Rensselaer Semi-Weekly Republican, Volume 21, Number 23, Rensselaer, Jasper County, 12 December 1899 — President’s Message. [ARTICLE]

President’s Message.

PRESIDENT M’KINLEY’S third annual message was not delivered to Congress until the second day of the session. The message is of unusual length, comprising nearly 25,000 words, and is regarded as one of the most important ever emanating from the White House. The leading features of the message relate to the new dependencies and to the financial question. Sovereignty Is to be maintained in the Philippines until Oongress decides a form of government. Civil government is to be extended throughout the islands as rapidly as possible. Attention is invited to the report of the Philippines commission as to why it is impossible for'the United States to part with the islands and as to the great commercial advantages in holding them. Civil government in Cuba under military control is recommended until some substantial progress has been made through the medium of suffrage toward the establishment of an independent form of government. For Porto Rico he asks the appointment of a civil governor and the election by the peoplb of a council or legislature, property and educational qualifications to be prescribed for voters. Immediate legislation is suggested for Hawaii. On the financial question the President recommends that the gold standard be provided for by law, and the interestbearing obligations of the United States be specifically made payable in gold. The regulation of trusts and great commercial combinations so as to prevent the •titling of competition, but without in any way hampering the development of American manufactures and commerce, Is urged. The President, in the opening paragraph, refers feelingly to the recent death of Vice-President Hobart and then proceeds in substance as follows: The Fifty-sixth Congress convenes in Its first regular session with the country In a condition of unusual prosperity, of universal good will people at home, and in relations of' peace and friendship with every government of the world. Our foreign commerce has shown great increase in volume and value. The combined imports and exports for the year are the largest ever shown by a single year in all our history. Our exports for 1899 alone exceeded by more than a billion dollars our imports and exports combined in 1870. The imports per capita are 20 per cent less than in 1870, while the exports per capita are 58 per cent more than in 1870, showing the enlarged capacity “of the United States to satisfy the wants of its own increasing population, as well as to contribute to those of the peoples of other nations. Exports of agricultural products were $784,776,142. Of manufactured products we exported in value §339,592,148. Government receipts from all sources for the fiscal year ended June 30, 1899, including $11,798,814.14, part payment of the Central Pacific Railroad indebtedness, aggregated $610,982,004.35. Customs receipts were $206,128,481.75. and those from internal revenue $273,437,161.51. For the fiscal year the expenditures were $700,093.564.02. leaving a deficit of $89,111,659.67. For the fiscal year ended June 80, 1899, the internal revenue receipts were increased about $100,000,000. Condition of the Treasury. The present gratifying strength of the treasury is shown by the fact that Dec. 1, 1899, the available cash balance was $278,004,837.72. of which $239,744,905.36 was in gold coin and bullion. The conditions of confidence which prevail throughout the country have brought gold into more general use and customs receipts are now almost entirely paid in that coin. The strong condition of the treasury with fespect to cash on hand and the favorable showing made by the revenues have made It possible for the Secretary of the Treasury to take action under the provisions of Kction 3691, Revised Statutes, relating the sinking fund. The Treasury Department therefore offered to purchase during November $25,000,000 of the 5 per cent loan of 1904, or the 4 per cent funded loan of 1907, at the current market price. The success of this operation was sufficient to induce the Government to continue the offer to purchase bonds to and including the 23d day of- December, instant. Increased activity in industry, with its welcome attendant—a larger employment for labor at higher wages—gives to the body of the people a larger power to absorb the circulating medium. It is further true that year by year, with larger areas of land under cultivation, the increasing volume of agricultural products, cotton, corn and wheat, calls for a larger volume of money supply. In Its earlier history the national banking act seemed to prove a reasonable avenue through which needful additions to the circulation could from time to time be made. Changing conditions have apparently rendered it now inoperative to that end. The attention of Congress is respectfully Invited to this important matter with the view of ascertaining whether or not such reasonable modifications can be made in the national banking act ah will render its service more responsive to the people’s needs. To Maintain Gold Standard. I urgently recommend that to support the existing gold standard- and to maintain “the parity in value of the coins of the two metals (gold and silver) and the equal power of every dollar at all times In the market and in the payment of debts,” the Secretary of the Treasury be given additional power and charged . with the duty to sell United States bonds and to employ such other effective means as may be necessary to these ends. The authority shonld include the power to sell bonds on long and short time, as conditions maV require, and should provide for a rate of interest lower than that fixed by the act of Jan. 14, 1875. The financial transactions of the Government •re conducted upon a gold bans. We are maintaining the parity of all the money issued or coined by authority of the Government. We are doing these things with the means at band. Happily at the present time wc are not compelled to resort to loans to supply gold. It has been done in the past, however, and may have to be done in the future. It behooves us, therefore, to provide at once the best means to meet the emergency when it arises, and the best means are those which are the most certain and economical. Our receipts now equal our expenditures; deficient revenues ao longer create alarm. Let us remove

