Rensselaer Republican, Volume 28, Number 14, Rensselaer, Jasper County, 10 December 1896 — THE PRESIDENT'S MESSAGE. [ARTICLE+ILLUSTRATION]

THE PRESIDENT'S MESSAGE.

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 arid 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 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 «n 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 for the direction of the affairs of their government. 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 aceptauce of public duty invites. In obedience to a constitutional requirement I herein submit to the Congress certain information concerning national affairs with the suggestion of such legislation as in my judgment is necessary and expedient. Outrages in Turkey. At the outset of a reference to the more important matters affecting our relations with foreign powers it would afford me satisfaction if I could assure the Congress that the disturbed condition in Asiatic Turkey had during the last year assumed a less hideous aspect, and that either as a consequence of the awakening of the Turkish Government to the demand of humane civilization, or as the result of decisive action on the part of the great nations having the right by treaty to interfere for the protection of those exposed to the rage of mad bigotry and cruel the shocking features of the situation had been mitigated. Instead, however, of welcoming a softened disposition or protective intervention, we have been afflicted by continued and not infrequent reports of the wanton destruction of homes and the bloody butchery of men, women and children, . made martyrs to their profession of Christian faith. While n<tne of our citizens in Turkey have thus far been killed or wounded, though often in the midst of dreadful scenes of danger, their aafety in the future is by no means assured. Our government at home and our minister at Constantinople have left nothing undone to protect our missionaries in Ottoman territory, who constitute nearly all the individuals residing there who have a right to claim our protection on the score of American citizenship. Our efforts in this direction will not be relaxed, but the deep feeling and sympathy that have been aroused among our people ought not to so far blind their reason and judgment as to lead them to demand impossible things.

Several naval vessels are stationed in the Mediterranean as a measure of caution, and to furnish all possible relief and refuge in case of emergency, and we have made claims against the Turkish Government for the pillage and destruction of missionary property at Harpoot and Marash during uprisings at those places. A number of Armenian refugees having arrived at our ports, an order has lately been obtained from the Turkish Government permitting the wives and children of such refugees to join them here. I do not believe that the present somber prospect in Turkey will be long permitted to offend the sight of Christendom,'’

The Cuban Rebellion. The insurrection in Cuba still continues with all its perplexities. It is difficult to perceive 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 ■till holds Havana and the seaports and all the considerable towns, the insurgents •tilt roam at will over at least two-thirds of the inland country. If the determination of Spain to put ddwn the insurrection seems but to strengthen with the lapse of time, and is evinced by her unhesitating devotion of largely increased military and natal forces to " the task, there is much reason to believe that the Insurgents have gained in point of numbers and. character and resources, and •re none the less inflexible in their resolve not to succumb without practically •ecuring the great objects for which they took up’arms. If Spain has not yet reestablished her authority, neither have the insurgents yet made good their title to be regarded gs 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, has been practically abandoned. Spain does keep on foot such a government, more or less imperfectly, in the large towns and their immediate •üburbs, 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 <ff the Commander-in-chief of the insurgent army, the putative Cuban Government has pow given np all attempts to exercise its functions, leaving that government confessedly (what there is the best reason for sppposingUlways to have been in fact) a government merely on paper. > Were the Spanish armies able to meet their antagonists in the open or in pitched battle, prompt and decisive results might be looked for. but they are called upon to face a foe that shuns general engagements, that can choose, and does choose, its own ground, and itss obvious that there is hardly a.limit to the time during which hostilities of this sort may be prolonged. ■

