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Reveeeere Pattee ae ere Tene MWKINLEY'S MESSAGE 3° CURRENCY PROBLEM — -_ Oor Foreign Kelations—The Caban Trouble —The Hawaiian Isiands The Kimetal- Me Commission—International Arbitration—Alaska— The Indian Probiem —Ete., Ete. reprene: in the legisi rs under f sincere ccngrat Geneficent Providen blessed and prospered us as @ 0: and good will withall the nations of th- continue unbroken. All Sections Are Unified. of all sections of our country. the incomplete ness of which has too long del of the highest blessings of the spirit of patriotism is universal and ¢ ain in fervor. The p which now most engross us are either partisanship, ur common country alike and perm! lines. Questions of f e, the sounc ility of national ¢ improvement of t individual conse ludorses Seectal Session Lecistation. The extra session of this congress wale permaner equired and the THE CURRENCY PROBLEM. Tarif legislation having been set “xtra session of con pressing for consideration is t E zt The work of putting our finances a sound basis, difficult as it may seem, casier when we recall the fina: oper the goverument since 1863 On the 30th Rig ot June of that year we had outstanding dema wabilities inthe sum of #728 668.547.41. Ont ist of January, 1879, these liabilities had be reduced to $443,889,495.84 Of our interest-bear- ing obligations the figures are even more striking. On July 1, 184, the principal of the saterest-bearing debt of the government was 82,332,331,208, On the Ist day of July. 1403, this eum had been reduced to ae u37,1U0, or an ag- eregate reduction. of . 794,108 The inter- st-bearing debt of the United States on the t day of December, 1807, was .647,360.620. ‘The government money now outstanding (De- cember 1) consists of #346,651,016 of United tutes notes, 107,793,280 of treasury notes is- ed by authority of the law of 1890, :354,953,504 of silver certificates, and <61,280,761 of standard oliver dollars. With the great resources of the government tnd the honorable example of the past before oS we ought not to hesitate to enter upon a currency revision which will make our demand obligations less onerous to the government and vt eve our financial laws from ambiguity and doubt. The brief review of what was accom- plished from the close of the war to 1893 makes cnressonabie and groundless any distrust either ot our financial ability or soundness, while the situation from 1893 to 1897 must admonish con- «ress of the immediate necessity of so legislat- ing a8 to make the return of the conditions chen prevailing impossible. ‘There are many plans proposed as a remedy for the evil Before we can find the true rwemedy we must apprehend the realevil It is not that our currency of every kind is not good, tor every dollar of it 1s good; good because the government's pledge is out to keep it so, and that pledge will not be broken. However, the guaranty of our purpose to keep the pledze will be best shown by advancing toward its fulfillment. The evil of the present system is found in the great cost of the government of maintaining the parity of our different forms of money, that is, keeping all of them at par with gold We surely cannot be longer heed- less of the burden this imposes upon the peo- ple, even under fairly prosperous conditions, while the past four years have demonstrated that it is not only an expensive charge upon the government, but @ dangerous menace to the uational credit. I, is manifest that we must devise some plan curtail the opportunity for speculation, made easy by the multiplied redemptions of our de- mand obligations, or increase the gold reserve fortheir redemption. “We have .90.000,000 of currency which the government by solemn ea- actment has undertaken to keep at par with oid. Nobody is obliged to redeem in gold but the government. The banks are not required to redeem in gol The government is obliged to keep equal with gold ail its outstanding cur- rency and coin obligations, while its receipts ere not required to be paid in gold They are paid in every kind of money but gold, and the only means by which the government can with certainty get gold is by borrowing. It can get it in no other way when it most needs it The government without any fixed revenue is pledged to maintain gold redemption, which it has steadily and faithfully done and which under the authority now given it will continue w do. tedemption of Goverament Notes. The law which requires the government after Baving redeemed its notes to pay them out gain as current funds demands a constant re- pienishment of the gold reserve. This is espe- cially so in times of business panic and whea the revenues are insufficient to meet the ex- Penses of the government At such times the government bas no other way to supply its de- dcit and maintain redemption but through the increase of its bonded debt Thus in the ad- ministration of my predecessor, ‘262.315,- pettgiintestvare bonds were issued and sold used to pay the expenses of tha Ae in excess of the revenues and gustain the gold reserve. While it is true that the greater part of the proceeds of these bonds were used to supply deficient revenues, a con- alderable portion was required to maintain the goid reserve. With our revenues equal to our expenses. there would be no deficit requiring the issu- ance of bonds. But if the gold reserve falls Below 100,100,000 how will it be replenished ex- cept by selling more bonis? Is there any other way practicable under existing law? The se- tious question then is, shall we continue the policy that has been pursued in the past: that is, when the gold reserve reaches the point of anger. issue more bonds and supply the needed. gold, or shall we provide other means to pre- vent these recurring drains upon. the gold re- serve? If