the only remaining cause by conferring the full and necessary power on the Secretary of the Treasury and impose upon him the duty to uphold the present gold standard and preserve the coins of the two metals on a parity with each other, which is the repeatedly declared policy of the United States. American Merchant Marine. The value of an American merchant marine to the extension of our commercial trade and the strengthening of our power upon the sea invites the immediate action of Congress. Our national development will be one-sided and unsatisfactory so long as the remarkable growth of our inland industries remains unaccompanied by progress on the seas. There is no lack of constitutional authority for legislation which shall give to the country maritime strength commensurate with its industrial achievements and with its rank among the nations of the earth. The other great nations have not hesitated to adopt the required means to develop their shipping as a factor in national defense, and as one of the surest and speediest means of obtaining for their producers a share in foreign markets. Like vigilance and effort on onr part cannot fail to improve our situation. The expense is as nothing compared to the advantage to be achieved. Calls Attention to Trnstß. Combinations of capital organized into trusts to control the conditions of trade among our citizens, to stifle competition, limit production and determine the prices of products used and consumed by the people are justly provoking public discussion, and shpuld early claim the attention of the Congress. The industrial commission, created by the act of Congress of June 18, 1898, has been ‘engaged in extended hearings upon the disputed questions involved in the'' subject of combinations in restraint of trade and competition. They have not yet, completed their investigation of this subject, and the conclusions and recommendations at which they may arrive are undetermined. - It is universally conceded that combinations which engross or control the market of any particular kind of merchandise or commodity necessary to the general community, by suppressing natural and ordinary competition, whereby prices are unduly enhanced to the general consumer, are obnoxious not only to the common law, but also to the public welfare. There must be a remedy for the evils involved in such organizations. Whatever power the Congress possesses _over this most important subject should be promptly ascertained and asserted. An act to protect trade and commerce against unlawful restraints and monopolies was passed by Congress the_ 2d of July, 1890. The provisions of this statute are comprehensive and stringent. It declares every contract or combination in the form of a trust or otherwise, or conspiracy in the restraint of trade or commerce among the several States or with foreign nations, to be unlawful. It denominates as a criminal every person who makes any such contract or engages in any such combination or conspiracy, and provides a punishment by fine or imprisonment. It invests the several _ Circuit Courts of the United States with jurisdiction to prevent and restrain violations of the act, and makes it the duty of the several United States district attorneys, under the direction of the Attorney_ General, to institute proceedings in equity to prevent and restrain such violations. It further confers upon any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to bo unlawful by the act the power to sue therefor in any Circuit Court of the United States, without respect to the amount in controversy, and to recover three-fold the damages by him sustained and the costs of the suit, including reasonable attorney fees. It w'ill be perceived that the act is aimed at every kind of combination in the nature 75f a trust or monopoly in restraint of interstate or international commerce. The prosecution by the United States of offenses under the act of 1890 has been frequently resorted to in the federal courts, and notable efforts in the restraint of interstate commerce, such as 'the Transmissouri Freight Association and the Joint Traffic Association, have been successfully opposed and suppressed. State legislation for relief from the evils of trusts has failed to accomplish fully that object. This is probably due to a great extent to the fact that the different States take different views as to the proper way to discriminate between evil and injurious combinations and those associations which are beneficial and necessary to the business prosperity of the country. It is apparent that uniformity of legislation upon this subject in the several States is much to be desired. It is to be hoped that such uniformity may be obtained and that means may be found for the Congress within the limitations of its constitutional power so to supplement an effective code of State legislation as to make a complete system of laws throughout the United States adequate to compel a general observance of the salutary rules to which I have referred. Revieiy of Foreign Relations. A review of our relations with foreign states is presented with such recommendations as are deemed appropriate. In my last annual message I adverted to the claim of the Austro-Hungarian Government for indemnity for the killing of certain Austrian and Hungarian subjects by the authorities of the State of Pennsylvania, at Lattimer, while suppressing an unlawful tumult of miners. Sept. 10, 1897. In view of the verdict of acquittal rendered by the court before which the sheriff and his deputies were tried for murder, and following the established doctrine that the Government may not be held accountable for injuries suffered by individuals at the hands of the public authorities while acting in the hue of duty in suppressing disturbances of the public peace, this Government was constrained to decline liability to indemnify the sufferers. The Belgian Government has mitigated the restrictions on the importation of cattle from the United States, to which 1 referred in my last annual message. A convention of extradition with Braxii, signed May 14, 1897, has been ratified by the Brasilian Legislature. The claim growing out of the seizure of the American-owned newspaper, the Panama Star and Herald, by the authorities of Colombia has been settled, after a controversy of several years. The good will of Colombia toward onr country has been testified anew by the cordial extension of facilities to the Nicaraguan canal commission in their apI preaching investigation of the Panama ■m

canal and other projected routes across the Isthmus of Darien. Nicaragua Ship Canal. The contract of the Maritime Canal Company of Nicaragua was declared forfeited by the Nicaraguan Government the 10th of October, on the ground of qonfulfillment within the ten years’ term stipulated in the contract. The Maritime Canal Company has lodged a protest against this action, alleging rights in the premises which appear worthy of consideration. This Government expects that Nicaragua will afford the protestants a full and fair hearing upon the merits of the case. The Nicaraguan canai commission, which had been engaged upon the work of examination and survey, for a ship canal route across Nicaragua, having completed its labors and made its report, was dissolved May 31, and June 10 a new commission, known as the isthmian canai commission, was organized under the terms of the act approved March 3, 1899, for the purpose of examining the American isthmus with a view to determining the most practicable and feasible route for a ship canal across that isthmus, with its probable cost and other essential details. This commission, under the presidency of Rear Admiral John G. Walker, U. S. N. entered promptly upon the work intrusted to it, and is now carrying on examinatiotis in Nicaragua along the route of the Panama canal, and in Darien from the Atlantic, in the