Meanwhile, as in all eases of protracted civil strife, the passions of the combatants grow more and more inflamed, and excesses on both sides become more frequent and more deplorable. The spectacle of the utter ruin of an adjoining country, by-nature one of the most fertile and charming on the globe, would engage the serious attention of thq,government and the people of the United States in any circumstances. In pohit of fact, they have a concern which is by no means of a wholly sentimental or philanthropic character. It lies so near to us as to be hardly separated from our territory. Our actual pecuniary interest in it is second only to that of the people and government of Spain. It is reasonably estimated, that at least from $30,000,000 to $50,000,000 of American capital are .invested in plantations, ami in railroad, mining' anil other business enterprises on the island. The volume of trade between the United States and (tuba, which in 1889 amounted to about $<>4,000,000. ease in 1893 to abbiit $103,000,000,. and in 1894, fire year befirire the pgfcseat insurrection broke out. amounfetTto nearly Besides; this large pecuniary stake in the fortunes of Cuba, the United States finds itself inextricably involved in the present contest in other ways, both vexatious and" costly. Many Cubans reside in this country and indirectly promote the insurrection through the press, by public meetings, by the purchase and shipment of arms, by the raising of funds and by other means, which the spirit of our institutions and the tenor Of our law’s do jiot permit ’to i>e made the subject of criminal prosecutions of a friendly power.' It follows from the same causes that the United States is compelled to actively police a long line of seacoast against unlawful expeditions, the escape of which the utmost vigilance will not always suffice to prevent. These inevitable entanglements of the United States with the rebellion in Cuba, the large American property interests affected and considerations of philanthropy and humanity in general have led to a vehement demand in various quarters for some sort of positive intervention oh the part of the United States. It was at first proposed that belligerent rights should be accorded to tile insurgents—a proposition no longer urged because untimely and in 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 of 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 methods failing, the existing interncine strife in Cuba should be terminated by our intervention, even nt 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* dor dotfbtful in its issue. The correctness of this forecast need be neither affirmed hot denied. The United States has Nevertheless a character to maintain as a nation, which plainly’ dictates that right find not might should be the rule of its conduct. It is in the assumed temper and disposition of the Spanish Government to remedy its grievances, fortified by indications of influential public opinion in Spain that this Government- has honed to discover the most promising and effective means of ending the present strife with honor and advantage to Spain and with the achievement of all the reasonable objects of the insurrection. 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 "011900 insurgents and would be accepted by them upon a guaranty -of its execution; the UnrrecT 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, as already suggested, no reason is perceived why it should not be approved by' the ' insurgents. Whatever circumstances may arise, our policy’ and our interest would constrain us to object to the acquisition, of the island or an interference with its control by any other power.

