Evening Star Newspaper, December 3, 1895, Page 11

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Ce ene eee ne THE MESSAGE! (Continued from First Page.) province where the first disturbances oc- curred, for the purpose of investigation. This latter commission, formed after much opposition, has gone overland from Tientsin, accompanied by a suitable Chinese escort, and by its demonstration of the readiness and ability of our Government to protect Its eltizens will act, it is believed, as a most influential deterrent of any similar out- breaks. The energetic steps we have thus taken are al! the more likely to result in future safety to our citizens in China, because the Imperial Government is, I am persuaded, entirely convinced that we desire only the liberty and protection of our own citizens and redress for any wrongs they may have suffered, and that we have no ulterior de- signs or objects, politica! or otherwise. China will not forget either our kindly serv- ice to her citizens during ber late war nor the further fact that, while furnishing all the f: ies at cur command to further the n of a peace between her and Japan, we sought no advantages and inter- pored no counsel. The Governments of both China and Japan have in special dispatches transmitted through their respective diplomatic repre- Sentatives expressed in a most pleasing manner their grateful appreciation of our assistance to their citizens during the un- happy struggle and of the value of our aid in paving the way to their resumption of peace- ful relations. The Waller Case. The customary cordial relations between this country and France have been undis- turbed, with the exception that a full ex- planation of the treatment of John L. Waller by the expeditionary military authorities of France still remains to be given. Mr. Wal- ler, formerly United States consul at Tama- tave, remained in Madagascar after his term of office expired, and was apparently suc- cessful in procuring business concessions from ths Hovas of greater or less yalue. After the occupation of Tamatave and the declar*tion of martial law by the French, he was arrested upon various charges, among them that of communicating military infor- mation tothe enemies of France, was tried and convicted by a military tribunal, and sentenced to twenty years’ imprisonment. Following the course justified by abundant precedents, this Government requested from that of France the record of the proceedings of the French tribunal which resulted in Mr. Waller's condemnation. ‘This request has been complied with to the extent of supply- ing a copy of the official record, from which appear the constitution and organization of the court, the charges as formulated, and the general course and result of the trial, and by which it is shown that the accused was tried in open court and was defended by counsel. But the evidence adduced in sup- pert of the charges—whith was not received by the French Minister for Foreign Affairs till the first week in October—has thus far been withheld, the French Government tak- ing the ground that its production in re- sponse to our demand would establish a had precedent. The efforts of our ambassador to procure it, however, though impeded by recent changes in the French ministry, have not been relaxed, and it is confidently ex- pected that some satisfactory solution of the matter will shortly be reached. Meanwhile it appears that Mr. Waller's confinement has every alleviation which the state of his health and all the other circumstances of the case demand or permit. In agreeable contrast to the difference above noted respecting a matter of common concern where nothing is sought except such a mutually satisfactory outcome as the true merits of the case require, is the recent reso- lution of the French Chambers favoring the conclusion of a permanent treaty of arbitra- tion between the two countries. An invitation has been extended by France to the Government and people of the United States to participate in a great interna- tional exposition at Paris in 1900 as a suit- able commemoration of the close of this, the world’s marvelous century of progress. I heartily recommend its acceptance, together with such legisiation as will adequately pro- vide for a due representation of this Gov- ernment and its people on the occasion. Trade With Germany. Our relations with the States of the Ger- man Empire are, in some aspects, typical of a condition of things elsewhere found in countries whose productions and trade are similar to our own. The close rivalries of competing industries; the influence of the delusive doctrine that the internal develop- ment of a nation is promoted and its wealth increased by a policy which in undertaking to reserve its home markets for the exclusive use of its own producers necessarily pb- structs their sales in foreign markets and prevents free access to the products of the world; the desire to retain trade in time- worn ruts, regardless of the inexorable laws of new needs and changed conditions of de- mand and supply, and our own halting tardi- ness in inviting a freer exchange of com- modities and by thi# means imperiling our footing in the external markets naturally open to us, have created a situation some- what injurious to American export interests, not only in Germany, where they are per- haps most noticeable, but in adjacent coun- tries. he exports affected are largely American cattle and other food products, the reason assigned for unfavorable dis- crimination being that their consumption is deleterious to the public health. This is al! the more irritating In view of the fact that no European State is as jealous of the ex- cellence and wholesomeness of its exported food supplies as the United States, nor so y able, on accourt of inherent sound- to guarantee those qualities. Nor afe these difficulties confined to our food products designed for exportation. Our great insurance companies, for example, having built up a vast business abroad and invested a large share of their gains in for- eign countries in compliance with the local laws and regulations then existing, now find themselves within a narrowing circle of onerous and unforeseen conditions, and are confronted by the necessity of retirement from @ field thus made unprofitable, if in- dced they are not summarily expell some of them have lately beea from Pr It fs not to be forgotten that inte: "an not be one 1. Its currents alternating and its movements should be honestly reciprocal. Without this it almost recessarily degenerates into a de’ gdvantage or a contrivance to segure bene- “fits with only the semblance of a return. In our dealings with other nations we ought to be open-handed and scrupulously fair. This should be our policy as a producing nation, and it plainly becomes us as a people who rosily and the moral tr considerations