neighborhood of the Atrato river, to the Bay of Panama, on the Pacific side. The great importance of this work cannot be too often or too strongly pressed upon the attention of the Congress. Chili Shows Friendship. A pleasing incident in the relations of this Government with that of Chili occurred in the generous assistance given to the warship Newark when in distress in Chilian waters. Not alone in this way has the friendly disposition of Chili found expression. That country has acceded to the convention for the establishment of the bureau of the American republics, in which organization every independent state of the continent now shares. American interests in China. The interests of our citizens in that vast empire have not been neglected during the last year. Adequate protection has been secured for our missionaries and some injuries to their property have been redressed. In my message to Congress of Dec. 5, 1898, I urged that the recommendation which had' been made to the Speaker of the House of Representatives by the Secretary of the Treasury the 14th of June, IS9B, for an appropriation for a commission to study the commercial and industrial conditions in the Chinese Empire and report as to the opportunities for, and obstacles to, the enlargement of markets in China for the raw products and manufactures of tfce United States, should receive at your hands the consideration which its importance and timeliness merited, but the Congress failed to take action. I now renew this recommendation. ’ i Paris Exposition of 1900. Preparations for the representation of the industries, arts and products of the United States, at the world’s exposition to be held in Paris next year continue on an elaborate and comprehensive scale, thanks,to the generous appropriation provided by Congress and to the friendly interest the French Government has shown in furthering a typical exhibit of American progress. There has been allotted to the United States a considerable addition of space. The American exhibit at Paris should, and I am confident will, be an open volume, spreading abroad a clearer knowledge of the worth of our productions and the justice of our claim to an important place in the marts of the world. Cordial Relations with Germany. Our relations with Germany continue to be most cordial. The increasing intimacy of direct association has been marked during the year l>y the granting permission in April for the landing on our shores of a cable from Borkum, Emdem, on the North Sea, by way of the Azores, and also by the conclusion Sept. 2 of a parcels post convention with the German Empire. The several governments of the empire seem reluctant to admit the natural excellence of our food products and to" accept the evidence we constantly tender of the care with which their purity is guarded by rigid Inspection from the farm, through the slaughter-house and the packing establishments, to the port ot shipment. It is to be hoped that in time the two governments will act in common accord toward the realization of their common purpose to safeguard the public health and to the insuring of the purity and wholesome, ness of all food products Imported by either country from the other. Joint High Commission. In my last annual message I referred to the pending negotiations with Great Britain in respeet to the Dominion of Canada. By means of an executive agreement 1 a joint high commission has been created for the purpose of adjusting all unsettled questions between the United States and Canada, embracing twelve subjects, among which were the questions of fur seals, the fisheries of the coast and contiguous Inland waters, the Alaskan boundary, the transit of merchandise In bond, the alien labor laws, mining rights, reciprocity in trade, revision of the agreement respecting naval vessels in the great iakes, a more complete marking of parts of the boundary, provision for the conveyance of criminals and for wrecking and salvage. Much progress has been made by the commission towards the adjustment of many ot these questions when it became apparent that an irreconcilable difference or view was entertained respecting the delimitation of the Alaskan boundary. An adjournment was taken until the bonndnry should be adjusted by the two governments. The subject has been receiving the careful attention which Its Importance demands, with the resuit that a modus vivendi for provisional demarcations In the region about the head of Lynn Canal has been agreed upon. Neutrality in Boer War. This government has maintained an attitude of neutrality In the unfortunate contest between Great Britain and the Boer States of Africa. We have remained falthfnl to the precept of avoiding entangling alliances as to affairs not of onr direct concern. Had circumstances suggested that the parties to the quarrel wonld have welcomed any kindly expression of the hope of the Ameatoan people that war might be averted good offices wonld have been gladly tendered Upon the withdrawal of the British agent from Pretoria the United States consul was authorized, upon the request of the British government and with the assent of the South Atriean and Orange Free State Governments, to exercise the customary good offices of a neutral for the care of British interests, (n the discharge of this function I am happy to say that abundant opportunity has been offered to show the Impartiality of this government toward both the combatants. Lynching of Allens. For the fourth time In the present decade question has arisen with the government of Italy In regard to the lynching of Italian subjects. The latest of these deplorable events occurred at Tallulah, La., whereby five unfortunates of Italian origin were taken from Jail and hanged. The authorities of the Btate and a representative of the Italian embassy having separately investigated the occurrence, with discrepant results, particularly as to the alleged citizenship of the victims. and it not appearing that the State had been able to discover and punish the viola-

tors of the law, an Independent investigation has been set on foot, through the agency of the Department of State, and is still in progress. The recurrence of these distressing manifestations of blind mob fury directed at dependents or nntives of a foreign country suggests that the contingency has arisen for action by Congress in the direction of conferring upon the Federal courts jurisdiction In thisf class of International cases where the ultimate responsibility of the Federal government may be Involved. Treaty with Japan. The treaty of commerce and navigation between the United States and Japan Nov. 22, 1804, took effect in accordance with the terms of its nineteenth arttcie the 17th ot July last, simultaneously with the enforcement of like treaties with the other powers, except France, whose convention did not go into operation until Aug. 4, the United States being, however, granted up to that date all the privileges and rights accorded to French citizens under the old French treaty. Cable to Philippines. The Japanese government has shown a lively Interest in the proposition of the Pacific Cnble Company to add to its projected cable lines to Hawaii, Guam and the Philippines a.branch connection with the coast of Japnn. Without repeating the observations of my special message of Feb. 10, 1801), concerning tbe necessity of a cable to Manila, I respectfully invite attention to It. 1 recommend that, in case the Congress should not take measures to bring about this result by direct action of the government, the postmaster general be authorized to invite competitive bids for the establishment of a cable. Mexican Extradition Treaty. Following tiie termination Jan. 20, 1899, by Mexico of the convention of extrad tion of Dec. 11. 