It should bo added that it cannot be reaonably assumed that the hitherto expectant attitude of the United States will be' indefinitely maintained. When the inability of Spain to deal successfully with the insurgents 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 sot its re-establishment has de-generated-into a strife which means nothing more than the useless sacrifice of human 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 superceded 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 theip de-, pend 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. A contemplation of emergencies that may arise should plainly lead us to avoid their creation, either through a careless disregard of present duty or even an undue stimulation and ill-timed expression of feeling. But I have deemed it not amiss to remind the Congress that a time may arista when a correct policy aud care for our interests, as well as a regard for the interests of other nations and their citizens, joined by considerations of hfunanity and a desire to see a rich and fertile country, intimately’ related to us, savqd from complete devasta-. 'tion, will constrain. 6ur Government to such action as will subserve the interests thus involved and at the same time promise to Cuba and its inhabitants'an opportunity to enjoy the blessings of peace. Other Foreign Matters. Negotiations "for a treaty of general arbitration 'for all differences between Great Britain and the 'United State? are far advanced atid promrso4i> reach ii successful consummation at an early date. The scheme of examining applicants for certain consular positions, to test, their competency and. fitness, adopted under an executive order issued on Sept. 20, 1895, has fully demonstrated the usefulness of this Tfie inspection of consular offices provided for by an appropriation for that: purpose at the last session of the Congress has been productive of such wholesale effects that I hope this nnportant work wffi in the future be continued. I know that, can be done with the same slight expense so improving to the service. \Ve have during thejast yegr 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 jto study the habits and condition of the seal herd and the causes of theft rapid dectease. Upon the re.portsri>f these commissioners, soon to be submitted, and with the exercise patience and good sense on the part "sis all interested parties, it is earnestly hoped that hearty cooperation may be secured for*the protection against threatened extinction of seal Pfife in the Northern Pacific and Behring Sea; ’ x Tr'e.ieury Info motion. ( The Secretary of the Treasury reports that during the fiscal year ended June 30, 1890, the receipts’ of the Government from all soufttes amounted to $409,475, -< 408.78. During the same period its expenditures were $434,678,654.48. the excess of expenditures oyer receipts thus amounting to $25,203,245.70. The ordinary expenses during the j- ear were s4’,015,852.21 less than, during the preceding fiscal year. . Of the receipts mentioned there watt derived from" customs the sum of $180,021,751.67, and from internal revenue $146,830,615.66. The receipts front customs show an increase of $7,863,134.22 overthose from the same source for the fiscal year ending June 30, 1595, -and-* the receipts from internal revenue' an increase of $3,584,537.91. ’• The value of our imported dutiable merchandise during the last fiscal year was $369;757.470, and the value of free goods imported $409,967,470,. being an increase of $6,523,675 in the value of dutiable gqods and $41,231,034 in the value of free goods over the -preceding year. Our imports of merchandise, ifdreign "and domestic, amounted in value to $882,606,938, being an increase over the preceding year of $75,068,773. The average ad valorem duty paid on dutiable goods during the year was 39.94 per cent, and on free mid dutiable goods taken together: 20.55 per cent. The cost of collecting our* internal revenue was 2,78 per cent., as against 2.81 per cent. for the fiscal year endftig June §O, 1895. The total production of distilled spirits, exclusive of fruit brandies, was 86,588,703 taxable gallons, being an increase of 6,639,10 S 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 $2,859,695 less of gold and $8,566,007 more of silver than during the preceding year. The total stock of metallic money in the United States at the close of the last fiscal year ended the 30th day of Juno, 1596, was $1,228,326,035, of which $599,597,964 was in gold find $628,728,071 in silver. On the Ist day of November 1596, the total stock of mofiey of all kinds in the country was $2,285,410,590 and the amount in circulation, not including that in the treasury holdings, was $1,627,055,641, being $22.(53 per capita upon an estimated population of 71,992,000. 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 yalue of $46,610,000, and 55,727,000 ounces, of silver, of'the commercial value of $36,445,000 and the coinage value of $72,051,000. The estimated i>rq?uction of these metals throughout I?he 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 value of $218,738,100 according to our ratio. The coinage of these metals in the ’various countrios of the world during the same calendar year amounted to $232,701,438 in gold and $121,995,219 in silver. The total coinage at the mints of the United States during the fiscal year ending June 30, 1896, amounted to $74,188,468.52, of which $58.878,490 was in gold coins and $12,309,978.52 in standard silver dollar, subsidiary coins and minor coins.

National Banks. The-number -of na.'ti<>na-l-l<.'Wiks-<>rgaii-ized from the time tile law authorizing their creation was passed, up to Oct. 31, was 5,051, and of this number 3,079 were at the date last mentioned in active operation, having authorized capital stock of $650,014-,895, held by 288,902 shareholders. and circulating notes amounting to $21,412,620. The total outstanding circulating notes of all national banks Oct. 31, 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. Oct. 6, 1896, when the condition of national banks was last the total resources of the 3,679 active institutions was $3,263,685,313.83, Which included sl,893.258,839.31 in loans and discounts and $362,165,733.85 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. There were organized during the year preceding the date last mentioned twen-ty-eight national banks, located in fifteen different States, of which twelve were organized in the Eastern States with a capital of $1,180,000, six in the Western States with a capital of $875,000 and ten in the Southern States with a capital of $1,190,000. During the year, however, thirty-seven banks voluntarily abandoned their franchises under the national law, and in the case of twentyseven others it was found necessary t</ appoint receivers. Therefore, as compared with the year preceding, there was a decrease of thirty-six in the number of active banks. The number of existing banks organized under State laws is 5,705.