should not, however, coustrain us to submit to unfair d) nation nor to silently acquiesce in ve hind:ences to the enjoyment of our share of the legitimate advantages of proper trade relations, If an examination of the situa- tion suggests such measures on our part as would involve restrictions similar to those from ebiek we stffer, the way to such a course It should, however, by no Treans be lightly entered upon, since the necessity for the inauguration of such a policy would be regretted by the best senti- ment of our people, and because it natur- ally and logically might lead to conse- quen of the gravest character. I take pleasure in calling to your attention the encomiums bestowed on those vessels of our new Navy which took part in the notable ceremony of the cpening of the Kiel Canal. It was fitting that this extraordinary achievement of the newer German national- ity should be celebrated in the presence of THE EVENING STAR, TUESDAY, DECEMBER 8, 1895—-SIXTEEN PAGES, - 11 —————— America’s exposition of the latest develop- ments of the world’s naval energy. Relations With Great Britain. Our relations with Great Britain, always intimate and important, “have demanded during the past year even a greater share of consideration than is usual. Several vexatious questions were left un- determined by the decision of the Bering Sea Arbitration Tribunal. The application of the principles laid down by that august body’ has not been followed by the results they were intended to accomplish, either because the principles themselves lacked in breacth and definiteness or because their execution has been more or less imperfect. Much correspondence has been exchanged between the two Governments on the sub- ject of preventing the exterminating slaugh- ter cf seals. The insufficiency of the British patrol of Bering Sea, under the regulations agreed on by the two Governments, has been pointed out, and yet only two British ships have been 6n police duty during this Season in those waters. The need of a more effective enforcement of existing regulations, as well as the adop- tio of such additional regulations as ex- perience has shown to be absolutely neces- sary to carry out the intent of the award, have been earnestly urged upon the British Government, but thus far without effective results. In the meantime the depletion of the seal herds by means gf pelagic hunting has so alarmingly progressed that unless their slaughter is at once effectively checked their extinction within a few years seems to be a matter of absolute certainty. The understanding by which the United States was to pay, and Great Britain to receive, a lump sum of $425,000 in full set- tlement of all British claims for damages arising from our seizure of British sealing vessels unauthorized under the award of the Paris Tribunal of Arbitration, was not con- firmed by the last Congress, which declined to make the necessary appropriation. I am still of the opinion that this arrangement was a judicious and advantageous one for the Government, and I earnestly recom- mend that it be again considered and sanc- ticned. If, however, this does not meet with the favor of Congress, it certainly will hard- ly dissent from the proposition that the Gov- €rnment is bound by every consideration of honor and good faith to provide for the speedy adjustment of these claims by arbi- tration as the only other alternative. A treaty of arbitration has therefore been agreed upon, and will be immediately laid Lefore the Senate, so that in one of the modes suggested a final settlement may be reached. Notwithstanding that Great Britain orig- inated the proposal to enforce international rules for the prevention of collisions at sea, Lased on the recommendations of the Mari- time Conference of Washington, and con- curred in suggesting March 1, 1895, as the date to be set by proclamation for carrying these rules into general effect, Her Majes- ty’s Government, having encountered oppo- sition on the part of British shipping inter- ests, announced its inability to accept that date, whfch was consequently cancelled. The entire matter is still in abeyance, with- cut prospect of a better condition in the near future. The commissioners appointed to mark the international boundary in Passamaquoddy Bay according to the description of the treaty of Ghent have not yet fully agreed. The Alaska Boundary. The completion of the preliminary survey of that Alaskan boundary which follows the ecntcur of the coast from the southernmest point of Prince of Wales Island until it strikes the one hundred and forty-tirst meridian at or near the summit of Mount St. Elias awaits further necessary appropri. ation, which is urgently recommended. This survey was undertaken under the provisions of the convention entered into by this coun- try and Great Britain July 22, 1802, and the supplementary convention of February 3, 1894. As to the remaining section of the Alas- kan boundary, which follows the ene hun- dred and forty-first meridian northwardly from Mount St. Elias to the Frozen Ocean, the settlement of which involves the phys- ical location of the meridian mentioned, no conventional agreement has yet been made. The ascertainment of a given me- ridian at a particular point is a work re- quiring much time and careful observa- tions and surveys. Such observations and surveys were undertaken by the United States Coast and Geodetic Survey in 1890 and 1891, while similar work in the same quarters under British auspices is Heved to give nearly coineitent results. but these surveys have been independen: conducted and no international agreemen: to mark those or any other parts of the one hundred and forty-tirst meridian by permanent monuments has yet been made. In the meantime the valley of the Yukon is becoming a highway through the hither- to unexplored wilds of Alaska, and abun- dant mineral wealth has been discovered in that region, especially at or near the junction of the boundary meridian with the Yukon and its tributaries. In these circumstances it is expedient, and, indeed, imperative, that the jurisdictional limits of the respective Governments in this new region be speedily determined. Her Britan- nic Majesty's Government has proposed a joint delimitation of the one hundred and forty-first meridian by an international commission of experts, which, if Congress will authorize it and make due provision therefor, can be accomplished with no un- reasonable delay. It is impossible to over- look the vital importance of continuing the work already entered upon, and supple- menting it by further effective measures looking to the exact location of this entire boundary line. I call attention to the unsatisfactory delimitation of the respective jurisdic- tions of the Unfted States and the Dominion of Canada in the Great Lakes at the approaches to the narrow waters that connect