no further legislation is had, and the policy of selling bonds is to be continued, then congress should give the secretary of the treas- ‘ury authority to sell bonds at long or short pe- tiods, bearing a less rate of interest than is now authorized by law. I eusr- Bestly recommend as soon as the States note p the government hb from the governm Without paying go! nited States note in exchange for it The torpedo baste, commission's) opinion abso ny permanent imp: ¥ ail the evils wh dments to thas Cuba not cau Se The War in Coba. The present insurrect It As not my purpose 2 crease or to 0 cha ize its aaaaee resistance mous forces massed az revolt and the efforts to subdue tion of persons and prop:rty. force, consisting of 23 men with under command of Li marine hospital servic oping wide proportions and 4 of Spain for its suppression. al oMcers of the army and on¢ from the medical oft The Pacific Raliways. m Pacitic raliways. 1m under the decree of the United for the atetries o a oraska ou t in short. of t terest of the gc velopment and set | its duty to follow up its citizens there w denefits of legal machinery, I earnestly urge upon congress the establishment of a system of government of such flexibilit it to adjust itself vo the future areas of great- est population The startling, though possibly frem the Yukon river o bortage of food for the ioe number of people who are wintering the The civilized code of war has been disreg: the Spaniards than by the ¢ ing conditions cannot but fill this gov and the American people with th prehension. There is no desirc on the part of our people to profit by the misfortunes of Spain. We have only the des! Cubans prosperow nted, that measure of self-control which is th: alienabie right of man, protected in t to reap the benefit of the exk of their country. The offer mude by r 1896, tendering the frie: ernment failed 3 was not accepted. In by: the surveys influences and struggle upon the Turning to the practical as: tion of belligere veniences and posit pertinent considera’ exazgerated e without the such a measure as to justify bringing the mat- Access tothat country this winter can be had only by the passes from Dyea and vicinity which is most i perhaps an imposs ever, should these reports of the sllow-citizens be further v efort at any cost should be made to car predecesfor in April, n of congress. of April, 1897, of Colorado nois, and Hon. Charles as special envoys less it begin with the rebels to the mother. act in the promised tion and after her own p of concentration was 19% The productive the Spanish armi agricultural inhabitants were about the garrisoned towns waste and their dwellings dest of the late cabinet of Spain was 3 necessary measure of war and as a meansof cutting off supplies from the insurgents It has utterly failed as a war measure. not civilized warfare. It was extermination. Release of American Prisoners. Against this abuse of the rights of war I have felt constrained on repeated occasions to enter the firm and earnest protest of this govern- ment There was much of public condemna- tion of the treatment of American citizens by alleged illegal arrests and long imprisonment awaiting trial or pending protracted judicial procedure. I felt it my first duty to make in- stant demand for the release or speedy tr! os of all American citizens under arrest. f the change of the Spanish cabinet in Octoher ast. 22 prisoners, citizens of the United States, haq been given their freedom For the relief of our own citizens suffering because of the conflict, the aid of congresss was sought ina special message. and under the appropriation of April 4, 1897, effective aid has been given to American citizens in Cuba. Many of them. at their own request, have been returned to the United States. Instractions to Oar Mlolster. The instructions given to our minister to Spain before his departure for his post directed him to impress upon that government the sin- cere wish of the United States to lend its aid toward the ending of the war in Cuba by reach- ing a peaceful and lasting result. just and hon- orable alike to Spain and to the Cuban people. These instructions recited the character and duration of the contest, the widespread losses it entails, the burdens and restraints it imposes upon us, with constant disturbance of national interests and the injury resulting from an indefi- nite continuance of this state of things It was stated that at this juncture our government was constrained to seriousiy inquire if the time was not ripe when Spain. volition, moved by her and every sentiment of humani stop to thisdestructive war and make proposals of settlement honorable to herself and just to It was urged that as a interests in government on ‘Then oniy could Spain principal of the s1 the unpaid and accrued interest #6.624,600.32 making a total of #1/,922.69033 The sale of this road was originally advertised for Novem- ber 4, but for the purpose of securing the ut- most pubdlic notice of the event it was post poned until December 15, and a second adver- tisement of the sale was made By the decree of the court the upset price on the sale of the Kansas Pacific will yield to the government the sum of #2,500,00) over all prior liens, costs and charges. If no other better bid is made all that the government receive on its ciaim of nearly #13,000,.00. The government has no informa- tion as to whether there will be other bidders or a better bid than the maximum amount herein stated The question presented there- Whether the government shall. under the authority given it by the act of March 3 Ws7, purchase or redeem the road in the event that a bid is not made by private parties cov- ering the entire government claim To qualify the government to bid at the sale will require & deposit of -990.0.0, as follows: In the govern- ment cause $00,000 and in each of the first Mortgage causes #20000, and in the latter the deposit must be incash Payments at the sale Upon the acceptance of the bid asum which with the sum already depos- ited shal! equal 15 per cent of the bid, the bal- ance in installments of 3 per cent, 30, @ and & days after the confirmation of the sale. The lien on the Kansas Pacific prior to that of the government on the 30th of July, 1897, princips! and interest, amounted to $7,281,06811 The therefore, should it become the highest bidder, will have to pay the amount of the first mortgage lien. I believe that under the act of 1887 it has ths thority todo this and in absence of any ac- tion by congress I shall direct the secretary of the treasury to make the necessary deposit at required by the court's decree to qualify ass bidder ané to bid at the sale a sum which wil) at least equal the principal of the debt due t& the government; controversy, that fan amend- The Indian Problem. For a number of years past it has been ap- parent that the conditions under w civilized tribes were establish-d in the Indian territory under treaty provisions with the ed States, with the right of self-govern- ment and the exclusion of asi white persons from within their borders, have undergone so complete a change as to render the continuance of the system thus inaugurated practically im- Possible. The total number of the five civilized tribes, as shown by the last census, is 45,494, and this number has not materially increaséd; while the white population is estimated at from 200,000 to 250.090, which by permission of the Indian government has settied in the territory. The present srea of the Indian territory contains 25,691,541 which is very fertile land The United States citizens residing in the territory, most of whom have gone there by invitation or with the con- sent of the tribai authorities, have made per- manent homes for towns have been built in which from 50) to 5,000 white peopie now reside. @ences and business houses have been erected in many ofthem Large business enterprises are carried on in which vast sums of money are employed. and yet these people, -vho have in- vested their capital in the development of the productive resourres of the country. are with- out title to the land they occupy and have initiated By february | law o of neutral efforts to secure the of European the international settlement of the ime have not been abie ntemplated by ng uction of our great sister republic of France in joining this country im the attempt to brin 5 ns of a neu- so-operasion rere Megat isteh Pat he eels herded in and their land laid . This policy ti question, but up to this that they vio- 5 at their own vided from the mission The peril and cannot expect to be sh consequences. The right of visit and search on the seas and seizure of vesse and contraband of war and food prize under international about an agree- commercial Eurepe whereby a fixed and relative value between gold and silver shall be . furnishes assurance that we are not ger nations of the world in realizing the international character of the problem and in the desire of reaching some wise and practical solution of it The British government has published a resume of the steps taken jointly by the French ambassador in London and the special envoys of the United States with whom our ambassador at London actively co-operated in the presenta- tion of this subject to her majesty’s zovern- ment This will be laid before congress Our special envoys have not made their final re- port. as further negotiations between the rep- resentatives of this government and the gov- ernmcn:s of other countries are pending and in contemplation. They bdelieve which bave been raised in certain quarters re- specting the possibility of maintaing the stal ity of the parity between the metals and kin- dred questions may yet be solved by further negotiations Meanwhile it g that the special envoys have alreacy demon- Strated their ability and fitness to deal with the subject. and it is to be earnestly hoped that their labors may result i agreement which will bring about recognition of both gold and sfiver as money upon such terms and with such safeguards as will secure the use of both metals upon a basis which shall work no injustice to any class of our citizens. vor Foreign (Commerce. In order to execute as eariy provisions cf the third an4 fourth sections of the revenue act approv pointed Hon. John A Kasson, of Iowa, « spe- cial commissioner pies take the requisite nevutiations with foreign ail themselves of these vuiations are bow pro- ments. boih Euro- leved tha: by the powers couferred sem-s gricvances of our own and fa our mctual trade rela- either removed or iargely alle- 4 that the volume of exchanges may be cular to both contrac’ from emery s and cargoe< admitted as Prociamation alone among the 1: belligerent rights defined by public law to each party in our ports disfavors would be im- posed on both which. while would weigh heavily in behalf of Spain herself. Possessing a navy and controlling the ports of Cuba her maritime rights could be asserted notonly for the military island, but up to the margin of our own terri- torial waters, and a condition of things would exist for which the Cubans within their own domain could not hope to create a parallel: while its creation through aid or sympathy from within our domain would be even more impossible than now, with the additional obligations of would perforce ass Becogauition Now Deemed Cowise. The enforcement of this enlarged and oner- ous code of neutrality would only be influential within our own jurisdiction by land and sea and applicable by our own instrumentalitr. could impart to the United States no jurisdie- and the insurg: would give the