', and shown by experience to be fraught with the gravest peril and perplexity. The terrible civil war which shook the foundations of our government more than thirty years ago brought in its train the destruction of property, the wasting of our country’s substance and the estrangement of brethren. These are now past and forgotten. Even the distressing loss of life the conflict entailed is but a sacred memory, which fosters patriotic sentiment and keeps alive a tender regard for those who nobly died. And yet there remains with us today, in full strength and activity, as an incident of that tremendous struggle, a feature of its financial necessities not only unsuited to our present circumstances but manifestly a disturbing menace to business security and an ever-present agent of monetary distress. Because we may be enjoying a temporary relief from its depressing influence, this should not lull us into a false security nor lead us to forget the suddenness of past visitations. lam more convinced than ever that we can have no assured financial peace and safety until the government currency obligations upon which gold may be demanded from the treasury are withdrawn from circulation and cancelled. This might be done, as has been heretofore recommended, by their exchange for long term bonds bearing a low rate of Interest, or by their redemption with the proceeds of such bonds. Even If only the United States notes known as greenbacks were thus retired it is probable that the treasury

notes Issued In payment of sliver purchases undtt the act of July 14, 1890, now paid in gold when demanded, would not create much disturbance, as they might from time to time, when received in the treasury by redemption in gold or otherwise, be gradually and prudently replaced by silver coin. This plan of issuing bonds for the purpose of redemption certainly appears to be the most effective ana direct path tothe needed reform. In default of this, however, It would be a step In the right direction if currency obligations redeemable In gold, whenever so redeemed, should be cancelled instead of being reissued. This operation would he a slow remedy, but it would improve present conditions. National banks should redeem their own notes. They should be allowed to Issue circulation to the par value of bonds deposited as security for its redemption, and the tax on their circulation should be reduced to one-fourth of 1 per cent. In considering projects of the retirement of United States notes and treasury notes Issued under the law of 1890, I am of the opinion that we have placed too much stress upon the danger of contracting the currency, and have calculated too little upon the gold that would be added to our circulation if Invited to us by better and safer financial methods. It is not so much a contraction of our currenoy that should be avoided as Its unequal distribution. This might be obviated, and any fear of harmful contraction at the Bame time removed, by allowing the organization of smaller banks in less populous communities than are now permitted, and also authorizing existing banks to establish branches In small communities under proper restrictions. The entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our government abandons the banking business and the accumulation of funds, and confines its monetary operations to the receipt of the money contributed by the people for Its support, and to the expenditure of such money for the people’s benefit. Our business Interests and all good citizens long for rest from feverish agitation, and the inauguration by the government of a reformed financial policy whiciv will encourage enterprise and make certain the rewards of labor and industry.

INTERESTING STATISTICS. Some Figures as to Our Income and Outgo of Money. The statistics of national Income and outgo, etc., given by the president are as follows: The secretary of the treasury reports that during the fiscal year ended June 30, 1896, the receipts of the government from all sources amounted to $409,476,408.78. During the same period its expenditures were $434,678,664.48, the excess of expenditures over receipts thus amounting to $25,203,245.70. The ordinary expenditures during the year were $4,015 852.21 less than during the preceding fiscal year. Of the receipts mentioned there was derived from customs the sum of $180,021,751.67, and from Internal revenue $146,830,615.66. The receipts from customs show an Increase of $7,863,134.22 over those from the same source for the fiscal year ended June 30,1895, and the receipts from Internal revenue an inorease of $3,684,537.91. The value of our Imported dutiable merchandise during the last fiscal year was $369,767,470, and the value of free goods imported $409,967,470, being an increase of $6,623,675 in the value of dutiable goods and $41,231,034 in the value of free goods over the preceding year. Our exports of merchandise, foreign and domestic, amounted in value to $882,606,938, being an Increase over the preceding year of $75,068,773. The average ad valorum duty paid on dutiable goods Imported during the year was 39.94 per cent., and on free and dutiable goods taken together 20.55 per cent. The oost of collecting our Internal revenue was 2.78 per cent., as against 2.81 per oent. for the fiscal year ended June 30, 1895. The total production of distilled spirits, exclusive of fruit brandies, was 88,588,703 taxable gallons, being an Increase of 6,639,108 gallons over the preceding year. There was also an increase of 1,443,676 gallons of spirits produced from fruit, as compared with the preceding year. The number of barrels of beer produced was 35,859,250, as against 33,589,784 produced In the preceding fiscal year, being an Increase of 2,269,466 barrels. The total amount of gold exported during the