them. The waters in question are frequented by fishermen of both nationalities and their nets are there used. Owing to the uncertainty and ig- norance as to the true boundary, vexa- tions disputes and injurious seizures of beats and nets by Canadian crulsers often occur, while any positive settlement there- of by an accepted standard is not easily to be reached. A joint commission to de- termine the line in those quarters, on a practical basis, by measured courses fol- lowing range marks on shore, is a neces- sity for which immediate provision should be made. The Venezucla Question. It being apparent that the boundary dis- pute between Great Britain and the Repub- lic of Venezuela concerning the limits of British Guiana was approaching an acute stage, a definite statement of the interest and policy of the United States as re- gards the controversy seemed to be re- quired both on its own account and in view ef its relations with the friendly powers directly concerned. In Juiy last, therefore, a dispatch was addressed to our ambassa- ; dor at London for communication to the British government, in which the attitude of the United States wag fully and distinct- ly set forth. The general conclusions there- in reached and formulated are in substance that the traditional and established policy of this Government is firmly opposed to a forcible increase by any European power of its territorial possessions on this con- tinent; that this policy is as well founded in principle as it Is strongly supported by numerous precedents; that as a conse- quence the United States is bound to pro- test against the enlargement of the area of British Guiana in derogation of the rights and against the will of Venezuela; that, considering the disparity in strength of Great Britain and Venezuela, the terri- torial dispute between them can be rea- sonably settled only by friendly and impar- tial arbitration, and that the resort to such arbitration should include the whole con- troversy, and is not satisfied if one of the be- | jthe colonization Powers concerned is permitted to draw an arbitrary line through the territory in de- bate and to declare that it will submit to arbitration only the portion lying on one side of it. In view of these conclusions, the dispatch in question called upon the British Government for a definite answer to the question whether it would or would not submit the territorial controversy be- tween itself and Venezuela in its entirety to impartial arbitration. The answer of the British Government has not yet heen received, but is expected shortly, when further communication on the subject will probably be made to the Congress. Hawail. Early in January last an uprising against the Government of Hawall was promptly suppressed. Martial law was forthwith proclaimed and numerous arrests were made of persons suspected of being in sym- pathy with the Royalist party. Among these were several citizens of the United SJates, who were elther convicted by a military court and sentenced to death, im- prisonment, or fine, or were deported w-th- out trial. The United States, while deny- ing protection to such as had taken the Hawaiian oath of allegiance, insisted that martial law, though altering the forms of justice, could not supersede justice itself, and demanded stay of execution until the proceedings had been submitted to this Government and knowledge obtained there- from that our citizens had received fair trial. The death sentences were subse- quently commuted or were remitted on condition of leaving the islands. The cases of certain Americans arrested and expelled by arbitrary order without formal charge or trial have had attention, and in scme in- stances have been found to justify remon- strance and a claim for indemnity, which Hawaii nas not thus far conceded. Mr. Thurston, the Hawaiian minister, having furnished this Government abun- dant reason for asking that he be recalled, that cou.se was pursued, and his successor has lately been received. The Colorado Lynching. The deplorable lynching of several Ital- ian laborers in Colorado was naturally fol- lowed by international representations, and I am happy to say that the best efforts of the State in which the outrages occurred have been put forth to discover and pun- ish th: authors of this atrocious crime. ‘The dependent families of some of the un- fortunate victims invite by their deplorable condition gractous provision for their needs. These manifestations against helpless aliens may be traced through successive stages to the vicious padroni system, which, unchecked by cur immigration and con- tract-labur statutes, controls these work- ers from the moment of landing on our shores, and farms them out in distant and often rude regions, where their cheapening competition in the fields of bread-winning toil irings them into collision with other labor interests. While welcoming, as we should, those who seck our shores to merg: themselves in our body politic and win per- sonal competence by honest effort, we can not regard such assemblages of distinc- tively alien laborers, hired out in the mass to the profit of alie1 speculators and ship: ped hither and thither as the prospect of gain may dictate, as otherwise than repug- nant to the spirit of our civilization, deter- rent to individual advancement, and hin- drances to the building up of stable com- munities resting upor the wholesome am- bitiors of the citizen and constituting the prime factor in the prosperity and progress ef ou. natien. If legislation can reach this srowing evil, it certainly snould be ut- tempted. Japin has furnished wbuncant evidence of her vast gain in every trait and charac- terist.c that ccnstitutes a nation’s great- ness. We have reason for congratulation in the fact that the Government of the United States, by the excbange of liberal treaiy stipulations with the new Japar, was ihe first to recognize her wonderful advance and to extend to her the consid- eration and confidence due to her national enlightenment anc progressive character. Our Southern Neighbors, The boundary dispute which lately threat- ened to embroil Guatemala and Mexico has happliy yielded to pacific counsels, and its determination has, by the joint agreement of the parties, been submitted to the sole arbitration of the United States minister to Mexico. The commission appointed under the con- ycrtion of February 18, 1889, to set new numents along the boundary between United States and Mexico has com- its task. .