The Butler Weekly Times Newspaper, December 10, 1896, Page 6

THE MESSAGE. The President Sends a Communimation to Congress on National Affairs. THE CUBAN INSURRECTION. Government Revenues and Expenditares— The Departments—The Pension Roll— ‘The Pacific Railroads—Our Financial Methods—Trusts and Monopolies. Wasuinatos, Dec. 7%.—The F ifty- Fourth congress assembled for the short session at noon to-day and soon after committees from the house and senate waited on the president and in- formed him that they were ready to receive any communication he mivht have to make and the president then sent the following communication: ‘To the Congress of the United States: ‘ As representatives of the people in the legis- lative branch of their government you have as- sembled at atime when tbe strength and ex- celience of our free institutions and the fitness of our citizens to enjoy popular rule have been again made manifest. A political contest in- volving momentous consequences, fraught with feverish apprehension and creating ag- gressiveness so intense as to approach bitter- ness and passion. has been waged throughout our land and determined by the decree of free and independent suffrage. without disturbance of our tranquility 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 determi- nation 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 theirgovernment. Thus our peo- ple exhibit a patriotic disposition which en- titles 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 con- stitutional requirement. I herein submit to the congress certain information concerning na- tional affairs, with the suggestion of such leg- islation as in my judgment is necessary and expedient. To secure brevity and avoid tire- some narration, I shall omit many details con- cerning matters within federal control which, though by no means unimportant. are more profitanly discussed in departmental reports. I shali also curtail this communication by omitting minute recital of many minor inci- dents connected with our foreign relations which have hitherto found a place in executive messages, but are now contained in a report of the secretary of state, which is herewith sub- mitted. The Armenian Question. At the outset of a reference to more impor- tant matters affecting our relations with foreign powers it would afford me satisfaction if I could assure the congrcss that the disturbed condition of 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 human civilization, or as the re- sult of decisive action on the purt of the great nations having the right by treaty to interfere for the protection of those exposed to the rage of mere bigotry and cruel fanaticism, the shocking features of the situation had been mitigated. Instead, however, of weicoming a softening disposition or protective interven- tion, we have been afflicted by continued and not unfrequent reports of the wanton destruc. tion 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, the.r safety in the future is by no means assured. Our gov- ernment at home and our minister at Constan- tinople have left nothing undone to protect our missionaries in Ottoman territory. who consti - tute nearly all the individuals residing there who have a right to claim our protection on the score of American citizenship ‘Several naval vessels are stationed in the Med- iterranean as a measure of caution and to fur- nish all possible relief and refuge in case of emergency. We have made claims against the Turkish government for the pillage and de- struction of missionary property at Harpool and Marash during uprisings at those places. The Insurrection in Cuba. The insurrection in Cuba stiil continues with al) its perplexities. It is difficult to perceive that any progress has thus far been made to- wards the pacification of the island or that the situation of affairs as depicted in my last an- nual message has in the least improved. If Spain still holds Havana and the seaports and all considerable towns, the insurgents still roam at will over at least two-thirds of the in- land country. If the determination of Spain to put down the insurrection seems but to strengthen with the lapse of time and is evidenced by her uonhesitating devotion of largely increased military and naval forces to the task, there is much rea- son 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 practi- cally securing the great project for which they tookuparms. If Spain has not yet re-estab- Nshed her authority, neither have the insur- gents yet made good their title to be regaraed as an independent state. Indeed, as the con- test has gone on, the pretense that civil gov- ernment exists on the island, except so far as Spain is able to maintain it, has been practi- cally abandoned. Spain does keep on foot such ® 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 a archy or is subject to the wmili- Vary occupation of one or the other party. It is reported, indeed, on re!iable au- thority that, at the demand of the commander- in-chief of the insurgent army, the putative Cuban government has now given up all at- tempt to exercise its functions, leaving that government confessedly (what