As representatives of the people in the legislative branch of their Government, you have assembled at a time when the strength and excellence of our free institutions and the fitness of our citizens to enjoy popular rule have been again made manifest. A political contest involving momentous consequences, fraught with feverish apprehension, and creating aggressiveness so intense as to approach bitterness and passion has been waged throughout our land and determined by the decree of free and independent suffrage without disturbance of our tranquillity or the least sign of weakness in our national structure. When we consider these incidents and contemplate the peaceful obedience and manly submission which have succeeded a heated clash of political opinions, we discover abundant evidence of a determination on the part of our countrymen to abide by every verdict of the popular will and to be controlled at all times by an abiding faith in the agencies established 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 acceptance 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. To secure brevity and avoid tiresome narration I shall omit many details concerning matters within Federal control which, though by no means unimportant, are more profitably discussed in departmental reports. I shall also further curtail this communication by omitting a minute recital of many minor incidents connected with our foreign relations which have heretofore found a place in Executive messages, but are now contained in a report of the Secretary of State, which is herewith submitted. 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 past year assumed a less hideous and bloody aspect and that, either as a consequence of the awakening of the Turkish Government to the demands 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 fanaticism, 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 unfrequent 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 none of our citizens in Turkey have thus far been killed or wounded, though often in the midst of dreadful scenes of danger, their safety 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. The outbreaks of the blind fury which lead to murder and pillage in Turkey occur suddenly and without notice, and an attempt on our part to force such a hostile presence there as might be effective for prevention or protection would not only be resisted by the Ottoman Government, but would be regarded as an interruption of their plans by the great nations who assert their exclusive right to intervene in their own time and method for the security of life and property in Turkey. 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. 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. Thus far the validity of these demands has not been admitted, though our minister, prior to such outrages and in anticipation of danger, demanded protection for the persons and property of our missionary citizens in the localities mentioned and notwithstanding that strong evidence exists of actual complicity of Turkish soldiers in the work of destruction and robbery. The facts as they now appear do not permit us to doubt the justice of these claims, and nothing will be omitted to bring about their prompt settlement. 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. It is hoped that hereafter no obstacle will be interposed to prevent the escape of all those who seek to avoid the perils which threaten them in Turkish dominions. Our recently appointed consul to Erzerum is at his post and discharging the duties of his office, though for some unaccountable reason his formal exequatur from the Sultan has not been issued. I do not believe that the present somber prospect in Turkey will be long permitted to offend the sight of Christendom. It so mars the humane and enlightened civilization that belongs to the close of the nineteenth century that it seems hardly possible that the earnest demand of good people throughout the Christian world for its corrective treatment will remain unanswered. The insurrection in Cuba still continues with all its perplexities. It is difficult to perceive that any progress has thus far been made toward the pacification of the island or that the situation of affairs as depicted in my last annual message has in the least improved. If Spain still holds Havana and the seaports and all the considerable towns, the insurgents still roam at will over at least two-thirds of the inland country. If the determination of Spain to put down the insurrection seems but to strengthen with the lapse of time and is evinced by her unhesitating devotion of largely increased military and naval forces to the task, there is much reason to believe that the insurgents have gained in point of numbers and character and resources and are none the less inflexible in their resolve not to succumb without practically securing the great objects for which they took up arms. If Spain has not yet reestablished her authority, neither have the insurgents yet made good their title to be regarded as an independent state. Indeed, as the contest has gone on the pretense that civil government exists on the island, except so far as Spain is able to maintain it, has been practically abandoned. Spain does keep on foot such a government, more or less imperfectly, in the large towns and their immediate suburbs; but that exception being made, the entire country is either given over to anarchy or is subject to the military occupation of one or the other party. It is reported, indeed, on reliable authority that at the demand of the commander in chief of the insurgent army the putative Cuban government has now given up all attempt to exercise its functions, leaving that government confessedly (what there is the best reason for supposing it always to have been in fact) a government merely on paper. Were the Spanish armies able to meet their antagonists in the open or in pitched battle, prompt and decisive results might be looked for, and the immense superiority of the Spanish forces in numbers, discipline, and equipment could hardly fail to tell greatly to their advantage. But they are called upon to face a foe that shuns general engagements, that can choose and does choose its own ground, that from the nature of the country is visible or invisible at pleasure, and that fights only from ambuscade and when all the advantages of position and numbers are on its side. In a country where all that is indispensable to life in the way of food, clothing, and shelter is so easily obtainable, especially by those born and bred on the soil, it is obvious that there is hardly a limit to the time during which hostilities of this sort may be prolonged. Meanwhile, as in all cases of protracted civil strife, the passions of the combatants grow more and more inflamed and excesses on both sides become more frequent and more deplorable. They are also participated in by bands of marauders, who, now in the name of one party and now in the name of the other, as may best suit the occasion, harry the country at will and plunder its wretched inhabitants for their own advantage. Such a condition of things would inevitably entail immense destruction of property, even if it were the policy of both parties to prevent it as far as practicable; but while such seemed to be the original policy of the Spanish Government, it has now apparently abandoned it and is acting upon the same theory as the insurgents, namely, that the exigencies of the contest require the wholesale annihilation of property that it may not prove of use and advantage to the enemy. It is to the same end that, in pursuance of general orders, Spanish garrisons are now being withdrawn from plantations and the rural population required to concentrate itself in the towns. The sure result would seem to be that the industrial value of the island is fast diminishing and that unless there is a speedy and radical change in existing conditions it will soon disappear altogether. That value consists very largely, of course, in its capacity to produce sugar--a capacity already much reduced by the interruptions to tillage which have taken place during the last two years. It is reliably asserted that should these interruptions continue during the current year, and practically extend, as is now threatened, to the entire sugar-producing territory of the island, so much time and so much money will be required to restore the land to its normal productiveness that it is extremely doubtful if capital can be induced to even make the attempt. 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 the Government and people of the United States in any circumstances. In point of fact, they have a concern with it 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 and in railroad, mining, and other business enterprises on the island. The volume of trade between the United States and Cuba, which in 1889 amounted to about $64,000,000, rose in 1893 to about $103,000,000, and in 1894, the year before the present insurrection broke out, amounted to nearly $96,000,000. 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 laws do not permit to be made the subject of criminal prosecutions. Some of them, though Cubans at heart and in all their feelings and interests, have taken out papers as naturalized citizens of the United States--a proceeding resorted to with a view to possible protection by this Government, and not unnaturally regarded with much indignation by the country of their origin. The insurgents are undoubtedly encouraged and supported by the widespread sympathy the people of this country always and instinctively feel for every struggle for better and freer government, and which, in the case of the more adventurous and restless elements of our population, leads in only too many instances to active and personal participation in the contest. The result is that this Government is constantly called upon to protect American citizens, to claim damages for injuries to persons and property, now estimated at many millions of dollars, and to ask explanations and apologies for the acts of Spanish officials whose zeal for the repression of rebellion sometimes blinds them to the immunities belonging to the unoffending citizens 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 on the part of the United States. It was at first proposed that belligerent rights should be accorded to the insurgents--a proposition no longer urged because untimely and in practical operation dearly 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 internecine strife in Cuba should be terminated by our intervention, even at the cost of a war between the United States and Spain--a war which its advocates confidently prophesy could neither be large in its proportions nor doubtful in its issue. The correctness of this forecast need be neither affirmed nor denied. The United States has, nevertheless, a character to maintain as a nation, which plainly dictates that right and not might should be the rule of its conduct. Further, though the United States is not a nation to which peace is a necessity, it is in truth the most pacific of powers and desires nothing so much as to live in amity with all the world. Its own ample and diversified domains satisfy all possible longings for territory, preclude all dreams of conquest, and prevent any casting of covetous eyes upon neighboring regions, however attractive. That our conduct toward Spain and her dominions has constituted no exception to this national disposition is made manifest by the course of our Government, not only thus far during the present insurrection, but during the ten years that followed the rising at Yara in 1868. No other great power, it may safely be said, under circumstances of similar perplexity, would have manifested the same restraint and the same patient endurance. It may also be said that this persistent attitude of the United States toward Spain in connection with Cuba unquestionably evinces no slight respect and regard for Spain on the part of the American people. They in truth do not forget her connection with the discovery of the Western Hemisphere, nor do they underestimate the great qualities of the Spanish people nor fail to fully recognize their splendid patriotism and their chivalrous devotion to the national honor. They view with wonder and admiration the cheerful resolution with which vast bodies of men are sent across thousands of miles of ocean and an enormous debt accumulated that the costly possession of the gem of the Antilles may still hold its place in the Spanish crown. And yet neither the Government nor the people of the United States have shut their eyes to the course of events in Cuba or have failed to realize the existence of conceded grievances which have led to the present revolt from the authority of Spain--grievances recognized by the Queen Regent and by the Cortes, voiced by the most patriotic and enlightened of Spanish statesmen, without regard to party, and demonstrated by reforms proposed by the executive and approved by the legislative branch of the Spanish Government. It is in the assumed temper and disposition of the Spanish Government to remedy these grievances, fortified by indications of influential public opinion in Spain, that this Government has hoped to discover the most promising and effective means of composing the present strife with honor and advantage to Spain and with the achievement of all the reasonable objects of the insurrection. It would seem that if Spain should offer to Cuba genuine autonomy--a measure of home rule which, while preserving the sovereignty of Spain, would satisfy all rational requirements of her Spanish subjects--there should be no just reason why the pacification of the island might not be effected on that basis. Such a result would appear to be in the true interest of all concerned. It would at once stop the conflict which is now consuming the resources of the island and making it worthless for whichever party may ultimately prevail. It would keep intact the possessions of Spain without touching her honor, which will be consulted rather than impugned by the adequate redress of admitted grievances. It would put the prosperity of the island and the fortunes of its inhabitants within their own control without severing the natural and ancient ties which bind them to the mother country, and would yet enable them to test their capacity for self-government under the most favorable conditions. It has been objected on the one side that Spain should not promise autonomy until her insurgent subjects lay down their arms; on the other side, that promised autonomy, however liberal, is insufficient, because without assurance of the promise being fulfilled. But the reasonableness of a requirement by Spain of unconditional surrender on the part of the insurgent Cubans before their autonomy is conceded is not altogether apparent. It ignores important features of the situation--the stability two years' duration has given to the insurrection; the feasibility of its indefinite prolongation in the nature of things, and, as shown by past experience, the utter and imminent ruin of the island unless the present strife is speedily composed; above all, the rank abuses which all parties in Spain, all branches of her Government, and all her leading public men concede to exist and profess a desire to remove. Facing such circumstances, to withhold the proffer of needed reforms until the parties demanding them put themselves at mercy by throwing down their arms has the appearance of neglecting the gravest of perils and inviting suspicion as to the sincerity of any professed willingness to grant reforms. The objection on behalf of the insurgents that promised reforms can not be relied upon must of course be considered, though we have no right to assume and no reason for assuming that anything Spain undertakes to do for the relief of Cuba will not be done according to both the spirit and the letter of the undertaking. Nevertheless, realizing that suspicions and precautions on the part of the weaker of two combatants are always natural and not always unjustifiable, being sincerely desirous in the interest of both as well as on its own account that the Cuban problem should be solved with the least possible delay, it was intimated by this Government to the Government of Spain some months ago that if a satisfactory measure of home rule were tendered the Cuban insurgents and would be accepted by them upon a guaranty of its execution the United States would endeavor to find a way not objectionable to Spain of furnishing such graranty. 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. Neither party can fail to see the importance of early action, and both must realize that to prolong the present state of things for even a short period will add enormously to the time and labor and expenditure necessary to bring about the industrial recuperation of the island. It is therefore fervently hoped on all grounds that earnest efforts for healing the breach between Spain and the insurgent Cubans upon the lines above indicated may be at once inaugurated and pushed to an immediate and successful issue. The friendly offices of the United States, either in the manner above outlined or in any other way consistent with our Constitution and laws, will always be at the disposal of either party. Whatever circumstances may arise, our policy and our interests would constrain us to object to the acquisition of the island or an interference with its control by any other power. It should be added that it can not be reasonably assumed that the hitherto expectant attitude of the United States will be indefinitely maintained. While we are anxious to accord all due respect to the sovereignty of Spain, we can not view the pending conflict in all its features and properly apprehend our inevitably close relations to it and its possible results without considering that by the course of events we may be drawn into such an unusual and unprecedented condition as will fix a limit to our patient waiting for Spain to end the contest, either alone and in her own way or with our friendly cooperation. When the inability of Spain to deal successfully with the insurrection has become manifest and it is demonstrated that her sovereignty is extinct in Cuba for all purposes of its rightful existence, and when a hopeless struggle for its reestablishment has degenerated 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 superseded by higher obligations, which we can hardly hesitate to recognize and discharge. Deferring the choice of ways and methods until the time for action arrives, we should make them depend upon the precise conditions then existing; and they should not be determined upon without giving careful heed to every consideration involving our honor and interest or the international duty we owe to Spain. Until we face the contingencies suggested or the situation is by other incidents imperatively changed we should continue in the line of conduct heretofore pursued, thus in all circumstances exhibiting our obedience to the requirements of public law and our regard for the duty enjoined upon us by the position we occupy in the family of nations. 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 arrive when a correct policy and care for our interests, as well as a regard for the interests of other nations and their citizens, joined by considerations of humanity and a desire to see a rich and fertile country intimately related to us saved from complete devastation, will constrain our 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. The Venezuelan boundary question has ceased to be a matter of difference between Great Britain and the United States, their respective Governments having agreed upon the substantial provisions of a treaty between Great Britain and Venezuela submitting the whole controversy to arbitration. The provisions of the treaty are so eminently just and fair that the assent of Venezuela thereto may confidently be anticipated. Negotiations for a treaty of general arbitration for all differences between Great Britain and the United States are far advanced and promise to reach a successful 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 the 20th of September, 1895, has fully demonstrated the usefulness of this innovation. In connection with this plan of examination promotions and transfers of deserving incumbents have been quite extensively made, with excellent results. During the past year 35 appointments have been made in the consular service, 27 of which were made to fill vacancies caused by death or resignation or to supply newly created posts, 2 to succeed incumbents removed for cause, 2 for the purpose of displacing alien consular officials by American citizens, and 4 merely changing the official title of incumbent from commercial agent to consul. Twelve of these appointments were transfers or promotions from other positions under the Department of State, 4 of those appointed had rendered previous service under the Department, 8 were made of persons who passed a satisfactory examination, 7 were appointed to places not included in the order of September 20, 1895, and 4 appointments, as above stated, involved no change of incumbency. The inspection of consular offices provided for by an appropriation for that purpose at the last session of the Congress has been productive of such wholesome effects that I hope this important work will in the future be continued. I know of nothing that can be done with the same slight expense so improving to the service. I desire to repeat the recommendation contained in my last annual message in favor of providing at public expense official residences for our ambassadors and ministers at foreign capitals. The reasons supporting this recommendation are strongly stated in the report of the Secretary of State, and the subject seems of such importance that I hope it may receive the early attention of the Congress. We have during the last year labored faithfully and against unfavorable conditions to secure better preservation of seal life in the Bering Sea. Both the United States and Great Britain have lately dispatched commissioners to these waters to study the habits and condition of the seal herd and the causes of their rapid decrease. Upon the reports of these commissioners, soon to be submitted, and with the exercise of patience and good sense on the part of all interested parties, it is earnestly hoped that hearty cooperation may be secured for the protection against threatened extinction of seal life in the Northern Pacific and Bering Sea. The Secretary of the Treasury reports that during the fiscal year ended June 30, 1896, the receipts of the Government from all sources amounted to $409,475,408.78. During the same period its expenditures were $434,678,654.48, the excess of expenditures over receipts thus amounting to $25,203,245.70. The ordinary expenditures during the year were $4,015,852.21 less than during the preceding fiscal year. Of the receipts mentioned there was derived from customs the sum of $160,021,751.67 and from internal revenue $146,830,615.66. The receipts from customs show an increase of $7,863,134.22 over those from the same source for the fiscal year ended June 30, 1895, and the receipts from internal revenue an 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 goods and $41,231,034 in the value of free goods over the preceding year. Our exports of merchandise, foreign and domestic, amounted in value to $882,606,938, being an increase over the preceding year of $75,068,773. The average ad valorem duty paid on dutiable goods imported during the year was 39.94 per cent and on free and dutiable goods taken together 20.55 per cent. The cost of collecting our internal revenue was 2.78 per cent, as against 2.81 per cent for the fiscal year ending June 30, 1895. The total production of distilled spirits, exclusive of fruit brandies, was 86,588,703 taxable gallons, being an increase of 6,639,108 gallons over the preceding year. There was also an increase of 1,443,676 gallons of spirits produced from fruit as compared with the preceding year. The number of barrels of beer produced was 35,859,250, as against 33,589,784 produced in the preceding fiscal year, being all 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 on the 30th day of June, 1896, was $1,228,326,035, of which $599,597,964 was in gold and $628,728,071 in silver. On the 1st day of November, 1896, the total stock of money 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 $22.63 per capita upon an estimated population of 71,902,000. The production of the precious metals in the United States during the calendar year 1895 is estimated to have been 2,254,760 fine ounces of gold, of the value of $46,610,000, and 55,727,000 fine ounces of silver, of the commercial value of $36,445,000 and the coinage value of $72,051,000. The estimated production of these metals throughout the world during the same period was 9,688,821 fine ounces of gold, amounting to $200,285,700 in value, and 169,189,249 fine ounces of silver, of the commercial value of $110,654,000 and of the coinage value of $218,738,100 according to our ratio. The coinage of these metals in the various countries of the world during the same calendar year amounted to $232,701,438 in gold and $121,996,219 in silver. The total coinage at the mints of the United States during the fiscal year ended June 30, 1896, amounted to $71,188,468.52, of which $58,878,490 was in gold coins and $12,309,978.52 in standard silver dollars, subsidiary coins, and minor coins The number of national banks organized from the time the law authorizing their creation was passed up to October 31, 1896, was 5,051, and of this number 3,679 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 $211,412,620. The total outstanding circulating notes of all national banks on the 31st day of October, 1896, amounted to $234,553,807, including unredeemed but fully secured notes of banks insolvent and in process of liquidation. The increase in national-bank circulation during the year ending on that day was $21,099,429. On October 6, 1896, when the condition of national banks was last reported, the total resources of the 3,679 active institutions were $3,263,685,313.83, which included $1,893,268,839.31 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 28 national banks, located in 15 States, of which 12 were organized in the Eastern States, with a capital of $1,180,000, 6 in the Western States, with a capital of $875,000, and 10 in the Southern States, with a capital of $1,190,000. During the year, however, 37 banks voluntarily abandoned their franchises under the national law, and in the case of 27 others it was found necessary to appoint receivers. Therefore, as compared with the year preceding, there was a decrease of 36 in the number of active banks. The number of existing banks organized under State laws is 5,708. The number of immigrants arriving in the United States during the fiscal year was 343,267, of whom 340,468 were permitted to land and 2,799 were debarred on various grounds prescribed by law and returned to the countries whence they came at the expense of the steamship companies by which they were brought in. The increase in immigration over the preceding year amounted to 84,731. It is reported that with some exceptions the immigrants of the past year were of a hardy laboring class, accustomed and able to earn a support for themselves, and it is estimated that the money brought with them amounted to at least $5,000,000, though it was probably much in excess of that sum, since only those having less than $30 are required to disclose the exact amount, and it is known that many brought considerable sums of money to buy land and build homes. Including all the immigrants arriving who were over 14 years of age, 28.63 per cent were illiterate, as against 20.37 per cent of those of that age arriving during the preceding fiscal year. The number of immigrants over 14 years old, the countries from 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-Hungary and provinces, 57,053, with 38.92 per cent; Germany, 25,334, with 2.96 per cent; Sweden, 18,821, with 1.16 per cent; while from Portugal there came 2,067, of whom 77.69 per cent were illiterate. There arrived from Japan during the year only 1,110 immigrants, and it is the opinion of the immigration authorities that the apprehension heretofore existing to some extent of a large immigration from Japan to the United States is without any substantial foundation. From the Life-Saving Service it is reported that the number of disasters to documented vessels within the limits of its operations during the year was 437. These vessels had on board 4,608 persons, of whom 4,595 were saved and 13 lost. The value of such vessels is estimated at $8,880,140 and of their cargoes $3,846,380, making the total value of property imperiled $12,726,520. Of this amount $11,292,707 was saved and $1,432,750 was lost. Sixty-seven of the vessels were totally wrecked. There were besides 243 casualties to small undocumented craft, on board of which there were 594 persons, of whom 587 were saved and 7 were lost. The value of the property involved in these latter casualties is estimated at $119,265, of which $114,915 was saved and $4,350 was lost. The life-saving crews during the year also rescued or assisted numerous other vessels and warned many from danger by signals, both by day and night. The number of disasters during the year exceeded that of any previous year in the history of the service, but the saving of both life and property was greater than ever before in proportion to the value of the property involved and to the number of persons imperiled. The operations of the Marine-Hospital Service, the Revenue-Cutter Service, the Steamboat-Inspection Service, the Light-House Service, the Bureau of Navigation, and other branches of public work attached to the Treasury Department, together with various recommendations concerning their support and improvement, are fully stated in the report of the Secretary of the Treasury, to which the attention of the Congress is especially invited. The report of the Secretary of War exhibits satisfactory conditions in the several branches of the public service intrusted 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 and efficiency are apparent throughout its entire organization. With the exception of delicate duties in the suppression of slight Indian disturbances along our southwestern boundary, in which the Mexican troops cooperated, and the compulsory but peaceful return, with the consent of Great Britain, of a band of Cree Indians from Montana to the British possessions, no active operations have been required of the Army during the year past. Changes in methods of administration, the abandonment of unnecessary posts and consequent concentration of troops, and the exercise of care and vigilance by the various officers charged with the responsibility in the expenditure of the appropriations have resulted in reducing to a minimum the cost of maintenance of our military establishment. During the past year the work of constructing permanent infantry and cavalry posts has been continued at the places heretofore designated. The Secretary of War repeats his recommendation that appropriations for barracks and quarters should more strictly conform to the needs of the service as judged by the Department rather than respond to the wishes and importunities of localities. It is imperative that much of the money provided for such construction should now be allotted to the erection of necessary quarters for the garrisons assigned to the coast defenses, where many men will be needed to properly care for and operate modern guns. It is essential, too, that early provision be made to supply the necessary force of artillery to meet the demands of this service. The entire Army has now been equipped with the new magazine arms, and wise policy demands that all available public and private resources should be so employed as to provide within a reasonable time a sufficient number to supply the State militia with these modern weapons and provide an ample reserve for any emergency. The organized militia numbers 112,879 men. The appropriations for its support by the several States approximate $2,800,000 annually, and $400,000 is contributed by the General Government. Investigation shows these troops to be usually well drilled and inspired with much military interest, but in many instances they are so deficient in proper arms and equipment that a sudden call to active duty would find them inadequately prepared for field service. I therefore recommend that prompt measures be taken to remedy this condition and that every encouragement be given to this deserving body of unpaid and voluntary citizen soldiers, upon whose assistance we must largely rely in time of trouble. During the past year rapid progress has been made toward the completion of the scheme adopted for the erection and armament of fortifications along our seacoast, while equal progress has been made in providing the material for submarine defense in connection with these works. It is peculiarly gratifying at this time to note the great advance that has been made in this important undertaking since the date of my annual message to the Fifty-third Congress at the opening of its second session, in December, 1893. At that time I informed the Congress of the approaching completion of nine 12-inch, twenty 10-inch, and thirty-four 8-inch high-power steel guns and seventy-five 12-inch rifled mortars. This total then seemed insignificant when compared with the great work remaining to be done. Yet it was none the less a source of satisfaction to every citizen when he reflected that it represented the first installment of the new ordnance of American design and American manufacture and demonstrated our ability to supply from our own resources guns of unexcelled power and accuracy. At that date, however, there were practically no carriages upon which to mount these guns and only thirty-one emplacements for guns and sixty-four for mortars. Nor were all these emplacements in condition to receive their armament. Only one high-power gun was at that time in position for the defense of the entire coast. Since that time the number of guns actually completed has been increased to a total of twenty-one 12-inch, fifty-six 10-inch, sixty-one 8-inch high-power breech-loading steel guns, ten rapid-fire guns, and eighty 12-inch rifled mortars. In addition there are in process of construction one 16-inch-type gun, fifty 12-inch, fifty-six 10-inch, twenty-seven 8-inch high-power guns, and sixty-six 12-inch rifled mortars; in all, four hundred and twenty-eight guns and mortars. During the same year, immediately preceding the message referred to, the first modern gun carriage had been completed and eleven more were in process of construction. All but one were of the nondisappearing type. These, however, were not such as to secure necessary cover for the artillery gunners against the intense fire of modern machine rapid-fire and high-power guns. The inventive genius of ordnance and civilian experts has been taxed in designing carriages that would obviate this fault, resulting, it is believed, in the solution of this difficult problem. Since 1893 the number of gun carriages constructed or building has been raised to a total of 129, of which 90 are on the disappearing principle, and the number of mortar carriages to 152, while the 95 emplacements which were provided for prior to that time have been increased to 280 built and building. This improved situation is largely due to the recent generous response of Congress to the recommendations of the War Department. Thus we shall soon have complete about one-fifth of the comprehensive system the first step in which was noted in my message to the Congress of December 4, 1893. When it is understood that a masonry emplacement not only furnishes a platform for the heavy modern high-power gun, but also in every particular serves the purpose and takes the place of the fort of former days, the importance of the work accomplished is better comprehended. In the hope that the work will be prosecuted with no less vigor in the future, the Secretary of War has submitted an estimate by which, if allowed, there will be provided and either built or building by the end of the next fiscal year such additional guns, mortars, gun carriages, and emplacements as will represent not far from one-third of the total work to be done under the plan adopted for our coast defenses, thus affording a prospect that the entire work will be substantially completed within six years. In less time than that, however, we shall have attained a marked degree of security. The experience and results of the past year demonstrate that with a continuation of present careful methods the cost of the remaining work will be much less than the original estimate. We should always keep in mind that of all forms of military preparation 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 permanent fortifications to involve us in foreign complications, but rather to guarantee us against them. They are not temptation to war, but security against it. Thus they are thoroughly in accord with all the traditions of our national diplomacy. The Attorney-General presents 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 those convicted in United States courts of violations of Federal laws, which for many years has been a subject of Executive recommendation, have 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 it ought to be at once supplemented by the rebuilding or extensive enlargement of this improvised prison and the construction of at least one more, to be located in the Southern States. The capacity of the Leavenworth penitentiary is so limited that the expense of its maintenance, calculated at a per capita rate upon the number of prisoners it can accommodate, does not make as economical an exhibit as it would if it were larger and better adapted to prison purposes; but I am thoroughly convinced that economy, humanity, and a proper sense of responsibility 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 are confined. It appears that since the transfer of the Fort Leavenworth Military Prison to its new uses the work previously done by prisoners confined there, and for which expensive machinery has been provided, has been discontinued. This work consisted of the manufacture of articles for army use, now done elsewhere. On all grounds it is exceedingly desirable that the convicts confined in this penitentiary be allowed to resume work of this description. It is most gratifying to note the satisfactory results that have followed the inauguration of the new system provided for by the act of May 28, 1896, under which certain Federal officials are compensated by salaries instead of fees. The new plan was put in operation on the 1st day of July, 1896, and already the great economy it enforces, its prevention of abuses, and its tendency to a better enforcement of the laws are strikingly apparent. Detailed evidence of the usefulness of this long-delayed but now happily accomplished reform will be found clearly set forth in the Attorney-General's report. Our Post-Office Department is in good condition, and the exhibit made of its operations during the fiscal year ended June 30, 1896, if allowance is made for imperfections in the laws applicable to it, is very satisfactory. The total receipts during the year were $82,499,208.40. The total expenditures were $90,626,296.84, exclusive of the $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 $1,679,956.19 less than that of the preceding year. The chief expenditures of the postal service are regulated by law and are not in the control of the Postmaster-General. All that he can accomplish by the most watchful administration and economy is to enforce prompt and thorough collection and accounting for public moneys and such minor savings in small expenditures and in letting those contracts, for post-office supplies and star service, which are not regulated by statute. An effective cooperation between the Auditor's Office and the Post-Office Department and the making and enforcement of orders by the Department requiring immediate notification to their sureties of all delinquencies on the part of postmasters, and compelling such postmasters to make more frequent deposits of postal funds, have resulted in a prompter auditing of their accounts and much less default to the Government than heretofore. The year's report shows large extensions of both star-route service and railway mail service, with increased postal facilities. Much higher accuracy in handling mails has also been reached, as appears by the decrease of errors in the railway mail service and the reduction of mail matter returned to the Dead-Letter Office. The deficit for the last year, although much less than that of the last and preceding years, emphasizes the necessity for legislation to correct the growing abuse of second-class rates, to which the deficiency is mainly attributable. The transmission at the rate of 1 cent a pound of serial libraries, advertising sheets," house organs" (periodicals advertising some particular "house" or institution), sample copies, and the like ought certainly to be discontinued. A glance at the revenues received for the work done last year will show more plainly than any other statement the gross abuse of the postal service and the growing waste of its earnings. The free matter carried in the mails for the Departments, offices, etc., of the Government and for Congress, in pounds, amounted to 94,480,189. If this is offset against buildings for post-offices and stations, the rental of which would more than compensate for such free postal service, we have this exhibit: The remainder of our postal revenue, amounting to something more than $5,000,000, was derived from box rents, registry fees, money-order business, and other similar items. The entire expenditures of the Department, including pay for transportation credited to the Pacific railroads, were $92,186,195.11, which may be considered as the cost of receiving, carrying, and delivering the above mail matter. It thus appears that though the second-class matter constituted more than two-thirds of the total that was carried, the revenue derived from it was less than one-thirtieth of the total expense. The growth in weight of second-class matter has been from 299,000,000 pounds in 1894 to 312,000,000 in 1895 and to almost 349,000,000 in 1896, and it is quite evident this increasing drawback is far outstripping any possible growth of postal revenues. Our mail service should of course be such as to meet the wants and even the conveniences of our people at a direct charge upon them so light as perhaps to exclude the idea of our Post-Office Department being a money-making concern; but in the face of a constantly recurring deficiency in its revenues and in view of the fact that we supply 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. If we concede the public policy of carrying weekly newspapers free in the county of publication, and even the policy of carrying at less than one-tenth of their cost other bona fide newspapers and periodicals, there can be no excuse for subjecting the service to the further immense and increasing loss involved in carrying at the nominal rate of 1 cent a pound the serial libraries, sometimes including trashy and even harmful literature, and other matter which under the loose interpretation of a loose statute have been gradually given second-class rates, thus absorbing all profitable returns derived from first-class matter, which pays three or four times more than its cost, and producing a large annual loss to be paid by general taxation. If such second-class matter paid merely the cost of its handling, our deficit would disappear and a surplus result which might be used to give the people still better mail facilities or cheaper rates of letter postage. I recommend that legislation be at once enacted to correct these abuses and introduce better business ideas in the regulation of our postal rates. Experience and observation have demonstrated that certain improvements in the organization of the Post-Office Department must be secured before we can gain the full benefit of the immense sums expended in its administration. This involves the following reforms, which I earnestly recommend: There should be a small addition to the existing inspector service, to be employed in the supervision of the carrier force, which now numbers 13,000 men and performs its service practically without the surveillance exercised over all other branches of the postal or public service. Of course such a lack of supervision and freedom from wholesome disciplinary restraints must inevitably lead to imperfect service. There should also be appointed a few inspectors who could assist the central office in necessary investigation concerning matters of post-office leases, post-office sites, allowances for rent, fuel, and lights, and in organizing and securing the best results from the work of the 14,000 clerks now employed in first and second class offices. I am convinced that the small expense attending the inauguration of these reforms would actually be a profitable investment. I especially recommend such a recasting of the appropriations by Congress for the Post-Office Department as will permit the Postmaster-General to proceed with the work of consolidating post-offices. This work has already been entered upon sufficiently to fully demonstrate by experiment and experience that such consolidation is productive of better service, larger revenues, and less expenditures, to say nothing of the further advantage of gradually withdrawing post-offices from the spoils system. The Universal Postal Union, which now embraces all the civilized world and whose delegates will represent 1,000,000,000 people, will hold its fifth congress in the city of Washington in May, 1897. The United States may be said to have taken the initiative which led to the first meeting of this congress, at Berne in 1874, and the formation of the Universal Postal Union, which brings the postal service of all countries to every man's neighborhood and has wrought marvels in cheapening postal rates and securing absolutely safe mail communication throughout the world. Previous congresses have met in Berne, Paris, Lisbon, and Vienna, and the respective countries in which they have assembled have made generous provision for their accommodation and for the reception and entertainment of the delegates. In view of the importance of this assemblage and of its deliberations and of the honors and hospitalities accorded to our representatives by other countries on similar occasions, I earnestly hope that such an appropriation will be made for the expenses necessarily attendant upon the coming meeting in our capital city as will be worthy of our national hospitality and indicative of our appreciation of the event. The work of the Navy Department and its present condition are fully exhibited in the report of the Secretary. The construction of vessels for our new Navy has been energetically prosecuted by the present Administration upon the general lines previously adopted, the Department having seen no necessity for radical changes in prior methods, under which the work was found to be progressing in a manner highly satisfactory. It has been decided, however, to provide in every shipbuilding contract that the builder should pay all trial expenses, and it has also been determined to pay no speed premiums in future contracts. The premiums recently earned and some yet to be decided are features of the contracts made before this conclusion was reached. On March 4, 1893, there were in commission but two armored vessels--the double-turreted monitors Miantonomoh and Monterey. Since that date, of vessels theretofore authorized, there have been placed in their first commission 3 first-class and 2 second-class battle ships, 2 armored cruisers, 1 harbor-defense ram, and 5 double-turreted monitors, including the Maine and the Puritan, just completed. Eight new unarmored cruisers and 2 new gunboats have also been commissioned. The Iowa, another battle ship, will be completed about March 1, and at least 4 more gunboats will be ready for sea in the early spring. It is gratifying to state that our ships and their outfits are believed to be equal to the best that can be manufactured elsewhere, and that such notable reductions have been made in their cost as to justify the statement that quite a number of vessels are now being constructed at rates as low as those that prevail in European shipyards. Our manufacturing facilities are at this time ample for all possible naval contingencies. Three of our Government navy-yards--those at Mare Island, Cal., Norfolk, Va., and Brooklyn, N. Y.