last fiscal year was $112,409,947 and of silver $60,541,670, being an increase of $45,941,466 of gold and $13,246,384 of silver over the exportations of the preceding fiscal year. The imports of gold were $33,525,065 and of silver $28,777,186, being $2,589,695 less of gold and $8,566,007 more of sliver than during the preceding year. The total stock of metallic money in the United States at the close of the last fiscal year, ended on the 30th day of June, 1896, was $1,228,326,035, "of which $599,597,964 was in gold, and $628,728,071 in silver. On the Ist day of November, 1896, the total stock of money of all kinds in the country was $2,285,410,690 and the amount Jn circulation, not including that in the treasury holdings, was sl,627,055,641, being $22.63 per capita upon an estimated population of 71,902,000. The production of the precious metals in the United States during the calendar year 1895 is estimated to have been 2,254,760 fine ounces of gold, of the value of $46,610,000, and 55,727,000 fine ounces of silver, of the commercial value of $36,446,000 and the coinage value of $72,051,000. The estimated production of these metals throughout the world during the same period was 9,688,821 fine ounces of gold, amounting to $200,285,700 in value, and 169,189,249 fine ounces of silver, of the commercial value of sllO,654,000 and of the coinage valueof $218,738.100 according to our ratlo.k These coinage of these metals in the various countries of the world during the same calendar year amounted to $232,701,438 in gold and $121,996,219 in silver. ** • ••••••• * * The total outstanding circulating notes of all national banks on the 31st day of October, 1896, amounted to $234,553,807, including unredeemed but fully secured notes of banks insolvent and in process of liquidation. The increase in national bank circulation during the year ending on that day was $21,099,429. On Oct. 6, 1896, when the condition of national banks was last, reported, the total resources of the 3,679 active institutions was $3,263,685,313.83, which included in loans and discounts and $362,165,738.85 in money of all kinds on hand. Of their liabilities $1,597,891,058.03 was due to individual depositors and $209,944,019 consisted of outstanding circulating notes. TAKES A WHACK AT TRUSTS, Recommend* That Congress Legislate for Their Control. Another topic in which our people rightfully take a deep interest may be here briefly considered. I refer to the existence of trusts and other huge aggregations of capital the object of which is to secure the monopoly of some particular branch of trade, industry or commerce, and so stifle wholesome competition. When these are defended It is usually on the ground that though they Increase profits they also reduce prices and thus may benefit the public. It must be remembered, however, that a reduction of prices to the people is not one of the real objects of these organizations, nor is their ten-

dency necessarily in that direction. If it occurs in a particular case it is only because it acouvds with the purpose or interest of those managing the scheme. Such occasional results fall far short of compensating the palpable evils charged to the account of trusts and monopolies. Their tendency Is to crush out individual independence and to hinder or prevent the free use of human faculties and the full development of human character. Through them the farmer, the artisan and the small trader Is In danger of dislodgement from the proud position of being his own master, watchful of all that touches his country’s prosperity. In which he has an individual lot. and Interested in all that affects the advantages of business of which he Is a factor, to be relegated to the level of a mere appurtenance to a great machine, with little free will, with no duty but that of passive obedience, and with little hope or opportunity of rising In the scale of responsible and helpful citizenship. To the instinctive belief that such is the Inevitable trend of trusts and monopolies is due the wide-spread and deep-seated popular aversion in which they are held, and the not unreasonable insistence that, whatever may be their incidental economic advantages, their general effect upon personal character, prospects and usefulness can not be otherwise than injurious. Though congress has attempted to deal with this matter by legislation, the laws passed for that purpose thus far have proved Ineffectual, not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach the difficulty. If the insufficiencies of existing laws oan be remedied by further legislation it should be done. It should be reoognized, however, that all federal legislation on this subject may fall short of its purpose because of inherent obstacles, and also because of the complex character of our government system, which, while making the federal authority supreme within its sphere, has carefully limited that fear by metes and bounds which cannot be transgressed. The decision of our highest court on this precise question renders It quite doubtful whether the evils of the trusts and monopolies can be adequately treated through federal action, unless they seek directly and purposely to Include in their objects transportation or intercourse between states, or between the United States and foreign countries. It does not follow, however, that this is the limit of the remedy that may be applied. Even though It may bq found that federal authority Is not broad enough to fully reach the case, there can be no doubt of the power of the several states to act effectively In the premises, and there should be no reason to doubt their willingness to Judiciously exercise such power. REFERS TO VARIOUS SUBJECTS Some Remark* on Pension*, tbs Navy, Fortification*, Etc. The diminution of our enormous