there ts the best reason for supposing it always to have been in fact) ® 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 acountry where all that is indispensable to life in the way of food, clothing and shelter is so easily obtain- able 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 pas- sions of the combatants grow more and more inflamed and excesses on both sides become more frequent and more deplorabie. They also are 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 apparent- ly abandoned it. and acting upon the same theory as the insurgents. namely, that the ex- igencies 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 pursaance of gen- eral orders. Spanish garrisons are now being withdrawn from Plantations and the rural por ‘ ulation required to concentrate itself in Lied of 836,445,000 and the coinage value of &2,- Bt | 051,009. towns. The sure result would seem to beg! the industrial value of the island is fast di The total coinage at the mints of the United minishing and unless there is @ speedy and/ States during the fiscal year ended June 30, radical change in existing conditions. it will soon disappear altogether. , sists very largely, of course, in its capacity to produce sugars, a capacity already much re- duced by the interruption to tillage, which have taken place during the last two years. It is reliably asserted that should these in- terruptions continue during the currant year, and practically extend, as it is now threat. ened, tothe entire sugar producing territory of the island, so much time and so much money will be required to restore the land to That vaiue con-, its normal productiveness that it is extremly ' doubtful {f capital can be induced to even make the attempt. The spectacie 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 gov- ernment and people of the United States under any circumstances. In point of fact, they have @ concern with it which is by no means of a wholly sentimental or philanthropic character. It les so nearto 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 830,000,009 to 8 0,0 0,000 of American cap- ital 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 1#89 amount- ed to about 864,000,000. rose in 1893 to about $103, 0,000, and in 1894, the year before the in- surrection broke out, amounted to nearly #95,- 00),0.0. Besides this large pecuniary stake in the fortunes of Cuba, the United States finds itself inextricably involved in the present con- test in other ways. both vexatious and costly. Many Cubans reside in this country and directly 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 fastitutions and the tenor of our laws do not permit to be made the subject of criminal prosecution. Some of them, though Cubans at heart and in all their feelings in 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 unnatu- rally regarded with much indignation by the country of their origin. These inevitable entanglements of the United States with the rebellion in Cuba, the large Amefican property interests affected and considerations of philanthropy and hu- manity in general have led toa vehement de- mand in various quarters for some sort of pos- itive intervention on the part of the United States. It was at first proposed that belliger- ent rights should be accorded to the insur- gents—a proposition no longer urged because untimely and in practical operation clearly perilous and injurions 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 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 en- tertain such a proposal. It is urged. finally, that all other methods failing, the existing in- ternecine strife in Cuba should be terminated by our intervention, even at the cost of war between the United States and Spain, a war which its advocates confidently prophecy could be neither large in its proportiens nor doubtful in its issue. The correctness of this forecast need be either affirmed nor denied. The United States has nevertheless the character to main- tain asa nation, which plainly dictates that right and might should be the rule of its con- duct. 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. It was in- timated by this government to the government of Spain some months ago that if a satisfac- tory measure of home rule were tendered the Cuban insurgents and would be ac- cepted by them upon a guaranty of its execution the United States would en- deavor to find a way not objection- able to Spain of furnishing such guaranty. It should be added that it cannot be reasonably assumed that the hitherto expectant attitude of the United States will be indefinitely main- tained. While we are anxious to accord all due respect to the sovereignty of Spain, we cannot view the pending conflict in all its features, and properly apprehend our inevita- ble relations to it and its possible results with- out 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 co-operation. When the inability of Spain to deal success- fully with the insurrection has become mani- fest, and it is demonstrated that her sover- eignty is extinct in Cuba for all purposes of its rightful existence, and when a hopeless strug- gle for its re-establishment has degenerated into a strife which means nothing more than the useless sacrifice of human life and then 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. The Venezuelan Boundary Question. The Venezuelan boundary question has ceased to be a matter of difference between Great Britain and the United States, their re- spective governments having agreed upon the substantial provisions of a treaty between Great Britain and Venezuela submitting the whole controversy to arbitration. The provi- sions of the treaty are soeminently just and fair that the assent of Venezuela thereto’ may confidently be anticipated. Government Revenues and Expenses. The secretary of the treasury reports that during the fiscal year ended June 20. 