Immigration. The number of immigrants arriving in the United States during the fiscal year was 343,267, of whom 340,468 were permtjted to land and 2,799 were debarred on various grounds prescribed by. law and returned tp the countries whence they came at the expense of the steamship companies by' which they were brought in. The increase in immigration oyer the preceding year amounted to 84.*31. It is reported that with soine exceptions the immigrants of the last yyar, were of a hardy laboring class, accustomed and able to earn a support for themselves, ,and it is estimated that the money brought wjth them amounted to at least SS,OOO.<MMI, though it was probably much in excess <>f that sum, since only’those having less than SBO ire 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 are over 14 years of per cent. Were illiterate! as, again st 20.37 pjjr cent, of those ofthat rtge arriving during the preceding year. The number of immigrants over 14 years old,-’the countries front which they came and the percentage of illiterates among them, were "as follows: Italy. 57,515. with 54.59 per cent.; Ireland, 37,496, with 7 per cent.; Russia, 35,188, With 41.14 per cent.; Austria-Hun-gary and provinces. 57.053, with 38.92 per cent.; G&niany, 25,334, with -2!96

per cent.; Sweden, 18,821, with 1.10 per cent.. While frpm Portugal there came 2,067, of whom 77.69 per cent'.- illit-. erate. - There arrived from Japan during jthe ymar only 1,110 imriligjaijts, 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 War Department. The report of the Secretary of War ex--btibits satisfactory conditions in the several branches •of the public servicq in-, trusted to his charge. The limit of our military force as fixed by law is constantly 'and readily maintained. The present discipline and morale .of our army ...are excellent, and marked progress aAdp efficiency are apparent throughout its entire organization. With the exception of delicate duties in the suppression of slight Itldian disturbances along our southwestern boundary, in which the Mexican! troops' co-operated, and the compulsory but peaceful return. with the consent of Groat Britain, of a band of Creb Indians from Montana to British possessions, no active operations have l>een--required of the army during the year past. Coast Defense. During the last year, rapid progress has been made toward the completion of the scheme adopted for the erection and arma- ■ metifpof fortifications along our seacoast, nvhile equal progress has been made in -providing the material for submarine-de-fense in connection with these works. This improved situation is largely due to the recent generous response of Congress to the reeommendations. Of the war department. Thus we shall soon have complete about one-fifth of, the comprehensive system, the. first step in which was'roted in my message to the Congress of Dec. 4, 1893. When it is understood that a masqnj;j. emplacement not only furnishes a platform so-r the heavy modern high-power gun, but also in every particular serves thi- purpose ami takes the place of the fort of former days, the importance of the work accomplished is better comprehended. We should always keep in mind that of ail forms of military prepargtitflt coast defense alone is essentially pacific in its nature. While it gives the sense of security due to a consciousness of strength, it is neither the purpose nor the effect of •such pernMfnetht fortifications to involve •us in foreign comp 1 ionfioins, but rather to" guarantee us .against them. They are not temptation to war, but security,»gninst it. Thus they are thoroughly in accord.with all the traditions of out national .diplomacy. '• . •

About National Prisons. The Attorney Gjeiieral presepts a detailed and interesting statement of. the important work done under his supervision during the last fiscal year. The ownership and management by the Government of penitentiaries for the confinement of tllbse convicted in United States courts of violations of Federal laws, which for many years has been a subject of executive recommendation, has at last, to a . slight extent, been, realized., by. the utilization of the abandoned military prison at Fort Leavenworth as a United States penitentiary. This is certainly' a movement in the right: direction; but if ought to be at once supplemented by the rebuilding or extensive enlargement of this improvised prison and the construction of at least one more, bo be located in the Southern States. lam thoroughly' convinced that economy, humanity and a proper sense of rosponsibilit-y and duty toward those whom we punish for violations of Federal law. dictate that the Federal Government should have the entire control and management of the penitentiaries where convicted violators ar<> confined. _ It appears that since the transfer of Fort Leavenworth military’prison to its new uses the work previously done by prisoners confined there and for which expensivemachinery has been provided has been discontinued. This work consisted of the manufacture of articles for army use novy done elsewhere. Ou all grounds it is exceedingly desirable that the convicts confined in this penitentiary' be al-" lowed to resume work qf this, description. Fees of Federal Officers. It is mo*t gratifying to note the satisfactory results that have followed the inauguration of the new system provided for by the act of May 28, 1§96, under which certain Federal officials are conipensated by salaries instead of fees. The new plan was put in operation on 1896, and already the great economy it enforces, its prevention ot abuses, and its tendency to a better enforcement of the laws are strikingly apparent. Detailed evidence of the usefulness of this longdelayed but now happily accomplished reform will bo found clearly set forth in the Attorney General’s'report.