--are equipped for shipbuilding, our ordnance plant in Washington is equal to any in the world, and at the torpedo station we are successfully making the highest grades of smokeless powder. The first-class private shipyards at Newport News, Philadelphia, and San Francisco are building battle ships; eleven contractors, situated in the States of Maine, Rhode Island, Pennsylvania, New Jersey, Maryland, Virginia, and the State of Washington, are constructing gunboats or torpedo boats; two plants are manufacturing large quantities of first-class armor, and American factories are producing automobile torpedoes, powder, projectiles, rapid-fire guns, and everything else necessary for the complete outfit of naval vessels. There have been authorized by Congress since March, 1893, 5 battle ships, 6 light-draft gunboats, 16 torpedo boats, and 1 submarine torpedo boat. Contracts for the building of all of them have been let. The Secretary expresses the opinion that we have for the present a sufficient supply of cruisers and gunboats, and that hereafter the construction of battle ships and torpedo boats will supply our needs. Much attention has been given to the methods of carrying on departmental business. Important modifications in the regulations have been made, tending to unify the control of shipbuilding as far as may be under the Bureau of Construction and Repair, and also to improve the mode of purchasing supplies for the Navy by the Bureau of Supplies and Accounts. The establishment under recent acts of Congress of a supply fund with which to purchase these supplies in large quantities and other modifications of methods have tended materially to their cheapening and better quality. The War College has developed into an institution which it is believed will be of great value to the Navy in teaching the science of war, as well as in stimulating professional zeal in the Navy, and it will be especially useful in the devising of plans for the utilization in case of necessity of all the naval resources of the United States. The Secretary has persistently adhered to the plan he found in operation for securing labor at navy-yards through boards of labor employment, and has done much to make it more complete and efficient. The naval officers who are familiar with this system and its operation express the decided opinion that its results have been to vastly improve the character of the work done at our yards and greatly reduce its cost. Discipline among the officers and men of the Navy has been maintained to a high standard and the percentage of American citizens enlisted has been very much increased. The Secretary is considering and will formulate during the coming winter a plan for laying up ships in reserve, thereby largely reducing the cost of maintaining our vessels afloat. This plan contemplates that battle ships, torpedo boats, and such of the cruisers as are not needed for active service at sea shall be kept in reserve with skeleton crews on board to keep them in condition, cruising only enough to insure the efficiency of the ships and their crews in time of activity. The economy to result from this system is too obvious to need comment. The Naval Militia, which was authorized a few years ago as an experiment, has now developed into a body of enterprising young men, active and energetic in the discharge of their duties and promising great usefulness. This establishment has nearly the same relation to our Navy as the National Guard in the different States bears to our Army, and it constitutes a source of supply for our naval forces the importance of which is immediately apparent. The report of the Secretary of the Interior presents a comprehensive and interesting exhibit of the numerous and important affairs committed to his supervision. It is impossible in this communication to do more than briefly refer to a few of the subjects concerning which the Secretary gives full and instructive information. The money appropriated on account of this Department and for its disbursement for the fiscal year ended June 30, 1896, amounted to more than $157,000,000, or a greater sum than was appropriated for the entire maintenance of the Government for the two fiscal years ended June 30, 1861. Our public lands, originally amounting to 1,840,000,000 acres, have been so reduced that only about 600,000,000 acres still remain in Government control, excluding Alaska. The balance, being by far the most valuable portion, has been given away to settlers, to new States, and to railroads or sold at a comparatively nominal sum. The patenting of land in execution of railroad grants has progressed rapidly during the year, and since the 4th day of March, 1893, about 25,000,000 acres have thus been conveyed to these corporations. I agree with the Secretary that the remainder of our public lands should be more carefully dealt with and their alienation guarded by better economy and greater prudence. The commission appointed from the membership of the National Academy of Sciences, provided for by an act of Congress, to formulate plans for a national forestry system will, it is hoped, soon be prepared to present the result of thorough and intelligent examination of this important subject. 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 approximately 38,000 children of school age. During the year 23,393 of these were enrolled in schools. The progress which has attended recent efforts to extend Indian-school facilities and the anticipation of continued liberal appropriations to that end can not fail to afford the utmost satisfaction to those who believe that the education of Indian children is a prime factor in the accomplishment of Indian civilization. It may be said in general terms that in every particular the improvement of the Indians under Government care has been most marked and encouraging. The Secretary, the Commissioner of Indian 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 to allottees who have taken their lands in severalty. I earnestly join in this recommendation and venture to express the hope that the Indian may be speedily protected against this greatest of all obstacles to his well-being and advancement. The condition of affairs among the Five Civilized Tribes, who occupy large tracts of land in the Indian Territory and who have governments of their own, has assumed such an aspect as to render it almost indispensable that there should be an entire change in the relations of these Indians to the General Government. This seems to be necessary in furtherance of their own interests, as well as for the protection of non-Indian residents in their territory. A commission organized and empowered under several recent laws is now negotiating with these Indians for the relinquishment of their courts and the division of their common lands in severalty and are aiding in the settlement of the troublesome question of tribal membership. The reception of their first proffers of negotiation was not encouraging, but through patience and such conduct on their part as demonstrated that their intentions were friendly and in the interest of the tribes the prospect of success has become more promising. The effort should be to save these Indians from the consequences of their own mistakes and improvidence and to secure to the real Indian his rights as against intruders and professed friends who profit by his retrogression. A change is also needed to protect life and property through the operation of courts conducted according to strict justice and strong enough to enforce their mandates. As a sincere friend of the Indian, I am exceedingly anxious that these reforms should be accomplished with the consent and aid of the tribes and that no necessity may be presented for radical or drastic legislation I hope, therefore, that the commission now conducting negotiations will soon be able to report that progress has been made toward a friendly adjustment of existing difficulties. It appears that a very valuable deposit of gilsonite or asphaltum has been found on the reservation in Utah occupied by the Uncompahgre Ute Indians. Every consideration of care for the public interest and every sensible business reason dictate such management or disposal of this important source of public revenue as will except it from the general rules and incidents attending the ordinary disposition of public lands and secure to the Government a fair share at least of its advantages in place of its transfer for a nominal sum to interested individuals. I indorse the recommendation made by the present Secretary of the Interior, as well as his predecessor, that a permanent commission, consisting of three members, one of whom shall be an army officer, be created to perform the duties now devolving upon the Commissioner and Assistant Commissioner of Indian Affairs. The management of the Bureau involves such numerous and diverse details and the advantages of an uninterrupted policy are so apparent that I hope the change suggested will meet the approval of the Congress. The diminution of our enormous pension roll and the decrease of pension expenditure, which have been so often confidently for told, still fail in material realization. The number of pensioners on the polls at the close of the fiscal year ended June 30, 1896, was 970,678. This is the largest number ever reported. The amount paid exclusively for pensions during the year was $138,214,761.94, a slight decrease from that of the preceding year, while the total expenditures on account of pensions, including the cost of maintaining the Department and expenses attending pension distribution, amounted to $142,206,550.59, or within every small fraction of one-third of the entire expense of supporting the Government during the same year. The number of new pension certificates issued was 90,640. Of these, 40,374 represent original allowances of claims and 15,878 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 during the year was $582,735.38. The sum appropriated for the payment of pensions for the current fiscal year, ending June 30, 1897, is $140,000,000, and for the succeeding year it is estimated that the same amount will be necessary. The Commissioner of Pensions reports that during the last fiscal year 339 indictments were found against violators of 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 abuses which have been allowed to creep into our pension system have done incalculable harm in demoralizing our people and undermining good citizenship. I have endeavored within my sphere 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 when necessary retrenchment and enforced economy may lead to an attack upon pension abuses so determined as to overlook the discrimination due to those who, worthy of a nation's care, ought to live and die under the protection of a nation's gratitude. The Secretary calls attention to the public interests involved in an adjustment of the obligations of the Pacific railroads to the Government. I deem it to be an important duty to especially present this subject to the consideration of the Congress. On January 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 fallen due and been paid or must on that day be paid by the Government. Without any reference to the application of the sinking fund now in the Treasury, this will create such a default on the part of these companies to the Government as will give it the right to at once institute proceedings to foreclose its mortgage lien. In addition to this indebtedness, which will be due January 1, 1897, there will mature between that date and January 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 account of the Central Pacific lines. The situation of these roads and the condition of their indebtedness to the Government have been fully set forth in the reports of various committees to the present and prior Congresses, and as early as 1887 they were thoroughly examined by a special commission appointed pursuant to an act of Congress. The considerations requiring an adjustment of the Government's relations to the companies have been clearly presented and the conclusion reached with practical uniformity that if these relations are not terminated they should be revised upon a basis securing their safe continuance. Under section 4 of the act of Congress passed March 3, 1887, the President is charged with the duty, in the event that any mortgage or other incumbrance paramount to the interest of the United States in the property of the Pacific railroads should exist and be lawfully liable to be enforced, to direct the action of the Departments of Treasury and of justice in the protection of the interest of the United States by redemption or through judicial proceedings, including foreclosures of the Government liens. In view of the fact that the Congress has for a number of years almost constantly had under consideration various plans for dealing with the conditions existing between these roads and the Government, I have thus far felt justified in withholding action under the statute above mentioned. In the case of the Union Pacific Company, however, the situation has become especially and immediately urgent. 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 lien. In consequence of those proceedings and increasing complications, added to the default occurring on the 1st 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 date of the default above mentioned such Executive action as will promise to subserve the public interests and save the Government from the loss threatened by further inaction. 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 agricultural efforts. Large sums of money are annually appropriated for the maintenance of this Department, and it must be confessed that the legislation relating to it has not always been directly in the interest of practical farming or properly guarded against waste and extravagance. So far, however, as public money has been appropriated fairly and sensibly to help those who actually till the soil, no expenditure has been more profitably made or more generally approved by the people. 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. From the report of the Secretary it appears that through careful and prudent financial management he has annually saved a large sum from his appropriations, aggregating during his incumbency and up to the close of the present fiscal year nearly one-fifth of the entire amount appropriated. These results have been accomplished by a conscientious study of the real needs of the farmer and such a regard for economy as the genuine farmer ought to appreciate, supplemented by a rigid adherence to civil-service methods in a Department which should be conducted in the interest of agriculture instead of partisan politics. The Secretary reports that the value of our exports of farm products during the last fiscal year amounted to $570,000,000, an increase of $17,000,000 over those of the year immediately preceding. This statement is not the less welcome because of the fact that, notwithstanding such increase, the proportion of exported agricultural products to our total exports of all descriptions fell off during the year. The benefits of an increase in agricultural exports being assured, the decrease in its proportion to our total exports is the more gratifying when we consider that it is owing to the fact that such total exports for the year increased more than $75,000,000. The large and increasing exportation of our agricultural products suggests the great usefulness of the organization lately established in the Department for the purpose of giving to those engaged in farming pursuits reliable information concerning the condition, needs, and advantages of different foreign markets. Inasmuch as the success of the farmer depends upon the advantageous sale of his products, and inasmuch as foreign markets must largely be the destination of such products, it is quite apparent that a knowledge of the conditions and wants that affect those markets ought to result in sowing more intelligently and reaping with a better promise of profit. Such information points out the way to a prudent foresight in the selection and cultivation of crops and to a release from the bondage of unreasoning monotony of production, a glutted and depressed market, and constantly recurring unprofitable toil. In my opinion the gratuitous distribution of seeds by the Department as at present conducted ought to be discontinued. No one can read the statement of the Secretary on this subject and doubt the extravagance and questionable results of this practice. 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 Agriculture, has continued to extend its sphere of usefulness, and by an uninterrupted improvement in the accuracy of its forecasts has greatly increased its efficiency as an aid and protection to all whose occupations are related to weather conditions. Omitting further reference to the operations of the Department, I commend the Secretary's report and the suggestions it contains to the careful consideration of the Congress. The progress made in civil-service reform furnishes a cause for the utmost congratulation. It has survived the doubts of its friends as well as the rancor of its enemies and has gained a permanent place among the agencies destined to cleanse our politics and to improve, economize, and elevate the public service. There are now in the competitive classified service upward of 84,000 places, more than half of these having been included from time to time since March 4, 1893. A most radical and sweeping extension was made by Executive order dated the 6th day of May, 1896, and if fourth-class postmasterships are not included in the statement it may be said that practically all positions contemplated by the civil-service law are now classified. Abundant reasons exist for including these postmaster-ships, based upon economy, improved service, and the peace and quiet of neighborhoods. If, however, obstacles prevent such action at present, I earnestly hope that Congress will, without increasing post-office appropriations, so adjust them as to permit in proper eases a consolidation of these post-offices, to the end that through this process the result desired may to a limited extent be accomplished. The civil-service rules as amended during the last year provide for a sensible and uniform method of promotion, basing eligibility to better positions upon demonstrated efficiency and faithfulness. The absence of fixed rules on this subject has been an infirmity in the system more and more apparent as its other benefits have been better appreciated. The advantages of civil-service methods in their business aspects are too well understood to require argument. Their application has become a necessity to the executive work of the Government. But those who gain positions through the operation of these 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 under 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 suffrages the political beliefs they honestly profess, the noisy, pestilent, and partisan employee, who loves political turmoil and contention or who renders lax and grudging service to an Administration not representing his political views, should be promptly and fearlessly dealt with in such a way as to furnish a warning to others who may be likewise disposed. The annual report of the Commissioners will be duly transmitted, and I commend the important matter they have in charge to the careful consideration of the Congress. The Interstate Commerce Commission has during the last year supplied abundant evidence of its usefulness and the importance of the work committed to its charge. Public transportation is a universal necessity, and the question of just and reasonable charges therefor has become of vital importance not only to shippers and carriers, but also to the vast multitude of producers and consumers. The justice and equity of the principles embodied in the existing law passed for the purpose of regulating these charges are everywhere conceded, and there appears to be no question that the policy thus entered upon has a permanent place in our legislation. As the present statute when enacted was in the nature of the case more or less tentative and experimental, it was hardly expected to supply a complete and adequate system. While its wholesome effects are manifest and have amply justified its enactment, it is evident that all desired reforms in transportation methods have not been fully accomplished. In view of the judicial interpretation which some provisions of this statute have received and the defects disclosed by the efforts made for its enforcement, its revision and amendment appear to be essential, to the end that it may more effectually reach the evils designed to be corrected. I hope the recommendations of the Commission upon this subject will be promptly and favorably considered by the Congress. I desire to recur to the statements elsewhere made concerning the Government's receipts and expenditures for the purpose of venturing upon some suggestions touching our present tariff law and its operation. This statute took effect on the 28th day of August, 1894. Whatever may be its shortcomings as a complete measure of tariff reform, it must be conceded that it has opened the way to a freer and greater exchange of commodities between us and other countries, and thus furnished a wider market for our products and manufactures. The only entire fiscal year during which this law has been in force ended on the 30th day of June, 1896. In that year our imports increased over those of the previous year more than $6,500,000, while the value of the domestic products we exported and which found markets abroad was nearly $70,000,000 more than during the preceding year. Those who insist that the cost to our people of articles coming to them from abroad for their needful use should only be increased through tariff charges to an extent necessary to meet the expenses of the Government, as well as those who claim that tariff charges may be laid upon such articles beyond the necessities of Government revenue and with the additional purpose of so increasing their price in our markets as to give American manufacturers and producers better and more profitable opportunities, must agree that our tariff laws are only primarily justified as sources of revenue to enable the Government to meet the necessary expenses of its maintenance. Considered as to its efficiency in this aspect, the present law can by no means fall under just condemnation. During the only complete fiscal year of its operation it has yielded nearly $8,000,000 more revenue than was received from tariff duties in the preceding year. There was, nevertheless, a deficit between our receipts and expenditures of a little more than $25,000,000 This, however, was not unexpected. The situation was such in December last, seven months before the close of the fiscal year, that the Secretary of the Treasury foretold a deficiency of $17,000,000. The great and increasing apprehension and timidity in business circles and the depression in all activities intervening since that time, resulting from causes perfectly well understood and entirely disconnected with our tariff law or its operation, seriously checked the imports we would have otherwise received and readily account for the difference between this estimate of the Secretary and the actual deficiency, as well as for a continued deficit. Indeed, it must be confessed that we could hardly have had a more unfavorable period than the last two years for the collection of tariff revenue. We can not reasonably hope that our recuperation from this business depression will be sudden, but it has already set in with a promise of acceleration and continuance. I believe our present tariff law, if allowed a fair opportunity, will in the near future yield a revenue which, with reasonably economical expenditures, will overcome all deficiencies. In the meantime no deficit that has occurred or may occur need excite or disturb us. To meet any such deficit we have in the Treasury in addition to a gold reserve of one hundred millions a surplus of more than $128,000,000 applicable to the payment of the expenses of the Government, and which must, unless expended for that purpose, remain a useless hoard, or, if not extravagantly wasted, must in any event be perverted from the purpose of its exaction from our people. The payment, therefore, of any deficiency in the revenue from this fund is nothing more than its proper and legitimate use. The Government thus applying a surplus fortunately in its Treasury to the payment of expenses not met by its current revenues is not at all to be likened to a man living beyond his income and thus incurring debt or encroaching on his principal. It is not one of the functions of our Government to accumulate and make additions to a fund not needed for immediate expenditure. With individuals it is the chief object of struggle and effort. The application of an accumulated fund by the Government to the payment of its running expenses is a duty. An individual living beyond his income and embarrassing himself with debt or drawing upon his accumulated fund of principal is either unfortunate or improvident. The distinction is between a government charged with the duty of expending for the benefit of the people and for proper purposes all the money it receives from any source, and the individual, who is expected to manifest a natural desire to avoid debt or to accumulate as much as possible and to live within the income derived from such accumulations, to the end that they may be increased or at least remain unimpaired for the future use and enjoyment of himself or the objects of his love and affection who may survive him. It is immeasurably better to appropriate our surplus to the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravagant expenditures. I suppose it will not be denied that under the present law our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly. This is a matter of supreme importance, since it is the palpable duty of every just government to make the burdens of taxation as light as possible. The people should not be required to relinquish this privilege of cheaper living except under the stress of their Government's necessity made plainly manifest. This reference to the condition and prospects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods. They have been frequently pressed upon the attention of Congress in previous Executive communications and the inevitable danger of their continued toleration pointed out. Without now repeating these details, I can not refrain from again earnestly presenting the necessity of the prompt reform of a system opposed to every rule of sound finance and shown by experience to be fraught with the gravest peril and perplexity. The terrible Civil War, which shook the foundations of our Government more than thirty years ago, brought in its train the destruction of property, the wasting of our country's substance, and the estrangement of brethren. These are now past and forgotten. Even the distressing loss of life the conflict entailed is but a sacred memory which fosters patriotic sentiment and keeps alive a tender regard for those who nobly died. And yet there remains with us to-day in full strength and activity, as an incident of that tremendous struggle, a feature of its financial necessities not only unsuited to our present circumstances, but manifestly a disturbing menace to business security and an ever-present agent of monetary distress. Because we may be enjoying a temporary relief from its depressing influence, this should not lull us into a false security nor lead us to forget the suddenness of past visitations. I am more convinced than ever that we can have no assured financial peace and safety until the Government currency obligations upon which gold may be demanded from the Treasury are withdrawn from circulation and canceled. This might be done, as has been heretofore recommended, by their exchange for long-term bonds bearing a low rate of interest or by their redemption with the proceeds of such bonds. Even if only the United States notes known as greenbacks were thus retired it is probable that the Treasury notes issued in payment of silver purchases under the act of July 14, 1890, now paid in gold when demanded, would not create much disturbance, as they might from time to time, when received in the Treasury by redemption in gold or otherwise, be gradually and prudently replaced by silver coin. This plan of issuing bonds for the purpose of redemption certainly appears to be the most effective and direct path to the needed reform. In default of this, however, it would be a step in the right direction if currency obligations redeemable in gold whenever so redeemed should be canceled instead of being reissued. This operation would be a slow remedy, but it would improve present conditions. National banks should redeem their own notes. They should be allowed to issue circulation to the par value of bonds deposited as security for its redemption and the tax on their circulation should be reduced to one-fourth of 1 per cent. In considering projects for the retirement of United States notes and Treasury notes issued under the law of 1890, I am of the opinion that we have placed too much stress upon the danger of contracting the currency and have calculated too little upon the gold that would be added to our circulation if invited to us by better and safer financial methods. It is not so much a contraction of our currency that should be avoided as its 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 also authorizing existing banks to establish branches in small communities under proper restrictions. The entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our Government abandons the banking business and the accumulation of funds and confines its monetary operations to the receipt of the money contributed by the people for its support and to the expenditure of such money for the people's benefit. Our business interests and all good citizens long for rest from feverish agitation and the inauguration by the Government of a reformed financial policy which will encourage enterprise and make certain the rewards of labor and industry. Another topic in which our people rightfully take a deep interest may be here briefly considered. I refer to the existence of trusts and other huge aggregations of capital the object of which is to secure the monopoly of some particular branch of trade, industry, or commerce and to stifle wholesome competition. When these are defended, it is usually on the ground that though they increase profits they also reduce prices, and thus may benefit the public. It must be remembered, however, that a reduction of prices to the people is not one of the real objects of these organizations, nor is their tendency necessarily in that direction. If it occurs in a particular case it is only because it accords with the purposes or interests of those managing the scheme. Such occasional results fall far short of compensating the palpable evils charged to the account of trusts and monopolies. Their tendency is to crush out individual independence and to hinder or prevent the free use of human faculties and the full development of human character. Through them the farmer, the artisan, and the small trader is in danger of dislodgment from the proud position of being his own master, watchful of all that touches his country's prosperity, in which he has an individual lot, and interested in all that affects the advantages of business of which he is a factor, to be relegated to the level of a mere appurtenance to a great machine, with little free will, with no duty but that of passive obedience, and with little hope or opportunity of rising in the scale of responsible and helpful citizenship. To the instinctive belief that such is the inevitable trend of trusts and monopolies is due the widespread and deep-seated popular aversion in which they are held and the not unreasonable insistence that, whatever may be their incidental economic advantages, their general effect upon personal character, prospects, and usefulness can not be otherwise than injurious. Though Congress has attempted to deal with this matter by legislation, the laws passed for that purpose thus far have proved ineffective, not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach the difficulty. If the insufficiencies of existing laws can be remedied by further legislation, it should be done. The fact must be recognized, however, that all Federal legislation on this subject may fall short of its purpose because of inherent obstacles and also because of the complex character of our governmental system, which, while making the Federal authority supreme within its sphere, has carefully limited that sphere by metes and bounds that can not be transgressed. The decision of our highest court on this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated through Federal action unless they seek directly and purposely to include in their objects transportation or intercourse between States or between the United States and foreign countries. It does not follow, however, that this is the limit of the remedy that may be applied. Even though it may be found that Federal authority is not broad enough to fully reach the case, there can be no doubt of the power of the several States to act effectively in the premises, and there should be no reason to doubt their willingness to judiciously exercise such power. In concluding this communication its last words shall be an appeal to the Congress for the most rigid economy in the expenditure of the money it holds in trust for the people. The way to perplexing extravagance is easy, but a return to frugality is difficult. When, however, it is considered that those who bear the burdens of taxation have no guaranty of honest care save in the fidelity of their public servants, the duty of all possible retrenchment is plainly manifest. When our differences are forgotten and our contests of political opinion are no longer remembered, nothing in the retrospect of our public service will be as fortunate and comforting as the recollection of official duty well performed and the memory of a constant devotion to the interests of our confiding fellow-countrymen.
As representatives of the people in the legislative branch of their Government, you have assembled at a time when the strength and excellence of our free institutions and the fitness of our citizens to enjoy popular rule have been again made manifest. A political contest involving momentous consequences, fraught with feverish apprehension, and creating aggressiveness so intense as to approach bitterness and passion has been waged throughout our land and determined by the decree of free and independent suffrage without disturbance of our tranquillity or the least sign of weakness in our national structure. When we consider these incidents and contemplate the peaceful obedience and manly submission which have succeeded a heated clash of political opinions, we discover abundant evidence of a determination on the part of our countrymen to abide by every verdict of the popular will and to be controlled at all times by an abiding faith in the agencies established 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 acceptance 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. To secure brevity and avoid tiresome narration I shall omit many details concerning matters within Federal control which, though by no means unimportant, are more profitably discussed in departmental reports. I shall also further curtail this communication by omitting a minute recital of many minor incidents connected with our foreign relations which have heretofore found a place in Executive messages, but are now contained in a report of the Secretary of State, which is herewith submitted. 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 past year assumed a less hideous and bloody aspect and that, either as a consequence of the awakening of the Turkish Government to the demands 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 fanaticism, 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 unfrequent 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 none of our citizens in Turkey have thus far been killed or wounded, though often in the midst of dreadful scenes of danger, their safety 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. The outbreaks of the blind fury which lead to murder and pillage in Turkey occur suddenly and without notice, and an attempt on our part to force such a hostile presence there as might be effective for prevention or protection would not only be resisted by the Ottoman Government, but would be regarded as an interruption of their plans by the great nations who assert their exclusive right to intervene in their own time and method for the security of life and property in Turkey. 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. 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. Thus far the validity of these demands has not been admitted, though our minister, prior to such outrages and in anticipation of danger, demanded protection for the persons and property of our missionary citizens in the localities mentioned and notwithstanding that strong evidence exists of actual complicity of Turkish soldiers in the work of destruction and robbery. The facts as they now appear do not permit us to doubt the justice of these claims, and nothing will be omitted to bring about their prompt settlement. 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. It is hoped that hereafter no obstacle will be interposed to prevent the escape of all those who seek to avoid the perils which threaten them in Turkish dominions. Our recently appointed consul to Erzerum is at his post and discharging the duties of his office, though for some unaccountable reason his formal exequatur from the Sultan has not been issued. I do not believe that the present somber prospect in Turkey will be long permitted to offend the sight of Christendom. It so mars the humane and enlightened civilization that belongs to the close of the nineteenth century that it seems hardly possible that the earnest demand of good people throughout the Christian world for its corrective treatment will remain unanswered. The insurrection in Cuba still continues with all its perplexities. It is difficult to perceive that any progress has thus far been made toward the pacification of the island or that the situation of affairs as depicted in my last annual message has in the least improved. If Spain still holds Havana and the seaports and all the considerable towns, the insurgents still roam at will over at least two-thirds of the inland country. If the determination of Spain to put down the insurrection seems but to strengthen with the lapse of time and is evinced by her unhesitating devotion of largely increased military and naval forces to the task, there is much reason to believe that the insurgents have gained in point of numbers and character and resources and are none the less inflexible in their resolve not to succumb without practically securing the great objects for which they took up arms. If Spain has not yet reestablished her authority, neither have the insurgents yet made good their title to be regarded as an independent state. Indeed, as the contest has gone on the pretense that civil government exists on the island, except so far as Spain is able to maintain it, has been practically abandoned. Spain does keep on foot such a government, more or less imperfectly, in the large towns and their immediate suburbs; but that exception being made, the entire country is either given over to anarchy or is subject to the military occupation of one or the other party. It is reported, indeed, on reliable authority that at the demand of the commander in chief of the insurgent army the putative Cuban government has now given up all attempt to exercise its functions, leaving that government confessedly (what there is the best reason for supposing it always to have been in fact) a government merely on paper. Were the Spanish armies able to meet their antagonists in the open or in pitched battle, prompt and decisive results might be looked for, and the immense superiority of the Spanish forces in numbers, discipline, and equipment could hardly fail to tell greatly to their advantage. But they are called upon to face a foe that shuns general engagements, that can choose and does choose its own ground, that from the nature of the country is visible or invisible at pleasure, and that fights only from ambuscade and when all the advantages of position and numbers are on its side. In a country where all that is indispensable to life in the way of food, clothing, and shelter is so easily obtainable, especially by those born and bred on the soil, it is obvious that there is hardly a limit to the time during which hostilities of this sort may be prolonged. Meanwhile, as in all cases of protracted civil strife, the passions of the combatants grow more and more inflamed and excesses on both sides become more frequent and more deplorable. They are also participated in by bands of marauders, who, now in the name of one party and now in the name of the other, as may best suit the occasion, harry the country at will and plunder its wretched inhabitants for their own advantage. Such a condition of things would inevitably entail immense destruction of property, even if it were the policy of both parties to prevent it as far as practicable; but while such seemed to be the original policy of the Spanish Government, it has now apparently abandoned it and is acting upon the same theory as the insurgents, namely, that the exigencies of the contest require the wholesale annihilation of property that it may not prove of use and advantage to the enemy. It is to the same end that, in pursuance of general orders, Spanish garrisons are now being withdrawn from plantations and the rural population required to concentrate itself in the towns. The sure result would seem to be that the industrial value of the island is fast diminishing and that unless there is a speedy and radical change in existing conditions it will soon disappear altogether. That value consists very largely, of course, in its capacity to produce sugar--a capacity already much reduced by the interruptions to tillage which have taken place during the last two years. It is reliably asserted that should these interruptions continue during the current year, and practically extend, as is now threatened, to the entire sugar-producing territory of the island, so much time and so much money will be required to restore the land to its normal productiveness that it is extremely doubtful if capital can be induced to even make the attempt. 