1896, the receipts of the government from all sources amounted to #49,475,4.878 During the same period its expenditures were $431,687,604.48. The excess of expenditures over receipts thus amounted to $25,20%.23).70. The ordinary ex- penditures during the year were $4,015, 2 less than during the preceding fiscal year. Of the receipts mentioned there were derived from customs the sum of $!60.021.751.67. and from internal revenue, #145 830,615.6€. The re- ceipts 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 re- ceipts from internal revenue an increase of 93,584,537. 91 The value of our imported dutiable merchan- aise during the last fiscal year was 23*9.75 and the value of free goods imported #4 9.967,- 420, Deing an increase of $6,523.67) in the value of dutiable goods and -91,231.034 in the value of free goods over the preceding year. ports of merchandise. foreign and domest: amounted in value to $882.6°6,928, being an in- crease over the preceding year of 87 .068.773 The average ad valorem duty paid on dutiable goods imported during the year was 32.94 per cent. and on free and dutiable zoods taken to- gether 20.55 per cent. The total amount of cold exported was $112,- £09,947 and of silver $60,541.670, being an increase of $45,941,446 of gold and $13,216,383 of silver over the exportation of the preceding fiscai year. The imports of gold were :33,523 of silver $28,777.18, being #2,8 9,495 less of gold and #8.565.007 more of silver than during the preceding vear. The total stock of metallic money in the United States at the close of the last fiscal year ending on the 30th day of June, 1896, was #1,228,326,035. of which 2599..97.954 was of gold and $628,728,071 of silver. On the Ist day of November, 1893, 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 $1,827,055,641, being #22.63 per capits upon an estimated population of 71,002,000. The production of the precious metals in the United States during the calendar year 1993 is estimated to have been 2.254.769 Ane ounces of gold of the value of #46.610,000, and 50,727,000 fine ounces of silver, of the commercial value 1893, amounted to $71,188.468. 2, of which 158- 878,49) was in gold coin and $16,89,97852 in standard silver dollars and minorcoins The number of national banks organized from the time the law authorizing their creation was passed up to October 31, 1896. was -,051, and of this number 3,679 were at the date last men- tioned in active operation, having au- thorized capital stock of 9650,014,895, held by 283,902 shareholders, and cir- culating notes amounting to #211,412,620. The total outstanding circulating notes of all national banks on the 31st of October, 1596 amounted to #234, 53,4 7, including unredeemed, but fully secured notes of banks insolvent and in process of liquidation. The increase in na- tional bank circulation during the year ended on that day was (21,199,420. On October, 1895, when the condition of national banks was last reported, the total resources of the 3,€79 active institutions was #3,263,689,313.83, which in- cluded #1,893,268,839.31 in loans and discounts and #362,16),73385 in money of all kinds on hand Of their liabilities $1,597,891,058 was due to individual depositors and #709.944,019 con- sisted of outstanding circulating notes. The War Department. 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 artillery force as fixed by law is constantly and readily maintained. The present discipline and morals of the army are excellent and marked progress and efficiency are apparent throughout its entire organiza- tion, With the exception of delicate duties in the suppression of slight Indian disturbances along our southwestern boundary in which the Mexican troops co-operat-d and the compul- sory, but peaceful return with the consent of Great Britain of a band of Cree Indians from Montana to the British possessions, no active operation have been required of the army dur- ing the past year. Yhe organized militia numbers 112,879 men. The appropriations for its support by the sev- eral states approximate $2,800,000 annually and #100,000 is contributed by the general govern- ment. Investigation shows these troops to be unusually well drilled and inspired with much military interest, and 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 deserv- ing body of unpaid and voluntary citizen sol- diers 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 