\S a sequel to the failure of a scheme for in Mexico of negroes, mostly emigrants .om Alabama under contract, 2 great number of these helpless ard suffering people, starving and smitten with contagious disease, made their way or were assisted to the frontier, where, in wretched plight, they were quarantined by the Texas authorities. Learning of their destitute condition, I directed rations to be temporarily furnished them through the War Department. At the expiration of their quarentine they were conveyed by the railway companies at ccmparativeiy nominal rates to their homes in Alabama, upon my assurance, in the absence of any fynd available for the cost of their trans- portation, that I wouid recommend to Con- gress an appropriation for its payment. 1 now strongly urge upon Congress the pro- priety of making such an appropriation. It should be remembered that the measures taker were dictated not only by sympathy and humanity, but by a conviction that it was not compatible with the dignity of tiis Government that so large a body of our dependent citizens should be thrown for re- lief upon the charity of a neighboring State. In last year’s message I narrated at some length the jurisdictional questions then freshly arisen in the Mosquito Indian strip of Nicaragua. Since that time, by the voluntary act of the Mosquito Nation, the territory reserved to them has been in- corporated with Nicaragua, the Indians formally subjecting themselves to be gov- erned by the general laws and regulations of the Republic Instead of by their own customs and regulations, and thus availing themselves of a privilege secured to them By the treaty between Nicaragua and Great Britain of January 28, 1860, After this extension of uniform Nicara- guan administration to the Mosquito strip, the case of the British vice-consul, Hatch, and of several of his countrymen Who had been summarily expelled from Nicaragua and treated with considerable indignity, provoked a claim by Great Britain upon Nicaragua for pecuniary ‘ndemnity, which, upon Nicaragua's refusal to admit liability, was enforced by Great Britain. While the scvereignty and jurisdiction of Nicaragua was in no way questioned by Great Britain, the former's arbitrary corduct in regard to British subjects furnished the ground for this proceeding. A British naval force occupied without resistance the Pacific seaport of Corinto, but was soon after withdrawn upon the promise that the sum demanded would be paid. Throughout this incident the kindly offices of the United States were invoked and were employed in favor of as peaceful a settlement and as much consideration and indulgence toward Nicaragua as were consistent with the nature of the case. Our efforts have since been made the subject of appreciative and grateful recognition by Nicaragua. Russia. The coronation of the Czar of Russia at Moscow in May next invites the ceremonial participation of the United States, and in accordance with usage and diplomatic pro- priety our minister to the imperial court has been directed to represent our Govern- ment on the occasion. Correspondence is on foot touching the practice of Russian consuls within the ju- risdiction of the United States to in ter- rogate citizens as to their race and _-reli- gious faith, and upon{ascertainment there- of to deny to Jews authentication of pass- ports or legal documenjs for use in Rus- sia. Inasmuch as such a proceeding im- Pcses a disability, whigh in the case of succession to propefty in Russia may be found to infringe the tgeaty rights of our citizens, and which is aff obnoxious invasion of our territorial juris@ction, it has elic- ited fitting remonstrapce, the result of which it is hoped wal de lemove the cause of complaint. The pending claims of sealing vessels of the United States seizea in Russian waters remain anadjusted. Our recent convention with Russia establishing a modus viverdi as to imperial jurisdiction in such cases has prevented further difficulty of this na- ture. The Russian Government has welcomed in principle our suzgestion for a modus vivendi, to embrace Great Britain and Ja- pan, looking to the better preservation of seal life in the North Pacific und Bering Sea, and the extension of the protected area defined by the Paris Tribunal to all Pacific waters north of the thirty-fifth parallel. It is especially noticeable that Russia favors prohibition of the use of firearms in seal hunting throughout the proposed area and a longer closed season for pelagic sealing. Samoa. In my last two annual messages I called the attention of the Congress to the position we occupied as one of the parties to a treaty or agreement by which we became jointly bound with England and Germany to so interfere with the government and control of Samoa as in effect te assume the management of its affairs. On the 9th day of May, 1804, I transmitted “to* the Senate a special message with accompany- ing documents giving information on the subject and -emphasizing the “opinion I have at all times entertained, that our sit- uation in this matter was inconsistent with the miasion. and traditions of our Govern- ment, in violation of the principles we pro- fees, and in all ita. ‘phases mischievous and vexatious. 4 I again press this subject upon the at- tention of the Congress and ask for such legislative action or =xpression as will lead the way to our relief from obligations both irksome and unnatural. The Cuban Revolution. Cuba is again gravely disturbed. An in- surrection, in some respects more active than the last preceding revolt, which con- tinued from 1868 to 1878, now exists in a large part of the eastern interior of the island, menacing even some populations on the coast. Besides déranging the com- mercial exchanges of the island, of which our country takes the predominant share, this flagrant condition of hostilities, by arousing sentimental sympathy and incit- irg adventurous support among our peo- ple, has entailed earnest effort on the part of this Government to enforce obedience to our neutrality laws and to prevent the territory of the United States from being abused as a vantage ground from which to aid those in arms against Spanish sov- ereignty Whatever may be the traditional sym- pathy of our countrymen as individuals with a people who em to be struggling fer larger autonomy aml greater freedom, deepened as such sympathy naturally must be in behalf of our néighbors, yet the plain duty of their Goverr prifhe is to observe in good faith the Bares obligations..of in- ternational relationslép! The performance cf this duty should not+be made’ more dif- ficult by a disregard.on the part of our citizens of the obligatfons growing out of their allegiance to their country, which should restrain them from violating as in- dividuals the neutralit? which the nation of which they are fiéinbers is bound to observe in its relations to friendly soyer- eign States. Though, neither the warmth of our people's sympathy with the Cuban insurgents, nor our léss’and material dam- age consequent upon thé! futile endeavors thus far made to -e&O#®' péate and’ order, nor any. Shock eur Humane sensibilit'es wamay have received from the cruelties which appear to especially characterize this