1861, a new treaty more in accordance with the ascertained needs of both countries was signed Feb. 22. IS9O, and exchanged in the Cjty of Mexico the 22d ot April last. Its operation thus far has been effective and satisfactory. The new treaty stipulates that neither government shall assume Jurisdiction in the punishment of crimes committed exclusively withiu the territory of the other. Rio Grande Bonndnry. The internationnl water boundary commission. organized by the convention of March 1, 18S9, for the adjustment of questions nffecting the Rio Grande frontier, has not yet completed its labors. Claims growing out of the seizure of American sealing vessels In Bering Sea have been under discussion with the government of Rnssia for several years, with the recent happy result of an agreement to submit them to the decision of a single arbitrator. Events in Samoa. Important events have occurred in the Samoan Islands. The election, according to the laws and customs of Samoa, of a successor to the late king, Malletoa Laupepa, developed a contest as to the validity of the result, which Issue, by the terms of the general act, was to be decided by the chief justice. Upon his rendering a judgment in favor of Malletoa Tanu. the rival chief, Mataafa, took up arms. The active intervention of American and British war ships became imperative to restore order, at the cost of sanguinary encounters. In this emergency a joint commission of representatives of the United States, Germany, and Great Britain was sent to Samoa to investigate the situation and provide a temporary remedy. By its active efforts a peaceful solution was reached for the time being, the kingship being abolished and a provisional government established. Recommendations unanimously made by the commission for a permanent adjustment of the Samoan question were taken under consideration by the three powers parties to the general act. But the more they were examined the more evident it became that a radical change was necessary in the relations of the powers to Samoa. A satisfactory arrangement was concluded between the governments of Germany and England, by virtue of which England retired from Samoa in view of compensations in other directions, and both powers renounced In favor of the United States all their rights and claims over and in respect to that portion of the group lying to the east of the 171st degree of west longitude, embracing the islands of Tutulla, Ofoo, Olosenga and Manua. I transmit to the Senate, for its constitutional action thereon, a convention, which, besides the provisions aJ»ove mentioned, also guarantees us the same privileges and conditions in respect to commerce and commercial vessels in all of the islands of Samoa as those possessed by Germany. Treaty with Spain. My annual message of Inst year was necessarily devoted in great part to a consideration of the Spanish war, and of the results it wrought and the conditions it imposed for the future. I am gratified to announce that the treaty of peace has restored friendly relations between the two powers. Effect has been given to Its most important provisions. Home Rule for Cuba. The withdrawal of the authority of Spain from the Island of Cuba was effected by the Ist of January, so tnat the full re-establish-ment of peace found the relinquished territory held by us in trust lor the inhabitants, maintaining, under the direction of the executive, such government and control therein as should conserve public order, restore the productive conditions of peace, so long disturbed by the instability and disorder which prevailed for the greater part of the preceding three decades, and build up that tranquil development of the domestic state whereby alone can be realized the high purpose, as proclaimed In the joint resolution adopted by the Congress the 19th of April, 1898, by which the United States disclaimed any disposition or intention to exercise sovereignty, jurisdiction or control over Cuba, except for the pacification thereof, and asserted its determination when that was accomplished to leave the government and control of the Island to its people. The pledge contained in this resolution Is of the highest honorable obligation and mnst be sacredly kept. America’* Great Responsibility. This nation has assumed before the world a grave responsibility for the fnture good government of Cuba. We have accepted a t*»st, the fulfillment of which calls for the •t*--lest integrity of purpose and-the exerc,Be M 1 the highest wisdom. The new Cuba yet tb arise from the ashes of the past mnst neds be bound to ns by ties of singular intimacy and strength if its enduring welfare Is to be assured. Whether those ties shall be organic or conventional, the destinies of Cuba are In some rightful form and manner Irrevocably linked with our own. but how and how far Is for the future to determine In the ripeness of events. Whatever be the outcome, we must see to it that free Cuba be a reality, not a name; a perfect entity, not a hasty experiment bearing within Itself the elements of failure. By the treaty of peace the Spanish people on the Island have until April 11. 1900, to elect whether they will remain citizens of Spain or become citizens of Cuba. Until then It cannot be definitely ascertained who shall be entitled to participate in the formation of the government of Cuba. By that time the results of the census wMO have been tabulated and we shall proceed to provide for elections which will commit the municipal governmeats of the island to the officers elected by tbe people. Meantime and so long as wew exercise control over the Island the products of Cuba should have a market In tbe United States on as good terms and with as favorable rates of duty as are given to the West India islands under treaties of reciprocity which shall be made. Diplomatic Sedations Resumed. Following tbe exchange of ratifications of the treaty of peace the two governments accredited ministers to each other, Spain s<*.dlng to Washington the Duke of Arcos, an eminent diplomatist, previously stationed In Mexico, while tbe United States transferred to Madrid Bellamy Storer, its minister at Brussels. This was followed by the respective appointment of consuls, thereby fully resuming the relations Interrupted by the war. Judicial Intercourse between the courts of Cuba and Porto Rico and of Spain haa been established, es provided by the treaty of peace. The Cnban political prisoners In Spanish penal stations have been and are being released and returned to their homes in accordance with article 8 of the treaty.