und armament of for- tifications along our sea coast. while equal progress has been made in providing the mate- rial for submarine deferse in connection with these works. This improved situation is largely due tothe recent generous response of congress tothe recommendations of the war department. The Attorney-(eneral’s Department. ‘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 the convicted in the United States courts of violations of federal laws, which for many years has been a subject of executive recommendation, has at last to a slight extent been realized by the utiliza- tion of the abandoned military prison at Fort Leavenworth as a United States penitentiary. This is certainly a movement in the right di- rection; but it ought to be at once supple- mented by the rebuilding or extensive enlarge- mentof this improvised prison and the con- struction 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 econom- ical an exhibit as it would if it were larger and better adapted to prison purposes: but I am_ thoroughly con- vinced that economy, humanity and a proper sense of responsibility and duty toward those whom we punish for vioiation of federal law dictate that the federal government have the entire control and management of the peniten- tiaries where convicted violators are confined. It appears that since the transfer of the Fort Leavenworth military prison toits new uses the work previously done by the prisoners con- fined there. and for which expensive machin- ery 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 exceeding y desirable that the convicts confined inthis penitentiary be al- lowed to resume work of this description. The Post Office Department. Our post office department is in good condi- tion and the exhibit made of its operations during the fiscal year ended June 30, 1496, if allowance is made for imperfections in the laws applicable to it, is very satisfactory. The total receipts during the year were 282,499,208 40. The total expenditures were #90,626,298.84, ex- clusive of $1,059,898 27, which was'earned by the Pacific railroad for transportation and credit on their debt tothe government There was an increase of receipts over the previous year of $5,516,.8).21, or 7.1 per cent., and an increase of expenditures of $3,834.124.0:, or 4.43 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 incontrol of the postmaster-general. All that he can accomplish by the most watch- ful administration and economy is to enforce prompt and thorough collection and account- ing for public moneys and such minor savings in small expenditures and in letting those con- tracts for post office supplies and star service which are not regulated by statute. The average revenue from each pound of first-class matter was 93 cents. From each pound of second-class, 8% mil!s (of the second- class 52.348, 97 was county free matter). From each pound of third-class, 13.1 cen From each pound of fourth-class. 1.4 cents The growth in weight of second-class matter has been from 299,04,0%0 pounds in 1894 to 312,002,- xO in 1895, and to almost 349,000,000 in 1896, and it is quite evident this in- creasing drawback is far outstripping any possible growth of postal revenues Our mail service should, of course, be such astomeet the wants and even the conven- iences of the 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 constantly recurring deficiencies in its revenue,and in view of the fact that we supply the best mail serv- ice in the world, itseems to me it is quite time to correct the abuses that swell enor- mously our annualdeficit Ifwe concede the public policy of carrying weekly newspapers free in the county of publication and even the policy of carrying at less than one-tetnh of their cost other bona fide newspapers and periodicals, there can be no excuse for subjecting the serv- ice to the further immense and increasing loss invoived in carrying at the nominal rate of one centa pound the serial libraries. sometimes including trashy and even harmful literature and other matter, which under the loose inter- pretation of a loose statute has 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 generai taxation. Experience and observation have demon- strated that certain improvements in the or- ganization of the post ofMce department must be served before we can gain the full beneat of the immense sums expended in its administra- tion. This involves the following reforms, which Iearnestly recommend: There should men and performs its without the surveillance exer. other branches of the postal or pubiie service. There should also be appointed a few inspect- ors who would as: the central office in nec- essary investigation concerning matters of post office leases, post office sites. allowance for rent, fuel and lights, and in organizing and securing the best results from the work of the 14,00) clerks now employed in first and second- class offices The Navy Departn-ent. The work of the navy depafiment and its Present conditions are fully exhibited in the report of the secretary. The construction of vessels for our navy has been energetically prosecuted by the present