The Postal Service. Our Postoffiee Department is in good condition, and the exhibit made of its operations during the fiscal year ended .Tune 30, 1596. 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, which was earned by the Pacific Railroad for transportation and credited on their debt to the 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 deficit was sl,679,956.19 less than that of the preceding year. Our postal service should meet the wants and even - tihe conveniences of our people at a direct charge upon them so light as perhaps to exclude the idea of our postoffiee department being a money-mak-ing concern; but in the face of a constantly recurring deficiency in its revenues and in view of the fact that we soppily the best mail service in the world, it seems to me it is quite time to correct the abuses that swell-enormously our annual deficit. I recommend that legislation be nt once eiuigted to correct these abuses and introduce better business ideas in the regulation of our p>stal rates. This involves the following reforms, Which I earnestly recommend:

The Navy. The work of the Navy Department and its present condition are fully exhibited in the report yf the Secretary. The construction of vessels for oar new navy has been energetically prosecuted by the present administration upon the general lines previously adopted,Othe department having seen tio nevessit y for rad ical ch a ngesin pribr methods under which-the work was found to be progressing in a ihanher highly satisfactory. It has bedn decided, however, to provide in every shipbuilding contract that the builder should pay all trial expenses, and it has also been determined to pay no speed premiums jn future cbntravts.“T4iFpremlums recently earned and some yet to be decided are features of the contracts made before this conclusion was- reached. Interior Affairn. The report of the Secretary of the Interior prhsentg.a comprehensive and interesting exhibit of tUe-’niunerous and important affairs committed, to his. supervision. I agree with the S<f<9vtfery that the remainder of our public lands should he more warefull j- dealt with and their alienation guarded by better economy and greater prudence. ■ The Indians* , -The total Indian population of the United States is 177,235. according to a census made in 1895, exclusive of those within the State of New York and those comprising the five civilized tribes. Of this number there are aproxlmately 38,000 children of school ago. During the year 23.393 of these were enrolled in schools. The progress which has