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 the Government and people of the United States in any circumstances. In point of fact, they have a concern with it 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 and in railroad, mining, and other business enterprises on the island. The volume of trade between the United States and Cuba, which in 1889 amounted to about $64,000,000, rose in 1893 to about $103,000,000, and in 1894, the year before the present insurrection broke out, amounted to nearly $96,000,000. 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 laws do not permit to be made the subject of criminal prosecutions. Some of them, though Cubans at heart and in all their feelings and interests, have taken out papers as naturalized citizens of the United States--a proceeding resorted to with a view to possible protection by this Government, and not unnaturally regarded with much indignation by the country of their origin. The insurgents are undoubtedly encouraged and supported by the widespread sympathy the people of this country always and instinctively feel for every struggle for better and freer government, and which, in the case of the more adventurous and restless elements of our population, leads in only too many instances to active and personal participation in the contest. The result is that this Government is constantly called upon to protect American citizens, to claim damages for injuries to persons and property, now estimated at many millions of dollars, and to ask explanations and apologies for the acts of Spanish officials whose zeal for the repression of rebellion sometimes blinds them to the immunities belonging to the unoffending citizens 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 on the part of the United States. It was at first proposed that belligerent rights should be accorded to the insurgents--a proposition no longer urged because untimely and in practical operation dearly 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 internecine strife in Cuba should be terminated by our intervention, even at the cost of a war between the United States and Spain--a war which its advocates confidently prophesy could neither be large in its proportions nor doubtful in its issue. The correctness of this forecast need be neither affirmed nor denied. The United States has, nevertheless, a character to maintain as a nation, which plainly dictates that right and not might should be the rule of its conduct. Further, though the United States is not a nation to which peace is a necessity, it is in truth the most pacific of powers and desires nothing so much as to live in amity with all the world. Its own ample and diversified domains satisfy all possible longings for territory, preclude all dreams of conquest, and prevent any casting of covetous eyes upon neighboring regions, however attractive. That our conduct toward Spain and her dominions has constituted no exception to this national disposition is made manifest by the course of our Government, not only thus far during the present insurrection, but during the ten years that followed the rising at Yara in 1868. No other great power, it may safely be said, under circumstances of similar perplexity, would have manifested the same restraint and the same patient endurance. It may also be said that this persistent attitude of the United States toward Spain in connection with Cuba unquestionably evinces no slight respect and regard for Spain on the part of the American people. They in truth do not forget her connection with the discovery of the Western Hemisphere, nor do they underestimate the great qualities of the Spanish people nor fail to fully recognize their splendid patriotism and their chivalrous devotion to the national honor. They view with wonder and admiration the cheerful resolution with which vast bodies of men are sent across thousands of miles of ocean and an enormous debt accumulated that the costly possession of the gem of the Antilles may still hold its place in the Spanish crown. And yet neither the Government nor the people of the United States have shut their eyes to the course of events in Cuba or have failed to realize the existence of conceded grievances which have led to the present revolt from the authority of Spain--grievances recognized by the Queen Regent and by the Cortes, voiced by the most patriotic and enlightened of Spanish statesmen, without regard to party, and demonstrated by reforms proposed by the executive and approved by the legislative branch of the Spanish Government. It is in the assumed temper and disposition of the Spanish Government to remedy these grievances, fortified by indications of influential public opinion in Spain, that this Government has hoped to discover the most promising and effective means of composing the present strife with honor and advantage to Spain and with the achievement of all the reasonable objects of the insurrection. It would seem that if Spain should offer to Cuba genuine autonomy--a measure of home rule which, while preserving the sovereignty of Spain, would satisfy all rational requirements of her Spanish subjects--there should be no just reason why the pacification of the island might not be effected on that basis. Such a result would appear to be in the true interest of all concerned. It would at once stop the conflict which is now consuming the resources of the island and making it worthless for whichever party may ultimately prevail. It would keep intact the possessions of Spain without touching her honor, which will be consulted rather than impugned by the adequate redress of admitted grievances. It would put the prosperity of the island and the fortunes of its inhabitants within their own control without severing the natural and ancient ties which bind them to the mother country, and would yet enable them to test their capacity for self-government under the most favorable conditions. It has been objected on the one side that Spain should not promise autonomy until her insurgent subjects lay down their arms; on the other side, that promised autonomy, however liberal, is insufficient, because without assurance of the promise being fulfilled. But the reasonableness of a requirement by Spain of unconditional surrender on the part of the insurgent Cubans before their autonomy is conceded is not altogether apparent. It ignores important features of the situation--the stability two years' duration has given to the insurrection; the feasibility of its indefinite prolongation in the nature of things, and, as shown by past experience, the utter and imminent ruin of the island unless the present strife is speedily composed; above all, the rank abuses which all parties in Spain, all branches of her Government, and all her leading public men concede to exist and profess a desire to remove. Facing such circumstances, to withhold the proffer of needed reforms until the parties demanding them put themselves at mercy by throwing down their arms has the appearance of neglecting the gravest of perils and inviting suspicion as to the sincerity of any professed willingness to grant reforms. The objection on behalf of the insurgents that promised reforms can not be relied upon must of course be considered, though we have no right to assume and no reason for assuming that anything Spain undertakes to do for the relief of Cuba will not be done according to both the spirit and the letter of the undertaking. Nevertheless, realizing that suspicions and precautions on the part of the weaker of two combatants are always natural and not always unjustifiable, being sincerely desirous in the interest of both as well as on its own account that the Cuban problem should be solved with the least possible delay, it was intimated by this Government to the Government of Spain some months ago that if a satisfactory measure of home rule were tendered the Cuban insurgents and would be accepted by them upon a guaranty of its execution the United States would endeavor to find a way not objectionable to Spain of furnishing such graranty. 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. Neither party can fail to see the importance of early action, and both must realize that to prolong the present state of things for even a short period will add enormously to the time and labor and expenditure necessary to bring about the industrial recuperation of the island. It is therefore fervently hoped on all grounds that earnest efforts for healing the breach between Spain and the insurgent Cubans upon the lines above indicated may be at once inaugurated and pushed to an immediate and successful issue. The friendly offices of the United States, either in the manner above outlined or in any other way consistent with our Constitution and laws, will always be at the disposal of either party. Whatever circumstances may arise, our policy and our interests would constrain us to object to the acquisition of the island or an interference with its control by any other power. It should be added that it can not be reasonably assumed that the hitherto expectant attitude of the United States will be indefinitely maintained. While we are anxious to accord all due respect to the sovereignty of Spain, we can not view the pending conflict in all its features and properly apprehend our inevitably close relations to it and its possible results without considering that by the course of events we may be drawn into such an unusual and unprecedented condition as will fix a limit to our patient waiting for Spain to end the contest, either alone and in her own way or with our friendly cooperation. When the inability of Spain to deal successfully with the insurrection has become manifest and it is demonstrated that her sovereignty is extinct in Cuba for all purposes of its rightful existence, and when a hopeless struggle for its reestablishment has degenerated 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 superseded by higher obligations, which we can hardly hesitate to recognize and discharge. Deferring the choice of ways and methods until the time for action arrives, we should make them depend upon the precise conditions then existing; and they should not be determined upon without giving careful heed to every consideration involving our honor and interest or the international duty we owe to Spain. Until we face the contingencies suggested or the situation is by other incidents imperatively changed we should continue in the line of conduct heretofore pursued, thus in all circumstances exhibiting our obedience to the requirements of public law and our regard for the duty enjoined upon us by the position we occupy in the family of nations. 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 arrive when a correct policy and care for our interests, as well as a regard for the interests of other nations and their citizens, joined by considerations of humanity and a desire to see a rich and fertile country intimately related to us saved from complete devastation, will constrain our 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. The Venezuelan boundary question has ceased to be a matter of difference between Great Britain and the United States, their respective Governments having agreed upon the substantial provisions of a treaty between Great Britain and Venezuela submitting the whole controversy to arbitration. The provisions of the treaty are so eminently just and fair that the assent of Venezuela thereto may confidently be anticipated. Negotiations for a treaty of general arbitration for all differences between Great Britain and the United States are far advanced and promise to reach a successful 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 the 20th of September, 1895, has fully demonstrated the usefulness of this innovation. In connection with this plan of examination promotions and transfers of deserving incumbents have been quite extensively made, with excellent results. During the past year 35 appointments have been made in the consular service, 27 of which were made to fill vacancies caused by death or resignation or to supply newly created posts, 2 to succeed incumbents removed for because, 2 for the purpose of displacing alien consular officials by American citizens, and 4 merely changing the official title of incumbent from commercial agent to consul. Twelve of these appointments were transfers or promotions from other positions under the Department of State, 4 of those appointed had rendered previous service under the Department, 8 were made of persons who passed a satisfactory examination, 7 were appointed to places not included in the order of September 20, 1895, and 4 appointments, as above stated, involved no change of incumbency. The inspection of consular offices provided for by an appropriation for that purpose at the last session of the Congress has been productive of such wholesome effects that I hope this important work will in the future be continued. I know of nothing that can be done with the same slight expense so improving to the service. I desire to repeat the recommendation contained in my last annual message in favor of providing at public expense official residences for our ambassadors and ministers at foreign capitals. The reasons supporting this recommendation are strongly stated in the report of the Secretary of State, and the subject seems of such importance that I hope it may receive the early attention of the Congress. We have during the last year labored faithfully and against unfavorable conditions to secure better preservation of seal life in the Bering Sea. Both the United States and Great Britain have lately dispatched commissioners to these waters to study the habits and condition of the seal herd and the causes of their rapid decrease. Upon the reports of these commissioners, soon to be submitted, and with the exercise of patience and good sense on the part of all interested parties, it is earnestly hoped that hearty cooperation may be secured for the protection against threatened extinction of seal life in the Northern Pacific and Bering Sea. The Secretary of the Treasury reports that during the fiscal year ended June 30, 1896, the receipts of the Government from all sources amounted to $409,475,408.78. During the same period its expenditures were $434,678,654.48, the excess of expenditures over receipts thus amounting to $25,203,245.70. The ordinary expenditures during the year were $4,015,852.21 less than during the preceding fiscal year. Of the receipts mentioned there was derived from customs the sum of $160,021,751.67 and from internal revenue $146,830,615.66. The receipts from customs show an increase of $7,863,134.22 over those from the same source for the fiscal year ended June 30, 1895, and the receipts from internal revenue an 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 goods and $41,231,034 in the value of free goods over the preceding year. Our exports of merchandise, foreign and domestic, amounted in value to $882,606,938, being an increase over the preceding year of $75,068,773. The average ad valorem duty paid on dutiable goods imported during the year was 39.94 per cent and on free and dutiable goods taken together 20.55 per cent. The cost of collecting our internal revenue was 2.78 per cent, as against 2.81 per cent for the fiscal year ending June 30, 1895. The total production of distilled spirits, exclusive of fruit brandies, was 86,588,703 taxable gallons, being an increase of 6,639,108 gallons over the preceding year. There was also an increase of 1,443,676 gallons of spirits produced from fruit as compared with the preceding year. The number of barrels of beer produced was 35,859,250, as against 33,589,784 produced in the preceding fiscal year, being all 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 on the 30th day of June, 1896, was $1,228,326,035, of which $599,597,964 was in gold and $628,728,071 in silver. On the 1st day of November, 1896, the total stock of money 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 $22.63 per capita upon an estimated population of 71,902,000. The production of the precious metals in the United States during the calendar year 1895 is estimated to have been 2,254,760 fine ounces of gold, of the value of $46,610,000, and 55,727,000 fine ounces of silver, of the commercial value of $36,445,000 and the coinage value of $72,051,000. The estimated production of these metals throughout the world during the same period was 9,688,821 fine ounces of gold, amounting to $200,285,700 in value, and 169,189,249 fine ounces of silver, of the commercial value of $110,654,000 and of the coinage value of $218,738,100 according to our ratio. The coinage of these metals in the various countries of the world during the same calendar year amounted to $232,701,438 in gold and $121,996,219 in silver. The total coinage at the mints of the United States during the fiscal year ended June 30, 1896, amounted to $71,188,468.52, of which $58,878,490 was in gold coins and $12,309,978.52 in standard silver dollars, subsidiary coins, and minor coins The number of national banks organized from the time the law authorizing their creation was passed up to October 31, 1896, was 5,051, and of this number 3,679 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 $211,412,620. The total outstanding circulating notes of all national banks on the 31st day of October, 1896, amounted to $234,553,807, including unredeemed but fully secured notes of banks insolvent and in process of liquidation. The increase in national-bank circulation during the year ending on that day was $21,099,429. On October 6, 1896, when the condition of national banks was last reported, the total resources of the 3,679 active institutions were $3,263,685,313.83, which included $1,893,268,839.31 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 28 national banks, located in 15 States, of which 12 were organized in the Eastern States, with a capital of $1,180,000, 6 in the Western States, with a capital of $875,000, and 10 in the Southern States, with a capital of $1,190,000. During the year, however, 37 banks voluntarily abandoned their franchises under the national law, and in the case of 27 others it was found necessary to appoint receivers. Therefore, as compared with the year preceding, there was a decrease of 36 in the number of active banks. The number of existing banks organized under State laws is 5,708. The number of immigrants arriving in the United States during the fiscal year was 343,267, of whom 340,468 were permitted to land and 2,799 were debarred on various grounds prescribed by law and returned to the countries whence they came at the expense of the steamship companies by which they were brought in. The increase in immigration over the preceding year amounted to 84,731. It is reported that with some exceptions the immigrants of the past year were of a hardy laboring class, accustomed and able to earn a support for themselves, and it is estimated that the money brought with them amounted to at least $5,000,000, though it was probably much in excess of that sum, since only those having less than $30 are required to disclose the exact amount, and it is known that many brought considerable sums of money to buy land and build homes. Including all the immigrants arriving who were over 14 years of age, 28.63 per cent were illiterate, as against 20.37 per cent of those of that age arriving during the preceding fiscal year. The number of immigrants over 14 years old, the countries from 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-Hungary and provinces, 57,053, with 38.92 per cent; Germany, 25,334, with 2.96 per cent; Sweden, 18,821, with 1.16 per cent; while from Portugal there came 2,067, of whom 77.69 per cent were illiterate. There arrived from Japan during the year only 1,110 immigrants, and it is the opinion of the immigration authorities that the apprehension heretofore existing to some extent of a large immigration from Japan to the United States is without any substantial foundation. From the Life-Saving Service it is reported that the number of disasters to documented vessels within the limits of its operations during the year was 437. These vessels had on board 4,608 persons, of whom 4,595 were saved and 13 lost. The value of such vessels is estimated at $8,880,140 and of their cargoes $3,846,380, making the total value of property imperiled $12,726,520. Of this amount $11,292,707 was saved and $1,432,750 was lost. Sixty-seven of the vessels were totally wrecked. There were besides 243 casualties to small undocumented craft, on board of which there were 594 persons, of whom 587 were saved and 7 were lost. The value of the property involved in these latter casualties is estimated at $119,265, of which $114,915 was saved and $4,350 was lost. The life-saving crews during the year also rescued or assisted numerous other vessels and warned many from danger by signals, both by day and night. The number of disasters during the year exceeded that of any previous year in the history of the service, but the saving of both life and property was greater than ever before in proportion to the value of the property involved and to the number of persons imperiled. The operations of the Marine-Hospital Service, the Revenue-Cutter Service, the Steamboat-Inspection Service, the Light-House Service, the Bureau of Navigation, and other branches of public work attached to the Treasury Department, together with various recommendations concerning their support and improvement, are fully stated in the report of the Secretary of the Treasury, to which the attention of the Congress is especially invited. The report of the Secretary of War exhibits satisfactory conditions in the several branches of the public service intrusted 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 and efficiency are apparent throughout its entire organization. With the exception of delicate duties in the suppression of slight Indian disturbances along our southwestern boundary, in which the Mexican troops cooperated, and the compulsory but peaceful return, with the consent of Great Britain, of a band of Cree Indians from Montana to the British possessions, no active operations have been required of the Army during the year past. Changes in methods of administration, the abandonment of unnecessary posts and consequent concentration of troops, and the exercise of care and vigilance by the various officers charged with the responsibility in the expenditure of the appropriations have resulted in reducing to a minimum the cost of maintenance of our military establishment. During the past year the work of constructing permanent infantry and cavalry posts has been continued at the places heretofore designated. The Secretary of War repeats his recommendation that appropriations for barracks and quarters should more strictly conform to the needs of the service as judged by the Department rather than respond to the wishes and importunities of localities. It is imperative that much of the money provided for such construction should now be allotted to the erection of necessary quarters for the garrisons assigned to the coast defenses, where many men will be needed to properly care for and operate modern guns. It is essential, too, that early provision be made to supply the necessary force of artillery to meet the demands of this service. The entire Army has now been equipped with the new magazine arms, and wise policy demands that all available public and private resources should be so employed as to provide within a reasonable time a sufficient number to supply the State militia with these modern weapons and provide an ample reserve for any emergency. The organized militia numbers 112,879 men. The appropriations for its support by the several States approximate $2,800,000 annually, and $400,000 is contributed by the General Government. Investigation shows these troops to be usually well drilled and inspired with much military interest, but in many instances they are so deficient in proper arms and equipment that a sudden call to active duty would find them inadequately prepared for field service. I therefore recommend that prompt measures be taken to remedy this condition and that every encouragement be given to this deserving body of unpaid and voluntary citizen soldiers, upon whose assistance we must largely rely in time of trouble. During the past year rapid progress has been made toward the completion of the scheme adopted for the erection and armament of fortifications along our seacoast, while equal progress has been made in providing the material for submarine defense in connection with these works. It is peculiarly gratifying at this time to note the great advance that has been made in this important undertaking since the date of my annual message to the Fifty-third Congress at the opening of its second session, in December, 1893. At that time I informed the Congress of the approaching completion of nine 12-inch, twenty 10-inch, and thirty-four 8-inch high-power steel guns and seventy-five 12-inch rifled mortars. This total then seemed insignificant when compared with the great work remaining to be done. Yet it was none the less a source of satisfaction to every citizen when he reflected that it represented the first installment of the new ordnance of American design and American manufacture and demonstrated our ability to supply from our own resources guns of unexcelled power and accuracy. At that date, however, there were practically no carriages upon which to mount these guns and only thirty-one emplacements for guns and sixty-four for mortars. Nor were all these emplacements in condition to receive their armament. Only one high-power gun was at that time in position for the defense of the entire coast. Since that time the number of guns actually completed has been increased to a total of twenty-one 12-inch, fifty-six 10-inch, sixty-one 8-inch high-power breech-loading steel guns, ten rapid-fire guns, and eighty 12-inch rifled mortars. In addition there are in process of construction one 16-inch-type gun, fifty 12-inch, fifty-six 10-inch, twenty-seven 8-inch high-power guns, and sixty-six 12-inch rifled mortars; in all, four hundred and twenty-eight guns and mortars. During the same year, immediately preceding the message referred to, the first modern gun carriage had been completed and eleven more were in process of construction. All but one were of the nondisappearing type. These, however, were not such as to secure necessary cover for the artillery gunners against the intense fire of modern machine rapid-fire and high-power guns. The inventive genius of ordnance and civilian experts has been taxed in designing carriages that would obviate this fault, resulting, it is believed, in the solution of this difficult problem. Since 1893 the number of gun carriages constructed or building has been raised to a total of 129, of which 90 are on the disappearing principle, and the number of mortar carriages to 152, while the 95 emplacements which were provided for prior to that time have been increased to 280 built and building. This improved situation is largely due to the recent generous response of Congress to the recommendations of the War Department. Thus we shall soon have complete about one-fifth of the comprehensive system the first step in which was noted in my message to the Congress of December 4, 1893. When it is understood that a masonry emplacement not only furnishes a platform for the heavy modern high-power gun, but also in every particular serves the purpose and takes the place of the fort of former days, the importance of the work accomplished is better comprehended. In the hope that the work will be prosecuted with no less vigor in the future, the Secretary of War has submitted an estimate by which, if allowed, there will be provided and either built or building by the end of the next fiscal year such additional guns, mortars, gun carriages, and emplacements as will represent not far from one-third of the total work to be done under the plan adopted for our coast defenses, thus affording a prospect that the entire work will be substantially completed within six years. In less time than that, however, we shall have attained a marked degree of security. The experience and results of the past year demonstrate that with a continuation of present careful methods the cost of the remaining work will be much less than the original estimate. We should always keep in mind that of all forms of military preparation 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 permanent fortifications to involve us in foreign complications, but rather to guarantee us against them. They are not temptation to war, but security against it. Thus they are thoroughly in accord with all the traditions of our national diplomacy. The Attorney-General presents 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 those convicted in United States courts of violations of Federal laws, which for many years has been a subject of Executive recommendation, have 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 it ought to be at once supplemented by the rebuilding or extensive enlargement of this improvised prison and the construction of at least one more, to be located in the Southern States. The capacity of the Leavenworth penitentiary is so limited that the expense of its maintenance, calculated at a per capita rate upon the number of prisoners it can accommodate, does not make as economical an exhibit as it would if it were larger and better adapted to prison purposes; but I am thoroughly convinced that economy, humanity, and a proper sense of responsibility 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 are confined. It appears that since the transfer of the Fort Leavenworth Military Prison to its new uses the work previously done by prisoners confined there, and for which expensive machinery has been provided, has been discontinued. This work consisted of the manufacture of articles for army use, now done elsewhere. On all grounds it is exceedingly desirable that the convicts confined in this penitentiary be allowed to resume work of this description. It is most gratifying to note the satisfactory results that have followed the inauguration of the new system provided for by the act of May 28, 1896, under which certain Federal officials are compensated by salaries instead of fees. The new plan was put in operation on the 1st day of July, 1896, and already the great economy it enforces, its prevention of abuses, and its tendency to a better enforcement of the laws are strikingly apparent. Detailed evidence of the usefulness of this long-delayed but now happily accomplished reform will be found clearly set forth in the Attorney-General's report. Our Post-Office Department is in good condition, and the exhibit made of its operations during the fiscal year ended June 30, 1896, if allowance is made for imperfections in the laws applicable to it, is very satisfactory. The total receipts during the year were $82,499,208.40. The total expenditures were $90,626,296.84, exclusive of the $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 $1,679,956.19 less than that of the preceding year. The chief expenditures of the postal service are regulated by law and are not in the control of the Postmaster-General. All that he can accomplish by the most watchful administration and economy is to enforce prompt and thorough collection and accounting for public moneys and such minor savings in small expenditures and in letting those contracts, for post-office supplies and star service, which are not regulated by statute. An effective cooperation between the Auditor's Office and the Post-Office Department and the making and enforcement of orders by the Department requiring immediate notification to their sureties of all delinquencies on the part of postmasters, and compelling such postmasters to make more frequent deposits of postal funds, have resulted in a prompter auditing of their accounts and much less default to the Government than heretofore. The year's report shows large extensions of both star-route service and railway mail service, with increased postal facilities. Much higher accuracy in handling mails has also been reached, as appears by the decrease of errors in the railway mail service and the reduction of mail matter returned to the Dead-Letter Office. The deficit for the last year, although much less than that of the last and preceding years, emphasizes the necessity for legislation to correct the growing abuse of second-class rates, to which the deficiency is mainly attributable. The transmission at the rate of 1 cent a pound of serial libraries, advertising sheets," house organs" (periodicals advertising some particular "house" or institution), sample copies, and the like ought certainly to be discontinued. A glance at the revenues received for the work done last year will show more plainly than any other statement the gross abuse of the postal service and the growing waste of its earnings. The free matter carried in the mails for the Departments, offices, etc., of the Government and for Congress, in pounds, amounted to 94,480,189. If this is offset against buildings for post-offices and stations, the rental of which would more than compensate for such free postal service, we have this exhibit: The remainder of our postal revenue, amounting to something more than $5,000,000, was derived from box rents, registry fees, money-order business, and other similar items. The entire expenditures of the Department, including pay for transportation credited to the Pacific railroads, were $92,186,195.11, which may be considered as the cost of receiving, carrying, and delivering the above mail matter. It thus appears that though the second-class matter constituted more than two-thirds of the total that was carried, the revenue derived from it was less than one-thirtieth of the total expense. The growth in weight of second-class matter has been from 299,000,000 pounds in 1894 to 312,000,000 in 1895 and to almost 349,000,000 in 1896, and it is quite evident this increasing drawback is far outstripping any possible growth of postal revenues. Our mail service should of course be such as to meet the wants and even the conveniences of our people at a direct charge upon them so light as perhaps to exclude the idea of our Post-Office Department being a money-making concern; but in the face of a constantly recurring deficiency in its revenues and in view of the fact that we supply 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. If we concede the public policy of carrying weekly newspapers free in the county of publication, and even the policy of carrying at less than one-tenth of their cost other bona fide newspapers and periodicals, there can be no excuse for subjecting the service to the further immense and increasing loss involved in carrying at the nominal rate of 1 cent a pound the serial libraries, sometimes including trashy and even harmful literature, and other matter which under the loose interpretation of a loose statute have been gradually given second-class rates, thus absorbing all profitable returns derived from first-class matter, which pays three or four times more than its cost, and producing a large annual loss to be paid by general taxation. If such second-class matter paid merely the cost of its handling, our deficit would disappear and a surplus result which might be used to give the people still better mail facilities or cheaper rates of letter postage. I recommend that legislation be at once enacted to correct these abuses and introduce better business ideas in the regulation of our postal rates. Experience and observation have demonstrated that certain improvements in the organization of the Post-Office Department must be secured before we can gain the full benefit of the immense sums expended in its administration. This involves the following reforms, which I earnestly recommend: There should be a small addition to the existing inspector service, to be employed in the supervision of the carrier force, which now numbers 13,000 men and performs its service practically without the surveillance exercised over all other branches of the postal or public service. Of course such a lack of supervision and freedom from wholesome disciplinary restraints must inevitably lead to imperfect service. There should also be appointed a few inspectors who could assist the central office in necessary investigation concerning matters of post-office leases, post-office sites, allowances for rent, fuel, and lights, and in organizing and securing the best results from the work of the 14,000 clerks now employed in first and second class offices. I am convinced that the small expense attending the inauguration of these reforms would actually be a profitable investment. I especially recommend such a recasting of the appropriations by Congress for the Post-Office Department as will permit the Postmaster-General to proceed with the work of consolidating post-offices. This work has already been entered upon sufficiently to fully demonstrate by experiment and experience that such consolidation is productive of better service, larger revenues, and less expenditures, to say nothing of the further advantage of gradually withdrawing post-offices from the spoils system. The Universal Postal Union, which now embraces all the civilized world and whose delegates will represent 1,000,000,000 people, will hold its fifth congress in the city of Washington in May, 1897. The United States may be said to have taken the initiative which led to the first meeting of this congress, at Berne in 1874, and the formation of the Universal Postal Union, which brings the postal service of all countries to every man's neighborhood and has wrought marvels in cheapening postal rates and securing absolutely safe mail communication throughout the world. Previous congresses have met in Berne, Paris, Lisbon, and Vienna, and the respective countries in which they have assembled have made generous provision for their accommodation and for the reception and entertainment of the delegates. In view of the importance of this assemblage and of its deliberations and of the honors and hospitalities accorded to our representatives by other countries on similar occasions, I earnestly hope that such an appropriation will be made for the expenses necessarily attendant upon the coming meeting in our capital city as will be worthy of our national hospitality and indicative of our appreciation of the event. The work of the Navy Department and its present condition are fully exhibited in the report of the Secretary. The construction of vessels for our new Navy has been energetically prosecuted by the present Administration upon the general lines previously adopted, the Department having seen no necessity for radical changes in prior methods, under which the work was found to be progressing in a manner highly satisfactory. It has been decided, however, to provide in every shipbuilding contract that the builder should pay all trial expenses, and it has also been determined to pay no speed premiums in future contracts. The premiums recently earned and some yet to be decided are features of the contracts made before this conclusion was reached. On March 4, 1893, there were in commission but two armored vessels--the double-turreted monitors Miantonomoh and Monterey. Since that date, of vessels theretofore authorized, there have been placed in their first commission 3 first-class and 2 second-class battle ships, 2 armored cruisers, 1 harbor-defense ram, and 5 double-turreted monitors, including the Maine and the Puritan, just completed. Eight new unarmored cruisers and 2 new gunboats have also been commissioned. The Iowa, another battle ship, will be completed about March 1, and at least 4 more gunboats will be ready for sea in the early spring. It is gratifying to state that our ships and their outfits are believed to be equal to the best that can be manufactured elsewhere, and that such notable reductions have been made in their cost as to justify the statement that quite a number of vessels are now being constructed at rates as low as those that prevail in European shipyards. Our manufacturing facilities are at this time ample for all possible naval contingencies. Three of our Government navy-yards--those at Mare Island, Cal., Norfolk, Va., and Brooklyn, N. Y.--are equipped for shipbuilding, our ordnance plant in Washington is equal to any in the world, and at the torpedo station we are successfully making the highest grades of smokeless powder. The first-class private shipyards at Newport News, Philadelphia, and San Francisco are building battle ships; eleven contractors, situated in the States of Maine, Rhode Island, Pennsylvania, New Jersey, Maryland, Virginia, and the State of Washington, are constructing gunboats or torpedo boats; two plants are manufacturing large quantities of first-class armor, and American factories are producing automobile torpedoes, powder, projectiles, rapid-fire guns, and everything else necessary for the complete outfit of naval vessels. There have been authorized by Congress since March, 1893, 5 battle ships, 6 light-draft gunboats, 16 torpedo boats, and 1 submarine torpedo boat. Contracts for the building of all of them have been let. The Secretary expresses the opinion that we have for the present a sufficient supply of cruisers and gunboats, and that hereafter the construction of battle ships and torpedo boats will supply our needs. Much attention has been given to the methods of carrying on departmental business. Important modifications in the regulations have been made, tending to unify the control of shipbuilding as far as may be under the Bureau of Construction and Repair, and also to improve the mode of purchasing supplies for the Navy by the Bureau of Supplies and Accounts. The establishment under recent acts of Congress of a supply fund with which to purchase these supplies in large quantities and other modifications of methods have tended materially to their cheapening and better quality. The War College has developed into an institution which it is believed will be of great value to the Navy in teaching the science of war, as well as in stimulating professional zeal in the Navy, and it will be especially useful in the devising of plans for the utilization in case of necessity of all the naval resources of the United States. The Secretary has persistently adhered to the plan he found in operation for securing labor at navy-yards through boards of labor employment, and has done much to make it more complete and efficient. The naval officers who are familiar with this system and its operation express the decided opinion that its results have been to vastly improve the character of the work done at our yards and greatly reduce its cost. Discipline among the officers and men of the Navy has been maintained to a high standard and the percentage of American citizens enlisted has been very much increased. The Secretary is considering and will formulate during the coming winter a plan for laying up ships in reserve, thereby largely reducing the cost of maintaining our vessels afloat. This plan contemplates that battle ships, torpedo boats, and such of the cruisers as are not needed for active service at sea shall be kept in reserve with skeleton crews on board to keep them in condition, cruising only enough to insure the efficiency of the ships and their crews in time of activity. The economy to result from this system is too obvious to need comment. The Naval Militia, which was authorized a few years ago as an experiment, has now developed into a body of enterprising young men, active and energetic in the discharge of their duties and promising great usefulness. This establishment has nearly the same relation to our Navy as the National Guard in the different States bears to our Army, and it constitutes a source of supply for our naval forces the importance of which is immediately apparent. The report of the Secretary of the Interior presents a comprehensive and interesting exhibit of the numerous and important affairs committed to his supervision. It is impossible in this communication to do more than briefly refer to a few of the subjects concerning which the Secretary gives full and instructive information. The money appropriated on account of this Department and for its disbursement for the fiscal year ended June 30, 1896, amounted to more than $157,000,000, or a greater sum than was appropriated for the entire maintenance of the Government for the two fiscal years ended June 30, 1861. Our public lands, originally amounting to 1,840,000,000 acres, have been so reduced that only about 600,000,000 acres still remain in Government control, excluding Alaska. The balance, being by far the most valuable portion, has been given away to settlers, to new States, and to railroads or sold at a comparatively nominal sum. The patenting of land in execution of railroad grants has progressed rapidly during the year, and since the 4th day of March, 1893, about 25,000,000 acres have thus been conveyed to these corporations. I agree with the Secretary that the remainder of our public lands should be more carefully dealt with and their alienation guarded by better economy and greater prudence. The commission appointed from the membership of the National Academy of Sciences, provided for by an act of Congress, to formulate plans for a national forestry system will, it is hoped, soon be prepared to present the result of thorough and intelligent examination of this important subject. 