admi: r r the general lines previously adopted, the de- partment h ig seen no necessity for changes in prior methods under w work was found to be progressing ina manner highly satisfactory. It has been decided, however, to provide inevery s ilding con- tract that the builder should pay all trial ex- penses, and it has also been dete pay no speed premiums in future contracts. On March 4, , there were in commission but two armored vessels, the double-turreted monitors Miantonomoh and Monterey. Since there have been placed in their first comm tleships, two armored cruisers, one harbor de- fense ram and tive double-turreted monitors, including Maine and Puritan, just completed. gunboats have also been commissioned The Iowa, another battleship, will be compieted about March 1, and at least four more gunboats will be ready for sea in the eariy spr’ The war coliege has developed o an insti- tution which it believed will be of great value to the navy in teaching the science o war, as well as in stimulating professior zeal in the navy, and it will be especially us ful in the devising of plans for the utilization. in case of necessity, of all the naval resources of the United States. The naval militia, which was authorized a few years ago, as an experiment, has now de- veloped 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 samerelation to our navy as the national guard 1m thi ent states bears to our arm: source of supply to our naval forces, the portance of which is immediately apparent. The Interior Department. The report of the secretary of the interior presents a comprehensive and interesting ex- hibit of the numerous and important affairs committed to his supervision It is impossible in this communication to do more than brietiy refer to a few of the subjects concerning which the secretary gives full and instructive infor- mation Our public lands, originally amount- ing to 1,840,000,0J) acres have been so reduced that only about 600,00..0) acres still remain in government control, excly ng Alaska The balance, being by far the most valuable por- tion, has been given away to suttlers, to new states and to railroads, or sold at a compara- tively nominal sum. The total Indian population of the United States is 233. 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 appro. mately 38,000 children of school age. During the year 23,398 of these were enrolled in schools. The progress which has attended re- cent efforts to extend Indian school facilities and the anticipatian of continued liberal ap- propriations to that end, cannot fail to afford 1 the utmost satisfa-tion to those who believe that the education of In- dian children is a prime factor in the accomplishment of n © tion. The condition of affairs among tue five civilized tribes, who occupy large cts of land in the Indian territory and who have governments of their own, has assumed such un 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 relinguishment of their courts and the division of their common lands in severalty. The reception of their first proffers of nego- tiation was not encouraging, but through pa- tience and such conduct on their part as dem- onstrated that their intentions were friendly and in the interest of the best prospect of suc- cess has become more promising. The efforts should be to save the Indians from the conse- quences of theirown mistakes and improvi- dence and to secure to the real Indian his rights as against intruders and professed friends who profit by his retogression. As a sincere friend of the Indian Iam ex- eeedingly anxious that these reforms should be accomplished with the consent and aid of the tribes and that no necessity ma sented for radical or drastic legisla hope, therefore, that t" ioa now con- ducting negotiati ble to report that progress has been made toward a friendly adjustment of existing difficulties. It appears that a ve-y valuable deposit of gilsonite or asphaltum has been found on the reservation in Utah occupied by the Uncom- pabgre Ute India Every consideration of care for the public interest and every sensibie business reason dictate such management or disposal of this important source of public revenne as will except it from the general rules and incidents attending the ordinary dis- position of public lands, and secure to the gov- ernment a fair share at leas: of its advantages in place of its transfer for a inal sum to interested individuals. Lindorse the recommendation made by present secretary of the interior. as w predecessor, that a permanent comm consisting of three members. one of whom shall be an army officer, be created to perform the duties now devolving upon the commis- sioner and assistant commissioner of Indian affairs. The management of the bureau in- volves such numerous diversities and the advantages of an uninterrupted policy are so apparent that I hope the change suggested Will meet the approval of the congress. The Pension Koll. The diminution of our enormous pension roll and the decrease of pension expenditures which have been so often foretold still fail in material realization The number of pension- ers on the rolls at the ciose of the fiscal year ended June 3), 1895, was 979.678. This is the largest number ever repor' The amonnt paid exclusively for pensions dv gz the year was $138,214,761.9 , aslizht decrease from that of the presed ar, while the total expend- ures on account of pensions, including the cost of maintainence of the department and expenses attending pension distribution amounted to $142,206. 