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ta a roy iATS WY, ‘THE EVENING ‘STAR, MONDAY, DECEMBER 7%, 1896-16 PAGES. THE MESSAGE (Continued from Twelfth Page.) it was less than one-thirtieth of the total expense. The average revenue from each pound of first-class matter was 93 cents. From each pcund of second-class, 8% mills (of the second class $52,348,297 was bounty free matter). From each pound of third class, 13.1 cents; from each pound of fourth class, 15.6 cents. The growth in weight of second-class matter has been from 299,000,000 pounds in 189 to 312,000,000 in 1895, and to almost 3a 1896, and it is quite evident this increasing drawback is far outstrip- ping any possible growth of postal reve- ues. Our mall service should, of course, be such as to meet the wants and even the conveniences of our people, at a direct charge upon them so light as perhaps to exclude the idea of our Post Office Depart- ment belng a money making concern; but in the face of a constantly recurring de- ficiency in its revenues, and in view of the fact that we supply the best mail service in the world, it seems to me it is quite time to correct the abuses that swell enormously our annual deficit. If we concede the pub- lic policy of carrying weekly newspapers free in the county of publication, and even the policy of carrying at less than one-tenth of their cost, other bona fide newspapers and periodicals, there can be no excuse for subjecting the service to the further im- ™ense and increasing loss involved in car- tying at the nominal value of 1 cent 2 pound the serial libraries, sometimes in- cluding trashy and even harmful literature, and other matter, which, under the loose interpretation 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 pro- Gucing a large annua! loss to he paid by general taxation. If such second-class matter paid merely the cost of its handling our deficit would disappear and a surplus result which might be used to give the peo- ple still better mail facilities or cheaper rates of letter postage. I recommend that legislation be at once enacted to correct these abuses and intreduce better business ideas in the regulation of our postal rates. Experience and observation have demon- strated that certain improvements in the organization of the Post Office Department must be secured before we can gain the full benefit of the immense sums expended in its administration. This involves the fol- lowing reforms, which I earnestly recom- mend: There should be a small addition to the existing inspector service, to be em- ed in the supervision of the carrier which now numbers 13,000 men, and performs its ser practically without ilance exercised over the other of the postal or public service. Of course, such a lack of supervision and freedom from wholesome disciplinary re- straints must inevitably lead to imperfect service. There should also be appointed a few inspectors who could assist the central office in necessary investigation concerning matters of post office leases, post office sites, allowances for rent, fuel and lights, and in organizing and securing the best results from the work of the 14,000 clerks now employed in first and second-class offi I am convinced that the small expense attending the inauguration of these re- for would actually be a profitable in- vestment. I especislly recommend such a recasting of the appropriations by Congress for the Post Office Department as will permit the Postmaster General to proceed with the wo:k of consolidating post offices. s werk has already been entered upon ‘ently to fully demonstrate by experi- ment and experience that such consolida- tion is productive of better service, larger revenues and less expenditures, to say nothing of the further advantage of grad- ually withdrawing post offices from the spoils system. The Coming Postal Congress. ‘The Universal Postal Union, which now" embraces all the civilized world, and whose delegates will represent 1,000,0000,000 people, will hold its fifth congress in the ity of Washington in May, 1897. The United States may be said to have taken the initiative which led to the first n.ccting of this congress, at Berne, ia 1874, and the formation of the Universal Postal Union, which brings the postal service of all coun- tries to every man’s neighbornood, and has wrought marvels in cheapening postal rates and securing absolutely safe mail communication throughout the world. Previous congresses have met in Berne, Paris, Lisbon and Vienna, and the respec- tive countries in which they have assem- bled have made generous provision for their accommodation and for the reception and entertainment of the delegates. In view of the importance of this assem- blage, and of Its deliberations, and of the henors and hospitalities accorded to our representatives by other countries on sim- ilar occasions, I earnestly hope that such an appropriation will be made for the ex- penses necessarily attendant upon tke coming meeting in our capital city as will be worthy of our national hospitality, and indicative of our appreciation of the event. THE NAVY. The werk of the Navy Department and {ts present condition are fully exhibited report of the Secretary. ¢ struetion of is for our new navy has heen energetically prosecuted by the present administration upon the gen- eral lines previously adopted, the depart- ment having seen no necessity for radical changes in rrior methods under which the work was found to be progressing in a manner highly satisfactory. It has been decided, hewever, to provide in every ship- building