attended recent efforts to extend Indian school facilities, and I the anticipation of continued liberal appropriations to that end, cannot fall to nfforj. the utmost satisfaction to those who believe that the educatioii*t>f Indian children is uptime factor In theJ'secompllshment of Indian civilization. It may be' said in general terms that in every partfeuliu- the Improvement Of the Indians under Government care has been ; njost marked and encouraging. The Secretary, the Commissioner of In- 1 dlan Affairs and the agents having charge of Indians to .whom Allotments have been made ; strongly urge the passage of a law prohibiting the sale of liquor allottees who have taken tfieir lands In sswenrltyi' I earnestly join In this recommendation. » The condition of among the five civilized tribes, who occupy large tracts : of land in Mie Indian Territory, and. who have governments of their own, has. assumed such an aspect as to render it almost indispensable tuat there should be sin entire change. In the relations of these Indians to the general’government. A Commission organiz.ed and empowered under several regent laws is now negotiating with these Indians for the relinquishment and thq division of their common lands in "severalty. and are aiding In the settlement of the, troublesome question of tribal membership. The effort should be to save these Indians from the consequences of their own mistakes and improvidence, and to secure to the 1 real Indian his rights v as against intruders and professed friends Who profit by ills retrogression. As a sincere friend of the Indian I am exceedingly anxious that -these reforms should be aeeompllsiieiL with the Consent and' aid of the tribes, and that no necessity may,,be., presented, for radical or drastic legislation! The Pension feoll. The diminution of our enormous pension roll and the decrease of pension expenditure, which ■ have lieehv so often confidently foretold, still fah Th •material realization. The number of pensioners on the rolls at the close of the fiscal year ended June 30, 1896, was 970,678. Tills is the> largest numbe<» ever repor{^dt J ( ~Tlie amount paid exclusively for pensions during the year was $138,214,761.04, a slight decrease from that of the preceding year, while the total expenditures on account of pensions, including the cost of maintaining the department and expenses attending the pension distribution,amounted to $142,206,550.59, or wichin a very small fraction of one-third of the entirb expense of supporting "the Government during the sajne year. The number of new pension certificates issued was 90,640. Of these 40.374 represent original allowances of claims and 15,878 increases of existing pensions. The, number of persons -receiving pensions from the United States, but residing in foreign countries, at the close of the last fiscal year, was 3.781. and the amount paid to them (luring the year, was $582,735,38. The sll'in aifpropriated for the payment of pensions for the current fiscal year ending Juno 30. 1897, Is $140,000,000, and for the succeeding year it is estimated that the sabie amount will be necessary. The Commissioner of Pensions reports that during the last fiscal year 339 indictments were found against violators of the pension laws. Upon these indictments 167. convictions resulted. In my opinion, based upon such statements as these and much other information and observation! the abused which havfe been allowed to creep into, our pension system have done. incalculable harm in demoralizing our people and undermining good citizenship. 1 have endeavored within my .spjiete 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 their country’s 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 where necessary retrenchment and enforced economy may lead .to an attack upon pension abuses, so deteras 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. Pacific Rai'roadp. The Secretary calls attention to the public interests involved I}l 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 Congress. On Jan. 1, 1897, with the amount already matured, more than $13,000,000 of the principal of the subsidy bonds Issued by the United States In aid of the construction of the Union Pacific Railway, including its Kansas line, and more than $6,000,000’ of like bonds, Issued in aid of the Central Pacific Railroad, including those issued to the Western Pacific Railroad Company, will have failed due and been paid or must on that day be paid’ by the Government. Without any reference to the application of the sinking fund, uo.w lu_, the treasury this will create such a default on thb part of these companies to the GOV- - ernment as will give it the right to at once Institute proceedings to foreclose Its mortgage ilen. In addition to this Indebtedness, which will be due Jan. 1, 1897, there will mature between that date and Jan. 1, 1899, the remaining principal of such subsidy bonds? which must also be met by, the Government. These amount to more than $20,000,000, on account of the Union Pacific lines, and exceed $21,000,000 on aeeouut of the Central Paclfig lines. The situation of these roads and the conditon of their indebtedness to the Government have been fully set forth in the reports of various committees to the present and prior Congresses. In view of the fact- that the Congress has for a. number of years almost constantly bad under consideration ,arlous plans for dealing with the conditions existing—between...these roads and the Government, I have thus fai r felt justified Tn withholding action under the statute above mentioned. In the case of the Union Pacific Company, however, the situation has become especially and immediately ifrgent. Proceedings have been instituted to foreclose a-first mortgage upon those aided parts of the main lines upon which the Government holds a second and subordinate mortgage Hen.—ln consequence of those proceedings and increasing complications added to the default occurring the Ist day of January, 1897, a condition will.be presented at that date, so far as this company is concerned, that must emphasize the mandate of the act of 1887 and give to executive duty under Its provisions a, more imperative aspect. Therefore, unless Congress shall otherwise direct, or shall have previously determined upon a different solution of' the problem, there Will hardly appear to, exist any reason for delaying beyond the (rate of the default above mentioned such executive action as Will promise to subserve the public interests and save the Government worn the loss threatened by further inaction. Department of Airricultnre. 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 aid and encouragement to agri-' cultural efforts. Under the present management of the department Its usefulness has been enhanced In every direction, and at the same time strict economy has ’been enforced to the utmost extent permitted by congressional action. The Secretary reports that the value of our exports of farm products during tile last fiscal year amounted to $670,01X1,(KH), an increase of $17,000,600 over those of the year Immediately preceding. This statement is not the less welcome because of the fact that, notwithstanding sueh Increase, the proportion of exported agricultural products of our total exports of all descriptions fell 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 $75,000 000 ■*- ' In my opinion the gratuitous distribution of seeds by the department, ns nt present conducted, ought to be discontinued. The professed friends of the farmer, and certainly the farmers themselves, are naturally expected to be willing to rid a department devoted to the promotion of farming Interests of a feature .which tends so much to Its discredit. The weather bureau, now attached to the Department of AgrlCTlture, has continued to extend Its sphere of usefulness, and by an uninterrupted improvement in the accuracy of Its forecasts hits “greatly increased its cfflcleufy as an aid and protection to all whose occupations are related to weather conditions. Oinittingv further reference to the operations of the department, I commend the Secretary’s report and the suggestions it contains to the careful consideration of Congress. ; Civil Service Reform. The progress mdde In clvll-sc'rvlce reform furnishes a cause for the utmost congratulation. There are now In the competitive classified service upward of elghty-four thousand places. A moSt radical and sweep-ing-extension was made by executive order dated the 6th day of May. 1896, and If the fourth-class postmastershlps be not Included In the statement it may be'said that practically all positions contemplated by the clvll-servlce law are now classified. Abundant reasons exist for Including these postmasterships, based upon eeononiy, Improved service and the peace -and quiet of nelghbothoods. The clvll-servlce rules, ns amended during the last year, provide for a sensible and uniform method of promotion, basing eligibility trf better positions upon demonstrated efficiency and faithfulness. The absence of fixed rules on Riis subject ; has been an Infirmity |n the system more and more apparent, as Jts other benefits have been better appreciated. Those who gain positions through the operation of civil