0059. or within a very small fraction of one-third of the ent pense of supporting the governm same year. The number of new pension cert cates issued was, 90.640. Of these 40,374 repre- sent original allowances of claims and 15.878 increases of existing pensions. The numberof 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 pay- ment of pensions for the current fiscal year, ending June 30, 15 149.0 9.99), and for the succeeding year i ated that the same amount will be necessar; The commis ner of pensions reports that Guring the last fiscal year 339 were found against violators of laws Upon these indietments 167 convic resulted. In my opinion. based upon such Statements as these and much other informa- tion and observations. 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 oficial duty to protect our pension roll and make iv what it should be. a roll of honor, containing the names of those disabled in their couatry’s service and worthy of their country’s affection and remembrance. The Pacifie Railroads. The secret: calis attention to the public interests involved in an adjustment of the ob- ligations of the Pacific ratiroads tothe govern- ment I deem it to be an important duty to es- pecially present this subject to the consider- on of the 1897, with the am ban #13.0:0,000 of the principal of the subsidiary | bond issued by the TU: ates in aid of the ' the construct: of tse Union Pac railway, in- cluding its Kansas line, and more than 76.000,- 6@) of ike bonds. issued in aid of the Central Pacific railroad, including those issued to the Western Pacific Railway Co, will have falien been paid cr must on that paid by the government With- out any reference to the application of the sinking funas now in the treasury this will create such a default on the part of the companies to the covernment as it the right toat once institute proceed foreciose its mortgage lien due and day be ined to that date, of vessels theretofore authorized, | sion three first-class and two second-class bat- | Eight new unarmored cruisers and two new / { fell of in addition to} than form be due tweea th Jebtednes: 1, 1897. there will mature b and January 1. 1899, the rem such subsidy bonds which must the government. Thes 000,00 on acco the government > value of our exp: in the last fise ¢ 70.000.000, an those of the ¥ im i y opr ie statement is not the less wel cause of the f crease, the p products to our tot Guring the The bene crease in agricultural prod the decrease in its propor rts is more gra en we cons is coming to the at such total for the year increased more than t that not ‘oportion of ex por’ exports of 1 to ourt The large and increasi agriculty fulness 0: ‘al products sv the organiz tment for the purpc ngaged in the fary on conce ages of asmuch as the s ds upon the a ose of ng the ¢ erent ess y be the destination xite apparent that ak conditions markets more intelligently and with a better promise of foresight in the selection and tion of crops and toa release from the bond- age of unreasoning monotomy of prote: utted and depressed market and co: recurring unprofitable toil. gratuitous distribution of seeds by the ment at present conducted ouch discontinued. Civil Service Reform. The progress made in civil service reform furnisbes a cause for t tion. It has survived the doubts of its as well as the rancor of its enemies, gained a permanent place umong the agencies destined to cleanse our politics and improve, economize and elevate the public There are now in the competitive classitied More than service upwards of 81,00) places. half of these have been included from time since March 4, 1893. A most ra sweeping extension was made by executive order dated the €th day of Ma and if fourth-class postmasterships are not i2- be said that cluded in the statement it may practically ali positions contemplated civil service law ace now classified. ships, based upon economy. improved and the peace and quiet of neighborhoods. If. however. obstacles prevent such ac present, I earnestly hope that congre without increasing post ofice appropriations, so adjust them as to permit in proper a consolidation of these post offices to that through this process the resu!t The civil service rules as amended the last year provide for asensible and uni- form method of promotion, basing eligibility demonstrated effi- The absence of fixed | traction at the same time removed by to better positions upon ciency and faithfulness. rules on this subject has been an infirmity in the system more and more apparent: i} benefits have been better appreciate advantages of civil service methods in their pects are too well understood to re- quire argument. Their app ication has be- come a necessity to the executive work of the business government But those who