Negotiations are about to be had for defining; the conventional relations between the twe countries, which fell into abeyance by rea-j son of the war. I trust that those will I*elude a favorable arrangement for commercial reciprocity under the terms of sections h and 4 or the current tariff act. Claims Against Turkey. The United States minister to Turkey ce*s tlnues, under instructions, to press for ai money payment in satisfaction of the jos* claims for injnrles suffered by American dtw zens in the disorders of several years pang and for wrongs done to them by the Ottoman! authorities. In the Turkish Empire the sttd nation of onr citizens remains unsatisfactory. Our efforts during nearly forty year* to bring about a convention of naturalization seem to be on the brink of final failnraj Venezuela Boundary Award. The International commission of arbitration, appointed nnder the Anglo-Venezuelaaj treaty of 1897. rendered an award. Oct. Si last, whereby the boundary line between! Venezuela and British Guiana is determined., thus ending a controversy which has ex* lsted for the greater part of tbe Century, The award, as to which the arbitrators were! unanimous, while not meeting the extreme* contention of either party, gives to Grea*i Brltairea Jarge share of the interior terrl-i tory in dispute and to Venezuela the entire; mouth of the Orinoco, lncifiding BarlmaJ Point and the Caribbean littoral for some* distance to the eastward. The decision appears to be canally satisfactory to both! parties. Treaties Under Tariff Act. The fourth section of tbe tariff act, approved July 24, 1597, appears to provide only; for. commercial treaties which shonld be entered Into by the President and also ratl-i fled by the Senate within two years from! Its passage. Owing to delays, inevitable In! negotiations of tills nature, none of the; treaties initiated under that section could! be concluded in time for ratification by the Senate prior to its adjournment the 4th or March last. Some of the pending negotlu-t tions, however, were near conclusion at that, time, and the resulting conventions hav* since been signed by the plenipotentiaries.) Conventions of reciprocity have befeat signed during the congressional recess with' Great Britain for the respective colonies ot British Guiana, Barbados, Bermuda, Jamaica and Turks and Caicos Islands, and with the Republic of Nicaragua. important reciprocal conventions hav* also been concluded with France and with the Argentine Republic. The interest taken by the varions States forming the International Unl n of Amer eaa Republics in the work of Its organic bureau is evidenced by the fact that for the first time since its creation in 1890 all the republics of South and Central America are now represented in it. Its maintenance is therefore assured for the next ten years. Pan-American Exposition. The act to encourage the holding of ths Pan-American Exposition on the Niagara frontier, within the county of Erie or Niagara, in the State of New York, in the yean 1901, was approved March 3, 1899. This exposition, which will be held In the city of Buffalo, in the near vicinity of the great Niagara catnract, and within a day’s Journey of which reside 40,000,000 of our people, will be confined entirely to the western hemisphere. Satisfactory assurances have already been given by the diplomatic representatives of Great Britain, Mexico, th* Central and South American republics and most of the States of the United States that these countries and States will make sa unique, Interesting and instructive exhibit, peculinriy illustrative of their material progress during the centry which is about to close., Philadelphia Commercial Congress. In accordance with an act of Congress, approved Dec. 21, 1898, and under the auspices of the Philadelphia Commercial Museum, a most interesting and valuable exposition of products and manufactures especially adapted to export trade was held In Philadelphia from the 14th of September to ths Ist of December, 1899. Peace Congress at The Hague. In response to the invitation of bis m«J-' esty the Emperor of Russia, delegates from twenty-six countries were assembled at Th* Hague May 18, as members of a conferenc* in the interest of peace. The final act of the conference Includes conventions upon the amelioration of the laws and customs of war on land, the adaptation to marltlm* warfare of the principles of the Geneva convention of 1864 and the extension of Judicial methods to international cases. Th* convention for the pacific settlement of International conflicts embodies the leading features of the American plan, with such modifications as were rendered necessary by the great diversity of views and Interest* represented by the delegates. While earnestly promoting the idea of establishing a permanent international tribunal, the deief atlou of the United States was not unmindul of the inconveniences which might arts* from an obtrusive exercise of and In signing the convention carefully guarded the historic position of the United . States. Increase in Army. Since my last annual message and In obedience to the acts of the Congress of Aprii 22 and 20, 1898, the remaining volunteer force enlisted for the Spanish war, consisting of 34,834 regulars and 110.202 volunteers, with over 5,000 volunteer officers, has bee* discharged from the military service. By the act of March 2, 1899. Congress gave authority to increase the regular army to m maximum not exceeding 65,000 enlisted me* and to enlist a force of 35,000' volunteer** to be recruited from the country at large, By virtue of this authority the regular army has been Increased to the number of 61,999 enlisted men and 2,248 officers, and new vok unteer regiments have been organized aggregating 33,050 enlisted men and 1,524 officers. Two of these volunteer regiments are mads up of colored men, jrith colored line officers. ITie new troops to take the places of thoss returning from the Philippines have bee* transported to Manila to the number of 581 officers and 26,322 enlisted men of the regular army, and 594 officers and 15,386 enlisted men of the new volunteer force, while 504 officers and 14,119 men of the volunteer fores are on the ocean en route to Manila. Tbe force now in Manila consists of 90S officers and 30,578 regulars and 594 officers and 15,388 of the volunteers, making an aggregate of 1,499 officers and 45,966 men, When the troops now under orders shall reach Manila, the force In the archlpelag* will comprise 2,051 officers and 6A488 men. Daring the last year we have reduced on* force In Cuba and Porto Rico. Postal Needs in Island*. In restoring peaceful conditions, orderly rule and civic progress In Cabs, Porto lUe* and, so far as practicable, In the Philippines, the rehabilitation of the postal service ha* been an