sanguinary and fiercely conducted war, have in the least shaken the deter- mination of the Government to honestly fulfill eyery intertational obligation, yet it is to be earnestly hoped, on every ground, that the devastation of armed con- flict may speedily be stayed and order and quiet restored to the distracted island, bringing in their train the activity and thrift of peacefal pursuits. Ong notable instance of interference by Spain with passing American ships has occurred. On March § last the Allianca, while boand from Colon to New York, and following the customary track for vessels near the Cuban shore, but outside the three-mile limit, was fired upon by a Span- ish gunboat. Protest was promptly made by the United States against this act as not being justified by a state of war, nor permissible in respect of vessels on the usual paths of commerce, nor tolerable in view of the wanton peril occasioned to in- nocent life and property. The act was dis- avowed, with full expression of regret, and assurance of nonrecurrence of such just cause of complaint, while the offending cfficer was relieved of his command. Military arrests of citizens of the United States in Cuba have occasioned frequent 1eclamations. Where held on criminal charges their delivery to the ordinary civil jurisdiction for trial has been demanded and obtained in conformity with treaty provisions, and where merely detained by way of military precaution under a pro- claimed state of siege, without formulated accusation, their release or trial has been insisted upon. The right of American con- sular officers in the island to prefer pro- tests and demands in such cases having been questioned by the insular authority, their enjoyment of the privilege stipulated ty treaty for the consuls of Germany was claimed under the most-favored-nation provision of our own conventicn and was promptly recognized. The long-standing demand of Antonio Maximo Mora against Spain has at last been settled by the payment, on the 1ith of September last, of the sum_ originally agreed upon in liquidation of the claim. Its distribution among the parties entitied to receive it has proceesied as rapidly as the rights of those claiming the fund could be safely determined. The enforcement of differential duties against products of this country exported to Cuba and Puerto Rico prompted the im- mediate claim on our part to the benefit of the minimum tariff of Spain in return for the most favorable weatment permitied by our laws as regards the prod: n of Spanish territories. A: cémmercial arrange- ment was concluded in January last secur- ing the treatment so claimed. Vigorous protests against excessive fines imposed on our ships and merchandise by the customs officers ‘of these islands for trivial errors have resulted in the reris- sion of such fines in. instances where the equity of the complaint was apparent, though the vexatious ‘practice has not been wholly discontinued. The Armenian Massacre. Occurrences in Turkey have continued to excite concern. The reported massacres of Christians In Armenia and the development there and in other districts of a spirit of fanatic hostility to Christian influences naturally excited apprehension for the safety of the devoted men and women who, as dependents of the foreign missionary societies in the United States, reside in Turkey under the guarantee of law and usage and in the legitimate performance of their educational and religious mission. No efforts have been spared in their behalf, and their protection in person and prop- erty has been earnestly and vigorously en- forced by every means within our power. I regret, however, that an attempt on our ‘| Turkey as have lately shocked civ The powers declare this right and th part to obtain better information concern- ing the true condition of affairs in the dis- turbed quarter of the Ottoman Empire, by sending thither the United States consul at Sivas to make investigation and report, was thwarted by the objections of the Turkish Government. This movement on our part was In no sense meant as a gratul- tcus entanglement of the United States In the so-called Eastern question, nor as an officicious interference with the right and duty which belong by treaty to certain great European powers, calling for their in- tervention in political matters affecting the good government and religious freecom of the non-Mussulman subjects of the sultan, but it arose solely from our desire to have ar accurate knowledge of the conditions in our efforts to care for those entitled to our protection. The presence of our naval vessels which are now in the vicinity of the disturbed localities affords opportunities to acquire a@ measure of familiarity with the condition of affairs, and will enable us to take suit- able steps for the protection of any inter- ests of cur countrymen within reach of our ships that might be found imperiled. The Ottoman Government has lately is- sved an imperial irade exempting forever from taxation an American college for girls at Scutari. Repeated assurances have also been obtained by our envuy at Con- stantinople that similar institutions main- tained and administered by our country- men shall be secured in the enjoyment of all rights, and that our citizens throughout the Empire shall be protected. The Government, however, in view of ex- isting facts, is far from relying upon such assurances as. the limit of its duty. Our minister has been vigilant and alert in af- fording all possible protection in individual cases where danger threatened or safety was imperiled. We have sent ships as far toward the points of actual disturbance as it is possible for them to go, where they offer refuge to those obliged to flee, and we have the promise of other powers which have ships in the neighborhood that our citizens, 4s well as theirs, will be received and protected on board those ships. On the demand of our minister, orders have been issued by the Sultan that Turkish soldiers shall guard and escort to the coast Amerl- can refugees. These orders have been carried out, and our latest intelligence gives assurance of the present rersonal safety of our citizens and missionaries. Though thus far no lives of American citizens have been sacrificed, there can be no doubt that serious loss and destruction of mission property have re- sulted from riotous conflicts and outrageous attacks. By treaty several of the most powerful European powers have secured a right and have assumed a duty not only in behalf of their own citizens and in furtherance of their own interests, but as agents of the Christian world. Their right is to enforce such conduct of Turkish government as restrain fanatical brutality, and if this fails their duty is to so interfere as to in- sure against such dreadful occurrences in ization. duty to be theirs alone, and it is earnestly hoped that