gain through | flmaucial methohs will not dawn upon us umd the operation of these methods should | Our government abandons the banking Dumke be made to understand that the | ness and the accumulation of funds, and com non - parti scheme through whieh | fines fts monetary operations to the they reve their appointments de- | of money contributed by the people for ie man’s from them. by way of reciprocity non- | SUPP rt, and to the expenditure of such tos parcisan and faithful performance of duties | for the people's benetit. Our business tate! uistration, and cheerful fidel- | €Sts and all good citizens Jong for rest frm While they should courage’ to decently exercise their r citizenship and to support through their suf- belief they hoxestly pro- frage the political fess, the noisy, pestilent and partisan em- Trasts and Monopolies. ploye. who lo politica! turmoil and conten- \nother topic in which our peo ple right or who renders lax and grodging ce a deep interest may be here briefly ede to an administration not rep- | sidered. [refer to the expens: of truste all reventins bis political views. should be | other huge aggregations of capital, the ¢ Promptiy and fearlessly dest with in| o¢ whieh is to secure the monopoly of Sein such a way as to furnish a warnin: lo others | particular branch of trade, industry, or ¢@me who may be Mkewise disposed e annual report of the commissiooers mitted ana I conmmend th they hi in charge to the c: tion of congress The Tariff. I desire to recur to the statement: where made concerning the governm ceipts present tariff Statute took effect on the 1894, Whatever may be its shortcomin comptete measure of t conceded that it has opened up the | dency is tocrush out individual inde! way to a freer and greater ex-|andto hinier and to prevent the free usa change of commodities between us and other | human faculties and the full develo; it courtries and thus furnished a wider marxet | humancharacter. Through them the farm for our products and manufactures. The | the artisan andthe smali trader is in denget onl hus been in force ended on the June, 1395. th over those of the previous year more than san individual interest in ail that affects 0.00 while the value of the domestic prod- | @¢vantages of business of which he is a factem ucts exported and which found mar- | to be relegated to the level of a mere appurt® kets abroid was nearly 70,0.0,900 | Nance to agreat machine, with littie free wUL than dufing the preceding year. | With no duty but that of passive obediencessd hat the cost to our people |} With little hope or o»portunity of rising inthe of articles coming to them from abroad for | scale of responsible and helpful citizenship their nl use shouid only be in dq, To the instinctive belief that such is the inevie throug tome ff changes to an extent ne expenses of the gove: 9 claim that 2pon such articies ssitics of government rey the adit. al purpose of so incr, price in ets as to giv manufacturers and producers A more profitable epnort must agree t are only prim: revenue to enable necessary exp it sou: fed as he gove sof it this asp cal year of i OND tariff da beverthe exp mo, 3 a delicit betwe es of his, ho The situation seven months year, that the told a deficiency increasing apprehens ness circles and th Was bef its proper a ably better to payment of itto become an expenditers d that a h sb.e existence at 3 ¢ iy. Taisis 2 matter of s acts being assur 1% , r stra exportation of our ests the great use- established g pursuits ri owle nformation points out the way to a pru- In my opinion the > utmost cong Abundant reasons exist for including these postmaster- ay to a limited extent be accomplished. ilibe duly t d expenditures for the purpose of | If it veuturiug upon some suggestions touching our its operations. th day of August, ff reform, it must be y entire fiscal year during which this law In that year our imports increased tarif! chang beyond the nae. and witn nament to meet intenance. is tmmeasur- hus to the Toenses than to allow nuary e@ it fs the patnanie gen v date ument to make the} POSSIDIO. ‘The = except wy Gur Financial Methods to the reontinued to} OW repeatt from again of the prompr “Very rule a necess: ypposed os perplexity, Mie K the fo 3) years ‘ {on of pro 0 try’s substances, ang mer ae These are exports : aA en aaenee . Which keeps alive a nobly died, . in full st osters patriotic tender regard for those i vet there remains with us th and activity as apy nendous struggle, a te essity not only unsuited tg, present circumstances, but manitestly 9 g lurbing menace to business security ever present agent of monetary teed I | Because we may be enjoying a tem of such | Hef from its depressing influence this not lull us into a false security no et | forget the suddenness of past visitation wa in | More convinced than ever that we cannot reap- | assured financial peace and safety prot the government obligations Upon which may be demanded from the treasury are drawn from circulation and collected might be done, as has been heretofore Pecoms| mended, by their exchange for long term bearing a low rate of interest, or by their demption