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 approximately 38,000 children of school age. During the year 23,393 of these were enrolled in schools. The progress which has attended recent efforts to extend Indian-school facilities and the anticipation of continued liberal appropriations to that end can not fail to afford the utmost satisfaction to those who believe that the education of Indian children is a prime factor in the accomplishment of Indian civilization. It may be said in general terms that in every particular the improvement of the Indians under Government care has been most marked and encouraging. The Secretary, the Commissioner of Indian 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 to allottees who have taken their lands in severalty. I earnestly join in this recommendation and venture to express the hope that the Indian may be speedily protected against this greatest of all obstacles to his well-being and advancement. The condition of affairs among the Five Civilized Tribes, who occupy large tracts of land in the Indian Territory and who have governments of their own, has assumed such an aspect as to render it almost indispensable that there should be an entire change in the relations of these Indians to the General Government. This seems to be necessary in furtherance of their own interests, as well as for the protection of non-Indian residents in their territory. A commission organized and empowered under several recent laws is now negotiating with these Indians for the relinquishment of their courts and the division of their common lands in severalty and are aiding in the settlement of the troublesome question of tribal membership. The reception of their first proffers of negotiation was not encouraging, but through patience and such conduct on their part as demonstrated that their intentions were friendly and in the interest of the tribes the prospect of success has become more promising. The effort should be to save these Indians from the consequences of their own mistakes and improvidence and to secure to the real Indian his rights as against intruders and professed friends who profit by his retrogression. A change is also needed to protect life and property through the operation of courts conducted according to strict justice and strong enough to enforce their mandates. As a sincere friend of the Indian, I am exceedingly anxious that these reforms should be accomplished with the consent and aid of the tribes and that no necessity may be presented for radical or drastic legislation I hope, therefore, that the commission now conducting negotiations will soon be able to report that progress has been made toward a friendly adjustment of existing difficulties. It appears that a very valuable deposit of gilsonite or asphaltum has been found on the reservation in Utah occupied by the Uncompahgre Ute Indians. Every consideration of care for the public interest and every sensible business reason dictate such management or disposal of this important source of public revenue as will except it from the general rules and incidents attending the ordinary disposition of public lands and secure to the Government a fair share at least of its advantages in place of its transfer for a nominal sum to interested individuals. I indorse the recommendation made by the present Secretary of the Interior, as well as his predecessor, that a permanent commission, consisting of three members, one of whom shall be an army officer, be created to perform the duties now devolving upon the Commissioner and Assistant Commissioner of Indian Affairs. The management of the Bureau involves such numerous and diverse details and the advantages of an uninterrupted policy are so apparent that I hope the change suggested will meet the approval of the Congress. The diminution of our enormous pension roll and the decrease of pension expenditure, which have been so often confidently for told, still fail in material realization. The number of pensioners on the polls at the close of the fiscal year ended June 30, 1896, was 970,678. This is the largest number ever reported. The amount paid exclusively for pensions during the year was $138,214,761.94, a slight decrease from that of the preceding year, while the total expenditures on account of pensions, including the cost of maintaining the Department and expenses attending pension distribution, amounted to $142,206,550.59, or within every small fraction of one-third of the entire expense of supporting the Government during the same year. The number of new pension certificates issued was 90,640. Of these, 40,374 represent original allowances of claims and 15,878 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 during the year was $582,735.38. The sum appropriated for the payment of pensions for the current fiscal year, ending June 30, 1897, is $140,000,000, and for the succeeding year it is estimated that the same amount will be necessary. The Commissioner of Pensions reports that during the last fiscal year 339 indictments were found against violators of 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 abuses which have been allowed to creep into our pension system have done incalculable harm in demoralizing our people and undermining good citizenship. I have endeavored within my sphere 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 when necessary retrenchment and enforced economy may lead to an attack upon pension abuses so determined as to overlook the discrimination due to those who, worthy of a nation's care, ought to live and die under the protection of a nation's gratitude. The Secretary calls attention to the public interests involved in an adjustment of the obligations of the Pacific railroads to the Government. I deem it to be an important duty to especially present this subject to the consideration of the Congress. On January 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 fallen due and been paid or must on that day be paid by the Government. Without any reference to the application of the sinking fund now in the Treasury, this will create such a default on the part of these companies to the Government as will give it the right to at once institute proceedings to foreclose its mortgage lien. In addition to this indebtedness, which will be due January 1, 1897, there will mature between that date and January 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 account of the Central Pacific lines. The situation of these roads and the condition of their indebtedness to the Government have been fully set forth in the reports of various committees to the present and prior Congresses, and as early as 1887 they were thoroughly examined by a special commission appointed pursuant to an act of Congress. The considerations requiring an adjustment of the Government's relations to the companies have been clearly presented and the conclusion reached with practical uniformity that if these relations are not terminated they should be revised upon a basis securing their safe continuance. Under section 4 of the act of Congress passed March 3, 1887, the President is charged with the duty, in the event that any mortgage or other incumbrance paramount to the interest of the United States in the property of the Pacific railroads should exist and be lawfully liable to be enforced, to direct the action of the Departments of Treasury and of justice in the protection of the interest of the United States by redemption or through judicial proceedings, including foreclosures of the Government liens. In view of the fact that the Congress has for a number of years almost constantly had under consideration various plans for dealing with the conditions existing between these roads and the Government, I have thus far felt justified in withholding action under the statute above mentioned. In the case of the Union Pacific Company, however, the situation has become especially and immediately urgent. 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 lien. In consequence of those proceedings and increasing complications, added to the default occurring on the 1st 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 date of the default above mentioned such Executive action as will promise to subserve the public interests and save the Government from the loss threatened by further inaction. 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 agricultural efforts. Large sums of money are annually appropriated for the maintenance of this Department, and it must be confessed that the legislation relating to it has not always been directly in the interest of practical farming or properly guarded against waste and extravagance. So far, however, as public money has been appropriated fairly and sensibly to help those who actually till the soil, no expenditure has been more profitably made or more generally approved by the people. 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. From the report of the Secretary it appears that through careful and prudent financial management he has annually saved a large sum from his appropriations, aggregating during his incumbency and up to the close of the present fiscal year nearly one-fifth of the entire amount appropriated. These results have been accomplished by a conscientious study of the real needs of the farmer and such a regard for economy as the genuine farmer ought to appreciate, supplemented by a rigid adherence to civil-service methods in a Department which should be conducted in the interest of agriculture instead of partisan politics. The Secretary reports that the value of our exports of farm products during the last fiscal year amounted to $570,000,000, an increase of $17,000,000 over those of the year immediately preceding. This statement is not the less welcome because of the fact that, notwithstanding such increase, the proportion of exported agricultural products to our total exports of all descriptions fell off during the year. The benefits of an increase in agricultural exports being assured, the decrease in its proportion to our total exports is the more gratifying when we consider that it is owing to the fact that such total exports for the year increased more than $75,000,000. The large and increasing exportation of our agricultural products suggests the great usefulness of the organization lately established in the Department for the purpose of giving to those engaged in farming pursuits reliable information concerning the condition, needs, and advantages of different foreign markets. Inasmuch as the success of the farmer depends upon the advantageous sale of his products, and inasmuch as foreign markets must largely be the destination of such products, it is quite apparent that a knowledge of the conditions and wants that affect those markets ought to result in sowing more intelligently and reaping with a better promise of profit. Such information points out the way to a prudent foresight in the selection and cultivation of crops and to a release from the bondage of unreasoning monotony of production, a glutted and depressed market, and constantly recurring unprofitable toil. In my opinion the gratuitous distribution of seeds by the Department as at present conducted ought to be discontinued. No one can read the statement of the Secretary on this subject and doubt the extravagance and questionable results of this practice. 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 Agriculture, has continued to extend its sphere of usefulness, and by an uninterrupted improvement in the accuracy of its forecasts has greatly increased its efficiency as an aid and protection to all whose occupations are related to weather conditions. Omitting further reference to the operations of the Department, I commend the Secretary's report and the suggestions it contains to the careful consideration of the Congress. The progress made in civil-service reform furnishes a because for the utmost congratulation. It has survived the doubts of its friends as well as the rancor of its enemies and has gained a permanent place among the agencies destined to cleanse our politics and to improve, economize, and elevate the public service. There are now in the competitive classified service upward of 84,000 places, more than half of these having been included from time to time since March 4, 1893. A most radical and sweeping extension was made by Executive order dated the 6th day of May, 1896, and if fourth-class postmasterships are not included in the statement it may be said that practically all positions contemplated by the civil-service law are now classified. Abundant reasons exist for including these postmaster-ships, based upon economy, improved service, and the peace and quiet of neighborhoods. If, however, obstacles prevent such action at present, I earnestly hope that Congress will, without increasing post-office appropriations, so adjust them as to permit in proper eases a consolidation of these post-offices, to the end that through this process the result desired may to a limited extent be accomplished. The civil-service rules as amended during the last year provide for a sensible and uniform method of promotion, basing eligibility to better positions upon demonstrated efficiency and faithfulness. The absence of fixed rules on this subject has been an infirmity in the system more and more apparent as its other benefits have been better appreciated. The advantages of civil-service methods in their business aspects are too well understood to require argument. Their application has become a necessity to the executive work of the Government. But those who gain positions through the operation of these 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 under 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 suffrages the political beliefs they honestly profess, the noisy, pestilent, and partisan employee, who loves political turmoil and contention or who renders lax and grudging service to an Administration not representing his political views, should be promptly and fearlessly dealt with in such a way as to furnish a warning to others who may be likewise disposed. The annual report of the Commissioners will be duly transmitted, and I commend the important matter they have in charge to the careful consideration of the Congress. The Interstate Commerce Commission has during the last year supplied abundant evidence of its usefulness and the importance of the work committed to its charge. Public transportation is a universal necessity, and the question of just and reasonable charges therefor has become of vital importance not only to shippers and carriers, but also to the vast multitude of producers and consumers. The justice and equity of the principles embodied in the existing law passed for the purpose of regulating these charges are everywhere conceded, and there appears to be no question that the policy thus entered upon has a permanent place in our legislation. As the present statute when enacted was in the nature of the case more or less tentative and experimental, it was hardly expected to supply a complete and adequate system. While its wholesome effects are manifest and have amply justified its enactment, it is evident that all desired reforms in transportation methods have not been fully accomplished. In view of the judicial interpretation which some provisions of this statute have received and the defects disclosed by the efforts made for its enforcement, its revision and amendment appear to be essential, to the end that it may more effectually reach the evils designed to be corrected. I hope the recommendations of the Commission upon this subject will be promptly and favorably considered by the Congress. I desire to recur to the statements elsewhere made concerning the Government's receipts and expenditures for the purpose of venturing upon some suggestions touching our present tariff law and its operation. This statute took effect on the 28th day of August, 1894. Whatever may be its shortcomings as a complete measure of tariff reform, it must be conceded that it has opened the way to a freer and greater exchange of commodities between us and other countries, and thus furnished a wider market for our products and manufactures. The only entire fiscal year during which this law has been in force ended on the 30th day of June, 1896. In that year our imports increased over those of the previous year more than $6,500,000, while the value of the domestic products we exported and which found markets abroad was nearly $70,000,000 more than during the preceding year. Those who insist that the cost to our people of articles coming to them from abroad for their needful use should only be increased through tariff charges to an extent necessary to meet the expenses of the Government, as well as those who claim that tariff charges may be laid upon such articles beyond the necessities of Government revenue and with the additional purpose of so increasing their price in our markets as to give American manufacturers and producers better and more profitable opportunities, must agree that our tariff laws are only primarily justified as sources of revenue to enable the Government to meet the necessary expenses of its maintenance. Considered as to its efficiency in this aspect, the present law can by no means fall under just condemnation. During the only complete fiscal year of its operation it has yielded nearly $8,000,000 more revenue than was received from tariff duties in the preceding year. There was, nevertheless, a deficit between our receipts and expenditures of a little more than $25,000,000 This, however, was not unexpected. The situation was such in December last, seven months before the close of the fiscal year, that the Secretary of the Treasury foretold a deficiency of $17,000,000. The great and increasing apprehension and timidity in business circles and the depression in all activities intervening since that time, resulting from causes perfectly well understood and entirely disconnected with our tariff law or its operation, seriously checked the imports we would have otherwise received and readily account for the difference between this estimate of the Secretary and the actual deficiency, as well as for a continued deficit. Indeed, it must be confessed that we could hardly have had a more unfavorable period than the last two years for the collection of tariff revenue. We can not reasonably hope that our recuperation from this business depression will be sudden, but it has already set in with a promise of acceleration and continuance. I believe our present tariff law, if allowed a fair opportunity, will in the near future yield a revenue which, with reasonably economical expenditures, will overcome all deficiencies. In the meantime no deficit that has occurred or may occur need excite or disturb us. To meet any such deficit we have in the Treasury in addition to a gold reserve of one hundred millions a surplus of more than $128,000,000 applicable to the payment of the expenses of the Government, and which must, unless expended for that purpose, remain a useless hoard, or, if not extravagantly wasted, must in any event be perverted from the purpose of its exaction from our people. The payment, therefore, of any deficiency in the revenue from this fund is nothing more than its proper and legitimate use. The Government thus applying a surplus fortunately in its Treasury to the payment of expenses not met by its current revenues is not at all to be likened to a man living beyond his income and thus incurring debt or encroaching on his principal. It is not one of the functions of our Government to accumulate and make additions to a fund not needed for immediate expenditure. With individuals it is the chief object of struggle and effort. The application of an accumulated fund by the Government to the payment of its running expenses is a duty. An individual living beyond his income and embarrassing himself with debt or drawing upon his accumulated fund of principal is either unfortunate or improvident. The distinction is between a government charged with the duty of expending for the benefit of the people and for proper purposes all the money it receives from any source, and the individual, who is expected to manifest a natural desire to avoid debt or to accumulate as much as possible and to live within the income derived from such accumulations, to the end that they may be increased or at least remain unimpaired for the future use and enjoyment of himself or the objects of his love and affection who may survive him. It is immeasurably better to appropriate our surplus to the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravagant expenditures. I suppose it will not be denied that under the present law our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly. This is a matter of supreme importance, since it is the palpable duty of every just government to make the burdens of taxation as light as possible. The people should not be required to relinquish this privilege of cheaper living except under the stress of their Government's necessity made plainly manifest. This reference to the condition and prospects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods. They have been frequently pressed upon the attention of Congress in previous Executive communications and the inevitable danger of their continued toleration pointed out. Without now repeating these details, I can not refrain from again earnestly presenting the necessity of the prompt reform of a system opposed to every rule of sound finance and shown by experience to be fraught with the gravest peril and perplexity. The terrible Civil War, which shook the foundations of our Government more than thirty years ago, brought in its train the destruction of property, the wasting of our country's substance, and the estrangement of brethren. These are now past and forgotten. Even the distressing loss of life the conflict entailed is but a sacred memory which fosters patriotic sentiment and keeps alive a tender regard for those who nobly died. And yet there remains with us to-day in full strength and activity, as an incident of that tremendous struggle, a feature of its financial necessities not only unsuited to our present circumstances, but manifestly a disturbing menace to business security and an ever-present agent of monetary distress. Because we may be enjoying a temporary relief from its depressing influence, this should not lull us into a false security nor lead us to forget the suddenness of past visitations. I am more convinced than ever that we can have no assured financial peace and safety until the Government currency obligations upon which gold may be demanded from the Treasury are withdrawn from circulation and canceled. This might be done, as has been heretofore recommended, by their exchange for long-term bonds bearing a low rate of interest or by their redemption with the proceeds of such bonds. Even if only the United States notes known as greenbacks were thus retired it is probable that the Treasury notes issued in payment of silver purchases under the act of July 14, 1890, now paid in gold when demanded, would not create much disturbance, as they might from time to time, when received in the Treasury by redemption in gold or otherwise, be gradually and prudently replaced by silver coin. This plan of issuing bonds for the purpose of redemption certainly appears to be the most effective and direct path to the needed reform. In default of this, however, it would be a step in the right direction if currency obligations redeemable in gold whenever so redeemed should be canceled instead of being reissued. This operation would be a slow remedy, but it would improve present conditions. National banks should redeem their own notes. They should be allowed to issue circulation to the par value of bonds deposited as security for its redemption and the tax on their circulation should be reduced to one-fourth of 1 per cent. In considering projects for the retirement of United States notes and Treasury notes issued under the law of 1890, I am of the opinion that we have placed too much stress upon the danger of contracting the currency and have calculated too little upon the gold that would be added to our circulation if invited to us by better and safer financial methods. It is not so much a contraction of our currency that should be avoided as its 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 also authorizing existing banks to establish branches in small communities under proper restrictions. The entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our Government abandons the banking business and the accumulation of funds and confines its monetary operations to the receipt of the money contributed by the people for its support and to the expenditure of such money for the people's benefit. Our business interests and all good citizens long for rest from feverish agitation and the inauguration by the Government of a reformed financial policy which will encourage enterprise and make certain the rewards of labor and industry. Another topic in which our people rightfully take a deep interest may be here briefly considered. I refer to the existence of trusts and other huge aggregations of capital the object of which is to secure the monopoly of some particular branch of trade, industry, or commerce and to stifle wholesome competition. When these are defended, it is usually on the ground that though they increase profits they also reduce prices, and thus may benefit the public. It must be remembered, however, that a reduction of prices to the people is not one of the real objects of these organizations, nor is their tendency necessarily in that direction. If it occurs in a particular case it is only because it accords with the purposes or interests of those managing the scheme. Such occasional results fall far short of compensating the palpable evils charged to the account of trusts and monopolies. Their tendency is to crush out individual independence and to hinder or prevent the free use of human faculties and the full development of human character. Through them the farmer, the artisan, and the small trader is in danger of dislodgment from the proud position of being his own master, watchful of all that touches his country's prosperity, in which he has an individual lot, and interested in all that affects the advantages of business of which he is a factor, to be relegated to the level of a mere appurtenance to a great machine, with little free will, with no duty but that of passive obedience, and with little hope or opportunity of rising in the scale of responsible and helpful citizenship. To the instinctive belief that such is the inevitable trend of trusts and monopolies is due the widespread and deep-seated popular aversion in which they are held and the not unreasonable insistence that, whatever may be their incidental economic advantages, their general effect upon personal character, prospects, and usefulness can not be otherwise than injurious. Though Congress has attempted to deal with this matter by legislation, the laws passed for that purpose thus far have proved ineffective, not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach the difficulty. If the insufficiencies of existing laws can be remedied by further legislation, it should be done. The fact must be recognized, however, that all Federal legislation on this subject may fall short of its purpose because of inherent obstacles and also because of the complex character of our governmental system, which, while making the Federal authority supreme within its sphere, has carefully limited that sphere by metes and bounds that can not be transgressed. The decision of our highest court on this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated through Federal action unless they seek directly and purposely to include in their objects transportation or intercourse between States or between the United States and foreign countries. It does not follow, however, that this is the limit of the remedy that may be applied. Even though it may be found that Federal authority is not broad enough to fully reach the case, there can be no doubt of the power of the several States to act effectively in the premises, and there should be no reason to doubt their willingness to judiciously exercise such power. In concluding this communication its last words shall be an appeal to the Congress for the most rigid economy in the expenditure of the money it holds in trust for the people. The way to perplexing extravagance is easy, but a return to frugality is difficult. When, however, it is considered that those who bear the burdens of taxation have no guaranty of honest care save in the fidelity of their public servants, the duty of all possible retrenchment is plainly manifest. When our differences are forgotten and our contests of political opinion are no longer remembered, nothing in the retrospect of our public service will be as fortunate and comforting as the recollection of official duty well performed and the memory of a constant devotion to the interests of our confiding fellow-countrymen.
as representatives of the people in the legislative branch of their government you have assembled at a time when the strength and excellence of our free institutions and the fitness of our citizens to enjoy popular rule have been again made manifest a political contest involving momentous consequences fraught with feverish apprehension and creating aggressiveness so intense as to approach bitterness and passion has been waged throughout our land and determined by the decree of free and independent suffrage without disturbance of our tranquillity or the least sign of weakness in our national structure when we consider these incidents and contemplate the peaceful obedience and manly submission which have succeeded a heated clash of political opinions we discover abundant evidence of a determination on the part of our countrymen to abide by every verdict of the popular will and to be controlled at all times by an abiding faith in the agencies established 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 acceptance 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 to secure brevity and avoid tiresome narration i shall omit many details concerning matters within federal control which though by no means unimportant are more profitably discussed in departmental reports i shall also further curtail this communication by omitting a minute recital of many minor incidents connected with our foreign relations which have heretofore found a place in executive messages but are now contained in a report of the secretary of state which is herewith submitted 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 past year assumed a less hideous and bloody aspect and that either as a consequence of the awakening of the turkish government to the demands 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 fanaticism 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 unfrequent 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 none of our citizens in turkey have thus far been killed or wounded though often in the midst of dreadful scenes of danger their safety 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 the outbreaks of the blind fury which lead to murder and pillage in turkey occur suddenly and without notice and an attempt on our part to force such a hostile presence there as might be effective for prevention or protection would not only be resisted by the ottoman government but would be regarded as an interruption of their plans by the great nations who assert their exclusive right to intervene in their own time and method for the security of life and property in turkey 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 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 thus far the validity of these demands has not been admitted though our minister prior to such outrages and in anticipation of danger demanded protection for the persons and property of our missionary citizens in the localities mentioned and notwithstanding that strong evidence exists of actual complicity of turkish soldiers in the work of destruction and robbery the facts as they now appear do not permit us to doubt the justice of these claims and nothing will be omitted to bring about their prompt settlement 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 it is hoped that hereafter no obstacle will be interposed to prevent the escape of all those who seek to avoid the perils which threaten them in turkish dominions our recently appointed consul to erzerum is at his post and discharging the duties of his office though for some unaccountable reason his formal exequatur from the sultan has not been issued i do not believe that the present somber prospect in turkey will be long permitted to offend the sight of christendom it so mars the humane and enlightened civilization that belongs to the close of the nineteenth century that it seems hardly possible that the earnest demand of good people throughout the christian world for its corrective treatment will remain unanswered the insurrection in cuba still continues with all its perplexities it is difficult to perceive that any progress has thus far been made toward the pacification of the island or that the situation of affairs as depicted in my last annual message has in the least improved if spain still holds havana and the seaports and all the considerable towns the insurgents still roam at will over at least of the inland country if the determination of spain to put down the insurrection seems but to strengthen with the lapse of time and is evinced by her unhesitating devotion of largely increased military and naval forces to the task there is much reason to believe that the insurgents have gained in point of numbers and character and resources and are none the less inflexible in their resolve not to succumb without practically securing the great objects for which they took up arms if spain has not yet reestablished her authority neither have the insurgents yet made good their title to be regarded as an independent state indeed as the contest has gone on the pretense that civil government exists on the island except so far as spain is able to maintain it has been practically abandoned spain does keep on foot such a government more or less imperfectly in the large towns and their immediate suburbs but that exception being made the entire country is either given over to anarchy or is subject to the military occupation of one or the other party it is reported indeed on reliable authority that at the demand of the commander in chief of the insurgent army the putative cuban government has now given up all attempt to exercise its functions leaving that government confessedly what there is the best reason for supposing it always to have been in fact a government merely on paper were the spanish armies able to meet their antagonists in the open or in pitched battle prompt and decisive results might be looked for and the immense superiority of the spanish forces in numbers discipline and equipment could hardly fail to tell greatly to their advantage but they are called upon to face a foe that shuns general engagements that can choose and does choose its own ground that from the nature of the country is visible or invisible at pleasure and that fights only from ambuscade and when all the advantages of position and numbers are on its side in a country where all that is indispensable to life in the way of food clothing and shelter is so easily obtainable especially by those born and bred on the soil it is obvious that there is hardly a limit to the time during which hostilities of this sort may be prolonged meanwhile as in all cases of protracted civil strife the passions of the combatants grow more and more inflamed and excesses on both sides become more frequent and more deplorable they are also participated in by bands of marauders who now in the name of one party and now in the name of the other as may best suit the occasion harry the country at will and plunder its wretched inhabitants for their own advantage such a condition of things would inevitably entail immense destruction of property even if it were the policy of both parties to prevent it as far as practicable but while such seemed to be the original policy of the spanish government it has now apparently abandoned it and is acting upon the same theory as the insurgents namely that the exigencies of the contest require the wholesale annihilation of property that it may not prove of use and advantage to the enemy it is to the same end that in pursuance of general orders spanish garrisons are now being withdrawn from plantations and the rural population required to concentrate itself in the towns the sure result would seem to be that the industrial value of the island is fast diminishing and that unless there is a speedy and radical change in existing conditions it will soon disappear altogether that value consists very largely of course in its capacity to produce sugar a capacity already much reduced by the interruptions to tillage which have taken place during the last two years it is reliably asserted that should these interruptions continue during the current year and practically extend as is now threatened to the entire territory of the island so much time and so much money will be required to restore the land to its normal productiveness that it is extremely doubtful if capital can be induced to even make the attempt 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 the government and people of the united states in any circumstances in point of fact they have a concern with it 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 to of american capital are invested in plantations and in railroad mining and other business enterprises on the island the volume of trade between the united states and cuba which in 1889 amounted to about rose in 1893 to about and in 1894 the year before the present insurrection broke out amounted to 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 laws do not permit to be made the subject of criminal prosecutions some of them though cubans at heart and in all their feelings and interests have taken out papers as naturalized citizens of the united states a proceeding resorted to with a view to possible protection by this government and not unnaturally regarded with much indignation by the country of their origin the insurgents are undoubtedly encouraged and supported by the widespread sympathy the people of this country always and instinctively feel for every struggle for better and freer government and which in the case of the more adventurous and restless elements of our population leads in only too many instances to active and personal participation in the contest the result is that this government is constantly called upon to protect american citizens to claim damages for injuries to persons and property now estimated at many millions of dollars and to ask explanations and apologies for the acts of spanish officials whose zeal for the repression of rebellion sometimes blinds them to the immunities belonging to the unoffending citizens 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 on the part of the united states it was at first proposed that belligerent rights should be accorded to the insurgents a proposition no longer urged because untimely and in practical operation dearly 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 internecine strife in cuba should be terminated by our intervention even at the cost of a war between the united states and spain a war which its advocates confidently prophesy could neither be large in its proportions nor doubtful in its issue the correctness of this forecast need be neither affirmed nor denied the united states has nevertheless a character to maintain as a nation which plainly dictates that right and not might should be the rule of its conduct further though the united states is not a nation to which peace is a necessity it is in truth the most pacific of powers and desires nothing so much as to live in amity with all the world its own ample and diversified domains satisfy all possible longings for territory preclude all dreams of conquest and prevent any casting of covetous eyes upon neighboring regions however attractive that our conduct toward spain and her dominions has constituted no exception to this national disposition is made manifest by the course of our government not only thus far during the present insurrection but during the ten years that followed the rising at yara in 1868 no other great power it may safely be said under circumstances of similar perplexity would have manifested the same restraint and the same patient endurance it may also be said that this persistent attitude of the united states toward spain in connection with cuba unquestionably evinces no slight respect and regard for spain on the part of the american people they in truth do not forget her connection with the discovery of the western hemisphere nor do they underestimate the great qualities of the spanish people nor fail to fully recognize their splendid patriotism and their chivalrous devotion to the national honor they view with wonder and admiration the cheerful resolution with which vast bodies of men are sent across thousands of miles of ocean and an enormous debt accumulated that the costly possession of the gem of the antilles may still hold its place in the spanish crown and yet neither the government nor the people of the united states have shut their eyes to the course of events in cuba or have failed to realize the existence of conceded grievances which have led to the present revolt from the authority of spain grievances recognized by the queen regent and by the cortes voiced by the most patriotic and enlightened of spanish statesmen without regard to party and demonstrated by reforms proposed by the executive and approved by the legislative branch of the spanish government it is in the assumed temper and disposition of the spanish government to remedy these grievances fortified by indications of influential public opinion in spain that this government has hoped to discover the most promising and effective means of composing the present strife with honor and advantage to spain and with the achievement of all the reasonable objects of the insurrection it would seem that if spain should offer to cuba genuine autonomy a measure of home rule which while preserving the sovereignty of spain would satisfy all rational requirements of her spanish subjects there should be no just reason why the pacification of the island might not be effected on that basis such a result would appear to be in the true interest of all concerned it would at once stop the conflict which is now consuming the resources of the island and making it worthless for whichever party may ultimately prevail it would keep intact the possessions of spain without touching her honor which will be consulted rather than impugned by the adequate redress of admitted grievances it would put the prosperity of the island and the fortunes of its inhabitants within their own control without severing the natural and ancient ties which bind them to the mother country and would yet enable them to test their capacity for under the most favorable conditions it has been objected on the one side that spain should not promise autonomy until her insurgent subjects lay down their arms on the other side that promised autonomy however liberal is insufficient because without assurance of the promise being fulfilled but the reasonableness of a requirement by spain of unconditional surrender on the part of the insurgent cubans before their autonomy is conceded is not altogether apparent it ignores important features of the situation the stability two years duration has given to the insurrection the feasibility of its indefinite prolongation in the nature of things and as shown by past experience the utter and imminent ruin of the island unless the present strife is speedily composed above all the rank abuses which all parties in spain all branches of her government and all her leading public men concede to exist and profess a desire to remove facing such circumstances to withhold the proffer of needed reforms until the parties demanding them put themselves at mercy by throwing down their arms has the appearance of neglecting the gravest of perils and inviting suspicion as to the sincerity of any professed willingness to grant reforms the objection on behalf of the insurgents that promised reforms can not be relied upon must of course be considered though we have no right to assume and no reason for assuming that anything spain