United Stetes no rizht of inter- vention to enfore® the condus withinthe psramourt a a cording to the internations these reasons I regard the recognition of the deligerency of the Cuban imsurgeuts as now unwise and therefore inadmiss that step hercaft nominally equal acres, much of investment of the themselves. Valuabie resi- are as follows: international of the natloas Thousands of born iu the territory are of schoul age, but the doors of the school of th: nations are shut against them and what educ: by private contribution. protection of the life or property of these white citizens is made by the tribal govern courts The secre! f that leadinz Indians have absorbed greattracts to the exclusioa of the common people and government by an Indian been practica!! of the people. government. tion they get is sateraauicnal No provision for the ity of Spain ac- code of war. For tary of the in + D2 deemed wis? ssa meas- ure of right and duty the executive will take it Intervention upon humanitarian grounds has been frequently suggested and has not f: to receive my most anxious and earnest con- sideration But should such a step be now taken when it is appa! has supervered in the policy of Spain toward A new government has taken offic: in 3 pledged in advance crore sha It haz been found impossible for the United States to keep its citizens out of the territory and the execu:ory conditions contained in treaties with these nations hav: for the most part become impossible of execu- tion. Nor has it been possible for th: tribal ts to s-cure to each individual full enjoyment in common with other Indians of the nations have long believed that the best the Indiaas of the five civilized trines would be found in American citizeashi rights and pri i July 24 1997. I ap- of her own potentiary to under- . should puta countries desiriag to ceeding with se pean and Ame: her Cuban colony. neighboring nation. with larze Cuba, we could be required to wait only a rea- sonable time for the mother country to establish its authority and restore peace and order within the borders of the island; that we could mot contempiate an indefinite period for the scoomplishment ef this result. No solution was proposed to which the slightest idea of humiliation to Spain could attach. and indecd precise proposals were withheld to avoid em- oarrassment to that government All that was asked or expected was that some safe might be speedily provicei and peace restored. Reply to Oar Note. the mother country. to the declaration that World cannot suffice to maintain p2ace by the bayonet: that vacue promises of reform after subjugation afford no solunon insuiar problem; that with a subs‘i commanders must come a change of the past system of warfare for one in harmony with a new policy which sh. hall no loager aim to drive the Cubans to the taking to the thi that reforms must with the needs and ci and that thes: reform. full autonomy to the cclony and to crest> Virtual entity and seif-controlled adminis: tion, shall yet conserve and affirm the eignty of Spain by a jest distribution of pow- ers and burdens upeu a ba: est untainted by methods Policy of Extermination Reversed The drst acis of the these honorabie pe interests of of other countrics tions may b> with atl the By section 18. of the act of March, 1903, the iz d to appoint three com- negotiations with the kasaw. Muskogee (or iz nations, commonly known Sve civilized tribes in the Indian th: purposes of the negotiati The extinzuishment of tribal tities to any lands within the territory now held president was auth: missioners to enter into Cherokee. Choctaw. Chi Creex) and S -mi; commence Toth 1 our merchant 2 trade at the world We as tdo it now The inf-:riority of o: ustiy feces ating to the inz before ci incompetency is charged or demand made for the removal of oTictais in any of the depart- ments Thi+ order pas been made to gi the accused his right to be heard but without impairing the power of removal. which should aiways be exercisel in cases of ineficiency and ineamp>tency and which Is one of the vital safeguard« of the civil « form system. pr-venting stagnation and dead- wood and keep! merchaut marine is is Itis in the aiz eet better understanding. It appreciates ly purposes of this gorernmen? in Cuba and that its desires for pese> dre jast It declares that the pr: is bound br e chance of pol tates and pacify C: a5 may be entitled to the o1 as may be | ral nations and the universal se reversed Un: eep the appropriat Uke governmeni and t a only ree © make it Dinde oment Gate of ownership Ss. and the lac Allotment by agreement unless the United our tea @ present tim pus, and to this end vestigation should cted from the civil life, one to rs of the navy. le of the sub sidized porti on of the Kaan Pacific Hine, vernment holds a second 2 postponed ot the in rerament to December of this division acitic railroad to the November 13, 1807 was the ‘bsidy bonds, $4,203.00) and but suggest in order to re- law =o be = immediately explicitiy giving such powers and appropriating in general terms whateves sum is sufficient therefor. Civil Service. The important branch of cur gorernment known as the civil service, the practical im- provement of which has long been a subject of earnest discussion. has of late years reecived increased legisiative and executive approval During the past few months the service ha been placed on a still Srmer basis of business methods and personal merit While the righ: of our veteran soidizrs w reinstatement to de- serving cases has been asserted, Cismissais for merely political reasons have been carefully guarded against, the examinations fo: the service enlarged same time rendered aad more practical; and 8 has teen made by giving » missal upon all casex where jee re- WHATAM Me ecutive Mansion, Dec. 6, 167.