with the proceeds of such depart- | Even if only the United States notes known | t to be | ereenbacks were thus retired. itis p that the treasury notes issued in pay; silver purchases under the act of July 4, now paid in gold when demanied, would create much disturbance. as they might f time to time. when received in the trea sury by} redemption in gold or otherwise be gradual and prudently replaced by silver coin. This plan of issuing bonds for the purpose) redemption certainly appears to be the Tox, effective and direct path to the needed In defauit of this, however, it would De a ates in the right direction if currency obit are redeemable in gold whenever so should be cancelled instead of being rei This operation would be a slow remedy, butly would improve present conditions. National banks should redeem thelr om notes. They should be allowed to issue city. lation to the par value of bonds deposited a security for its redemption and the wa their circulation should be- reduced to on’ fourth of one per cent. In considering projects for the retirement @/ United tes notes and treasury notes iss) under the new law of 1890 Lam of the 0 gett ndition, fore of ultiva- ion, a tly c friends and has service. time to ical and y. 1896, by the service tion at ess will, } cases of | We have placed too much stress upon the the end | &€T of contracting the currency and haye: desired | Culated too little upon the gold that would i] added to our circulation if invited to us by! terand safer financial methods. It is poty much contraction of our currency that should be avoided as its unequal distribution ‘Tip might be obviated and fear of harmful emp during the organization of small banks and ip le populous communities than are now and authorizing existing banks to branches in small communities under ‘proper restrictions. The entire case may be presented by the statement that the day of sensible aad sou ts other d. The be en- ights of feverish agitauion and the inauguration byl government of @ reformed financial pelig it which will encourage enterprise and mae certain the rewards of labor and industry, merce and to stifle wholesome competities: When these are defended it is usually oa tht ground that though they increase profits the also reduce prices and thus may berefit the public. It must be remem be \| @ reduction of prices to the reop! the real objects of these organizations, nor # their tendency necessarily in that dit occurs in «a particular case is only because it accords with the purpos This | or interests of those managing them Such occasional results fail short of compe sating the palpabie ev.is charged to the a count of trusts and monopolies. Thelr tee S else- ent re- gs asa of dislodgement from the proud position of te ing his own master, watchful of all the touches his country's prosperity, in whieh i hi Gay of cessary | table trend of trusts and monopolies ts dueth® wide-spread and d. popular aversion »s | in which they i he not unreasoma 2 th atever may be their ie ononic advantages, thelr general et upon personal character, prospects aa@ usefulness can sot be otherwise than injuriogh Though congress has attempted to deal with this matter by legislation, the laws passed {et that purpose thus far uave proved ineffectiy not because of any lack of dispositionors® tempt to enforce them but simply because i® laws themselves as interpreted by the courts donot reach the difficulty. If tne insuffieles cies of existing laws can be remedied W further tion it should be done The ; fact must be recognized, however, that federal legislation on this subject may fall short of its purpose because of inkete | ent obstacles. and also because of the comple tharacter of our governmental system, lemaking the federal authority supreme within its sphere has carefully limited sat e by metcs and bounds which cannot ® transgressed Tih ion of our highest east | ise question renders it quite dour $ of trusts and monopole treated throu-h f va directly ant parposely @ ein their objects transportation opis lercourse between states or between United States and fo It does not toliow, however, that this 1s $8) i t of the remedy that may be h it may be found that federal # Snot broad enough to fully reseh tae case, there can be no doubt of the power several states to act effectively im the prem: ises. and there should be no reason 10 40g ngness to judi exercise uni rees of the C power. In concluting this communication its bt words shall be an appeal to the con the most rigid economy in the expel the money it holds in trust for the pea The way to perplexing extravagance is eam. but @ return to frugality is 2 owever, it is considered that 108 the burdens of taxation Baye of honest care, save in the their public servants, the duty of all retrenchment is plainly manifest Whes differences are forgotten and oUF | tests of politica! opinion are no longet Ress membered nothing in the retrospect a public service will be as fortunate and | forting as the recollection of official duty performed and the memory of a Yotion te the interests of our confiding “rrate countrymen. GROVER C spreme | Executive Macsion. December 7. 1006