pension roll and the decrease of pension expenditure which have been so often confidently foretold, still fail In material realization. The number of pensioners on the rolls at the close of the fiscal year ended June 30, 1896, was 970,678. This Is the largest number ever reported. The amount paid exclusively for the pensions during the year was $138,214,761.94, a slight decrease from that of the preceding year, while the total expenditures on account of pensions, including the cost of maintaining the department an<J expenses attending pension distribution amounted to $142,206,560.59, or within a very small fraction of one-third of the entire expense of supporting the government during the same year. The number of new pension certificates issued was 90,640. Of these, 40,374 represent original allowances of claims and 15,878 Increase of existing pensions. The number of persons receiving pensions from the United States, but residing in foreign countries at the close or the last fiscal year was 3,781, and the amount paid to them during the year was $582,735.38. The sum appropriated for the payment of pensions for the current fiscal year ending June 30, 1897, is $140,000,000, and for the succeeding year it is estimated that the same amount will be necessary. The commissioner of pensions reports that during the last fiscal year 339 Indictments were found against violators of tjie pension laws. Upon these indictments 157 convictions resulted. In my opinion based upon such statements as these and much other information and observation, the abuses which have been allowed to creep Into our pension system have done Incalculable harm in demoralizing our people and rendering good citizenship. I have endeavored within my Bphere of official duty to protect our pension roll and make it what it should be, a roll of honor, containing the names of those disabled In service and worthy of their country’s affectionate remembrance. When I have seen those who pose as the soldiers’ friends active and alert in urging greater laxity and more reckless pension expenditure, while nursing selfish schemes, I have deprecated the approach of a situation when necessary retrenchment and enforced economy may lead to an attack upon pension abuses, so determined as to overlook the discrimination due to those who, worthy of a nation’s care, ought to live and die under the protection of a nation’s gratitude. The secretary calls attention to the public Interests involved in an adjustment of the obligations of the Pacific railroads to the government. I deem it to be an important duty to especially present this subject to the consideration of the congress. The organized militia numbers 112,879 men. The appropriations for its support by the several states approximate $2,600,000 annually and $400,000 is contributed by the federal government. Investigation shows these troops to be usually drilled and Inspired with much military interest, but in many instances they are so deficient In proper arms and equipment that a sudden call to active duty would find them inadequately prepared for field service. I therefore recommend that -prompt measures be taken to remedy this condition and that every encouragement be given to this deserving body of unpaid and voluntary citizen soldiers, upon wohse assistance we must largely rely in time of trouble. During the past year rapid progress has been made toward the completion of the scheme adopted for the erection and armament of fortifications along our seacoast, while equal progress has been made in providing the material for submarine defense In connection with these works. • * * The experience and results of the past year demonstrates that with a continuation of present careful methods the cost of the remaining work will be much less than the original estimate. The construction of vessels for our new navy has been energetically prosecuted by the present administration upon the general lines previously adopted, the department having seen no necessity for radical changes In prior methods under which the work was found to be progressing In a manner highly satisfactory. It has been decided, however, to provide in every ship building contract, that the builder should pay all trial expenses and it has also been determined to pay no speed premiums in the future contracts. * Eight new unarmored cruisers and two

new gunboats have also been commla* sioned. The lowa, another will be completed about March 1, and at least four more gunboats will be ready for sea In the early spring. It is gratifying to state that our ships and their outfits are believed to be equal to the best that can be manufactured elsewhere, and that Such notable reductions have been made In their coat, as to Justify the statement that quite a number of vessels are now being constructed at rates as low as those that prevail In European shipyards. v It Is most gratifying to note the satisfactory results that have followed tha Inauguration of the new system provided for by the act of May 28, 1893, under which certain federal officials are compensated by salaries instead of fees. The new plan was put In operation on the Ist day of July, 1896, and already the great economy it enforces, its prevention of abuses, and its tendency to a better enforcement of the laws, are strikingly apparent. Detailed evidence - of the usefulness of this long-delayed but now happily accomplished reform will be found clearly set forth in the attorney general’s report. Our postoffice department is in good condition, and the exhibit made of its operations during the fiscal year ended June 30,1896, if allowance is made for imperfections in the laws applicable to it is very satisfactory. The total receipts during the year were $82,499,208.40. The total expenditures were $90,626,296.84, exclusive