prompt and effective actien on their part will not be delayed. ‘The new consulates at Ezeroum anJ Har- poot, for which appropriation was made last session, have been provisionally till by trusted employes of the Department of State. These appointees, thoush new in Turkey, have not yet received _heir ex- equaturs. The arbitration of the claim of tne Ven- ezuela Steam Transportation Commany un- der the treaty of January 19, 1 between the United States and Venezuela, resulted in an award in favor of the claimant. ‘The government has used its good offices ; toward composing the differences between Venezuela on the one hand and France and Belgium on the other, growing out of the dismissal of the representatives of those powers on the ground of a publication deem- ed offensive to Venezuela. Although that dismissal was coupled with a cordial re- quest that other more personally agreeable envoys be sent in their stead, a rupture of intercourse ensued, and still continues. The Co jar Service. In view of the growth of our interests in foreign countries and the encouraging pros- Fects for a general expansion of our com- merce, the question of an improvement in the ccnsular service has increased in im- portance and urgency. Though there is no doubt that the great body of consular offi- cers are rendering valuable services to the trade and industries of the country, the reed of some plan of appointment and con- trol which would tend to secure a higher average of efficiency can not be denied. ‘The importance of the subject has led the Executive to consider what steps might Properly be taken without additional legis- lation to answer the need of a better system of consular appointments. The matter hav- irg been committed to the consideration of the Secretary of State, in pursuance of his recommendations, an Executive order was issued cn the 20th of September, 1895, by the terms of which it is provided that after that date any vacarcy in a consulate or commercial agency with an annual salary or compensation from official fees of not more than $2,500 or less than $1,000 should be filled either by transfer or promotien from some other position under the Department of State of a character tending to qualify the incumbent for the position to be filled, or by the appointment of a person not under the Department of State, but having pre- viously served thereunder and shown his capacity and fitness for consular duty, or by the appointment of a person who, having been selected by the President and sent to a board for examination, is found, upon such exemination, to be qualified for the position. Posts which pay less than $1,000 being usu- ally, on account of their small compensa- tion, filled by selection from residents of the locality, it was not deemed practicable to put them under the new system. ‘The compensation of $2,500 was adopted as the maximum limit in the classification for the reason that consular officers receiving more than that sum are often charged functions and duties scarcely infe: dignity and importance to those of dipio- matic agents, and it was therefore thought best to continue their selection in the dis- cretion of the Executive without subjecting them to examination before a board. Ex- cluding seventy-one places with compensa- tion at present less than $1,000, and fifty- three places above the maximum in compen- sation, the number of positions remaining within the scope of the order is one hun- dred and ninety-six. This number will un- doubtedly be increased by the inclusion of corstlar officers whose remuneration in fees, now Jess than $1,000, will be augmented with the growth of our foreign commerce and a return to more favorable business conditions. In execution of the Executive order re- ferred to, the Secretary of State has desig- nated as a board to conduct the prescribed examinations the Third Assistant Secretary of State, the Solicitor of the Department of State, and the Chief of the Consular Lu- reau, and has specified the subjects, to which svch examinations shall relate. It is not assumed that this system will prove a full measure of consular reform. It is quite probable that actual experience will show particulars in which the order already issued may be amended, and demonstrate that? for the best results, appropriate leg- islation by Congress is imperatively re- quired. In any event these efforts to improve the consular service ought to be immediately supplemented by legislation providing for consular Inspection, This has frequently been a subject of Executive recommenda- tion, and I again urge such action by Con- gress as will permit the frequent and thor- ough inspection of consulates by officers appointed for that purpose or by persons already in the diplomatic or consular serv- ice. The expense attending such a plan would be ‘nsignificant compared with Its usefulness, and I hope.the legislation neces- sary to set it on foot will be speedily forth- coming. Iam thoroughly convinced that in addi- tion to their salaries our ambassadors and ministers at foreign courts should be pro- vided by the Government with official resi- dences. The ealaries of these officers are comparatively small-~and in most cases in- sufficient to pay, with other necessary ex- penses, the cost of maintaining household establishments in keeping with their im- portant and delicate functions. The use- fulness of a nation’s diplomatic represen- tative undeniably depends much upon the appropriateness of his surroundings, and a country like ours, while avoiding unneces- sary glitter and show, should be certain that it does not suffer in its relations with foreign nations thrcugh parsimony and shabbiness in its diplomatic outfit. These considerations and the other advantages of having fixed and somewhat permanent lo- cations for our embassies, would abund- attly justify the moderate expenditure nec- essary to carry out this suggestion. The National Finances, As we turn from a review of our foreign relations to the contemplation of our na- tional financial situation we are imme- diately aware that we approach a subject of domestic concern more important than any other that can engage our attention, and one at present in such a perplexing and delicate predicament as to require prompt and wise treatment. We may well be encouraged to earnest effort in this direction when we recall the stcps already taken toward improving our economic and financial situation, and when we appreciate how well the way has been prepared for further progress by an arous- ed and intelligent popular interest in these subjects. By command of the people a customs- revenue system, designed for the protec- tion and benefit’ of favored classes at the expense of the great mass of our country- men, and which, while inefficient for the purpose of revenue, curtailed our trade re- lations and impeded our entrance to