servlet methods should be made to understand that the nonpartisan scheme through which they receive their appointments demands from them, by way of reciprocity, nonpartisan and faithful performance of duty udder every administration, and cheerful fidelity to every chief. , While they should be encouraged to decently exercise their rights of citizenship and to support through their suffrage's the political beliefs they honestly profess, the noisy, pestllqnt and partisan employe, who loves political turmoil and contention, or who renders lax and grudging service to an administration not representing his political views, should fie promptly and fearlessly dealt with tn such a way as to furnish a warning to others WhormAy b® likewise disposed. National Finances and the Tariff. I desire to recur to the elsewhere made concerning the Government’s ' receipts and expenditures for the purpose <jf .venturing upon some suggestions touching our present tariff law and its operation. This statute took effect on the 28th day of August, 1894. Whatever may tie its shortcomings as a complete measure of tariff reform, it mtist be conceded that It has opened the wpy to a freer, and greater exchange of commodities between us and other countries, and thus furnished a wider market for our products and manufacturing, The duly entire fiscal year during which this law, has been In forte ended the :30th day of June. 1896. In that year our imports Increased over those of the previous year’ ■(more’than $6:500,000, while the value of the domestic-products we exported and which found 'markets ftbroad was nearly $70,000.000 more than during the preceding year. ' The’present law, during the only complete i fiscal rear of Its operation, has yielded nearI Iv $8,000,000 more‘revenue than was re- • rrived from tariff duties In the preceding ; year. There wasj, nevertheless, a deficit bei tween our receipts and expenditures of a ' little more than. 525,000,000. This, however, I was not unexpected. The situation was such in December last, seven montbs before the close of the fiscal year, that the Secretary of the Treasury foretold a deficiency of $17,000,000. The great and InI creasing apprehension and timidity In busli ness circles and the in all actiVl- : ties. Interwniiig since thlht-<tlme 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 1 this i estimate of the. Secretary and the actual defli elency, as well as for a continued deficit, i Indeed, it must be confessed that we could i loudly have had a more unfavorable period j than the last two years for the collection of • tariff revenue. - We cannot reasonably hope ithat our recuperation from this business de- ' pression will be sudden, but It has already set In, with a promise of acceleration and I believe our present tariff law, lf»allowed ' a fair opportunity, will lii the near futnre I yield a revenue which, with reasonably eco- • nomlc expenditures, will, overcome all deI fieleneles. .Meantime no deficit that has I occurred or may" occur need excite or disturb us. To meet any such deficit we have ' in the treasuay, in addition to a gold reI serve of $100,900,000, a surplus of more than sl2B,ooo,o<K> 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 mor than its proper and legitimate use. v 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 Impqrtance, since it Is the palpable duty of every government to make the burdens of taxation as light as possible. The people should not be required to relinquish thig privilege of cheap living except under the stress of t their government’s necessity made plainly manifest.