essential and Important part of th* work. American trained officials have bee* assigned to the directing and executive positions, while natives have been 'chiefly emploved in making up tbe body of the fore*. The development of the service In all of th* Islands has been rapid and successful. I* has moved forward on American lines, with, free delivery, money order and registry systems. and has given the people mail facilities far greater and more reliable than angj they have ever before enjoyed. Domestic Postal Service. The domestic postal service continues tat grow with extraordinary rapidity. The expenditures and the revenues will each exceed $109,000,000 during the current yeaoj Fortunately, since the revival of prosper*** rimes the revenues have grown much Caste* than tbe expenditures, and there to every Indication that a short period will wltnsa* tbe obliteration of the annual deficit. Reforms suggested in tbe report es tbe Postmaster General, would, In his opinion, ao* only put the postal service at onge on a self-sustaining basis, and I commend th* subject to the consideration es tbe Congress. Naval Prestige Maintained. Tbe navy has maintained tbe spirit naff high efficiency which have always chasa*terised that service, and has lest none of th* gallantry In heroic action which has rignallzed its brilliant and glorious past. Th* nation has equal pride in its early and Mar. achievements. Its habitual readiness Con every emergency haa won tbe confidence as* admiration of the country. The people «• Interested in the continued preparation *m :. • .- * • k .-«s 5*3888

•mmacdatlons for the Increase of the navy, a* suggested by the Secretary. Army and Navy Pensions. The 30th of June, 1899, the pension roll of the United States numbered 991,519. These Include the pensioners of the nrmy and navy In all our wars. The number added to the rolls during the year was 40,991. The ■umber dropped was 43,186. and the number es claims disallowed was 107,919. The amount disbursed for army and navy pensions during the year was $138,355,032.95, which was $1,651,461.61 less than the sum •f appropriations. Preliminary Work of Census. In accordance with the act of Congress approved March 3, 1899, the preliminary work to connection with the twelfth census Is now fully under way. The officers required for the proper administration of the duties imposed have been selected. The provision for ■ecurtng a proper enumeration of the popu latlon, as well as to secure evidence of the Industrial growth of the nation, is broader and more comprehensive than any similar legislation in tne past. Under the authority of the act of Congress approved July 7, 1898, the commission, consisting of the Secretary of the Teiasmy. the Attorney General and the Secretary of Interior, has made an agreement of settlement, which has had, my approval, of the indebtedness to the government growing out ot the Issue of bonds to aid in the construction of the Central Faelflc and Western Pacific railroads. The agreement secures to the government the principal autl interest ot aald bonds, amounting to 55.812,715.48. The whole Indebtedness was about $30,000,000, more than half of which consisted of accrued Interest, for which sum the government has realized the entire amount, less about $6,000,000, within a period of two gears. „ _ Progress of Agncnlture, The Department of Agriculture Is constantly consulting the needs of producers in all the States and Territories. It'is introducing seeds and plants of great value and promoting fully diversification of crops. Grains, grasses, fruits, legumes and vegetable* are Imported for all parts of the United States. Under this encouragement the sugar beet factory multiplies In the North and far West semi-tropical plants are scut to the Bouth and congenial climates are sought for the choice productions of the far East. The subject of irrigation when It is of vital Importance to the people is being carefully studied. Markets are being sought and opened up for surplus farm and factory prodnets In Europe and Asia. The outlook for the education of the young farmer through agricultural college and experimental stations, with opportunities given to specialize In the department ot agriculture, is very promising. There 1s widespread Interest in the Improvement of our public highways at the present time, and tne Department of Agriculture Is co-operating with the people in each locality In making the best possible roads from local material and in experimenting with steel tracks. Philippine Island Problem. Dee. 10, 1898, the treaty of peace between the United States and Spain was signed. It provided, among other things, that Spain should cede to the United States the archipelago known as the Philippine Islands, that the United States should pay Spain the sum of $20,000,000, and that the civil rights and political status of the native inhabitants of the territories thus ceded to the United Btates should be determined by the Congress. The treaty was ratified by the Senate Feb. 6, 1899, and by the government of Spain March 1 following. The ratifications were exchanged April 11, and the treaty publicly proclaimed. March 2 the Congress voted the sum contemplated by the treaty and the amount was paid over to the Spaulah government May 1. In this manner the Philippines came to the United States. The islands were ceded by the government of Spain, which had been In undisputed possession of them for centuries. They were accepted, not merely by our authorized commissioners in Paris, under the direction of the executive, but by the constitutional and well-considered action of the representatives of the people of the United Stutes in both honses of Congress. 1 had every reason to believe, and I still believe, that this transfer of sovereignty was in accordance with the wishes and the aspirations of the great mass of the Filipino people. From the earliest moment no opportunity was lost of assuring the people of the islands of our ardent desire for their welfare and of the Intention of this government to do everything possible to advance their interests. In my order of May 19, 1898, the commander of the military expedition dispatched to the Philippines was instructed to declare that we came not to make war upon the people ot that country, "nor upon any party or sac tlon among them, but to protect them in their homes, In their employments and in their personal and religious rights." Dec. 21, after the treaty was signed, the commander of the forces of occupation was Instructed '*to announce and proclaim In the most public manner that we come, not as Invaders and conquerors, but as friends, to protect the natives In their homes, in their employments and In their persona! and religious rights.” The same day. while ordering Gen. Otis to see that the peace should