the markets of the world, has been superseded by a tariff policy which in principle is based upon a dental of the right of the Government to obstruct the avenues to our people's cheap living or lessen their com- fort and contentment,for the sake of accord- ing especial advantages to favorites, and which, while encouraging our tntercourse and trade with other nations, recognizes the fact that American self-reliance, thrift and ingenuity can build up our country’s industries and develop its resources more surely than enervating paternalism. ‘The compulsory purchase and coinage of silver by the government, unchecked and unregulated by business conditions and heedless of our currency needs, which for more than fifteen years diluted our circu- lating medium, undermined confidence abroad in our financial ability, and at last culminated in distress and panic at home, has been recently stopped by the repeal of the laws which forced this reckless scheme upon the country. The things thus accomplished, notwith- standing their extreme importance and beneficent effects, fall far short of curing the monetary evils from which we suffer as a result of long indulgence in ill-advised financial expedients. ‘The currency denominated United States notes and commonly known as greenbacks was issued: in large volume during the late civil war, and was intended originally to meet the exigencies of that period. It will be seen by’ a reference to the debates in Congress at the time the laws were passed authorizing the issue of these notes that their advocates declared they were intended for only temporary use and to meet the emergency of war. In almost if not all the laws relating to them some provision was made contemplating their voluntary or compulsory retirement. A large quantity of them, however, were kept on foot and mingled with the currency of the country, so that at the close of the year 1874 they amounted to $381,999,073. Immediately after that date, and in Jan- uary, 1875, a law was passed providing for the resumption of specie payments, by which the Secretary of the Treasury was required, whenever additional circulation was issued to national banks, to retire United States notes equal in amount to 80 percent of such additional national-bank circulation until such notes were reduced to $00,000,000. This law further provided that on and after the Ist day of January, 1879, the United States notes then outstanding should be redeemed in coin, and in order to provide and prepare for such redemption the Secretary of the Treasury was author- ized not only to use any surplus revenues of the government, but to issue bonds of the United States and dispose of them for coin, and to use the proceeds for the pur- poses contemplated by the statute. In May, 1878, and before the date thus appointed for the redemption and retire- ment of these notes, another statute was passed forbidding their further cancella- tion and retirement. Some of them had, however, been previously redeemed and canceled upon the issue of additional na- tional-bank circulation, as permitted by the law of 1875, so that the amount outstand- ing at the time of the passage of the act forbidding their further retirement was $346,681,016. The law of 1878 did not stop at distinct prohibition, but contained, in addition, the following express provision “And when any of said notes may be 1e- deemed or be received into the Treasury, under any law, from any source whatever, and shall belong to the United States, they shall not be retired, canceled or destroyed, but they shall be reissued and paid out again and kept in circulation.” This was the condition of affairs on the Ist day of January, 1879, which had been fixed upon four years before as the date for entering upon the redemption and re- tirement of all these notes, and for which such abundant means had been provided. The Government was put in the anoma- lous situation of owing to the holders of its notes, debts payable in gold on demand which could neither be retired by receiving such notes in discharge of obligations due the Government, ror canceled by actual payment in gold. It was forced to redeem without redemption and to pay without acquittance. There had been issued and sold $95,500,000 of the bonds authorized by the resumption act of 1875, the proceeds of which, together with other gold in the Treasury, created a gold fund deemed sufficient to meet the de- mands which might be made upen it for the redemption of the outstanding United States notes. This fund, together with such other gold as might be from time to time in the Treasury availabie for the same pur- pose, has been since called our gold re- serve, and $100,000,000 has been regarded as an adequate amount to accomplish its ob- ject. This fund amounted on the Ist day of January, 3,360, and though thereafter constanily fluctuating, it did not fall below that sum until July, 1892. In Apri!, 1898, for the first time since its estab- lishment, this reserve amounted to less than $100,000.00, containing at that date only $97,011,330, In the meantime, and in July, 1890, an act had been passed directing larger gov- ernmental monthly purchases of silver than had been required under previous laws, and providing that in payment for such silver Treasury notes of the United States should be issued payable on demand in gold or silver coin, at the discretion of the Secretary of the Treasury. It was, however, declared in the act to be “the established policy of the United States to maintain the two metals on a parity with each other upon the present legal ratio, or such ratio as may be provided by law.” In view of this declaration it was not deemed permissible by the Secretary of the Treas ury to exercise the discretion in terms con. ferred on him, by refusing to pay gold on these notes when demanded, because by such discrimination in favor of the gold dollar. the so-called parity of the two met- als would be destroyed, and grave and dan- serous consequences would be precipitated by affirming or accentuating the constantly widening disparity between their actual values under the existing ratio. It thus resulted that the Treasury notes issued in payment of silver purchases under the law of 1800 were necessarily treated as old obligations, at the option of the holder. These notes on the ist day of November, 1893, when the law compelling the monthly purchase of silver was repealed, amounted to more than $155,000,000. The notes of this description now outstanding added to the United States notes still undiminished by redemptton or cancellation constitute a volume of gold obligations amounting to nearly $500,000,000. These obligations are the instruments which, ever since we have had a gold reserve, have been used to de- piete It. The Depleted Reserve. This“ reserve, as has been stated, had fallen in April, 1893, to $97,011,330. It