contract that the builder should Pay all trial expenses, and it has also been determined to pay no speed premiums in future contracts. The premiums recently earned and some yet te be decided are fea- tures of the contracts made before this conclusion was reached. On March 4, 1895, there were in commis- sion but two armored vessels, the double- turreted monitors Miantonomuh and Mon- terey. Since that date, of vessels theref- tofore authorized, there have been piaced in their-first commission three firsi-class and (wo second-class battle ships, two ar- mored cruisers, one harbor defense ram, and five double-turreted monitors, includ- ing the Maine and the Puritan, just com- pleted. Eight new unarmored cruisers and two new gunboats have also been commis- sioned. The Iowa, another battle ship, will be completed about March 1, and at least four more gunboats will be ready for sea in the early spring. It is gratifying to state that our ships and their outfits are believed to be equal to the best that can be manufactured else- where, and that such notable reductions have been made in their cost as to justify the statement that quite a number of yes- sels are row being constructed ‘at rates as low as thcse that prevail in European ship- yards. Our manufacturing facilities are at this time ample for all possible naval contin- gencies. Three of our government navy yards, those at Mare Island, Cal.; Norfolk, Va., and Brooklyn, N. Y¥., are equipped for shipbuilding; our ordnance plant in Wash- ington is equal to any in the world, and at the torpedo station we°are successfully making the highest grades of smokeless powder. Three first-class private ship- yards, at Newport News, Philadelphia and San Francisco, are building battle ships; > eieven contractors, situated in the states of Maine, Rhode Island, Pennsylvania, New Jersey, Maryland, Virginia and the state of Washington, are constructing gunboats or torpede boats; two plants are manufactur- ing large quantities of first-class armor, and American factories are producing au- tomobile torpedoes, powder, projectiles, rapid-fire guns and everything else neces- sary for the complete outfit of naval ves- sels. There have been authorized by Congress since March, 1598, five battleships, six light draft gunboats, sixteen torpedo boats and one submarine torpedo boat. Contracts for the building of all of them have been let. The Secretary expresses the opinion that we have for the present a sutlicient supply of cruisers and gunboats, and that here- after the construction of battle ships and torpedo boats will supply our nee is. Much attention has been given to the methods of carrying on departmental busi- ness. Important modifications in the regu- lations have been made, tending to unify the control of shipbuilding, as far as may be, under the bureau of construction and repair, and also to improve the mode of purchasing supplies for the navy by the bureau of supplies and accounts, The es- tablishment, under recent acts of Congress, of a supply fund, with which to purchase these supplies in large quantities, and other modifications of methods have tended ma- terially to their cheapenirg and better quality. . The War College has developed into an Institution which, it is believed, will be of great value to ihe navy in teaching the science of war as well as in stimulating professional zeal in the navy, and it will be especially useful in the devising of pians for the utilization in case of neces- sity of all the naval resources of the United States. The Secretary has persistently adhered to the plan he found in operation for secur- ing labor at navy yards through boards of labor employment, and has done much to make it more complete and efficient. The naval officers who are familiar with this system and its operation express the de- cided opinion that its results have been to vastly improve the character of the work done at our yards and greatly reduce ‘ts cost. The discipline among the officers and men of the navy has been maintained to a high standard, and the percentage of Amer- iéan citizens enlisted has been very much ir creased. The Secretary is considering, and will formulate during the coming winter, a plan for laying up ships in reserve, thereby largely reducing the cost of maintaining the vessels afloai. This plan contemplates that battle ships, torpedo boats and such of the cruisers as are not needed fer ac- tive service at sea shall be kept in re- serve, with skeleton crews on board to keep them in condition, cruising only encugh to insure the efficiency of the sh'ps and their crews in time of activity. The economy to result from this system is too obvious tg need comment. ‘The naval militia, which was authorized a few years ago as an experiment, has now developed into a body of enterprising young men, active and energetic in the discharge of their duties, and promising great use- fulness. This establishment has nearly the same relation to our navy as the National Guard in the different states bears to our army, and it constitutes a source of supply for our naval forces, the importance of which is immediately apparent. INTERIOR DEPARTMENT. The report of the Secretary of the In- terior presents a comprehensive and in- teresting exhibit of the numerous and im- portant affairs committed to his super- jon. It 1s impossible in this communica- tion to do more than briefty refer to a few of the subjects, concerning which the § retary gives full and instructive fnforma- tion. ‘The money appropriated on account of this department, and for it: disbursement, for the fiscal year ended June 30, 1896, amounted to more than $157,000,000, or a greater sum than was appropriated for the entire maintenance of the government for the two fiscal years ended June 30, 1861. Our public lands, originally amounting to 1,$40,000,000 acres, have been so reduced that only about 600,000,000 acres still re- main in government control, excluding Alaska. The balance, being by far the most valuable portion, has been given away to settlers, to new states, and to rail- roads, or sold at a comparatively nominal sum. The patenting of land in execution of railroad grants has progressed rapidly during the year, and since the 4th day of March, 1893, about 25,000,000 acres have thus been conveyed to these corporations. I agree with the Secretary that the re- mainder of our public lands should be mere carefully dealt with and their aliena- tion guarded by better economy and great- er prudence. The commission appointed from the mem- bership of the National Academy of Sciences, provided for by an act of Con- gress, to formulate plans for a national forestry system will, it 1s hoped, soon be prepared to present the result of thorough and intelligent examination of this import- ant subject. The total Indian population of the United States 1s 177,235, according to a census made in 1895, exclusive of those within the state of New York and those com- prising the five civilized tribes. Of this number there are, approximately, 39,000 children of school age. During the year 23,293 of these were enrolled in schools. The progress which has attended recent efforts to extend Indian school facilities and the anticipation of continued liberal appropriations to that end cannot fail to afford the utmost satisfaction to those who believe that the education of Indian chil- dren is a prime factor in the accomplish- ment of Indian civilization. It may be said in general terms that in every particular the improvement of the Indians under government care has been most marked and encouraging. The Secretary, the commissioner of In- dian affairs and the agents having charge of Indians to whom allotments have been made strongly urge the passage of a law prohibiting the stle of liquor to allottees who have taken their lands in severalty. I earnestly join in this recommendation, ard venture to express the hope that the In- dian may be speedily protected against this greatest of all, obstacles to his well-being and advancement. The Indinn Territory. The condition of affairs among the five civilized trikes who occupy large tracts of land ia the Indian territory, and who have governments of their own, has as- sumed such an aspect as to render it al- most indispensable that there should be an entire change in the relations of these Inéians to the general government. This seems to be necessary in further- ance 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 relirquishment of their courts and the division of their common lands in several- ty, and are aiding in the settlement of the troublesome question of tribal membership. The reception of their first proffers of ne- gotiation was not encouraging; but through patience and such conduct on their part as demonstrated that their intentions were friendly and in the interest of the trides the prospect of success has become more promising. The effort should be to save these Indians from the consequence of their own mistakes and improvidence, ard to secure to the real Indian his rights as against intruders and professed friends who profit by his retrogression. A change. is also needed to protect life and property through the operation of courts conducted according to strict justice and strong enough to enforce their mandates. As a sincere friend of the Indian, I am exceedingiy anxious that these reforms should be accomplished with the consent and aid of tne tribes, and that no necessity may be presented for radical or drastic legislation. I hope, therefore, that the commission now conducting negotiations will soon be able to report that progress has been made toward a friendly adjust- ment of existing difficulties. It appears that a very valuable deposit of Gilsonite or asphaltum has been found on the reser- vation in Utah occupied by the Uncom- pahgre Ute Indians. Every consideracion of care for the public interest and every sensible business reason dictate such man- agement or disposal of this important source of public revenue as will ex:ept it from the general rules and incidents attend- ing the ordinary disposition of public lands and secure to the government a fair snare at least of its advantages in place of its transfer for a nominal sum to interested in- dividuals. I indorse the recommendation made by the present Secretary of the In- terior, as well as his predecessor, that a permanent commission, consisting of three members, one of whom shall be an army officer, be created to perform the duties now devolving upon the commissioner and assistant commissioner of Indian affat The management of the bureau involves such numerous and diverse details, and the advantages of an uninterrupted policy are so apparent, that I hope the change suggested will meet the approval of the Congress. The Pension Roll. The diminution of our enormous rension roll and the decrease of pension expendi- ture which have been so often confidently foretold still fail in material realization. The number of pensioners on the rolls at the close of the fiscal year ended June 1896, was 970,678. ‘This is the largest num- ber ever reported. The amount paid ex- clusively for