be preserved in Iloilo, he was admonished that: "It Is most Important that there should be no conflict with the Insurgents." Jan. 1, 1899, urgent orders were reiterated that the kindly Intentions of this government should be In every possible way communicated to the insurgents. The 21st of January I announced my lutention of dispatching to Manila a commission composed of three gentlemen of the highest character and distinction, thoroughly acquainted with the Orient, who, in asso elation with Admiral Dewey and M«j. Gen. Otis, were Instructed to "facilitate the most humane and effective extension of authority throughout the Islands, and to secure with the least possible delay the benefits of a wise and generous protection of life and property to the inhabitants.” These gentlemen were Dr. Jacob Gould Schurman, president of Cornell University; Charles Denby, for many years minister to China, and Prof. Dean C. Worcester, of the University of Michigan, who had made a most careful study of life In the Philippines. Agruinaldo’e Claim Disproved. While the treaty of peace was under consideration In the Senate these commissioners •et out on their mission of good will and liberation. But before their arrival at Manila the sinister ambition of a few leaders of the Filipinos had created a situation full ot embarassment for us and most grievous In Its consequences to themselves. The clear and impartial preliminary report of tire commissioners, which I transmit herewith, gives ao lucid and comprehensive a history of the present insurrectionary movement that the ■tory need not be here repeated. It is euough to eay that the elnlm of the rebel leader that he was promised independence by any officer of the United States in return for his assistance has no foundation In fact and -Is categorically denied by the very witnesses who were called to prove it. The most the Insurgent leader hoped for when he came back to Manila was the liberation of the islands from the Spanish control, which they had been laboring for years without success to throw off. The prompt accomplishment of this work by the American army and navy gave him other ideas and ambitions, and Insidious •uggestlons from various quarters perverted the purposes and intentions with which he had taken up nrnis. No sooner had our army captured Manila than the l-'lliplno forces began to assume an attitude of suspicion amd hostility which the utmost efforts ot our. officers and troops were unable to disarm or modify. Thqir kindness and forbearance were taken' as a proof of cowardice. The aggressions of the Filipinos continually Increased, until, finally, just before the time Mt by the Senate of the United States for m vote upon the treaty, an attack, evidently prepared In advance, was made all along Ihe Amerioan lines, which resulted in a terribly destructive and sanguinary repulse of the Insurgents. Order of Extermination. Ten days later an order of the insurgent government was issued to Its adherents who had remained in Manila, of which Gen. Otis Justly observes that “for barbarous intent it to unequaled In modern times." It directs that at 8 o’clock the sight of the 15th es February the territorial militia shall come together in the streets of San Pedro, armed with tbclr bolos, with guns and ammunition where convenient; that Filipino families only shall be respected; but that

all other Individuals, of whatever race they may be, shall be exterminated without any compassion, after the exterminntlpn of the army of occupation. A copy of this fell by good fortune Into the hands of our officers and they were able to take measures to control the rising, which was actually attempted the night of Feb. 22, a week later than was originally contemplated. Rebellion Must Be Put Down. This was the unhappy condition of affairs which confronted our commissioners on their arrival in Manila. AVliat they found can best be set forth In their own words: "Deplorable as war is, the one which we are now engaged was unavoidable by us. We were attacked by a bold, adventurous and enthusiastic army. No alternative was left to us except Ignominious retreat. Whatever the future of the Philippines may be, there Is no course open to us now except the prosecution of the war until the insurgents are reduced to submission. The commission Is of the opinion that there lias been no- time since the destruction of the Spanish squadron by Admiral Dewey when it was possible to withdraw our forces from the islands, either with honor to ourselves or with safety to the inhabitants.” The course Thus clearly indicated has been unflinchingly pursued. The rebellion must be put down. Civil government cannot be thoroughly established until order is restored. ’ * With a devotion and gallantry worthy of Its most brilliant history, the army, ably and loyally assisted by the navy, juts carried on this unwelcome, but most righteous campaign with richly deserved success. Although their operations have been somewhat Interrupted nud checked by a rainy season of unusual violence and duration, they have gained ground steadily in every direction, and now took forward confidently to a speedy completion <>f their task. The unfavorable circumstances connected with an active campaign have not been permitted to Interfere with the equally important work of reconstruction. American Rule in Sulu. The authorities of the Sulu islands have accepted the succession of the United States to the rights of Spaiu. and our flag floats over that territory. The 10th of August, 1899, Brig. (ieu. .1. C. Bates. U. S. Volunteers. negotiated an agreement with the I Sultan and his principal chiefs, which 1 transmit herewith. By article 1. the sovereignty of the United States over the whole archipelago of Sulu and its dependencies is declared and acknowledged. The United States will gjve full protection to the Sultan In case any foreign nation should attempt to impose upon him. The United States will not sell any island of the Suit! archipelago to any foreign nation without the consent of the Sultan. Any slave in the archipelago of Sulu shall have the right to purchase freedom. The agreement by tten. Bates was made subject to confirmation by the I’resident and to future modifications. This agreement is not to lie deemed in anyway to authorize or give the consent of the United States io the existence of slavery in the Sulu archipelago. I communicate these facts to the Congress for its information and action. Everything Indicates that with the speedy suppression of the Tagalo rebellion life in the archipelago will soon resume its ordinary course under the protection of our sovereignty, and the people of those favored islands’will enjoy a prosperity and a freedom which they have neter before known. Now Rests with Congress. The future government of the