has from that time to the present, with very few and unimportant upward movements, steadily decreased, except it has been temporarily replenished by the sale of bonds. Among the causes for this constant and unifurm shrinkage in this fund may be mentioned the great falling off of exports under the operation of the tariff law until recently in force, which crippled our ex- change of commodities with foreign na- tions and necessitated to some extent the payment of our balances in gold; the un- natural infusion of silver into our currency, and the increasing agitation for its free and unlimited coinage, which have created apprehension as to our disposition or abii- ity to continue gold payments; the conse- quent hoarding of gold at home and the stoppage of investments of foreign capital, as well as the return of our securities al- ready sold abroad; and the high rate of for- eign exchange, which induced the shipment of our gold to be drawn against, as a matter of speculation. In consequence of these conditions the gold reserve on the ist day of February, 184, Was reduced to $85,438,377, having lost more than $31,0v0,Gv0 during the preceding nine months, or since April, 1808. Its replenish- ment being necessary, and no other manner of accomplishing it being possible, resort was had to the issue and sale of bonds pro- vided for by the resumption act of 1875. Fifty millions of these bonds were sold, Yielding $5% 653,295.71, which was added to the reserve fund of gold then on hand. As a result of this operation this reserve, which had suffered constant and large with- drawals in the meantime, stood on the 6th day of March, 1894, at the sum of $107,446,- 802. Its depietion was, however, immediate- ly thereafter so accelerated that on the 30th day of June, 18d, it had fallen to $64,- 873,025, thus losing by withdrawals more than $42,000,000 in five months and dropping slightly below its situation when the sale of $50,000,000 in bonds was effected for its replenishment. This depressed condition grew worse, and on the 24th day of November, 1894, our gold reserve being reduced to $57,669,701, it be- came necessary to again strengthen it. This was done by another sale of bonds amount- ing to $59,000,000, from which there was realized $58,538,500, with which the fund of December, 1894. Again disappointment awaited the anxious hope for reiief. There was not even a luil in the exasperating withdrawats of gold. On the contrary, they grew larger and more persistent than ever. Between the 4th day of December, 1894, and early in February, 1895, a period of scarcely more than two months after the second reinforcement of our gold reserve by the sale of bonds, it had lost by such withdrawals more than $60,- 000,000, and had fallen to $41,340,181. Near- ly $43,000,000 had been withdrawn within the month immediately preceding this situa- tion. In anticipation of impending trouble, I had on the 28th day of January, 1895, ad- dressed a communication to the Congress fully setting forth our difficulties and dang- erous position, and earnestly recommending that authority be given the Secretary of the Treasury to issue bonds bearfng a low rate of interest, payable by their ternfs in gold, for the purpose of maintaining a sufficient gold reserve, and also for the redemption and cancellation of outstanding United States notes and the Treasury notes issued for the purchase of silver under the law of 1890. This recommendation did not, how- ever, meet with legislative approval. In February, 1895, therefore, the situation was exceedingly critical. With a reserve perilously low and a refusal of Congres- sional aid, everything indicated that the end of gold payments by the Government was imminent. The results of prior bond issues had been exceedingly unsatisfactory, and the large withdrawals.of gold immediately succeeding their public sale in open market gave rise to a reasonable suspicion that a large part of the gold paid into the Treas- ury upon such sales was promptly drawn out again by the presentation of United States notes or Treasury notes and found its way to the hands of those who had only temporar:ly parted with it in the purchase of bonds. The Recent Bond Issues. In this emergency, and in view of {ts sur- rounding perplexities, it became entirely ap- parent to those upon whom the struggle for safety was devolved not only that our goid reserve must, for the third time in less than thirteen months, be restored by another issue and sale of bonds bearing a high rate of interest and badly suited to the purpose, but that a plan must be adopted for their disposition promising better results than those realized on previous sales. An agree- ment was therefore made with a number of financiers and bankers whereby it was stipulated that bonds described in the re- sumption act of 1875, payable in coln thirty years after their date, bearing interest at the rate of four per cent per annum, and amounting to about $62,000,000, should be exchanged for gold, reccivable by weight, amounting to a little more than $65,000,000, This gold was to be delivered in such in- stallments as would complete its delivery within about six months from the date of the contract, and at least one-half of the amount was to be furnished from abruad. It was also agreed by those supplying this gold that during the continuance of tie contract they would by every means in their power protect the Government against gold withdrawals. The contract also pro- vided that if Congress would authorize their ue, bonds payable by their terms in gold and bearing interest at the rate of three per cent per annum might within ten days be substituted at par for the four per cent bonds described in the agreement. On the day this contract was made its terms were communicated to Congress by a special Executive message, in which it was stated that more than sixteen millions of dollars woula be saved to the Goyern- ment if gold bonds bearing three per cent Interest were authorized to be substituted for those mentioned in the contract. The Congress having deciined to grant the necessary authority to secure this sav- ing, the contract, unmodified, was carried out, resulting in a gold reserve amounting to $107 20 on the Sth day of July, 1895. The performance of this contract not only restored the reserve, but checked for a time the withdrawals of gold and brought on a period of restore confidence and such peace and quiet in business circles as were of the greatest possible value to every in- terest that affects our people, I have never had the slightest misgiving concerning the wisdom or propriety of this arrangement, and am quite willing to answer for my full share of responsibility for its promotion. I believe if .verted a disaster the imminence was increased to $111,142,021 on the 4th day ©

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