pensions during the year was $128,214,761.04, a slight decrease from that the preceding year, while the total ex- penditures on account of pensions, includ- ing the cost of maintaining the department and expenses attending pension distribution, amounted to $142,206,550.59, or within a very small fraction of one-third of the en- tire expense of supporting the government during the same year. The number of new pension certificates issued was 90,610. Of these, 40,374 represent original allowances of claims, and $ increases of existing pens‘ons, ‘The number of persons receiving pensions from the United States, but residing in for- eign countries, at the close of the last fiscal year was 3,781, and the amount paid to them during the year was $082,745.18. The sum appropriated for the payment of pen- sicns for the current fiscal year ending June 30, 1897, Is $140,000,000, and for the succeeding year it ts estimated that the same amount will be necessary. The com- missioner of pensions reports that during the last fiscal year 339 indictments were found against violators of the pension laws. Upon these indictments 167 convic- tions resulted. In my opinion, based upon such state- ments as these, and much other informa- tion and observation, the abuses which have been allowed to creep into our pension system have done incalculable harm in de- moralizing our people and undermining geod citizenship. I have endeavored, with- in my sphere of official duty, to protect our pension roll and make it what It should he, a roll of honor, containing the names of those disabled in their country’s service and worthy of their country’s affectionate remembrance. When I have seen those who pose as the soldiers’ friend, active and alert in urging greater laxity and more reckless pension expenditure, while nursing selfish schemes, I have deprecated the ap- preach of a situation when necessary re- trenchment and enforced economy may lead to an attack upon pension abuses, so determined as to overlook the discrimina- tion due to those who, worthy of a nation’s care, ought to ive and dle under the pro- tection of a nation’s gratitude. The Pacific Railroads, The Secretary calls attention to the pub- lic interests Involved in an adjustment of the obligations of the Pacific railroads to the government. I deem it to be an im- pertant duty to especially present this sub- Ject to the consideration of the Congress. On January 1, 1897, with the amount al- ready matured, more than $13,000,000 of the principal of the subsidy bonds issued by the United States in aid of the construction of the Union Pacific railway, including Kansas line, and more than $6,000,000 like bonds issued in aid of the Central Pa- cific railroad, including those issued to the Western Pacific Railroad Company, will have fallen due and been paid or must on that day be paid by the government. With- out any reference to the application of the sirking fund now in the treasury, this will create such a default on the part of these companies to the government as will give it the right to at once institute proceedings to foreclose its mortgage lien. In addition to this indebtedness, which will be due Jan- uary 1, 1897, there will mature between that date and January 1, 1899, the remain- ing principal of such subsidy bonds, which must also be met by the government. These amount to more than $20,000,000 on account of the Union Pacific lines, and exceed $21,- 000,000 on account of the Central Pacific lines. The situation of these roads and the con- dition of their indebtedness to the govern- ment have been fully set forth in the re- pcrts of various committees to the present and prior Congresses; and as early as i887 they were thoroughly examined by a spe- cial commission appointed pursuant to an act of Congress. The considerations re- quiring an adjustment of the government's relations to the companies have been clear- ly presented, and the conclusion reached with practical uniformity that if these re- lations are not terminated they should be revised upon a basis securing their safe continuance. Under section 4 of the act of Congress passed March 3, 1887, the Presi- dent is charged with the duty, in the event that any mortgage or other incumbrance paramount to the interest of the, United States in the property of the Pacific rail- roads shall exist and be lawfully Hable to be enforced, to direct the action of the de- partments of Treasury and Justice in the protection of the interest of the United States by redemption or through judicial proceedings, including foreclosures of the government liens. In view of the fact that the Congress has for a number of years almost con- stantly had under consideration various plans for dealing with the conditions ex- isting between these roads and the govern- ment, I have thus far felt justified in with- holding action under the statute above mentioned. In the case of the Union Pacific Com- peny, however, the situation has become especially and immediately urgent. Pro- ceedings have been instituted to foreclose a first mortgage upon those aided parts of the main lines upon which the govern- ment holds a secord and subordinate mort- gage lien. In consequence of those pro- ceedings and increasing complications,~ed- ded to the default occurring on the ist day of January, 1897, a condition will be presented at that date, so far as this com- pany is concerned, that must emphasize the mandate of the act of 1887, and give to executive duty under its provisions a more imperative aspect. Therefore, unless Congress shall otherwise