The Currency System. I am more convinced than evet that we ciin 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 canceled. This might.be done, as has been iferetofore recommended, but their exchange fqr long-term bonds bearing a low rate of interest or by their redemption with., the proceeds of .sueh bonds. Even if only the United Spates notes known as greeffliaeks were thus retired; it is probable that the, treasury notes Issued In payment of sliver purchases under the act of July 14, 1890, now paid In gold when demanded, would hot '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 sliver coin. t In default of this plan, however. It would be a step In the right direction if currency obligations redeemable in gold, whenever so redeemed, should be canceled instead, of being reissued. 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 eeqt f In considering projects for the retirement of United States notes and treasury notes issued under the law of 1890, I am of the opinion that we have pl’iced too much stress upon the dairger of contracting the currency and have calculated ton UttleTipoa the gold that woutd be added to—our elrdulntßiu- If invited to us by better and safer financial methods. It Is nofcso much a contraction of our currency that should be. avoided as such unequal distribution. This might be obviated, and any fear of harmful contraction at the same time removed, by allowing the organization of smaller banks and in less-populous communities than are now permitted, and authorizing banks to establish branches In small communities under proper restrictions. The entire case may be presented by the statement that the day of sensible aml.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 receipts of tire money contributed by the people for Its support, aud to the expenditure of such money for the people’s >bei;efit. Our business Interests and all good citizens long for rest from feverish agitation, and the inauguration by the Government of a reformed financtal policy, which will encourage enterprise and make certain the rewards, nf labor an;l Industry. Roast for the Trusts. Another topic in which our people rightfully take a deep Interest may here lie 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 stitie 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, ymt a reduction of prices to the people Is not one of the real objects of these organizations, nor Is their tendency necessarily In that dlrec'Tton. Their tendency Is to crush out Individual independence and to binder 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 dlslodgment from .the proud position of being his own master, watchful of all that touches his country’s prosperity, In which be has an Individual lot, and Interested in all that affects tfig 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 of passive obedience, and with little horse or opportunity of rising In the scale of responsible and helpful citizenship. Though Congress has attempted to deal with this matter by legislation the laws passed for that purpose thus far have proved Ineffective. The declsHm of our highest court renders It quite doubtful whether thQ evils of trusts and monopolies can be adequately treated through federal action—unless tliey seek directly and purposely to Include In their objects transportation or Intercourse between States or between the i'nlted StntesPnnd foreign countries, It does not follow, however, that this is the limit of the remedy thlit may be applied. Even though It may be found that federal autlfcrIty 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. 1 n concluding thts 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 la easy, but a return to frugality is difficult. Wiieu, however, it Is considered that those who bear the burdens of taxation have no guaranty of honest care the fidelity <ff thelt public servants, the dSty of all possible retrenchment Is plainly manifest. . «■ When our differences are forgotten ana our contests of political-opinion.,are no long;, er remembered, nothing In the retrospect of our public service wlll be as fortunate and comforting ns the recollection of official duty well performed and the memory of a eo “" stant devotion to the Interests of our confiding fellow ■ countrymen.