undertakes to do for the relief of cuba will not be done according to both the spirit and the letter of the undertaking nevertheless realizing that suspicions and precautions on the part of the weaker of two combatants are always natural and not always unjustifiable being sincerely desirous in the interest of both as well as on its own account that the cuban problem should be solved with the least possible delay it was intimated by this government to the government of spain some months ago that if a satisfactory measure of home rule were tendered the cuban insurgents and would be accepted by them upon a guaranty of its execution the united states would endeavor to find a way not objectionable to spain of furnishing such graranty 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 neither party can fail to see the importance of early action and both must realize that to prolong the present state of things for even a short period will add enormously to the time and labor and expenditure necessary to bring about the industrial recuperation of the island it is therefore fervently hoped on all grounds that earnest efforts for healing the breach between spain and the insurgent cubans upon the lines above indicated may be at once inaugurated and pushed to an immediate and successful issue the friendly offices of the united states either in the manner above outlined or in any other way consistent with our constitution and laws will always be at the disposal of either party whatever circumstances may arise our policy and our interests would constrain us to object to the acquisition of the island or an interference with its control by any other power it should be added that it can not be reasonably assumed that the hitherto expectant attitude of the united states will be indefinitely maintained while we are anxious to accord all due respect to the sovereignty of spain we can not view the pending conflict in all its features and properly apprehend our inevitably close relations to it and its possible results without considering that by the course of events we may be drawn into such an unusual and unprecedented condition as will fix a limit to our patient waiting for spain to end the contest either alone and in her own way or with our friendly cooperation when the inability of spain to deal successfully with the insurrection has become manifest and it is demonstrated that her sovereignty is extinct in cuba for all purposes of its rightful existence and when a hopeless struggle for its reestablishment has degenerated into a strife which means nothing more than the useless sacrifice of human life and the utter destruction of the very of the conflict a situation will be presented in which our obligations to the sovereignty of spain will be superseded by higher obligations which we can hardly hesitate to recognize and discharge deferring the choice of ways and methods until the time for action arrives we should make them depend upon the precise conditions then existing and they should not be determined upon without giving careful heed to every consideration involving our honor and interest or the international duty we owe to spain until we face the contingencies suggested or the situation is by other incidents imperatively changed we should continue in the line of conduct heretofore pursued thus in all circumstances exhibiting our obedience to the requirements of public law and our regard for the duty enjoined upon us by the position we occupy in the family of nations 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 expression of feeling but i have deemed it not amiss to remind the congress that a time may arrive when a correct policy and care for our interests as well as a regard for the interests of other nations and their citizens joined by considerations of humanity and a desire to see a rich and fertile country intimately related to us saved from complete devastation will constrain our 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 the venezuelan boundary question has ceased to be a matter of difference between great britain and the united states their respective governments having agreed upon the substantial provisions of a treaty between great britain and venezuela submitting the whole controversy to arbitration the provisions of the treaty are so eminently just and fair that the assent of venezuela thereto may confidently be anticipated negotiations for a treaty of general arbitration for all differences between great britain and the united states are far advanced and promise to reach a successful 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 the 20th of september 1895 has fully demonstrated the usefulness of this innovation in connection with this plan of examination promotions and transfers of deserving incumbents have been quite extensively made with excellent results during the past year 35 appointments have been made in the consular service 27 of which were made to fill vacancies caused by death or resignation or to supply newly created posts 2 to succeed incumbents removed for because 2 for the purpose of displacing alien consular officials by american citizens and 4 merely changing the official title of incumbent from commercial agent to consul twelve of these appointments were transfers or promotions from other positions under the department of state 4 of those appointed had rendered previous service under the department 8 were made of persons who passed a satisfactory examination 7 were appointed to places not included in the order of september 20 1895 and 4 appointments as above stated involved no change of incumbency the inspection of consular offices provided for by an appropriation for that purpose at the last session of the congress has been productive of such wholesome effects that i hope this important work will in the future be continued i know of nothing that can be done with the same slight expense so improving to the service i desire to repeat the recommendation contained in my last annual message in favor of providing at public expense official residences for our ambassadors and ministers at foreign capitals the reasons supporting this recommendation are strongly stated in the report of the secretary of state and the subject seems of such importance that i hope it may receive the early attention of the congress we have during the last year labored faithfully and against unfavorable conditions to secure better preservation of seal life in the bering sea both the united states and great britain have lately dispatched commissioners to these waters to study the habits and condition of the seal herd and the causes of their rapid decrease upon the reports of these commissioners soon to be submitted and with the exercise of patience and good sense on the part of all interested parties it is earnestly hoped that hearty cooperation may be secured for the protection against threatened extinction of seal life in the northern pacific and bering sea the secretary of the treasury reports that during the fiscal year ended june 30 1896 the receipts of the government from all sources amounted to during the same period its expenditures were the excess of expenditures over receipts thus amounting to the ordinary expenditures during the year were less than during the preceding fiscal year of the receipts mentioned there was derived from customs the sum of and from internal revenue the receipts from customs show an increase of over those from the same source for the fiscal year ended june 30 1895 and the receipts from internal revenue an increase of the value of our imported dutiable merchandise during the last fiscal year was and the value of free goods imported being an increase of in the value of dutiable goods and in the value of free goods over the preceding year our exports of merchandise foreign and domestic amounted in value to being an increase over the preceding year of the average ad valorem duty paid on dutiable goods imported during the year was per cent and on free and dutiable goods taken together per cent the cost of collecting our internal revenue was per cent as against per cent for the fiscal year ending june 30 1895 the total production of distilled spirits exclusive of fruit brandies was taxable gallons being an increase of gallons over the preceding year there was also an increase of gallons of spirits produced from fruit as compared with the preceding year the number of barrels of beer produced was as against produced in the preceding fiscal year being all increase of barrels the total amount of gold exported during the last fiscal year was and of silver being an increase of of gold and of silver over the exportations of the preceding fiscal year the imports of gold were and of silver being less of gold and 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 on the 30th day of june 1896 was of which was in gold and in silver on the 1st day of november 1896 the total stock of money of all kinds in the country was and the amount in circulation not including that in the treasury holdings was being per capita upon an estimated population of the production of the precious metals in the united states during the calendar year 1895 is estimated to have been fine ounces of gold of the value of and fine ounces of silver of the commercial value of and the coinage value of the estimated production of these metals throughout the world during the same period was fine ounces of gold amounting to in value and fine ounces of silver of the commercial value of and of the coinage value of according to our ratio the coinage of these metals in the various countries of the world during the same calendar year amounted to in gold and in silver the total coinage at the mints of the united states during the fiscal year ended june 30 1896 amounted to of which was in gold coins and in standard silver dollars subsidiary coins and minor coins the number of national banks organized from the time the law authorizing their creation was passed up to october 31 1896 was and of this number were at the date last mentioned in active operation having authorized capital stock of held by shareholders and circulating notes amounting to the total outstanding circulating notes of all national banks on the 31st day of october 1896 amounted to including unredeemed but fully secured notes of banks insolvent and in process of liquidation the increase in circulation during the year ending on that day was on october 6 1896 when the condition of national banks was last reported the total resources of the active institutions were which included in loans and discounts and in money of all kinds on hand of their liabilities was due to individual depositors and consisted of outstanding circulating notes there were organized during the year preceding the date last mentioned 28 national banks located in 15 states of which 12 were organized in the eastern states with a capital of 6 in the western states with a capital of and 10 in the southern states with a capital of during the year however 37 banks voluntarily abandoned their franchises under the national law and in the case of 27 others it was found necessary to appoint receivers therefore as compared with the year preceding there was a decrease of 36 in the number of active banks the number of existing banks organized under state laws is the number of immigrants arriving in the united states during the fiscal year was of whom were permitted to land and were debarred on various grounds prescribed by law and returned to the countries whence they came at the expense of the steamship companies by which they were brought in the increase in immigration over the preceding year amounted to it is reported that with some exceptions the immigrants of the past year were of a hardy laboring class accustomed and able to earn a support for themselves and it is estimated that the money brought with them amounted to at least though it was probably much in excess of that sum since only those having less than 30 are required to disclose the exact amount and it is known that many brought considerable sums of money to buy land and build homes including all the immigrants arriving who were over 14 years of age per cent were illiterate as against per cent of those of that age arriving during the preceding fiscal year the number of immigrants over 14 years old the countries from which they came and the percentage of illiterates among them were as follows italy with per cent ireland with 7 per cent russia with per cent and provinces with per cent germany with per cent sweden with per cent while from portugal there came of whom per cent were illiterate there arrived from japan during the year only immigrants and it is the opinion of the immigration authorities that the apprehension heretofore existing to some extent of a large immigration from japan to the united states is without any substantial foundation from the service it is reported that the number of disasters to documented vessels within the limits of its operations during the year was 437 these vessels had on board persons of whom were saved and 13 lost the value of such vessels is estimated at and of their cargoes making the total value of property imperiled of this amount was saved and was lost of the vessels were totally wrecked there were besides 243 casualties to small undocumented craft on board of which there were 594 persons of whom 587 were saved and 7 were lost the value of the property involved in these latter casualties is estimated at of which was saved and was lost the crews during the year also rescued or assisted numerous other vessels and warned many from danger by signals both by day and night the number of disasters during the year exceeded that of any previous year in the history of the service but the saving of both life and property was greater than ever before in proportion to the value of the property involved and to the number of persons imperiled the operations of the service the service the service the service the bureau of navigation and other branches of public work attached to the treasury department together with various recommendations concerning their support and improvement are fully stated in the report of the secretary of the treasury to which the attention of the congress is especially invited the report of the secretary of war exhibits satisfactory conditions in the several branches of the public service intrusted 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 and efficiency are apparent throughout its entire organization with the exception of delicate duties in the suppression of slight indian disturbances along our southwestern boundary in which the mexican troops cooperated and the compulsory but peaceful return with the consent of great britain of a band of cree indians from montana to the british possessions no active operations have been required of the army during the year past changes in methods of administration the abandonment of unnecessary posts and consequent concentration of troops and the exercise of care and vigilance by the various officers charged with the responsibility in the expenditure of the appropriations have resulted in reducing to a minimum the cost of maintenance of our military establishment during the past year the work of constructing permanent infantry and cavalry posts has been continued at the places heretofore designated the secretary of war repeats his recommendation that appropriations for barracks and quarters should more strictly conform to the needs of the service as judged by the department rather than respond to the wishes and importunities of localities it is imperative that much of the money provided for such construction should now be allotted to the erection of necessary quarters for the garrisons assigned to the coast defenses where many men will be needed to properly care for and operate modern guns it is essential too that early provision be made to supply the necessary force of artillery to meet the demands of this service the entire army has now been equipped with the new magazine arms and wise policy demands that all available public and private resources should be so employed as to provide within a reasonable time a sufficient number to supply the state militia with these modern weapons and provide an ample reserve for any emergency the organized militia numbers men the appropriations for its support by the several states approximate annually and is contributed by the general government investigation shows these troops to be usually well drilled and inspired with much military interest but in many instances they are so deficient in proper arms and equipment that a sudden call to active duty would find them inadequately prepared for field service i therefore recommend that prompt measures be taken to remedy this condition and that every encouragement be given to this deserving body of unpaid and voluntary citizen soldiers upon whose assistance we must largely rely in time of trouble during the past year rapid progress has been made toward the completion of the scheme adopted for the erection and armament of fortifications along our seacoast while equal progress has been made in providing the material for submarine defense in connection with these works it is peculiarly gratifying at this time to note the great advance that has been made in this important undertaking since the date of my annual message to the congress at the opening of its second session in december 1893 at that time i informed the congress of the approaching completion of nine twenty and steel guns and rifled mortars this total then seemed insignificant when compared with the great work remaining to be done yet it was none the less a source of satisfaction to every citizen when he reflected that it represented the first installment of the new ordnance of american design and american manufacture and demonstrated our ability to supply from our own resources guns of unexcelled power and accuracy at that date however there were practically no carriages upon which to mount these guns and only emplacements for guns and for mortars nor were all these emplacements in condition to receive their armament only one gun was at that time in position for the defense of the entire coast since that time the number of guns actually completed has been increased to a total of steel guns ten guns and eighty rifled mortars in addition there are in process of construction one gun fifty guns and rifled mortars in all four hundred and guns and mortars during the same year immediately preceding the message referred to the first modern gun carriage had been completed and eleven more were in process of construction all but one were of the nondisappearing type these however were not such as to secure necessary cover for the artillery gunners against the intense fire of modern machine and guns the inventive genius of ordnance and civilian experts has been taxed in designing carriages that would obviate this fault resulting it is believed in the solution of this difficult problem since 1893 the number of gun carriages constructed or building has been raised to a total of 129 of which 90 are on the disappearing principle and the number of mortar carriages to 152 while the 95 emplacements which were provided for prior to that time have been increased to 280 built and building this improved situation is largely due to the recent generous response of congress to the recommendations of the war department thus we shall soon have complete about of the comprehensive system the first step in which was noted in my message to the congress of december 4 1893 when it is understood that a masonry emplacement not only furnishes a platform for the heavy modern gun but also in every particular serves the purpose and takes the place of the fort of former days the importance of the work accomplished is better comprehended in the hope that the work will be prosecuted with no less vigor in the future the secretary of war has submitted an estimate by which if allowed there will be provided and either built or building by the end of the next fiscal year such additional guns mortars gun carriages and emplacements as will represent not far from of the total work to be done under the plan adopted for our coast defenses thus affording a prospect that the entire work will be substantially completed within six years in less time than that however we shall have attained a marked degree of security the experience and results of the past year demonstrate that with a continuation of present careful methods the cost of the remaining work will be much less than the original estimate we should always keep in mind that of all forms of military preparation 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 permanent fortifications to involve us in foreign complications but rather to guarantee us against them they are not temptation to war but security against it thus they are thoroughly in accord with all the traditions of our national diplomacy the presents 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 those convicted in united states courts of violations of federal laws which for many years has been a subject of executive recommendation have 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 it ought to be at once supplemented by the rebuilding or extensive enlargement of this improvised prison and the construction of at least one more to be located in the southern states the capacity of the leavenworth penitentiary is so limited that the expense of its maintenance calculated at a per capita rate upon the number of prisoners it can accommodate does not make as economical an exhibit as it would if it were larger and better adapted to prison purposes but i am thoroughly convinced that economy humanity and a proper sense of responsibility 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 are confined it appears that since the transfer of the fort leavenworth military prison to its new uses the work previously done by prisoners confined there and for which expensive machinery has been provided has been discontinued this work consisted of the manufacture of articles for army use now done elsewhere on all grounds it is exceedingly desirable that the convicts confined in this penitentiary be allowed to resume work of this description it is most gratifying to note the satisfactory results that have followed the inauguration of the new system provided for by the act of may 28 1896 under which certain federal officials are compensated by salaries instead of fees the new plan was put in operation on the 1st day of july 1896 and already the great economy it enforces its prevention of abuses and its tendency to a better enforcement of the laws are strikingly apparent detailed evidence of the usefulness of this but now happily accomplished reform will be found clearly set forth in the report our department is in good condition and the exhibit made of its operations during the fiscal year ended june 30 1896 if allowance is made for imperfections in the laws applicable to it is very satisfactory the total receipts during the year were the total expenditures were exclusive of the 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 or per cent and an increase of expenditures of or per cent the deficit was less than that of the preceding year the chief expenditures of the postal service are regulated by law and are not in the control of the all that he can accomplish by the most watchful administration and economy is to enforce prompt and thorough collection and accounting for public moneys and such minor savings in small expenditures and in letting those contracts for supplies and star service which are not regulated by statute an effective cooperation between the auditor office and the department and the making and enforcement of orders by the department requiring immediate notification to their sureties of all delinquencies on the part of postmasters and compelling such postmasters to make more frequent deposits of postal funds have resulted in a prompter auditing of their accounts and much less default to the government than heretofore the year report shows large extensions of both service and railway mail service with increased postal facilities much higher accuracy in handling mails has also been reached as appears by the decrease of errors in the railway mail service and the reduction of mail matter returned to the office the deficit for the last year although much less than that of the last and preceding years emphasizes the necessity for legislation to correct the growing abuse of rates to which the deficiency is mainly attributable the transmission at the rate of 1 cent a pound of serial libraries advertising sheets house organs periodicals advertising some particular house or institution sample copies and the like ought certainly to be discontinued a glance at the revenues received for the work done last year will show more plainly than any other statement the gross abuse of the postal service and the growing waste of its earnings the free matter carried in the mails for the departments offices of the government and for congress in pounds amounted to if this is offset against buildings for and stations the rental of which would more than compensate for such free postal service we have this exhibit the remainder of our postal revenue amounting to something more than was derived from box rents registry fees business and other similar items the entire expenditures of the department including pay for transportation credited to the pacific railroads were which may be considered as the cost of receiving carrying and delivering the above mail matter it thus appears that though the matter constituted more than of the total that was carried the revenue derived from it was less than of the total expense the growth in weight of matter has been from pounds in 1894 to in 1895 and to almost in 1896 and it is quite evident this increasing drawback is far outstripping any possible growth of postal revenues our mail service should of course be such as to meet the wants and even the conveniences of our people at a direct charge upon them so light as perhaps to exclude the idea of our department being a concern but in the face of a constantly recurring deficiency in its revenues and in view of the fact that we supply 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 if we concede the public policy of carrying weekly newspapers free in the county of publication and even the policy of carrying at less than of their cost other bona fide newspapers and periodicals there can be no excuse for subjecting the service to the further immense and increasing loss involved in carrying at the nominal rate of 1 cent a pound the serial libraries sometimes including trashy and even harmful literature and other matter which under the loose interpretation of a loose statute have been gradually given rates thus absorbing all profitable returns derived from matter which pays three or four times more than its cost and producing a large annual loss to be paid by general taxation if such matter paid merely the cost of its handling our deficit would disappear and a surplus result which might be used to give the people still better mail facilities or cheaper rates of letter postage i recommend that legislation be at once enacted to correct these abuses and introduce better business ideas in the regulation of our postal rates experience and observation have demonstrated that certain improvements in the organization of the department must be secured before we can gain the full benefit of the immense sums expended in its administration this involves the following reforms which i earnestly recommend there should be a small addition to the existing inspector service to be employed in the supervision of the carrier force which now numbers men and performs its service practically without the surveillance exercised over all other branches of the postal or public service of course such a lack of supervision and freedom from wholesome disciplinary restraints must inevitably lead to imperfect service there should also be appointed a few inspectors who could assist the central office in necessary investigation concerning matters of leases sites allowances for rent fuel and lights and in organizing and securing the best results from the work of the clerks now employed in first and second class offices i am convinced that the small expense attending the inauguration of these reforms would actually be a profitable investment i especially recommend such a recasting of the appropriations by congress for the department as will permit the to proceed with the work of consolidating this work has already been entered upon sufficiently to fully demonstrate by experiment and experience that such consolidation is productive of better service larger revenues and less expenditures to say nothing of the further advantage of gradually withdrawing from the spoils system the universal postal union which now embraces all the civilized world and whose delegates will represent people will hold its fifth congress in the city of washington in may 1897 the united states may be said to have taken the initiative which led to the first meeting of this congress at berne in 1874 and the formation of the universal postal union which brings the postal service of all countries to every man neighborhood and has wrought marvels in cheapening postal rates and securing absolutely safe mail communication throughout the world previous congresses have met in berne paris lisbon and vienna and the respective countries in which they have assembled have made generous provision for their accommodation and for the reception and entertainment of the delegates in view of the importance of this assemblage and of its deliberations and of the honors and hospitalities accorded to our representatives by other countries on similar occasions i earnestly hope that such an appropriation will be made for the expenses necessarily attendant upon the coming meeting in our capital city as will be worthy of our national hospitality and indicative of our appreciation of the event the work of the navy department and its present condition are fully exhibited in the report of the secretary the construction of vessels for our new navy has been energetically prosecuted by the present administration upon the general lines previously adopted the department having seen no necessity for radical changes in prior methods under which the work was found to be progressing in a manner highly satisfactory it has been decided however to provide in every shipbuilding contract that the builder should pay all trial expenses and it has also been determined to pay no speed premiums in future contracts the premiums recently earned and some yet to be decided are features of the contracts made before this conclusion was reached on march 4 1893 there were in commission but two armored vessels the monitors miantonomoh and monterey since that date of vessels theretofore authorized there have been placed in their first commission 3 and 2 battle ships 2 armored cruisers 1 ram and 5 monitors including the maine and the puritan just completed eight new unarmored cruisers and 2 new gunboats have also been commissioned the iowa another battle ship will be completed about march 1 and at least 4 more gunboats will be ready for sea in the early spring it is gratifying to state that our ships and their outfits are believed to be equal to the best that can be manufactured elsewhere and that such notable reductions have been made in their cost as to justify the statement that quite a number of vessels are now being constructed at rates as low as those that prevail in european shipyards our manufacturing facilities are at this time ample for all possible naval contingencies three of our government those at mare island norfolk and brooklyn n are equipped for shipbuilding our ordnance plant in washington is equal to any in the world and at the torpedo station we are successfully making the highest grades of smokeless powder the private shipyards at newport news philadelphia and san francisco are building battle ships eleven contractors situated in the states of maine rhode island pennsylvania new jersey maryland virginia and the state of washington are constructing gunboats or torpedo boats two plants are manufacturing large quantities of armor and american factories are producing automobile torpedoes powder projectiles guns and everything else necessary for the complete outfit of naval vessels there have been authorized by congress since march 1893 5 battle ships 6 gunboats 16 torpedo boats and 1 submarine torpedo boat contracts for the building of all of them have been let the secretary expresses the opinion that we have for the present a sufficient supply of cruisers and gunboats and that hereafter the construction of battle ships and torpedo boats will supply our needs much attention has been given to the methods of carrying on departmental business important modifications in the regulations have been made tending to unify the control of shipbuilding as far as may be under the bureau of construction and repair and also to improve the mode of purchasing supplies for the navy by the bureau of supplies and accounts the establishment under recent acts of congress of a supply fund with which to purchase these supplies in large quantities and other modifications of methods have tended materially to their cheapening and better quality the war college has developed into an institution which it is believed will be of great value to the navy in teaching the science of war as well as in stimulating professional zeal in the navy and it will be especially useful in the devising of plans for the utilization in case of necessity of all the naval resources of the united states the secretary has persistently adhered to the plan he found in operation for securing labor at through boards of labor employment and has done much to make it more complete and efficient the naval officers who are familiar with this system and its operation express the decided opinion that its results have been to vastly improve the character of the work done at our yards and greatly reduce its cost discipline among the officers and men of the navy has been maintained to a high standard and the percentage of american citizens enlisted has been very much increased the secretary is considering and will formulate during the coming winter a plan for laying up ships in reserve thereby largely reducing the cost of maintaining our vessels afloat this plan contemplates that battle ships torpedo boats and such of the cruisers as are not needed for active service at sea shall be kept in reserve with skeleton crews on board to keep them in condition cruising only enough to insure the efficiency of the ships and their crews in time of activity the economy to result from this system is too obvious to need comment the naval militia which was authorized a few years ago as an experiment has now developed into a body of enterprising young men active and energetic in the discharge of their duties and promising great usefulness this establishment has nearly the same relation to our navy as the national guard in the different states bears to our army and it constitutes a source of supply for our naval forces the importance of which is immediately apparent the report of the secretary of the interior presents a comprehensive and interesting exhibit of the numerous and important affairs committed to his supervision it is impossible in this communication to do more than briefly refer to a few of the subjects concerning which the secretary gives full and instructive information the money appropriated on account of this department and for its disbursement for the fiscal year ended june 30 1896 amounted to more than or a greater sum than was appropriated for the entire maintenance of the government for the two fiscal years ended june 30 1861 our public lands originally amounting to acres have been so reduced that only about acres still remain in government control excluding alaska the balance being by far the most valuable portion has been given away to settlers to new states and to railroads or sold at a comparatively nominal sum the patenting of land in execution of railroad grants has progressed rapidly during the year and since the 4th day of march 1893 about acres have thus been conveyed to these corporations i agree with the secretary that the remainder of our public lands should be more carefully dealt with and their alienation guarded by better economy and greater prudence the commission appointed from the membership of the national academy of sciences provided for by an act of congress to formulate plans for a national forestry system will it is hoped soon be prepared to present the result of thorough and intelligent examination of this important subject the total indian population of the united states is 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 approximately children of school age during the year of these were enrolled in schools the progress which has attended recent efforts to extend facilities and the anticipation of continued liberal appropriations to that end can not fail to afford the utmost satisfaction to those who believe that the education of indian children is a prime factor in the accomplishment of indian civilization it may be said in general terms that in every particular the improvement of the indians under government care has been most marked and encouraging the secretary the commissioner of indian 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 to allottees who have taken their lands in severalty i earnestly join in this recommendation and venture to express the hope that the indian may be speedily protected against this greatest of all obstacles to his and advancement the condition of affairs among the five civilized tribes who occupy large tracts of land in the indian territory and who have governments of their own has assumed such an aspect as to render it almost indispensable that there should be an entire change in the relations of these indians to the general government this seems to be necessary in furtherance of their own interests as well as for the protection of residents in their territory a commission organized and empowered under several recent laws is now negotiating with these indians for the relinquishment of their courts and the division of their common lands in severalty and are aiding in the settlement of the troublesome question of tribal membership the reception of their first proffers of negotiation was not encouraging but through patience and such conduct on their part as demonstrated that their intentions were friendly and in the interest of the tribes the prospect of success has become more promising the effort should be to save these indians from the consequences of their own mistakes and improvidence and to secure to the real indian his rights as against intruders and professed friends who profit by his retrogression a change is also needed to protect life and property through the operation of courts conducted according to strict justice and strong enough to enforce their mandates as a sincere friend of the indian i am exceedingly anxious that these reforms should be accomplished with the consent and aid of the tribes and that no necessity may be presented for radical or drastic legislation i hope therefore that the commission now conducting negotiations will soon be able to report that progress has been made toward a friendly adjustment of existing difficulties it appears that a very valuable deposit of gilsonite or asphaltum has been found on the reservation in utah occupied by the uncompahgre ute indians every consideration of care for the public interest and every sensible business reason dictate such management or disposal of this important source of public revenue as will except it from the general rules and incidents attending the ordinary disposition of public lands and secure to the government a fair share at least of its advantages in place of its transfer for a nominal sum to interested individuals i indorse the recommendation made by the present secretary of the interior as well as his predecessor that a permanent commission consisting of three members one of whom shall be an army officer be created to perform the duties now devolving upon the commissioner and assistant commissioner of indian affairs the management of the bureau involves such numerous and diverse details and the advantages of an uninterrupted policy are so apparent that i hope the change suggested will meet the approval of the congress the diminution of our enormous pension roll and the decrease of pension expenditure which have been so often confidently for told still fail in material realization the number of pensioners on the polls at the close of the fiscal year ended june 30 1896 was this is the largest number ever reported the amount paid exclusively for pensions during the year was 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 pension distribution amounted to or within every small fraction of of the entire expense of supporting the government during the same year the number of new pension certificates issued was of these represent original allowances of claims and 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 and the amount paid to them during the year was the sum appropriated for the payment of pensions for the current fiscal year ending june 30 1897 is and for the succeeding year it is estimated that the same amount will be necessary the commissioner of pensions reports that during the last fiscal year 339 indictments were found against violators of 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 abuses which have been allowed to creep into our pension system have done incalculable harm in demoralizing our people and undermining good citizenship i have endeavored within my sphere 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 service and worthy of their country affectionate remembrance when i have seen those who pose as the soldiers friends active and alert in urging greater laxity and more reckless pension expenditure while nursing selfish schemes i have deprecated the approach of a situation when necessary retrenchment and enforced economy may lead to an attack upon pension abuses so determined as to overlook the discrimination due to those who worthy of a nation care ought to live and die under the protection of a nation gratitude the secretary calls attention to the public interests involved in an adjustment of the obligations of the pacific railroads to the government i deem it to be an important duty to especially present this subject to the consideration of the congress on january 1 1897 with the amount already matured more than 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 of like bonds issued in aid of the central pacific railroad including those issued to the western pacific railroad company will have fallen due and been paid or must on that day be paid by the government without any reference to the application of the sinking fund now in the treasury this will create such a default on the part of these companies to the government as will give it the right to at once institute proceedings to foreclose its mortgage lien in addition to this indebtedness which will be due january 1 1897 there will mature between that date and january 1 1899 the remaining principal of such subsidy bonds which must also be met by the government these amount to more than on account of the union pacific lines and exceed on account of the central pacific lines the situation of these roads and the condition of their indebtedness to the government have been fully set forth in the reports of various committees to the present and prior congresses and as early as 1887 they were thoroughly examined by a special commission appointed pursuant to an act of congress the considerations requiring an adjustment of the government relations to the companies have been clearly presented and the conclusion reached with practical uniformity that if these relations are not terminated they should be revised upon a basis securing their safe continuance under section 4 of the act of congress passed march 3 1887 the president is charged with the duty in the event that any mortgage or other incumbrance paramount to the interest of the united states in the property of the pacific railroads should exist and be lawfully liable to be enforced to direct the action of the departments of treasury and of justice in the protection of the interest of the united states by redemption or through judicial proceedings including foreclosures of the government liens in view of the fact that the congress has for a number of years almost constantly had under consideration various plans for dealing with the conditions existing between these roads and the government i have thus far felt justified in withholding action under the statute above mentioned in the case of the union pacific company however the situation has become especially and immediately urgent 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 lien in consequence of those proceedings and increasing complications added to the default occurring on the 1st 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 date of the default above mentioned such executive action as will promise to subserve the public interests and save the government from the loss threatened by further inaction 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 agricultural efforts