of $1,559,898.27, whioh was earned by the Pacific railroad for transportation and credited on their debt to tne government. There was an increase of receipts over the previous year of $5,516,080.21, or 7.1 per cent, and an increase of expenditures of $3,836,124.02, or 4.42 per cent. The number of emigrants arriving In the United States during the fiscal year was 848,267, of whom 340,468 were permitted to land, and 2,799 were debarred on various grounds prescribed by law and returned to the countries whence they came at the expense of the steamship company by which they were brought In. The Increase in Immigration over the preceding year amounted to 84,181. It is reported that with some exceptions the Immigrants of the past year were of a hardy laboring class, accustomed and able to earn a support for themselves, and It Is estimated that the money brought'with them amounted to at least $5,000,000, though it was probably much in excess of that sum since only those having less than S3O are required to disclose the exact amount and it is known that many brought considerable sums of money to buy land and build homes. Including all the Immigrants arriving who were over 14 years of age, 28.63 per cent, were illiterate as against 20.87 per cent, of those of that age arriving during the preceding fiscal year. * • • There arrived from Japan during the year only 1,110 Immigrants, and It is the opinion of the Immigration authorities that the apprehension heretofore existing to some extent of a large immigration from Japan to the United States is without any substantial foundation. The department of agriculture is so Intimately related to the welfare of our people and the prosperity of our nation that it should constantly receive the care and encouragement of the government. From small beginnings It has grown to be the center of agricultural Intelligence and the source of old and to agrlcultural efforts. Large sums of moneV'are annually appropriated for the mamten-f ance of this department and it must be confessed that the legislation relating to it has not always been directly in the Interest of practical farming or properly guarded against waste and extravagance. So far, however, the public money has been appropriated fairly and sensibly to help those who actually till the soil. No expenditure has been more profitably made or more generally approved by the peole. UnI der the present management of the de--1 partment of its usefulness has been en- , hanced In every direction and at the same time strict economy has been en- , forced to the iltmogt extent permitted by congressional action. From the report of the secretary it that through careful and prudent financial management he has annually saved » large sum from his appropriations, gregatlng during his Incumbency and up to the close of the present fiscal year nearly one-fifth of the entire amount appropriated. These results have been accomplished by a conscientious study of the real needs of the farmer and such a regard for economy as the genuine farmer ought to appreciate. The secretary reports that the value of our exports of farm products during the last fiscal year amounted to $570,000,000, an Increase of $17,000,000 over those of the year Immediately preceding. This statement is not the less welcome because of the fact that, nowlthBtandlng such Increase, the proportion of exported agricultural products to our total exports of all descriptions fell off during the year. The benefits of an increase in agricultural exports being assured, the decrease In Its proportion to our total exports is the more gratifying when we consider that it is owing to the fact that such total exports for the year Increased more than $76,000,000. The weather bureau, now attached to the department of agriculture, has continued to extend its sphere of usefulness, and by an uninterrupted improvement In the accuracy of its forecasts has greatly Increased Its efficiency as an aid and protection to all whose occupations are related to weather conditions. Progress made In civil service reform furnishes a cause for the utmost congratulations. It has survived the doubts of its friends as wefll as the rancor of its enemies, and has gained a permanent places among the agencies destined to cleanse our politics and ' improve, economize, and elevate the public service. There are now in the competitive classified service upward of 84,000 places. More than half of these have been Included ffom time to time since March 4, 1893. A most radical and sweeping extension was made by executive order dated the 6th day of May, 1896. The civil service rules as amended during the last year provide for a sensible and uniform method of promotion, basing eligibility to better positions upon demonstrated efficiency and faithfulness. The absence of fixed rules on this subject has been an infirmity in the system more and more apparent as its other benefits have been better appreciated. In concluding this communication its last words shall be an appeal to the congress for the most rigid economy in the expenditure of the money it holds in trust for the people. The way to perplexing extravagance is easy, but a return to frugality is difficult. When, however, it is considered that those who bear the burdens of taxation have no guarantee of honest care save in the fidelity of their public servants, the duty of all possible retrenchment is plainly manifest. When our differences are forgotten and 6ur contests of political opinion are no longer remembered, nothing in the retrospect of our public service will be as fortunate and comforting as the reoollectlon of official duty well performed, and the memory of a constant devotion to the Intercuts of our confiding fellowcountryman. GROVER CLEVELAND. Executive Mansion, Dec. 7, 1898.