I’hillppines rests with the Congress of the United States. The islands lie under the shelter of our flag. They are ours by every title of law and equity. They cannot be abandoned. If we desert thepi we leave them at once to anarchy and finally to barbarism.' We fling them, a golden apple of diseov.l. among the rival powers, no oue of which could permit another to seize them unquestioned. Their rich plains and valleys would be the scene I of endless strife and bloodshed. The suggestion has been made that we ■ could renounce our authority over the Isl--1 a ads and, giving them independence, could retain ji over them. This proposition will not be found, l am sure, worthy lof your serious attention. Such an arrange- ! meut would Involve at the outset a cruel I breach of faith. It would place the peace- | able and loyal majority, who ask nothing i better titan to accept our authority, at the mercy of the minority of armed insurgents. It would make us responsible for the acts ' of the insurgent loaders and give ns no pow- | er to control them. It would charge us with ; the task of protecting them against each | other and defending them against any for--' ! oign power with which they chose to quarrel. In short. It would take from the Congress of the United States the power of declaring war and vest that tremendous prerogative In the Tagalan leader of the hour. It does not seem desirable that I should recommend at this time a specific and final form of government for these Islands. When peace shall be restored it will be the duty of Congress to construct a plan of government which shall establish and maintain freedom and order and pence in the Philippines. Until Congress shall have made known the formal expression of its will, I shall use the authority vested in me by (lie Constitution and the statutes to uphold the sovereignty of tlte United States in those distant islands as in nil other places wlfere our flag rightfully floats. Status of Hawaii. Some embarrassment in administration has occurred by reason of the peculiar status which the Hawaiian Islands at present occupy under the joint resolution of annexation approved July 7. 1898. While by that resolution the Republic of Hawaii as an independent nation was extinguished, Its separate • sovereignty destroyed, and Its property and possessions vested In the United States, yet a complete establishment for its government tinder our system was not effected. The people of these islands are entitled to the benefits and privileges of our Constitution. It Is manifestly important, therefore, that an act shall be passed as speedilv as possible erecting these Islands Into a'judicial district, providing for the appoiutment of a judge and'other proper officers, and mthods of procedure in appellate proceedings, and that the government of this newly acquired territory under the federal Constitution shall be fully defined and provided for. Alaska Needs Legislation. A necessity for immediate legislative relief exists in' the Territory of Alaska. Subsi antiallv the only law providing a flvll government for this territory is the act of May 17. ISB4. This Is meager in its provisions and is fitted only for the administration of affairs in a country sparsely inhabited bv civilized people, and unimportant trade and production, as was Alaska at the time this act was passed. There is practically uo organized form of government, and no’reason why a more complete form.of territorial organization should not be provided. Government of Porto Rico. I recommend that legislation to the same end l>o had with reference to the government of Porto. Rico. The time is ripe for the adoption of a temporary form of government for this island. It is desirable that the government of the island under the law of belligerent j-iglit. now maintained through the Executive Department, should be superseded bv an administration entirely civil in its nature. For present purposes I recommend that Congress pass a law for the organization of a temporary government, which shall provide for the appointment by the President, subject to confirmation by the Senate, of a governor and such other officers as the general administration of the island may require, and that for legislative purposes on subtects of a local nature not partaking of a federal character a legislative council, composed partly of Porto Ricans and partly of citizens of the United States, shall be nominated and appointed by the President, subject to confirmation by the. Senate, their acts to be subject to the approval of the Congress or the .President prior to going into effect. Our plain duty is to abolish all customs tariffs between the United States and Porto Rico and give her products free access to our markets. Punishment of Lynchers. Those who, in disregard of law and the public peace, unwilling to await the Judgment of court and jury, constitute themselves judges and executioners should not escape the severest penalties for their crimes. The constitutional authorities must

be cheerfully and vigorously upheld. Lynching* must not be tolerated In a great and civilized country like the United States. Courts, not mobs, must execute the penalties of the laws. Merit System Strengthened. The executive order of May C, 1896. extending the limits of the classified service, brought within the operation of the civil service law and rules nearly all of the executive civil service not previously classified. Some of the inclusions were found wholly Illogical and unsuited to f,lie ■ work of the several departments. After long and very careful consideration it became evident to the heads of the departments. responsible for their efficiency, that in order to remove these difficulties and promote an efficient and harmonious admiuistratiou certain amendments were necessary, 'these amendments were promulgated by me iu executive order dated May 29, 1899. All of the amendments had for their main object n more efficient and satisfactory administration of the system of appointments as established by the civil service law. Presented to this Congress are great opportunities. With them come great responsibilities. The power confided to us increases the weight of our obligations to the people, and we must be profoundly sensitive of them as we contemplate the new and grave problems which confront ns. Aiming only at tbe public good, we cannot err. A right inter;,rotation of the people’s will and of duty cannot fail to insure wise measures for the welfare of the islands which have come under the authority of the United States, and inure to the common interest and lasting hoiu.r of our country. Never has this nation had more abundant cause than during the last year for thankfulness to God for manifold blessings and mercies, for which we make reverent acknowledgment.

WILLIAM M’KINLEY.