large sums of money are annually appropriated for the maintenance of this department and it must be confessed that the legislation relating to it has not always been directly in the interest of practical farming or properly guarded against waste and extravagance so far however as public money has been appropriated fairly and sensibly to help those who actually till the soil no expenditure has been more profitably made or more generally approved by the people 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 from the report of the secretary it appears that through careful and prudent financial management he has annually saved a large sum from his appropriations aggregating during his incumbency and up to the close of the present fiscal year nearly of the entire amount appropriated these results have been accomplished by a conscientious study of the real needs of the farmer and such a regard for economy as the genuine farmer ought to appreciate supplemented by a rigid adherence to methods in a department which should be conducted in the interest of agriculture instead of partisan politics the secretary reports that the value of our exports of farm products during the last fiscal year amounted to an increase of over those of the year immediately preceding this statement is not the less welcome because of the fact that notwithstanding such increase the proportion of exported agricultural products to our total exports of all descriptions fell off during the year the benefits of an increase in agricultural exports being assured the decrease in its proportion to our total exports is the more gratifying when we consider that it is owing to the fact that such total exports for the year increased more than the large and increasing exportation of our agricultural products suggests the great usefulness of the organization lately established in the department for the purpose of giving to those engaged in farming pursuits reliable information concerning the condition needs and advantages of different foreign markets inasmuch as the success of the farmer depends upon the advantageous sale of his products and inasmuch as foreign markets must largely be the destination of such products it is quite apparent that a knowledge of the conditions and wants that affect those markets ought to result in sowing more intelligently and reaping with a better promise of profit such information points out the way to a prudent foresight in the selection and cultivation of crops and to a release from the bondage of unreasoning monotony of production a glutted and depressed market and constantly recurring unprofitable toil in my opinion the gratuitous distribution of seeds by the department as at present conducted ought to be discontinued no one can read the statement of the secretary on this subject and doubt the extravagance and questionable results of this practice 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 agriculture has continued to extend its sphere of usefulness and by an uninterrupted improvement in the accuracy of its forecasts has greatly increased its efficiency as an aid and protection to all whose occupations are related to weather conditions omitting further reference to the operations of the department i commend the secretary report and the suggestions it contains to the careful consideration of the congress the progress made in reform furnishes a because for the utmost congratulation it has survived the doubts of its friends as well as the rancor of its enemies and has gained a permanent place among the agencies destined to cleanse our politics and to improve economize and elevate the public service there are now in the competitive classified service upward of places more than half of these having been included from time to time since march 4 1893 a most radical and sweeping extension was made by executive order dated the 6th day of may 1896 and if postmasterships are not included in the statement it may be said that practically all positions contemplated by the law are now classified abundant reasons exist for including these based upon economy improved service and the peace and quiet of neighborhoods if however obstacles prevent such action at present i earnestly hope that congress will without increasing appropriations so adjust them as to permit in proper eases a consolidation of these to the end that through this process the result desired may to a limited extent be accomplished the rules as amended during the last year provide for a sensible and uniform method of promotion basing eligibility to better positions upon demonstrated efficiency and faithfulness the absence of fixed rules on this subject has been an infirmity in the system more and more apparent as its other benefits have been better appreciated the advantages of methods in their business aspects are too well understood to require argument their application has become a necessity to the executive work of the government but those who gain positions through the operation of these 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 under 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 suffrages the political beliefs they honestly profess the noisy pestilent and partisan employee who loves political turmoil and contention or who renders lax and grudging service to an administration not representing his political views should be promptly and fearlessly dealt with in such a way as to furnish a warning to others who may be likewise disposed the annual report of the commissioners will be duly transmitted and i commend the important matter they have in charge to the careful consideration of the congress the interstate commerce commission has during the last year supplied abundant evidence of its usefulness and the importance of the work committed to its charge public transportation is a universal necessity and the question of just and reasonable charges therefor has become of vital importance not only to shippers and carriers but also to the vast multitude of producers and consumers the justice and equity of the principles embodied in the existing law passed for the purpose of regulating these charges are everywhere conceded and there appears to be no question that the policy thus entered upon has a permanent place in our legislation as the present statute when enacted was in the nature of the case more or less tentative and experimental it was hardly expected to supply a complete and adequate system while its wholesome effects are manifest and have amply justified its enactment it is evident that all desired reforms in transportation methods have not been fully accomplished in view of the judicial interpretation which some provisions of this statute have received and the defects disclosed by the efforts made for its enforcement its revision and amendment appear to be essential to the end that it may more effectually reach the evils designed to be corrected i hope the recommendations of the commission upon this subject will be promptly and favorably considered by the congress i desire to recur to the statements elsewhere made concerning the government receipts and expenditures for the purpose of venturing upon some suggestions touching our present tariff law and its operation this statute took effect on the 28th day of august 1894 whatever may be its shortcomings as a complete measure of tariff reform it must be conceded that it has opened the way to a freer and greater exchange of commodities between us and other countries and thus furnished a wider market for our products and manufactures the only entire fiscal year during which this law has been in force ended on the 30th day of june 1896 in that year our imports increased over those of the previous year more than while the value of the domestic products we exported and which found markets abroad was nearly more than during the preceding year those who insist that the cost to our people of articles coming to them from abroad for their needful use should only be increased through tariff charges to an extent necessary to meet the expenses of the government as well as those who claim that tariff charges may be laid upon such articles beyond the necessities of government revenue and with the additional purpose of so increasing their price in our markets as to give american manufacturers and producers better and more profitable opportunities must agree that our tariff laws are only primarily justified as sources of revenue to enable the government to meet the necessary expenses of its maintenance considered as to its efficiency in this aspect the present law can by no means fall under just condemnation during the only complete fiscal year of its operation it has yielded nearly more revenue than was received from tariff duties in the preceding year there was nevertheless a deficit between our receipts and expenditures of a little more than this however was not unexpected the situation was such in december last seven months before the close of the fiscal year that the secretary of the treasury foretold a deficiency of the great and increasing apprehension and timidity in business circles and the depression in all activities intervening since that time resulting from causes perfectly well understood and entirely disconnected with our tariff law or its operation seriously checked the imports we would have otherwise received and readily account for the difference between this estimate of the secretary and the actual deficiency as well as for a continued deficit indeed it must be confessed that we could hardly have had a more unfavorable period than the last two years for the collection of tariff revenue we can not reasonably hope that our recuperation from this business depression will be sudden but it has already set in with a promise of acceleration and continuance i believe our present tariff law if allowed a fair opportunity will in the near future yield a revenue which with reasonably economical expenditures will overcome all deficiencies in the meantime no deficit that has occurred or may occur need excite or disturb us to meet any such deficit we have in the treasury in addition to a gold reserve of one hundred millions a surplus of more than applicable to the payment of the expenses of the government and which must unless expended for that purpose remain a useless hoard or if not extravagantly wasted must in any event be perverted from the purpose of its exaction from our people the payment therefore of any deficiency in the revenue from this fund is nothing more than its proper and legitimate use the government thus applying a surplus fortunately in its treasury to the payment of expenses not met by its current revenues is not at all to be likened to a man living beyond his income and thus incurring debt or encroaching on his principal it is not one of the functions of our government to accumulate and make additions to a fund not needed for immediate expenditure with individuals it is the chief object of struggle and effort the application of an accumulated fund by the government to the payment of its running expenses is a duty an individual living beyond his income and embarrassing himself with debt or drawing upon his accumulated fund of principal is either unfortunate or improvident the distinction is between a government charged with the duty of expending for the benefit of the people and for proper purposes all the money it receives from any source and the individual who is expected to manifest a natural desire to avoid debt or to accumulate as much as possible and to live within the income derived from such accumulations to the end that they may be increased or at least remain unimpaired for the future use and enjoyment of himself or the objects of his love and affection who may survive him it is immeasurably better to appropriate our surplus to the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravagant expenditures i suppose it will not be denied that under the present law our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly this is a matter of supreme importance since it is the palpable duty of every just government to make the burdens of taxation as light as possible the people should not be required to relinquish this privilege of cheaper living except under the stress of their government necessity made plainly manifest this reference to the condition and prospects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods they have been frequently pressed upon the attention of congress in previous executive communications and the inevitable danger of their continued toleration pointed out without now repeating these details i can not refrain from again earnestly presenting the necessity of the prompt reform of a system opposed to every rule of sound finance and shown by experience to be fraught with the gravest peril and perplexity the terrible civil war which shook the foundations of our government more than thirty years ago brought in its train the destruction of property the wasting of our country substance and the estrangement of brethren these are now past and forgotten even the distressing loss of life the conflict entailed is but a sacred memory which fosters patriotic sentiment and keeps alive a tender regard for those who nobly died and yet there remains with us in full strength and activity as an incident of that tremendous struggle a feature of its financial necessities not only unsuited to our present circumstances but manifestly a disturbing menace to business security and an agent of monetary distress because we may be enjoying a temporary relief from its depressing influence this should not lull us into a false security nor lead us to forget the suddenness of past visitations i am more convinced than ever that we can have no assured financial peace and safety until the government currency obligations upon which gold may be demanded from the treasury are withdrawn from circulation and canceled this might be done as has been heretofore recommended by their exchange for bonds bearing a low rate of interest or by their redemption with the proceeds of such bonds even if only the united states notes known as greenbacks were thus retired it is probable that the treasury notes issued in payment of silver purchases under the act of july 14 1890 now paid in gold when demanded would not create much disturbance as they might from time to time when received in the treasury by redemption in gold or otherwise be gradually and prudently replaced by silver coin this plan of issuing bonds for the purpose of redemption certainly appears to be the most effective and direct path to the needed reform in default of this however it would be a step in the right direction if currency obligations redeemable in gold whenever so redeemed should be canceled instead of being reissued this operation would be a slow remedy but it would improve present conditions national banks should redeem their own notes they should be allowed to issue circulation to the par value of bonds deposited as security for its redemption and the tax on their circulation should be reduced to of 1 per cent 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 placed too much stress upon the danger of contracting the currency and have calculated too little upon the gold that would be added to our circulation if invited to us by better and safer financial methods it is not so much a contraction of our currency that should be avoided as its 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 also authorizing existing banks to establish branches in small communities under proper restrictions the entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our government abandons the banking business and the accumulation of funds and confines its monetary operations to the receipt of the money contributed by the people for its support and to the expenditure of such money for the people benefit our business interests and all good citizens long for rest from feverish agitation and the inauguration by the government of a reformed financial policy which will encourage enterprise and make certain the rewards of labor and industry another topic in which our people rightfully take a deep interest may be here briefly considered i refer to the existence of trusts and other huge aggregations of capital the object of which is to secure the monopoly of some particular branch of trade industry or commerce and to stifle wholesome competition when these are defended it is usually on the ground that though they increase profits they also reduce prices and thus may benefit the public it must be remembered however that a reduction of prices to the people is not one of the real objects of these organizations nor is their tendency necessarily in that direction if it occurs in a particular case it is only because it accords with the purposes or interests of those managing the scheme such occasional results fall far short of compensating the palpable evils charged to the account of trusts and monopolies their tendency is to crush out individual independence and to hinder or prevent the free use of human faculties and the full development of human character through them the farmer the artisan and the small trader is in danger of dislodgment from the proud position of being his own master watchful of all that touches his country prosperity in which he has an individual lot and interested in all that affects the advantages of business of which he is a factor to be relegated to the level of a mere appurtenance to a great machine with little free will with no duty but that of passive obedience and with little hope or opportunity of rising in the scale of responsible and helpful citizenship to the instinctive belief that such is the inevitable trend of trusts and monopolies is due the widespread and popular aversion in which they are held and the not unreasonable insistence that whatever may be their incidental economic advantages their general effect upon personal character prospects and usefulness can not be otherwise than injurious though congress has attempted to deal with this matter by legislation the laws passed for that purpose thus far have proved ineffective not because of any lack of disposition or attempt to enforce them but simply because the laws themselves as interpreted by the courts do not reach the difficulty if the insufficiencies of existing laws can be remedied by further legislation it should be done the fact must be recognized however that all federal legislation on this subject may fall short of its purpose because of inherent obstacles and also because of the complex character of our governmental system which while making the federal authority supreme within its sphere has carefully limited that sphere by metes and bounds that can not be transgressed the decision of our highest court on this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated through federal action unless they seek directly and purposely to include in their objects transportation or intercourse between states or between the united states and foreign countries it does not follow however that this is the limit of the remedy that may be applied even though it may be found that federal authority is not broad enough to fully reach the case there can be no doubt of the power of the several states to act effectively in the premises and there should be no reason to doubt their willingness to judiciously exercise such power in concluding this communication its last words shall be an appeal to the congress for the most rigid economy in the expenditure of the money it holds in trust for the people the way to perplexing extravagance is easy but a return to frugality is difficult when however it is considered that those who bear the burdens of taxation have no guaranty of honest care save in the fidelity of their public servants the duty of all possible retrenchment is plainly manifest when our differences are forgotten and our contests of political opinion are no longer remembered nothing in the retrospect of our public service will be as fortunate and comforting as the recollection of official duty well performed and the memory of a constant devotion to the interests of our confiding
representatives people legislative branch government assembled time strength excellence free institutions fitness citizens enjoy popular rule made manifest political contest involving momentous consequences fraught feverish apprehension creating aggressiveness intense approach bitterness passion waged throughout land determined decree free independent suffrage without disturbance tranquillity least sign weakness national structure consider incidents contemplate peaceful obedience manly submission succeeded heated clash political opinions discover abundant evidence determination part countrymen abide every verdict popular controlled times abiding faith agencies established direction affairs government thus people exhibit patriotic disposition entitles demand undertake make execute laws faithful unselfish service behalf prompted serious appreciation trust confidence acceptance public duty invites obedience constitutional requirement herein submit congress certain information concerning national affairs suggestion legislation judgment necessary expedient secure brevity avoid tiresome narration shall omit many details concerning matters within federal control though means unimportant profitably discussed departmental reports shall also curtail communication omitting minute recital many minor incidents connected foreign relations heretofore found place executive messages contained report secretary state herewith submitted outset reference important matters affecting relations foreign powers would afford satisfaction could assure congress disturbed condition asiatic turkey past year assumed less hideous bloody aspect either consequence awakening turkish government demands humane civilization result decisive action part great nations right treaty interfere protection exposed rage mad bigotry cruel fanaticism shocking features situation mitigated instead however welcoming softened disposition protective intervention afflicted continued unfrequent reports wanton destruction homes bloody butchery men women children made martyrs profession christian faith none citizens turkey thus far killed wounded though often midst dreadful scenes danger safety future means assured government home minister constantinople left nothing undone protect missionaries ottoman territory constitute nearly individuals residing right claim protection score american citizenship efforts direction relaxed deep feeling sympathy aroused among people ought far blind reason judgment lead demand impossible things outbreaks blind fury lead murder pillage turkey occur suddenly without notice attempt part force hostile presence might effective prevention protection would resisted ottoman government would regarded interruption plans great nations assert exclusive right intervene time method security life property turkey several naval vessels stationed mediterranean measure caution furnish possible relief refuge case emergency made claims turkish government pillage destruction missionary property harpoot marash uprisings places thus far validity demands admitted though minister prior outrages anticipation danger demanded protection persons property missionary citizens localities mentioned notwithstanding strong evidence exists actual complicity turkish soldiers work destruction robbery facts appear permit us doubt justice claims nothing omitted bring prompt settlement number armenian refugees arrived ports order lately obtained turkish government permitting wives children refugees join hoped hereafter obstacle interposed prevent escape seek avoid perils threaten turkish dominions recently appointed consul erzerum post discharging duties office though unaccountable reason formal exequatur sultan issued believe present somber prospect turkey long permitted offend sight christendom mars humane enlightened civilization belongs close nineteenth century seems hardly possible earnest demand good people throughout christian world corrective treatment remain unanswered insurrection cuba still continues perplexities difficult perceive progress thus far made toward pacification island situation affairs depicted last annual message least improved spain still holds havana seaports considerable towns insurgents still roam least inland country determination spain put insurrection seems strengthen lapse time evinced unhesitating devotion largely increased military naval forces task much reason believe insurgents gained point numbers character resources none less inflexible resolve succumb without practically securing great objects took arms spain yet reestablished authority neither insurgents yet made good title regarded independent state indeed contest gone pretense civil government exists island except far spain able maintain practically abandoned spain keep foot government less imperfectly large towns immediate suburbs exception made entire country either given anarchy subject military occupation one party reported indeed reliable authority demand commander chief insurgent army putative cuban government given attempt exercise functions leaving government confessedly best reason supposing always fact government merely paper spanish armies able meet antagonists open pitched battle prompt decisive results might looked immense superiority spanish forces numbers discipline equipment could hardly fail tell greatly advantage called upon face foe shuns general engagements choose choose ground nature country visible invisible pleasure fights ambuscade advantages position numbers side country indispensable life way food clothing shelter easily obtainable especially born bred soil obvious hardly limit time hostilities sort may prolonged meanwhile cases protracted civil strife passions combatants grow inflamed excesses sides become frequent deplorable also participated bands marauders name one party name may best suit occasion harry country plunder wretched inhabitants advantage condition things would inevitably entail immense destruction property even policy parties prevent far practicable seemed original policy spanish government apparently abandoned acting upon theory insurgents namely exigencies contest require wholesale annihilation property may prove use advantage enemy end pursuance general orders spanish garrisons withdrawn plantations rural population required concentrate towns sure result would seem industrial value island fast diminishing unless speedy radical change existing conditions soon disappear altogether value consists largely course capacity produce sugar capacity already much reduced interruptions tillage taken place last two years reliably asserted interruptions continue current year practically extend threatened entire territory island much time much money required restore land normal productiveness extremely doubtful capital induced even make attempt spectacle utter ruin adjoining country nature one fertile charming globe would engage serious attention government people united states circumstances point fact concern means wholly sentimental philanthropic character lies near us hardly separated territory actual pecuniary interest second people government spain reasonably estimated least american capital invested plantations railroad mining business enterprises island volume trade united states cuba 1889 amounted rose 1893 1894 year present insurrection broke amounted nearly besides large pecuniary stake fortunes cuba united states finds inextricably involved present contest ways vexatious costly many cubans reside country indirectly promote insurrection press public meetings purchase shipment arms raising funds means spirit institutions tenor laws permit made subject criminal prosecutions though cubans heart feelings interests taken papers naturalized citizens united states proceeding resorted view possible protection government unnaturally regarded much indignation country origin insurgents undoubtedly encouraged supported widespread sympathy people country always instinctively feel every struggle better freer government case adventurous restless elements population leads many instances active personal participation contest result government constantly called upon protect american citizens claim damages injuries persons property estimated many millions dollars ask explanations apologies acts spanish officials whose zeal repression rebellion sometimes blinds immunities belonging unoffending citizens friendly power follows causes united states compelled actively police long line seacoast unlawful expeditions escape utmost vigilance always suffice prevent inevitable entanglements united states rebellion cuba large american property interests affected considerations philanthropy humanity general led vehement demand various quarters sort positive intervention part united states first proposed belligerent rights accorded insurgents proposition longer urged untimely practical operation dearly perilous injurious interests since sometimes contended independence insurgents recognized imperfect restricted spanish government island may exists unless military officer temporary command particular district dignified species government also suggested united states buy island suggestion possibly worthy consideration evidence desire willingness part spain entertain proposal urged finally methods failing existing internecine strife cuba terminated intervention even cost war united states spain war advocates confidently prophesy could neither large proportions doubtful issue correctness forecast need neither affirmed denied united states nevertheless character maintain nation plainly dictates right might rule conduct though united states nation peace necessity truth pacific powers desires nothing much live amity world ample diversified domains satisfy possible longings territory preclude dreams conquest prevent casting covetous eyes upon neighboring regions however attractive conduct toward spain dominions constituted exception national disposition made manifest course government thus far present insurrection ten years followed rising yara 1868 great power may safely said circumstances similar perplexity would manifested restraint patient endurance may also said persistent attitude united states toward spain connection cuba unquestionably evinces slight respect regard spain part american people truth forget connection discovery western hemisphere underestimate great qualities spanish people fail fully recognize splendid patriotism chivalrous devotion national honor view wonder admiration cheerful resolution vast bodies men sent across thousands miles ocean enormous debt accumulated costly possession gem antilles may still hold place spanish crown yet neither government people united states shut eyes course events cuba failed realize existence conceded grievances led present revolt authority spain grievances recognized queen regent cortes voiced patriotic enlightened spanish statesmen without regard party demonstrated reforms proposed executive approved legislative branch spanish government assumed temper disposition spanish government remedy grievances fortified indications influential public opinion spain government hoped discover promising effective means composing present strife honor advantage spain achievement reasonable objects insurrection would seem spain offer cuba genuine autonomy measure home rule preserving sovereignty spain would satisfy rational requirements spanish subjects reason pacification island might effected basis result would appear true interest concerned would stop conflict consuming resources island making worthless whichever party may ultimately prevail would keep intact possessions spain without touching honor consulted rather impugned adequate redress admitted grievances would put prosperity island fortunes inhabitants within control without severing natural ancient ties bind mother country would yet enable test capacity favorable conditions objected one side spain promise autonomy insurgent subjects lay arms side promised autonomy however liberal insufficient without assurance promise fulfilled reasonableness requirement spain unconditional surrender part insurgent cubans autonomy conceded altogether apparent ignores important features situation stability two years duration given insurrection feasibility indefinite prolongation nature things shown past experience utter imminent ruin island unless present strife speedily composed rank abuses parties spain branches government leading public men concede exist profess desire remove facing circumstances withhold proffer needed reforms parties demanding put mercy throwing arms appearance neglecting gravest perils inviting suspicion sincerity professed willingness grant reforms objection behalf insurgents promised reforms relied upon must course considered though right assume reason assuming anything spain undertakes relief cuba done according spirit letter undertaking nevertheless realizing suspicions precautions part weaker two combatants always natural always unjustifiable sincerely desirous interest well account cuban problem solved least possible delay intimated government government spain months ago satisfactory measure home rule tendered cuban insurgents would accepted upon guaranty execution united states would endeavor find way objectionable spain furnishing graranty definite response intimation yet received spanish government believed altogether unwelcome already suggested reason perceived approved insurgents neither party fail see importance early action must realize prolong present state things even short period add enormously time labor expenditure necessary bring industrial recuperation island therefore fervently hoped grounds earnest efforts healing breach spain insurgent cubans upon lines indicated may inaugurated pushed immediate successful issue friendly offices united states either manner outlined way consistent constitution laws always disposal either party whatever circumstances may arise policy interests would constrain us object acquisition island interference control power added reasonably assumed hitherto expectant attitude united states indefinitely maintained anxious accord due respect sovereignty spain view pending conflict features properly apprehend inevitably close relations possible results without considering course events may drawn unusual unprecedented condition fix limit patient waiting spain end contest either alone way friendly cooperation inability spain deal successfully insurrection become manifest demonstrated sovereignty extinct cuba purposes rightful existence hopeless struggle reestablishment degenerated strife means nothing useless sacrifice human life utter destruction conflict situation presented obligations sovereignty spain superseded higher obligations hardly hesitate recognize discharge deferring choice ways methods time action arrives make depend upon precise conditions existing determined upon without giving careful heed every consideration involving honor interest international duty owe spain face contingencies suggested situation incidents imperatively changed continue line conduct heretofore pursued thus circumstances exhibiting obedience requirements public law regard duty enjoined upon us position occupy family nations contemplation emergencies may arise plainly lead us avoid creation either careless disregard present duty even undue stimulation expression feeling deemed amiss remind congress time may arrive correct policy care interests well regard interests nations citizens joined considerations humanity desire see rich fertile country intimately related us saved complete devastation constrain government action subserve interests thus involved time promise cuba inhabitants opportunity enjoy blessings peace venezuelan boundary question ceased matter difference great britain united states respective governments agreed upon substantial provisions treaty great britain venezuela submitting whole controversy arbitration provisions treaty eminently fair assent venezuela thereto may confidently anticipated negotiations treaty general arbitration differences great britain united states far advanced promise reach successful consummation early date scheme examining applicants certain consular positions test competency fitness adopted executive order issued 20th september 1895 fully demonstrated usefulness innovation connection plan examination promotions transfers deserving incumbents quite extensively made excellent results past year 35 appointments made consular service 27 made fill vacancies caused death resignation supply newly created posts 2 succeed incumbents removed 2 purpose displacing alien consular officials american citizens 4 merely changing official title incumbent commercial agent consul twelve appointments transfers promotions positions department state 4 appointed rendered previous service department 8 made persons passed satisfactory examination 7 appointed places included order september 20 1895 4 appointments stated involved change incumbency inspection consular offices provided appropriation purpose last session congress productive wholesome effects hope important work future continued know nothing done slight expense improving service desire repeat recommendation contained last annual message favor providing public expense official residences ambassadors ministers foreign capitals reasons supporting recommendation strongly stated report secretary state subject seems importance hope may receive early attention congress last year labored faithfully unfavorable conditions secure better preservation seal life bering sea united states great britain lately dispatched commissioners waters study habits condition seal herd causes rapid decrease upon reports commissioners soon submitted exercise patience good sense part interested parties earnestly hoped hearty cooperation may secured protection threatened extinction seal life northern pacific bering sea secretary treasury reports fiscal year ended june 30 1896 receipts government sources amounted period expenditures excess expenditures receipts thus amounting ordinary expenditures year less preceding fiscal year receipts mentioned derived customs sum internal revenue receipts customs show increase source fiscal year ended june 30 1895 receipts internal revenue increase value imported dutiable merchandise last fiscal year value free goods imported increase value dutiable goods value free goods preceding year exports merchandise foreign domestic amounted value increase preceding year average ad valorem duty paid dutiable goods imported year per cent free dutiable goods taken together per cent cost collecting internal revenue per cent per cent fiscal year ending june 30 1895 total production distilled spirits exclusive fruit brandies taxable gallons increase gallons preceding year also increase gallons spirits produced fruit compared preceding year number barrels beer produced produced preceding fiscal year increase barrels total amount gold exported last fiscal year silver increase gold silver exportations preceding fiscal year imports gold silver less gold silver preceding year total stock metallic money united states close last fiscal year ended 30th day june 1896 gold silver 1st day november 1896 total stock money kinds country amount circulation including treasury holdings per capita upon estimated population production precious metals united states calendar year 1895 estimated fine ounces gold value fine ounces silver commercial value coinage value estimated production metals throughout world period fine ounces gold amounting value fine ounces silver commercial value coinage value according ratio coinage metals various countries world calendar year amounted gold silver total coinage mints united states fiscal year ended june 30 1896 amounted gold coins standard silver dollars subsidiary coins minor coins number national banks organized time law authorizing creation passed october 31 1896 number date last mentioned active operation authorized capital stock held shareholders circulating notes amounting total outstanding circulating notes national banks 31st day october 1896 amounted including unredeemed fully secured notes banks insolvent process liquidation increase circulation year ending day october 6 1896 condition national banks last reported total resources active institutions included loans discounts money kinds hand liabilities due individual depositors consisted outstanding circulating notes organized year preceding date last mentioned 28 national banks located 15 states 12 organized eastern states capital 6 western states capital 10 southern states capital year however 37 banks voluntarily abandoned franchises national law case 27 others found necessary appoint receivers therefore compared year preceding decrease 36 number active banks number existing banks organized state laws number immigrants arriving united states fiscal year permitted land debarred various grounds prescribed law returned countries whence came expense steamship companies brought increase immigration preceding year amounted reported exceptions immigrants past year hardy laboring class accustomed able earn support estimated money brought amounted least though probably much excess sum since less 30 required disclose exact amount known many brought considerable sums money buy land build homes including immigrants arriving 14 years age per cent illiterate per cent age arriving preceding fiscal year number immigrants 14 years old countries came percentage illiterates among follows italy per cent ireland 7 per cent russia per cent provinces per cent germany per cent sweden per cent portugal came per cent illiterate arrived japan year immigrants opinion immigration authorities apprehension heretofore existing extent large immigration japan united states without substantial foundation service reported number disasters documented vessels within limits operations year 437 vessels board persons saved 13 lost value vessels estimated cargoes making total value property imperiled amount saved lost vessels totally wrecked besides 243 casualties small undocumented craft board 594 persons 587 saved 7 lost value property involved latter casualties estimated saved lost crews year also rescued assisted numerous vessels warned many danger signals day night number disasters year exceeded previous year history service saving life property greater ever proportion value property involved number persons imperiled operations service service service service bureau navigation branches public work attached treasury department together various recommendations concerning support improvement fully stated report secretary treasury attention congress especially invited report secretary war exhibits satisfactory conditions several branches public service intrusted charge limit military force fixed law constantly readily maintained present discipline morale army excellent marked progress efficiency apparent throughout entire organization exception delicate duties suppression slight indian disturbances along southwestern boundary mexican troops cooperated compulsory peaceful return consent great britain band cree indians montana british possessions active operations required army year past changes methods administration abandonment unnecessary posts consequent concentration troops exercise care vigilance various officers charged responsibility expenditure appropriations resulted reducing minimum cost maintenance military establishment past year work constructing permanent infantry cavalry posts continued places heretofore designated secretary war repeats recommendation appropriations barracks quarters strictly conform needs service judged department rather respond wishes importunities localities imperative much money provided construction allotted erection necessary quarters garrisons assigned coast defenses many men needed properly care operate modern guns essential early provision made supply necessary force artillery meet demands service entire army equipped new magazine arms wise policy demands available public private resources employed provide within reasonable time sufficient number supply state militia modern weapons provide ample reserve emergency organized militia numbers men appropriations support several states approximate annually contributed general government investigation shows troops usually well drilled inspired much military interest many instances deficient proper arms equipment sudden call active duty would find inadequately prepared field service therefore recommend prompt measures taken remedy condition every encouragement given deserving body unpaid voluntary citizen soldiers upon whose assistance must largely rely time trouble past year rapid progress made toward completion scheme adopted erection armament fortifications along seacoast equal progress made providing material submarine defense connection works peculiarly gratifying time note great advance made important undertaking since date annual message congress opening second session december 1893 time informed congress approaching completion nine twenty steel guns rifled mortars total seemed insignificant compared great work remaining done yet none less source satisfaction every citizen reflected represented first installment new ordnance american design american manufacture demonstrated ability supply resources guns unexcelled power accuracy date however practically carriages upon mount guns emplacements guns mortars emplacements condition receive armament one gun time position defense entire coast since time number guns actually completed increased total steel guns ten guns eighty rifled mortars addition process construction one gun fifty guns rifled mortars four hundred guns mortars year immediately preceding message referred first modern gun carriage completed eleven process construction one nondisappearing type however secure necessary cover artillery gunners intense fire modern machine guns inventive genius ordnance civilian experts taxed designing carriages would obviate fault resulting believed solution difficult problem since 1893 number gun carriages constructed building raised total 129 90 disappearing principle number mortar carriages 152 95 emplacements provided prior time increased 280 built building improved situation largely due recent generous response congress recommendations war department thus shall soon complete comprehensive system first step noted message congress december 4 1893 understood masonry emplacement furnishes platform heavy modern gun also every particular serves purpose takes place fort former days importance work accomplished better comprehended hope work prosecuted less vigor future secretary war submitted estimate allowed provided either built building end next fiscal year additional guns mortars gun carriages emplacements represent far total work done plan adopted coast defenses thus affording prospect entire work substantially completed within six years less time however shall attained marked degree security experience results past year demonstrate continuation present careful methods cost remaining work much less original estimate always keep mind forms military preparation coast defense alone essentially pacific nature gives sense security due consciousness strength neither purpose effect permanent fortifications involve us foreign complications rather guarantee us temptation war security thus thoroughly accord traditions national diplomacy presents detailed interesting statement important work done supervision last fiscal year ownership management government penitentiaries confinement convicted united states courts violations federal laws many years subject executive recommendation last slight extent realized utilization abandoned military prison fort leavenworth united states penitentiary certainly movement right direction ought supplemented rebuilding extensive enlargement improvised prison construction least one located southern states capacity leavenworth penitentiary limited expense maintenance calculated per capita rate upon number prisoners accommodate make economical exhibit would larger better adapted prison purposes thoroughly convinced economy humanity proper sense responsibility duty toward punish violations federal law dictate federal government entire control management penitentiaries convicted violators confined appears since transfer fort leavenworth military prison new uses work previously done prisoners confined expensive machinery provided discontinued work consisted manufacture articles army use done elsewhere grounds exceedingly desirable convicts confined penitentiary allowed resume work description gratifying note satisfactory results followed inauguration new system provided act may 28 1896 certain federal officials compensated salaries instead fees new plan put operation 1st day july 1896 already great economy enforces prevention abuses tendency better enforcement laws strikingly apparent detailed evidence usefulness happily accomplished reform found clearly set forth report department good condition exhibit made operations fiscal year ended june 30 1896 allowance made imperfections laws applicable satisfactory total receipts year total expenditures exclusive earned pacific railroad transportation credited debt government increase receipts previous year per cent increase expenditures per cent deficit less preceding year chief expenditures postal service regulated law control accomplish watchful administration economy enforce prompt thorough collection accounting public moneys minor savings small expenditures letting contracts supplies star service regulated statute effective cooperation auditor office department making enforcement orders department requiring immediate notification sureties delinquencies part postmasters compelling postmasters make frequent deposits postal funds resulted prompter auditing accounts much less default government heretofore year report shows large extensions service railway mail service increased postal facilities much higher accuracy handling mails also reached appears decrease errors railway mail service reduction mail matter returned office deficit last year although much less last preceding years emphasizes necessity legislation correct growing abuse rates deficiency mainly attributable transmission rate 1 cent pound serial libraries advertising sheets house organs periodicals advertising particular house institution sample copies like ought certainly discontinued glance revenues received work done last year show plainly statement gross abuse postal service growing waste earnings free matter carried mails departments offices government congress pounds amounted offset buildings stations rental would compensate free postal service exhibit remainder postal revenue amounting something derived box rents registry fees business similar items entire expenditures department including pay transportation credited pacific railroads may considered cost receiving carrying delivering mail matter thus appears though matter constituted total carried revenue derived less total expense growth weight matter pounds 1894 1895 almost 1896 quite evident increasing drawback far outstripping possible growth postal revenues mail service course meet wants even conveniences people direct charge upon light perhaps exclude idea department concern face constantly recurring deficiency revenues view fact supply best mail service world seems quite time correct abuses swell enormously annual deficit concede public policy carrying weekly newspapers free county publication even policy carrying less cost bona fide newspapers periodicals excuse subjecting service immense increasing loss involved carrying nominal rate 1 cent pound serial libraries sometimes including trashy even harmful literature matter loose interpretation loose statute gradually given rates thus absorbing profitable returns derived matter pays three four times cost producing large annual loss paid general taxation matter paid merely cost handling deficit would disappear surplus result might used give people still better mail facilities cheaper rates letter postage recommend legislation enacted correct abuses introduce better business ideas regulation postal rates experience observation demonstrated certain improvements organization department must secured gain full benefit immense sums expended administration involves following reforms earnestly recommend small addition existing inspector service employed supervision carrier force numbers men performs service practically without surveillance exercised branches postal public service course lack supervision freedom wholesome disciplinary restraints must inevitably lead imperfect service also appointed inspectors could assist central office necessary investigation concerning matters leases sites allowances rent fuel lights organizing securing best results work clerks employed first second class offices convinced small expense attending inauguration reforms would actually profitable investment especially recommend recasting appropriations congress department permit proceed work consolidating work already entered upon sufficiently fully demonstrate experiment experience consolidation productive better service larger revenues less expenditures say nothing advantage gradually withdrawing spoils system universal postal union embraces civilized world whose delegates represent people hold fifth congress city washington may 1897 united states may said taken initiative led first meeting congress berne 1874 formation universal postal union brings postal service countries every man neighborhood wrought marvels cheapening postal rates securing absolutely safe mail communication throughout world previous congresses met berne paris lisbon vienna respective countries assembled made generous provision accommodation reception entertainment delegates view importance assemblage deliberations honors hospitalities accorded representatives countries similar occasions earnestly hope appropriation made expenses necessarily attendant upon coming meeting capital city worthy national hospitality indicative appreciation event work navy department present condition fully exhibited report secretary construction vessels new navy energetically prosecuted present administration upon general lines previously adopted department seen necessity radical changes prior methods work found progressing manner highly satisfactory decided however provide every shipbuilding contract builder pay trial expenses also determined pay speed premiums future contracts premiums recently earned yet decided features contracts made conclusion reached march 4 1893 commission two armored vessels monitors miantonomoh monterey since date vessels theretofore authorized placed first commission 3 2 battle ships 2 armored cruisers 1 ram 5 monitors including maine puritan completed eight new unarmored cruisers 2 new gunboats also commissioned iowa another battle ship completed march 1 least 4 gunboats ready sea early spring gratifying state ships outfits believed equal best manufactured elsewhere notable reductions made cost justify statement quite number vessels constructed rates low prevail european shipyards manufacturing facilities time ample possible naval contingencies three government mare island norfolk brooklyn n equipped shipbuilding ordnance plant washington equal world torpedo station successfully making highest grades smokeless powder private shipyards newport news philadelphia san francisco building battle ships eleven contractors situated states maine rhode island pennsylvania new jersey maryland virginia state washington constructing gunboats torpedo boats two plants manufacturing large quantities armor american factories producing automobile torpedoes powder projectiles guns everything else necessary complete outfit naval vessels authorized congress since march 1893 5 battle ships 6 gunboats 16 torpedo boats 1 submarine torpedo boat contracts building let secretary expresses opinion present sufficient supply cruisers gunboats hereafter construction battle ships torpedo boats supply needs much attention given methods carrying departmental business important modifications regulations made tending unify control shipbuilding far may bureau construction repair also improve mode purchasing supplies navy bureau supplies accounts establishment recent acts congress supply fund purchase supplies large quantities modifications methods tended materially cheapening better quality war college developed institution believed great value navy teaching science war well stimulating professional zeal navy especially useful devising plans utilization case necessity naval resources united states secretary persistently adhered plan found operation securing labor boards labor employment done much make complete efficient naval officers familiar system operation express decided opinion results vastly improve character work done yards greatly reduce cost discipline among officers men navy maintained high standard percentage american citizens enlisted much increased secretary considering formulate coming winter plan laying ships reserve thereby largely reducing cost maintaining vessels afloat plan contemplates battle ships torpedo boats cruisers needed active service sea shall kept reserve skeleton crews board keep condition cruising enough insure efficiency ships crews time activity economy result system obvious need comment naval militia authorized years ago experiment developed body enterprising young men active energetic discharge duties promising great usefulness establishment nearly relation navy national guard different states bears army constitutes source supply naval forces importance immediately apparent report secretary interior presents comprehensive interesting exhibit numerous important affairs committed supervision impossible communication briefly refer subjects concerning secretary gives full instructive information money appropriated account department disbursement fiscal year ended june 30 1896 amounted greater sum appropriated entire maintenance government two fiscal years ended june 30 1861 public lands originally amounting acres reduced acres still remain government control excluding alaska balance far valuable portion given away settlers new states railroads sold comparatively nominal sum patenting land execution railroad grants progressed rapidly year since 4th day march 1893 acres thus conveyed corporations agree secretary remainder public lands carefully dealt alienation guarded better economy greater prudence commission appointed membership national academy sciences provided act congress formulate plans national forestry system hoped soon prepared present result thorough intelligent examination important subject total indian population united states according census made 1895 exclusive within state new york comprising five civilized tribes number approximately children school age year enrolled schools progress attended recent efforts extend facilities anticipation continued liberal appropriations end fail afford utmost satisfaction believe education indian children prime factor accomplishment indian civilization may said general terms every particular improvement indians government care marked encouraging secretary commissioner indian affairs agents charge indians allotments made strongly urge passage law prohibiting sale liquor allottees taken lands severalty earnestly join recommendation venture express hope indian may speedily protected greatest obstacles advancement condition affairs among five civilized tribes occupy large tracts land indian territory governments assumed aspect render almost indispensable entire change relations indians general government seems necessary furtherance interests well protection residents territory commission organized empowered several recent laws negotiating indians relinquishment courts division common lands severalty aiding settlement troublesome question tribal membership reception first proffers negotiation encouraging patience conduct part demonstrated intentions friendly interest tribes prospect success become promising effort save indians consequences mistakes improvidence secure real indian rights intruders professed friends profit retrogression change also needed protect life property operation courts conducted according strict justice strong enough enforce mandates sincere friend indian exceedingly anxious reforms accomplished consent aid tribes necessity may presented radical drastic legislation hope therefore commission conducting negotiations soon able report progress made toward friendly adjustment existing difficulties appears valuable deposit gilsonite asphaltum found reservation utah occupied uncompahgre ute indians every consideration care public interest every sensible business reason dictate management disposal important source public revenue except general rules incidents attending ordinary disposition public lands secure government fair share least advantages place transfer nominal sum interested individuals indorse recommendation made present secretary interior well predecessor permanent commission consisting three members one shall army officer created perform duties devolving upon commissioner assistant commissioner indian affairs management bureau involves numerous diverse details advantages uninterrupted policy apparent hope change suggested meet approval congress diminution enormous pension roll decrease pension expenditure often confidently told still fail material realization number pensioners polls close fiscal year ended june 30 1896 largest number ever reported amount paid exclusively pensions year slight decrease preceding year total expenditures account pensions including cost maintaining department expenses attending pension distribution amounted within every small fraction entire expense supporting government year number new pension certificates issued represent original allowances claims increases existing pensions number persons receiving pensions united states residing foreign countries close last fiscal year amount paid year sum appropriated payment pensions current fiscal year ending june 30 1897 succeeding year estimated amount necessary commissioner pensions reports last fiscal year 339 indictments found violators pension laws upon indictments 167 convictions resulted opinion based upon statements much information observation abuses allowed creep pension system done incalculable harm demoralizing people undermining good citizenship endeavored within sphere official duty protect pension roll make roll honor containing names disabled country service worthy country affectionate remembrance seen pose soldiers friends active alert urging greater laxity reckless pension expenditure nursing selfish schemes deprecated approach situation necessary retrenchment enforced economy may lead attack upon pension abuses determined overlook discrimination due worthy nation care ought live die protection nation gratitude secretary calls attention public interests involved adjustment obligations pacific railroads government deem important duty especially present subject consideration congress january 1 1897 amount already matured principal subsidy bonds issued united states aid construction union pacific railway including kansas line like bonds issued aid central pacific railroad including issued western pacific railroad company fallen due paid must day paid government without reference application sinking fund treasury create default part companies government give right institute proceedings foreclose mortgage lien addition indebtedness due january 1 1897 mature date january 1 1899 remaining principal subsidy bonds must also met government amount account union pacific lines exceed account central pacific lines situation roads condition indebtedness government fully set forth reports various committees present prior congresses early 1887 thoroughly examined special commission appointed pursuant act congress considerations requiring adjustment government relations companies clearly presented conclusion reached practical uniformity relations terminated revised upon basis securing safe continuance section 4 act congress passed march 3 1887 president charged duty event mortgage incumbrance paramount interest united states property pacific railroads exist lawfully liable enforced direct action departments treasury justice protection interest united states redemption judicial proceedings including foreclosures government liens view fact congress number years almost constantly consideration various plans dealing conditions existing roads government thus far felt justified withholding action statute mentioned case union pacific company however situation become especially immediately urgent proceedings instituted foreclose first mortgage upon aided parts main lines upon government holds second subordinate mortgage lien consequence proceedings increasing complications added default occurring 1st day january 1897 condition presented date far company concerned must emphasize mandate act 1887 give executive duty provisions imperative aspect therefore unless congress shall otherwise direct shall previously determined upon different solution problem hardly appear exist reason delaying beyond date default mentioned executive action promise subserve public interests save government loss threatened inaction department agriculture intimately related welfare people prosperity nation constantly receive care encouragement government small beginnings grown center agricultural intelligence source aid encouragement agricultural efforts large sums money annually appropriated maintenance department must confessed legislation relating always directly interest practical farming properly guarded waste extravagance far however public money appropriated fairly sensibly help actually till soil expenditure profitably made generally approved people present management department usefulness enhanced every direction time strict economy enforced utmost extent permitted congressional action report secretary appears careful prudent financial management annually saved large sum appropriations aggregating incumbency close present fiscal year nearly entire amount appropriated results accomplished conscientious study real needs farmer regard economy genuine farmer ought appreciate supplemented rigid adherence methods department conducted interest agriculture instead partisan politics secretary reports value exports farm products last fiscal year amounted increase year immediately preceding statement less welcome fact notwithstanding increase proportion exported agricultural products total exports descriptions fell year benefits increase agricultural exports assured decrease proportion total exports gratifying consider owing fact total exports year increased large increasing exportation agricultural products suggests great usefulness organization lately established department purpose giving engaged farming pursuits reliable information concerning condition needs advantages different foreign markets inasmuch success farmer depends upon advantageous sale products inasmuch foreign markets must largely destination products quite apparent knowledge conditions wants affect markets ought result sowing intelligently reaping better promise profit information points way prudent foresight selection cultivation crops release bondage unreasoning monotony production glutted depressed market constantly recurring unprofitable toil opinion gratuitous distribution seeds department present conducted ought discontinued one read statement secretary subject doubt extravagance questionable results practice professed friends farmer certainly farmers naturally expected willing rid department devoted promotion farming interests feature tends much discredit weather bureau attached department agriculture continued extend sphere usefulness uninterrupted improvement accuracy forecasts greatly increased efficiency aid protection whose occupations related weather conditions omitting reference operations department commend secretary report suggestions contains careful consideration congress progress made reform furnishes utmost congratulation survived doubts friends well rancor enemies gained permanent place among agencies destined cleanse politics improve economize elevate public service competitive classified service upward places half included time time since march 4 1893 radical sweeping extension made executive order dated 6th day may 1896 postmasterships included statement may said practically positions contemplated law classified abundant reasons exist including based upon economy improved service peace quiet neighborhoods however obstacles prevent action present earnestly hope congress without increasing appropriations adjust permit proper eases consolidation end process result desired may limited extent accomplished rules amended last year provide sensible uniform method promotion basing eligibility better positions upon demonstrated efficiency faithfulness absence fixed rules subject infirmity system apparent benefits better appreciated advantages methods business aspects well understood require argument application become necessity executive work government gain positions operation methods made understand nonpartisan scheme receive appointments demands way reciprocity nonpartisan faithful performance duty every administration cheerful fidelity every chief encouraged decently exercise rights citizenship support suffrages political beliefs honestly profess noisy pestilent partisan employee loves political turmoil contention renders lax grudging service administration representing political views promptly fearlessly dealt way furnish warning others may likewise disposed annual report commissioners duly transmitted commend important matter charge careful consideration congress interstate commerce commission last year supplied abundant evidence usefulness importance work committed charge public transportation universal necessity question reasonable charges therefor become vital importance shippers carriers also vast multitude producers consumers justice equity principles embodied existing law passed purpose regulating charges everywhere conceded appears question policy thus entered upon permanent place legislation present statute enacted nature case less tentative experimental hardly expected supply complete adequate system wholesome effects manifest amply justified enactment evident desired reforms transportation methods fully accomplished view judicial interpretation provisions statute received defects disclosed efforts made enforcement revision amendment appear essential end may effectually reach evils designed corrected hope recommendations commission upon subject promptly favorably considered congress desire recur statements elsewhere made concerning government receipts expenditures purpose venturing upon suggestions touching present tariff law operation statute took effect 28th day august 1894 whatever may shortcomings complete measure tariff reform must conceded opened way freer greater exchange commodities us countries thus furnished wider market products manufactures entire fiscal year law force ended 30th day june 1896 year imports increased previous year value domestic products exported found markets abroad nearly preceding year insist cost people articles coming abroad needful use increased tariff charges extent necessary meet expenses government well claim tariff charges may laid upon articles beyond necessities government revenue additional purpose increasing price markets give american manufacturers producers better profitable opportunities must agree tariff laws primarily justified sources revenue enable government meet necessary expenses maintenance considered efficiency aspect present law means fall condemnation complete fiscal year operation yielded nearly revenue received tariff duties preceding year nevertheless deficit receipts expenditures little however unexpected situation december last seven months close fiscal year secretary treasury foretold deficiency great increasing apprehension timidity business circles depression activities intervening since time resulting causes perfectly well understood entirely disconnected tariff law operation seriously checked imports would otherwise received readily account difference estimate secretary actual deficiency well continued deficit indeed must confessed could hardly unfavorable period last two years collection tariff revenue reasonably hope recuperation business depression sudden already set promise acceleration continuance believe present tariff law allowed fair opportunity near future yield revenue reasonably economical expenditures overcome deficiencies meantime deficit occurred may occur need excite disturb us meet deficit treasury addition gold reserve one hundred millions surplus applicable payment expenses government must unless expended purpose remain useless hoard extravagantly wasted must event perverted purpose exaction people payment therefore deficiency revenue fund nothing proper legitimate use government thus applying surplus fortunately treasury payment expenses met current revenues likened man living beyond income thus incurring debt encroaching principal one functions government accumulate make additions fund needed immediate expenditure individuals chief object struggle effort application accumulated fund government payment running expenses duty individual living beyond income embarrassing debt drawing upon accumulated fund principal either unfortunate improvident distinction government charged duty expending benefit people proper purposes money receives source individual expected manifest natural desire avoid debt accumulate much possible live within income derived accumulations end may increased least remain unimpaired future use enjoyment objects love affection may survive immeasurably better appropriate surplus payment justifiable expenses allow become invitation reckless appropriations extravagant expenditures suppose denied present law people obtain necessaries comfortable existence cheaper rate formerly matter supreme importance since palpable duty every government make burdens taxation light possible people required relinquish privilege cheaper living except stress government necessity made plainly manifest reference condition prospects revenues naturally suggests allusion weakness vices financial methods frequently pressed upon attention congress previous executive communications inevitable danger continued toleration pointed without repeating details refrain earnestly presenting necessity prompt reform system opposed every rule sound finance shown experience fraught gravest peril perplexity terrible civil war shook foundations government thirty years ago brought train destruction property wasting country substance estrangement brethren past forgotten even distressing loss life conflict entailed sacred memory fosters patriotic sentiment keeps alive tender regard nobly died yet remains us full strength activity incident tremendous struggle feature financial necessities unsuited present circumstances manifestly disturbing menace business security agent monetary distress may enjoying temporary relief depressing influence lull us false security lead us forget suddenness past visitations convinced ever assured financial peace safety government currency obligations upon gold may demanded treasury withdrawn circulation canceled might done heretofore recommended exchange bonds bearing low rate interest redemption proceeds bonds even united states notes known greenbacks thus retired probable treasury notes issued payment silver purchases act july 14 1890 paid gold demanded would create much disturbance might time time received treasury redemption gold otherwise gradually prudently replaced silver coin plan issuing bonds purpose redemption certainly appears effective direct path needed reform default however would step right direction currency obligations redeemable gold whenever redeemed canceled instead reissued operation would slow remedy would improve present conditions national banks redeem notes allowed issue circulation par value bonds deposited security redemption tax circulation reduced 1 per cent considering projects retirement united states notes treasury notes issued law 1890 opinion placed much stress upon danger contracting currency calculated little upon gold would added circulation invited us better safer financial methods much contraction currency avoided unequal distribution might obviated fear harmful contraction time removed allowing organization smaller banks less populous communities permitted also authorizing existing banks establish branches small communities proper restrictions entire case may presented statement day sensible sound financial methods dawn upon us government abandons banking business accumulation funds confines monetary operations receipt money contributed people support expenditure money people benefit business interests good citizens long rest feverish agitation inauguration government reformed financial policy encourage enterprise make certain rewards labor industry another topic people rightfully take deep interest may briefly considered refer existence trusts huge aggregations capital object secure monopoly particular branch trade industry commerce stifle wholesome competition defended usually ground though increase profits also reduce prices thus may benefit public must remembered however reduction prices people one real objects organizations tendency necessarily direction occurs particular case accords purposes interests managing scheme occasional results fall far short compensating palpable evils charged account trusts monopolies tendency crush individual independence hinder prevent free use human faculties full development human character farmer artisan small trader danger dislodgment proud position master watchful touches country prosperity individual lot interested affects advantages business factor relegated level mere appurtenance great machine little free duty passive obedience little hope opportunity rising scale responsible helpful citizenship instinctive belief inevitable trend trusts monopolies due widespread popular aversion held unreasonable insistence whatever may incidental economic advantages general effect upon personal character prospects usefulness otherwise injurious though congress attempted deal matter legislation laws passed purpose thus far proved ineffective lack disposition attempt enforce simply laws interpreted courts reach difficulty insufficiencies existing laws remedied legislation done fact must recognized however federal legislation subject may fall short purpose inherent obstacles also complex character governmental system making federal authority supreme within sphere carefully limited sphere metes bounds transgressed decision highest court precise question renders quite doubtful whether evils trusts monopolies adequately treated federal action unless seek directly purposely include objects transportation intercourse states united states foreign countries follow however limit remedy may applied even though may found federal authority broad enough fully reach case doubt power several states act effectively premises reason doubt willingness judiciously exercise power concluding communication last words shall appeal congress rigid economy expenditure money holds trust people way perplexing extravagance easy return frugality difficult however considered bear burdens taxation guaranty honest care save fidelity public servants duty possible retrenchment plainly manifest differences forgotten contests political opinion longer remembered nothing retrospect public service fortunate comforting recollection official duty well performed memory constant devotion interests confiding
representative people legislative branch government assemble time strength excellence free institution fitness citizen enjoy popular rule make manifest political contest involve momentous consequence fraught feverish apprehension create aggressiveness intense approach bitterness passion wag throughout land determine decree free independent suffrage without disturbance tranquillity least sign weakness national structure consider incident contemplate peaceful obedience manly submission succeed heated clash political opinion discover abundant evidence determination part countryman abide every verdict popular control time abide faith agency establish direction affair government thus people exhibit patriotic disposition entitles demand undertake make execute law faithful unselfish service behalf prompt serious appreciation trust confidence acceptance public duty invite obedience constitutional requirement herein submit congress certain information concern national affair suggestion legislation judgment necessary expedient secure brevity avoid tiresome narration shall omit many detail concern matter within federal control though mean unimportant profitably discuss departmental report shall also curtail communication omit minute recital many minor incident connect foreign relation heretofore found place executive message contain report secretary state herewith submit outset reference important matter affect relation foreign power would afford satisfaction could assure congress disturbed condition asiatic turkey past year assume less hideous bloody aspect either consequence awaken turkish government demand humane civilization result decisive action part great nation right treaty interfere protection expose rage mad bigotry cruel fanaticism shock feature situation mitigate instead however welcome soften disposition protective intervention afflict continued unfrequent report wanton destruction home bloody butchery men woman child make martyrs profession christian faith none citizens turkey thus far kill wound though often midst dreadful scene danger safety future mean assured government home minister constantinople leave nothing undone protect missionary ottoman territory constitute nearly individual reside right claim protection score american citizenship effort direction relax deep feeling sympathy arouse among people ought far blind reason judgment lead demand impossible thing outbreaks blind fury lead murder pillage turkey occur suddenly without notice attempt part force hostile presence might effective prevention protection would resist ottoman government would regard interruption plan great nation assert exclusive right intervene time method security life property turkey several naval vessel station mediterranean measure caution furnish possible relief refuge case emergency make claim turkish government pillage destruction missionary property harpoot marash uprising place thus far validity demand admit though minister prior outrage anticipation danger demand protection person property missionary citizen locality mention notwithstanding strong evidence exists actual complicity turkish soldier work destruction robbery fact appear permit u doubt justice claim nothing omit bring prompt settlement number armenian refugee arrive port order lately obtain turkish government permit wife child refugee join hop hereafter obstacle interpose prevent escape seek avoid peril threaten turkish dominion recently appoint consul erzerum post discharge duty office though unaccountable reason formal exequatur sultan issue believe present somber prospect turkey long permit offend sight christendom mar humane enlighten civilization belongs close nineteenth century seem hardly possible earnest demand good people throughout christian world corrective treatment remain unanswered insurrection cuba still continue perplexity difficult perceive progress thus far make toward pacification island situation affair depict last annual message least improved spain still hold havana seaport considerable town insurgent still roam least inland country determination spain put insurrection seem strengthen lapse time evince unhesitating devotion largely increase military naval force task much reason believe insurgent gain point number character resource none less inflexible resolve succumb without practically secure great object take arm spain yet reestablish authority neither insurgent yet make good title regard independent state indeed contest go pretense civil government exists island except far spain able maintain practically abandon spain keep foot government less imperfectly large town immediate suburb exception make entire country either give anarchy subject military occupation one party report indeed reliable authority demand commander chief insurgent army putative cuban government give attempt exercise function leave government confessedly best reason suppose always fact government merely paper spanish army able meet antagonist open pitch battle prompt decisive result might look immense superiority spanish force number discipline equipment could hardly fail tell greatly advantage call upon face foe shun general engagement choose choose ground nature country visible invisible pleasure fight ambuscade advantage position number side country indispensable life way food clothing shelter easily obtainable especially bear breed soil obvious hardly limit time hostility sort may prolong meanwhile case protract civil strife passion combatant grow inflame excess side become frequent deplorable also participate band marauder name one party name may best suit occasion harry country plunder wretched inhabitant advantage condition thing would inevitably entail immense destruction property even policy party prevent far practicable seem original policy spanish government apparently abandon act upon theory insurgent namely exigencies contest require wholesale annihilation property may prove use advantage enemy end pursuance general order spanish garrison withdraw plantation rural population require concentrate town sure result would seem industrial value island fast diminish unless speedy radical change exist condition soon disappear altogether value consist largely course capacity produce sugar capacity already much reduce interruption tillage take place last two year reliably assert interruption continue current year practically extend threatened entire territory island much time much money require restore land normal productiveness extremely doubtful capital induce even make attempt spectacle utter ruin adjoin country nature one fertile charm globe would engage serious attention government people united state circumstance point fact concern mean wholly sentimental philanthropic character lie near u hardly separate territory actual pecuniary interest second people government spain reasonably estimate least american capital invest plantation railroad mining business enterprise island volume trade united state cuba 1889 amount rise 1893 1894 year present insurrection break amount nearly besides large pecuniary stake fortune cuba united state find inextricably involved present contest way vexatious costly many cuban reside country indirectly promote insurrection press public meeting purchase shipment arm raise fund mean spirit institution tenor law permit make subject criminal prosecution though cuban heart feeling interest take paper naturalized citizen united state proceed resort view possible protection government unnaturally regard much indignation country origin insurgent undoubtedly encourage support widespread sympathy people country always instinctively feel every struggle well free government case adventurous restless element population lead many instance active personal participation contest result government constantly call upon protect american citizen claim damage injury person property estimate many million dollar ask explanation apology act spanish official whose zeal repression rebellion sometimes blind immunity belong unoffending citizen friendly power follow cause united state compel actively police long line seacoast unlawful expedition escape utmost vigilance always suffice prevent inevitable entanglement united state rebellion cuba large american property interest affect consideration philanthropy humanity general lead vehement demand various quarter sort positive intervention part unite state first propose belligerent right accord insurgent proposition longer urge untimely practical operation dearly perilous injurious interest since sometimes contend independence insurgent recognize imperfect restrict spanish government island may exist unless military officer temporary command particular district dignify specie government also suggest united state buy island suggestion possibly worthy consideration evidence desire willingness part spain entertain proposal urge finally method fail exist internecine strife cuba terminate intervention even cost war united state spain war advocate confidently prophesy could neither large proportion doubtful issue correctness forecast need neither affirm denied united state nevertheless character maintain nation plainly dictate right might rule conduct though united state nation peace necessity truth pacific power desire nothing much live amity world ample diversified domain satisfy possible longing territory preclude dream conquest prevent cast covetous eye upon neighbor region however attractive conduct toward spain dominion constitute exception national disposition make manifest course government thus far present insurrection ten year follow rise yara 1868 great power may safely say circumstance similar perplexity would manifest restraint patient endurance may also say persistent attitude united state toward spain connection cuba unquestionably evince slight respect regard spain part american people truth forget connection discovery western hemisphere underestimate great quality spanish people fail fully recognize splendid patriotism chivalrous devotion national honor view wonder admiration cheerful resolution vast body men send across thousand mile ocean enormous debt accumulate costly possession gem antilles may still hold place spanish crown yet neither government people united state shut eye course event cuba fail realize existence concede grievance lead present revolt authority spain grievance recognize queen regent cortes voice patriotic enlightened spanish statesman without regard party demonstrate reform propose executive approve legislative branch spanish government assume temper disposition spanish government remedy grievance fortify indication influential public opinion spain government hop discover promising effective mean compose present strife honor advantage spain achievement reasonable object insurrection would seem spain offer cuba genuine autonomy measure home rule preserve sovereignty spain would satisfy rational requirement spanish subject reason pacification island might effect basis result would appear true interest concern would stop conflict consume resource island make worthless whichever party may ultimately prevail would keep intact possession spain without touch honor consult rather impugned adequate redress admit grievance would put prosperity island fortune inhabitant within control without sever natural ancient tie bind mother country would yet enable test capacity favorable condition object one side spain promise autonomy insurgent subject lay arm side promise autonomy however liberal insufficient without assurance promise fulfil reasonableness requirement spain unconditional surrender part insurgent cubans autonomy conceded altogether apparent ignores important feature situation stability two year duration give insurrection feasibility indefinite prolongation nature thing show past experience utter imminent ruin island unless present strife speedily compose rank abuse party spain branches government lead public men concede exist profess desire remove facing circumstance withhold proffer need reform party demand put mercy throw arm appearance neglect grave peril invite suspicion sincerity profess willingness grant reform objection behalf insurgent promise reform rely upon must course consider though right assume reason assume anything spain undertakes relief cuba do accord spirit letter undertake nevertheless realize suspicion precaution part weaker two combatant always natural always unjustifiable sincerely desirous interest well account cuban problem solve least possible delay intimated government government spain month ago satisfactory measure home rule tender cuban insurgent would accept upon guaranty execution united state would endeavor find way objectionable spain furnish graranty definite response intimation yet receive spanish government believe altogether unwelcome already suggest reason perceive approved insurgent neither party fail see importance early action must realize prolong present state thing even short period add enormously time labor expenditure necessary bring industrial recuperation island therefore fervently hop ground earnest effort heal breach spain insurgent cuban upon line indicate may inaugurate pushed immediate successful issue friendly office united state either manner outline way consistent constitution law always disposal either party whatever circumstance may arise policy interest would constrain u object acquisition island interference control power add reasonably assume hitherto expectant attitude united state indefinitely maintain anxious accord due respect sovereignty spain view pending conflict feature properly apprehend inevitably close relation possible result without consider course event may draw unusual unprecedented condition fix limit patient wait spain end contest either alone way friendly cooperation inability spain deal successfully insurrection become manifest demonstrated sovereignty extinct cuba purpose rightful existence hopeless struggle reestablishment degenerate strife mean nothing useless sacrifice human life utter destruction conflict situation present obligation sovereignty spain supersede high obligation hardly hesitate recognize discharge defer choice way method time action arrives make depend upon precise condition exist determine upon without give careful heed every consideration involve honor interest international duty owe spain face contingency suggest situation incident imperatively change continue line conduct heretofore pursue thus circumstance exhibit obedience requirement public law regard duty enjoin upon u position occupy family nation contemplation emergency may arise plainly lead u avoid creation either careless disregard present duty even undue stimulation expression feeling deem amiss remind congress time may arrive correct policy care interest well regard interest nation citizen join consideration humanity desire see rich fertile country intimately related u save complete devastation constrain government action subserve interest thus involved time promise cuba inhabitant opportunity enjoy blessing peace venezuelan boundary question cease matter difference great britain united state respective government agree upon substantial provision treaty great britain venezuela submit whole controversy arbitration provision treaty eminently fair assent venezuela thereto may confidently anticipate negotiation treaty general arbitration difference great britain united state far advanced promise reach successful consummation early date scheme examine applicant certain consular position test competency fitness adopt executive order issue 20th september 1895 fully demonstrate usefulness innovation connection plan examination promotion transfer deserve incumbent quite extensively make excellent result past year 35 appointment make consular service 27 make fill vacancy cause death resignation supply newly create post 2 succeed incumbent remove 2 purpose displace alien consular official american citizen 4 merely change official title incumbent commercial agent consul twelve appointment transfer promotion position department state 4 appoint render previous service department 8 make person pass satisfactory examination 7 appoint place include order september 20 1895 4 appointment state involved change incumbency inspection consular office provide appropriation purpose last session congress productive wholesome effect hope important work future continue know nothing do slight expense improve service desire repeat recommendation contain last annual message favor provide public expense official residence ambassador minister foreign capital reason support recommendation strongly state report secretary state subject seem importance hope may receive early attention congress last year labor faithfully unfavorable condition secure good preservation seal life bering sea united state great britain lately dispatch commissioner water study habit condition seal herd cause rapid decrease upon report commissioner soon submit exercise patience good sense part interested party earnestly hop hearty cooperation may secure protection threaten extinction seal life northern pacific bering sea secretary treasury report fiscal year end june 30 1896 receipts government source amount period expenditure excess expenditure receipt thus amount ordinary expenditure year less precede fiscal year receipt mention derive custom sum internal revenue receipt custom show increase source fiscal year end june 30 1895 receipt internal revenue increase value import dutiable merchandise last fiscal year value free good import increase value dutiable good value free good precede year export merchandise foreign domestic amount value increase precede year average ad valorem duty pay dutiable good import year per cent free dutiable good take together per cent cost collect internal revenue per cent per cent fiscal year end june 30 1895 total production distil spirit exclusive fruit brandy taxable gallon increase gallon precede year also increase gallon spirit produce fruit compare precede year number barrel beer produce produce precede fiscal year increase barrel total amount gold export last fiscal year silver increase gold silver exportation precede fiscal year import gold silver less gold silver precede year total stock metallic money unite state close last fiscal year end 30th day june 1896 gold silver 1st day november 1896 total stock money kind country amount circulation include treasury holding per caput upon estimate population production precious metal united state calendar year 1895 estimate fine ounce gold value fine ounce silver commercial value coinage value estimate production metal throughout world period fine ounce gold amount value fine ounce silver commercial value coinage value accord ratio coinage metal various country world calendar year amount gold silver total coinage mint united state fiscal year end june 30 1896 amount gold coin standard silver dollar subsidiary coin minor coin number national bank organize time law authorize creation pass october 31 1896 number date last mention active operation authorize capital stock hold shareholder circulate note amount total outstanding circulate note national bank 31st day october 1896 amount include unredeemed fully secure note bank insolvent process liquidation increase circulation year end day october 6 1896 condition national bank last report total resource active institution include loan discount money kind hand liability due individual depositor consist outstanding circulating note organize year preceding date last mention 28 national bank locate 15 state 12 organized eastern state capital 6 western state capital 10 southern state capital year however 37 bank voluntarily abandon franchise national law case 27 others find necessary appoint receiver therefore compare year precede decrease 36 number active bank number exist bank organize state law number immigrant arrive united state fiscal year permit land debar various ground prescribe law return country whence come expense steamship company bring increase immigration precede year amount report exception immigrant past year hardy labor class accustom able earn support estimate money brought amount least though probably much excess sum since less 30 require disclose exact amount know many bring considerable sum money buy land build home include immigrant arrive 14 year age per cent illiterate per cent age arrive precede fiscal year number immigrant 14 year old country come percentage illiterate among follow italy per cent ireland 7 per cent russia per cent province per cent germany per cent sweden per cent portugal come per cent illiterate arrive japan year immigrant opinion immigration authority apprehension heretofore exist extent large immigration japan united state without substantial foundation service report number disaster document vessel within limit operation year 437 vessel board person save 13 lose value vessel estimate cargo make total value property imperil amount save lose vessel totally wreck besides 243 casualty small undocumented craft board 594 person 587 save 7 lose value property involve latter casualty estimate save lose crew year also rescue assist numerous vessel warn many danger signal day night number disaster year exceed previous year history service save life property great ever proportion value property involved number person imperil operation service service service service bureau navigation branch public work attach treasury department together various recommendation concern support improvement fully state report secretary treasury attention congress especially invite report secretary war exhibit satisfactory condition several branch public service intrust charge limit military force fix law constantly readily maintain present discipline morale army excellent mark progress efficiency apparent throughout entire organization exception delicate duty suppression slight indian disturbance along southwestern boundary mexican troop cooperate compulsory peaceful return consent great britain band cree indian montana british possession active operation require army year past change method administration abandonment unnecessary post consequent concentration troop exercise care vigilance various officer charge responsibility expenditure appropriation result reduce minimum cost maintenance military establishment past year work construct permanent infantry cavalry post continue place heretofore designate secretary war repeat recommendation appropriation barrack quarter strictly conform need service judge department rather respond wish importunity locality imperative much money provide construction allot erection necessary quarter garrison assign coast defense many men need properly care operate modern gun essential early provision make supply necessary force artillery meet demand service entire army equip new magazine arm wise policy demand available public private resource employ provide within reasonable time sufficient number supply state militia modern weapon provide ample reserve emergency organize militia number men appropriation support several state approximate annually contribute general government investigation show troop usually well drill inspired much military interest many instance deficient proper arm equipment sudden call active duty would find inadequately prepared field service therefore recommend prompt measure take remedy condition every encouragement give deserve body unpaid voluntary citizen soldier upon whose assistance must largely rely time trouble past year rapid progress make toward completion scheme adopt erection armament fortification along seacoast equal progress make provide material submarine defense connection work peculiarly gratifying time note great advance make important undertaking since date annual message congress open second session december 1893 time inform congress approach completion nine twenty steel gun rifle mortar total seem insignificant compare great work remain do yet none less source satisfaction every citizen reflect represent first installment new ordnance american design american manufacture demonstrate ability supply resource guns unexcelled power accuracy date however practically carriages upon mount gun emplacement gun mortar emplacement condition receive armament one gun time position defense entire coast since time number gun actually complete increased total steel gun ten gun eighty rifle mortar addition process construction one gun fifty gun rifle mortar four hundred gun mortar year immediately preceding message refer first modern gun carriage complete eleven process construction one nondisappearing type however secure necessary cover artillery gunner intense fire modern machine gun inventive genius ordnance civilian expert tax design carriage would obviate fault result believe solution difficult problem since 1893 number gun carriage construct building raise total 129 90 disappear principle number mortar carriages 152 95 emplacement provide prior time increase 280 built building improve situation largely due recent generous response congress recommendation war department thus shall soon complete comprehensive system first step note message congress december 4 1893 understood masonry emplacement furnishes platform heavy modern gun also every particular serf purpose take place fort former day importance work accomplish well comprehend hope work prosecute less vigor future secretary war submit estimate allow provide either build build end next fiscal year additional gun mortar gun carriage emplacement represent far total work do plan adopt coast defense thus afford prospect entire work substantially complete within six year less time however shall attain mark degree security experience result past year demonstrate continuation present careful method cost remain work much less original estimate always keep mind form military preparation coast defense alone essentially pacific nature give sense security due consciousness strength neither purpose effect permanent fortification involve u foreign complication rather guarantee u temptation war security thus thoroughly accord tradition national diplomacy present detail interesting statement important work do supervision last fiscal year ownership management government penitentiary confinement convict united state court violation federal law many year subject executive recommendation last slight extent realize utilization abandon military prison fort leavenworth united state penitentiary certainly movement right direction ought supplement rebuild extensive enlargement improvise prison construction least one locate southern state capacity leavenworth penitentiary limited expense maintenance calculate per caput rate upon number prisoner accommodate make economical exhibit would large well adapt prison purpose thoroughly convinced economy humanity proper sense responsibility duty toward punish violation federal law dictate federal government entire control management penitentiary convict violator confine appear since transfer fort leavenworth military prison new us work previously do prisoner confine expensive machinery provide discontinue work consist manufacture article army use do elsewhere ground exceedingly desirable convict confine penitentiary allow resume work description gratify note satisfactory result follow inauguration new system provide act may 28 1896 certain federal official compensate salary instead fee new plan put operation 1st day july 1896 already great economy enforces prevention abuse tendency well enforcement law strikingly apparent detailed evidence usefulness happily accomplish reform find clearly set forth report department good condition exhibit make operation fiscal year end june 30 1896 allowance make imperfection law applicable satisfactory total receipt year total expenditure exclusive earn pacific railroad transportation credit debt government increase receipt previous year per cent increase expenditures per cent deficit less preceding year chief expenditures postal service regulate law control accomplish watchful administration economy enforce prompt thorough collection account public money minor saving small expenditure let contract supply star service regulate statute effective cooperation auditor office department make enforcement order department require immediate notification surety delinquency part postmaster compel postmaster make frequent deposit postal fund result prompter audit account much less default government heretofore year report show large extension service railway mail service increase postal facility much high accuracy handle mail also reach appear decrease error railway mail service reduction mail matter return office deficit last year although much less last preceding year emphasize necessity legislation correct grow abuse rate deficiency mainly attributable transmission rate 1 cent pound serial library advertise sheet house organs periodical advertise particular house institution sample copy like ought certainly discontinue glance revenue receive work do last year show plainly statement gross abuse postal service grow waste earnings free matter carry mails department office government congress pound amount offset building station rental would compensate free postal service exhibit remainder postal revenue amount something derive box rent registry fee business similar item entire expenditure department include pay transportation credit pacific railroad may consider cost receive carry deliver mail matter thus appear though matter constitute total carry revenue derive less total expense growth weight matter pound 1894 1895 almost 1896 quite evident increase drawback far outstrip possible growth postal revenue mail service course meet want even convenience people direct charge upon light perhaps exclude idea department concern face constantly recur deficiency revenue view fact supply best mail service world seem quite time correct abuse swell enormously annual deficit concede public policy carry weekly newspaper free county publication even policy carry less cost bona fide newspaper periodical excuse subject service immense increase loss involve carry nominal rate 1 cent pound serial library sometimes include trashy even harmful literature matter loose interpretation loose statute gradually give rate thus absorb profitable return derive matter pay three four time cost produce large annual loss pay general taxation matter pay merely cost handling deficit would disappear surplus result might use give people still well mail facility cheaper rate letter postage recommend legislation enact correct abuse introduce good business idea regulation postal rate experience observation demonstrate certain improvement organization department must secure gain full benefit immense sum expend administration involve follow reform earnestly recommend small addition exist inspector service employ supervision carrier force number men performs service practically without surveillance exercise branch postal public service course lack supervision freedom wholesome disciplinary restraint must inevitably lead imperfect service also appoint inspector could assist central office necessary investigation concern matter lease site allowance rent fuel light organize secure best result work clerk employ first second class office convince small expense attend inauguration reform would actually profitable investment especially recommend recast appropriation congress department permit proceed work consolidate work already enter upon sufficiently fully demonstrate experiment experience consolidation productive good service large revenue less expenditure say nothing advantage gradually withdraw spoil system universal postal union embrace civilize world whose delegate represent people hold fifth congress city washington may 1897 united state may say take initiative lead first meet congress berne 1874 formation universal postal union bring postal service country every man neighborhood wrought marvel cheapen postal rate secure absolutely safe mail communication throughout world previous congress meet berne paris lisbon vienna respective country assemble make generous provision accommodation reception entertainment delegate view importance assemblage deliberation honor hospitality accord representative country similar occasion earnestly hope appropriation make expense necessarily attendant upon come meet capital city worthy national hospitality indicative appreciation event work navy department present condition fully exhibited report secretary construction vessels new navy energetically prosecute present administration upon general line previously adopt department see necessity radical change prior method work found progress manner highly satisfactory decide however provide every shipbuilding contract builder pay trial expense also determine pay speed premium future contract premium recently earn yet decided feature contract make conclusion reach march 4 1893 commission two armored vessel monitor miantonomoh monterey since date vessel theretofore authorized place first commission 3 2 battle ship 2 armor cruiser 1 ram 5 monitor include maine puritan complete eight new unarmored cruiser 2 new gunboat also commission iowa another battle ship complete march 1 least 4 gunboat ready sea early spring gratify state ship outfit believe equal best manufacture elsewhere notable reduction make cost justify statement quite number vessel construct rate low prevail european shipyard manufacture facility time ample possible naval contingency three government mare island norfolk brooklyn n equip shipbuilding ordnance plant washington equal world torpedo station successfully make high grade smokeless powder private shipyard newport news philadelphia san francisco building battle ship eleven contractor situate state maine rhode island pennsylvania new jersey maryland virginia state washington construct gunboat torpedo boat two plant manufacture large quantity armor american factory produce automobile torpedo powder projectile gun everything else necessary complete outfit naval vessel authorize congress since march 1893 5 battle ship 6 gunboat 16 torpedo boat 1 submarine torpedo boat contract build let secretary express opinion present sufficient supply cruiser gunboats hereafter construction battle ship torpedo boat supply needs much attention give method carry departmental business important modification regulation make tend unify control shipbuilding far may bureau construction repair also improve mode purchase supply navy bureau supply account establishment recent act congress supply fund purchase supply large quantity modification method tend materially cheapen good quality war college develop institution believe great value navy teach science war well stimulate professional zeal navy especially useful devise plan utilization case necessity naval resource united state secretary persistently adhere plan find operation secure labor board labor employment do much make complete efficient naval officer familiar system operation express decide opinion result vastly improve character work do yard greatly reduce cost discipline among officer men navy maintain high standard percentage american citizen enlist much increase secretary consider formulate come winter plan lay ship reserve thereby largely reduce cost maintaining vessel afloat plan contemplate battle ship torpedo boat cruiser need active service sea shall keep reserve skeleton crew board keep condition cruise enough insure efficiency ship crews time activity economy result system obvious need comment naval militia authorize year ago experiment develop body enterprising young men active energetic discharge duty promise great usefulness establishment nearly relation navy national guard different state bear army constitutes source supply naval force importance immediately apparent report secretary interior present comprehensive interesting exhibit numerous important affair commit supervision impossible communication briefly refer subject concern secretary give full instructive information money appropriate account department disbursement fiscal year end june 30 1896 amount great sum appropriate entire maintenance government two fiscal year end june 30 1861 public land originally amount acre reduce acre still remain government control exclude alaska balance far valuable portion give away settler new state railroad sell comparatively nominal sum patent land execution railroad grant progress rapidly year since 4th day march 1893 acres thus convey corporation agree secretary remainder public land carefully dealt alienation guard well economy great prudence commission appoint membership national academy science provide act congress formulate plan national forestry system hop soon prepared present result thorough intelligent examination important subject total indian population unite state accord census make 1895 exclusive within state new york comprise five civilized tribe number approximately child school age year enrol school progress attend recent effort extend facility anticipation continued liberal appropriation end fail afford utmost satisfaction believe education indian child prime factor accomplishment indian civilization may say general term every particular improvement indian government care mark encouraging secretary commissioner indian affair agent charge indian allotment make strongly urge passage law prohibit sale liquor allottees take land severalty earnestly join recommendation venture express hope indian may speedily protect great obstacle advancement condition affair among five civilized tribes occupy large tract land indian territory government assume aspect render almost indispensable entire change relation indians general government seem necessary furtherance interest well protection resident territory commission organize empowered several recent law negotiate indian relinquishment court division common land severalty aid settlement troublesome question tribal membership reception first proffer negotiation encourage patience conduct part demonstrate intention friendly interest tribe prospect success become promising effort save indian consequence mistake improvidence secure real indian right intruder profess friend profit retrogression change also need protect life property operation court conduct accord strict justice strong enough enforce mandate sincere friend indian exceedingly anxious reform accomplish consent aid tribes necessity may present radical drastic legislation hope therefore commission conduct negotiation soon able report progress make toward friendly adjustment exist difficulty appear valuable deposit gilsonite asphaltum find reservation utah occupy uncompahgre ute indian every consideration care public interest every sensible business reason dictate management disposal important source public revenue except general rule incident attend ordinary disposition public land secure government fair share least advantage place transfer nominal sum interested individual indorse recommendation make present secretary interior well predecessor permanent commission consist three member one shall army officer create perform duty devolve upon commissioner assistant commissioner indian affair management bureau involve numerous diverse detail advantage uninterrupted policy apparent hope change suggest meet approval congress diminution enormous pension roll decrease pension expenditure often confidently tell still fail material realization number pensioner poll close fiscal year end june 30 1896 large number ever report amount pay exclusively pension year slight decrease precede year total expenditures account pension include cost maintaining department expense attend pension distribution amount within every small fraction entire expense support government year number new pension certificate issue represent original allowance claim increase exist pension number person receive pension united state reside foreign country close last fiscal year amount pay year sum appropriate payment pension current fiscal year end june 30 1897 succeed year estimate amount necessary commissioner pension report last fiscal year 339 indictment find violator pension law upon indictment 167 conviction result opinion base upon statement much information observation abuse allow creep pension system do incalculable harm demoralize people undermine good citizenship endeavor within sphere official duty protect pension roll make roll honor contain name disabled country service worthy country affectionate remembrance see pose soldier friend active alert urge great laxity reckless pension expenditure nurse selfish scheme deprecate approach situation necessary retrenchment enforce economy may lead attack upon pension abuse determine overlook discrimination due worthy nation care ought live die protection nation gratitude secretary call attention public interest involve adjustment obligation pacific railroads government deem important duty especially present subject consideration congress january 1 1897 amount already mature principal subsidy bond issue united state aid construction union pacific railway include kansas line like bond issue aid central pacific railroad include issued western pacific railroad company fall due pay must day pay government without reference application sink fund treasury create default part company government give right institute proceeding foreclose mortgage lien addition indebtedness due january 1 1897 mature date january 1 1899 remain principal subsidy bond must also meet government amount account union pacific line exceed account central pacific line situation roads condition indebtedness government fully set forth report various committee present prior congress early 1887 thoroughly examine special commission appoint pursuant act congress consideration require adjustment government relation company clearly present conclusion reach practical uniformity relation terminate revise upon basis secure safe continuance section 4 act congress pass march 3 1887 president charge duty event mortgage incumbrance paramount interest united state property pacific railroad exist lawfully liable enforced direct action department treasury justice protection interest unite state redemption judicial proceeding include foreclosure government liens view fact congress number year almost constantly consideration various plan deal condition exist roads government thus far felt justified withhold action statute mention case union pacific company however situation become especially immediately urgent proceeding institute foreclose first mortgage upon aid part main line upon government hold second subordinate mortgage lien consequence proceeding increase complication add default occur 1st day january 1897 condition present date far company concerned must emphasize mandate act 1887 give executive duty provision imperative aspect therefore unless congress shall otherwise direct shall previously determine upon different solution problem hardly appear exist reason delay beyond date default mention executive action promise subserve public interest save government loss threaten inaction department agriculture intimately relate welfare people prosperity nation constantly receive care encouragement government small beginning grow center agricultural intelligence source aid encouragement agricultural effort large sum money annually appropriate maintenance department must confess legislation relate always directly interest practical farm properly guard waste extravagance far however public money appropriate fairly sensibly help actually till soil expenditure profitably make generally approve people present management department usefulness enhance every direction time strict economy enforce utmost extent permit congressional action report secretary appear careful prudent financial management annually save large sum appropriation aggregate incumbency close present fiscal year nearly entire amount appropriate result accomplish conscientious study real need farmer regard economy genuine farmer ought appreciate supplemented rigid adherence method department conduct interest agriculture instead partisan politics secretary report value export farm product last fiscal year amount increase year immediately precede statement less welcome fact notwithstanding increase proportion export agricultural product total export description fell year benefit increase agricultural export assure decrease proportion total export gratify consider owe fact total export year increase large increase exportation agricultural product suggest great usefulness organization lately establish department purpose give engage farm pursuit reliable information concern condition need advantage different foreign market inasmuch success farmer depend upon advantageous sale product inasmuch foreign market must largely destination product quite apparent knowledge condition want affect market ought result sow intelligently reap well promise profit information point way prudent foresight selection cultivation crop release bondage unreasoning monotony production glut depressed market constantly recur unprofitable toil opinion gratuitous distribution seed department present conduct ought discontinue one read statement secretary subject doubt extravagance questionable result practice profess friend farmer certainly farmer naturally expect willing rid department devote promotion farm interest feature tend much discredit weather bureau attach department agriculture continue extend sphere usefulness uninterrupted improvement accuracy forecast greatly increased efficiency aid protection whose occupation relate weather condition omit reference operation department commend secretary report suggestion contain careful consideration congress progress make reform furnishes utmost congratulation survive doubt friend well rancor enemy gain permanent place among agency destine cleanse politics improve economize elevate public service competitive classified service upward place half include time time since march 4 1893 radical sweep extension make executive order date 6th day may 1896 postmasterships include statement may say practically position contemplate law classify abundant reason exist include base upon economy improved service peace quiet neighborhood however obstacles prevent action present earnestly hope congress without increase appropriation adjust permit proper ease consolidation end process result desire may limited extent accomplish rule amend last year provide sensible uniform method promotion base eligibility well position upon demonstrated efficiency faithfulness absence fix rule subject infirmity system apparent benefit well appreciate advantage method business aspect well understood require argument application become necessity executive work government gain position operation method make understand nonpartisan scheme receive appointment demand way reciprocity nonpartisan faithful performance duty every administration cheerful fidelity every chief encourage decently exercise right citizenship support suffrages political belief honestly profess noisy pestilent partisan employee love political turmoil contention render lax grudge service administration represent political view promptly fearlessly dealt way furnish warning others may likewise disposed annual report commissioner duly transmit commend important matter charge careful consideration congress interstate commerce commission last year supply abundant evidence usefulness importance work committed charge public transportation universal necessity question reasonable charge therefor become vital importance shipper carrier also vast multitude producer consumer justice equity principle embody exist law pass purpose regulating charge everywhere concede appear question policy thus enter upon permanent place legislation present statute enact nature case less tentative experimental hardly expect supply complete adequate system wholesome effect manifest amply justified enactment evident desire reform transportation method fully accomplish view judicial interpretation provision statute receive defect disclose effort make enforcement revision amendment appear essential end may effectually reach evil design correct hope recommendation commission upon subject promptly favorably consider congress desire recur statement elsewhere make concern government receipt expenditures purpose venture upon suggestion touch present tariff law operation statute take effect 28th day august 1894 whatever may shortcomings complete measure tariff reform must concede opened way freer great exchange commodity u country thus furnish wide market product manufacture entire fiscal year law force end 30th day june 1896 year import increase previous year value domestic product export found market abroad nearly precede year insist cost people article come abroad needful use increase tariff charge extent necessary meet expense government well claim tariff charge may lay upon article beyond necessity government revenue additional purpose increase price market give american manufacturer producer well profitable opportunity must agree tariff law primarily justify source revenue enable government meet necessary expense maintenance consider efficiency aspect present law mean fall condemnation complete fiscal year operation yield nearly revenue receive tariff duty precede year nevertheless deficit receipt expenditures little however unexpected situation december last seven month close fiscal year secretary treasury foretold deficiency great increase apprehension timidity business circle depression activity intervene since time result cause perfectly well understood entirely disconnect tariff law operation seriously check import would otherwise receive readily account difference estimate secretary actual deficiency well continue deficit indeed must confess could hardly unfavorable period last two year collection tariff revenue reasonably hope recuperation business depression sudden already set promise acceleration continuance believe present tariff law allow fair opportunity near future yield revenue reasonably economical expenditure overcome deficiency meantime deficit occur may occur need excite disturb u meet deficit treasury addition gold reserve one hundred million surplus applicable payment expense government must unless expend purpose remain useless hoard extravagantly waste must event pervert purpose exaction people payment therefore deficiency revenue fund nothing proper legitimate use government thus apply surplus fortunately treasury payment expense meet current revenue liken man live beyond income thus incur debt encroach principal one function government accumulate make addition fund need immediate expenditure individual chief object struggle effort application accumulate fund government payment run expense duty individual living beyond income embarrass debt draw upon accumulate fund principal either unfortunate improvident distinction government charge duty expend benefit people proper purpose money receives source individual expect manifest natural desire avoid debt accumulate much possible live within income derive accumulation end may increase least remain unimpaired future use enjoyment object love affection may survive immeasurably well appropriate surplus payment justifiable expense allow become invitation reckless appropriation extravagant expenditure suppose deny present law people obtain necessary comfortable existence cheap rate formerly matter supreme importance since palpable duty every government make burden taxation light possible people require relinquish privilege cheap living except stress government necessity make plainly manifest reference condition prospect revenues naturally suggest allusion weakness vice financial method frequently press upon attention congress previous executive communication inevitable danger continue toleration point without repeat detail refrain earnestly present necessity prompt reform system oppose every rule sound finance show experience fraught grave peril perplexity terrible civil war shook foundation government thirty year ago bring train destruction property waste country substance estrangement brother past forgotten even distress loss life conflict entail sacred memory foster patriotic sentiment keep alive tender regard nobly die yet remain u full strength activity incident tremendous struggle feature financial necessity unsuited present circumstance manifestly disturb menace business security agent monetary distress may enjoy temporary relief depress influence lull u false security lead u forget suddenness past visitation convince ever assure financial peace safety government currency obligation upon gold may demand treasury withdrawn circulation cancel might do heretofore recommended exchange bond bear low rate interest redemption proceeds bond even united state note know greenback thus retire probable treasury note issue payment silver purchase act july 14 1890 pay gold demand would create much disturbance might time time receive treasury redemption gold otherwise gradually prudently replace silver coin plan issue bond purpose redemption certainly appear effective direct path need reform default however would step right direction currency obligation redeemable gold whenever redeem cancel instead reissue operation would slow remedy would improve present condition national bank redeem note allow issue circulation par value bond deposit security redemption tax circulation reduce 1 per cent consider project retirement united state note treasury note issue law 1890 opinion place much stress upon danger contract currency calculate little upon gold would add circulation invite u good safer financial method much contraction currency avoid unequal distribution might obviate fear harmful contraction time remove allow organization small bank less populous community permit also authorize exist bank establish branch small community proper restriction entire case may present statement day sensible sound financial method dawn upon u government abandon bank business accumulation fund confine monetary operation receipt money contribute people support expenditure money people benefit business interest good citizen long rest feverish agitation inauguration government reform financial policy encourage enterprise make certain reward labor industry another topic people rightfully take deep interest may briefly consider refer existence trust huge aggregation capital object secure monopoly particular branch trade industry commerce stifle wholesome competition defend usually grind though increase profit also reduce price thus may benefit public must remember however reduction price people one real object organization tendency necessarily direction occur particular case accord purpose interest manage scheme occasional result fall far short compensate palpable evil charge account trust monopoly tendency crush individual independence hinder prevent free use human faculty full development human character farmer artisan small trader danger dislodgment proud position master watchful touch country prosperity individual lot interested affect advantage business factor relegate level mere appurtenance great machine little free duty passive obedience little hope opportunity rise scale responsible helpful citizenship instinctive belief inevitable trend trust monopoly due widespread popular aversion hold unreasonable insistence whatever may incidental economic advantage general effect upon personal character prospect usefulness otherwise injurious though congress attempt deal matter legislation law pass purpose thus far proved ineffective lack disposition attempt enforce simply law interpret court reach difficulty insufficiency exist law remedied legislation do fact must recognize however federal legislation subject may fall short purpose inherent obstacle also complex character governmental system make federal authority supreme within sphere carefully limit sphere metes bound transgressed decision high court precise question render quite doubtful whether evils trust monopoly adequately treat federal action unless seek directly purposely include object transportation intercourse state united state foreign country follow however limit remedy may apply even though may find federal authority broad enough fully reach case doubt power several state act effectively premise reason doubt willingness judiciously exercise power conclude communication last word shall appeal congress rigid economy expenditure money hold trust people way perplex extravagance easy return frugality difficult however consider bear burden taxation guaranty honest care save fidelity public servant duty possible retrenchment plainly manifest difference forgotten contest political opinion longer remember nothing retrospect public service fortunate comfort recollection official duty well perform memory constant devotion interest confide