direct, or shall have previously determined upon a differ- ent solution of the problem, there will hardly appear to exist any reason for de- laying beyond the date of the default: above mentioned, such executive action as will promise to gubserve the public inter- f as ests and save the.goyernment from the loss threatened by further inaction. DEPARTMENT oe _ AGRICULTURE. The Department ef Agriculture is so in- timately related tg tha;welfare of our peo- ple and the prosperity of our nation that it should constantly "eceive the care and encouragement of the, government, From small beginnings itzas grown to be the center of agricultur#! dntelligence, and the source of aid and eneauragement to agri- cultural efforts. Lansiisums of money are annually appropriatedyfor the maintenance of this departmentysand it must be con- fessed that the legislation relating to it has not always been dtreetly in the interest of practical farming‘ Ot properly guarded against waste and textravagance: So far, however, as public money has heen appro- priated, fairly and sénstbiy, to help those who actually till the soil, no expenditure has heen more profitably made and more generally approved by the people, under the present management of the depart-. ment. Its usefulness ‘has been enhanced in every direction, and at the same time &trict economy has been ¢nforceti to the utmost extent permitted by congressional action= From the report of the Secretary it ap- pears that, through® careful’ and prudent financial management, he has annually saved a large sum from his appropriations, aggregating during his incumbency and up to the close of the present fiscal year near- ly one-fifth of the entire amount appro- priated. ‘The results have been accom- plished by a conscientious study of the real needs of the fermer, and such a regard for economy as th nuine farmer ought to appreciate, supplemented by a rigid ad- herence to civil service methods in a de- partment which should be conducted in the interest of agriculture, instead of partisan politics. The Secretary reports that the value of our exports of farm products during the last fiscal year amounted to $57,000,000, an increase of $17,100,000 over those of the year immediately preceding. ‘This state- ment is not the less welcome because of the fact that, notwithstanding such increase, the proportion of exported agricultural products to our total exports of all descrip- tions fell off during the year. The benefits of an increase in agricultural exports be- ing assured, the decrease in its proportion to our total exports is the more gratifying when we consider that it is owing to the fact that such total exports for the year increased more than $75,000,000. The large and ine ng exportation of our agricultural products suggests the great usefulness of the organization lately established in the department for the pur- in farming neerning of Gif- Inasmuch as the mer Jepends upon the ad- vantageous sale of nis products, and inas- much as foreign mar! must largely be the destination of such products, quite apparent that a knowledge of ihe condi- tions and wants that affect thoss markets, ought to result in sowing more intelligent- ly and reaping with a, better promise of profit. Such Information ) points out the way to a prudent for in the selection and cultivation of croys and to a releas from the bgndage ,of;,unreasoning mon- otony of production, a giutted and depre: ed market, and caystgnuy recurring un- profitable toil. : : Seed Distribution, In my opinion the ‘gratuitous distribution of seeds by the department as at pregent condueted ought to bai discontinued, No one can read the s¢atement of the Secre- tary on this subject dnd'aount the ext gance and questionable results of this prac- tice. The professed 'fri@ads of the farmer, and certainly the futentrs thense! are naturally expected to bewilling to rid a de- rartinent devoted? tothe’ promotion ,.of farming interests of A oe whith tends so much to its discredit: The weather burvau; nd” attached to the Department of Agric@tture, Has continued to extend itsisphere of usefulness, and pose of giving to those engage informati: pursuits reliable the condition, nev. ferent foreign m: success of the f: by an uninterrupted improvement in the, accuracy of st# forecasts ‘Mas greatly in- creased: its efficiency es an aid-and pro- tection to all whose occupations are re- lated to weather condition: Omitting all further reference to the operations of the department I commend the Secretary's report and the suggestions it contains to the careful consid of the Congr CIVIL SERVICE REFORM. The progress made in civil service re- form furnishes a cause for the utmost con- gratulation. It has survived the doubts of its friends as well as as the rancor of its enemies, and has gained a permanent place among the agencies destined to cleanse our politics and to improve, econo- mize and elevate the public service. ‘There are now in the competitive classi- fled service upward of 84,000 places. More than half of these have been fncluded from time to time since March 4, 1803. A most radical and sweeping extension was made by executive orders dated the 6th day of May, 1896, and if fourth-class postmaster- ships are not included in the statement it may be said that practically all positions contemplated by the civil service law are now ‘classified. Abundant. reasons exist for Including these postmasterships, lased upon economy, improved service, and the peace and quiet of neighborhoods. If, how- ever, obstacles prevent such action <t pres- ent I earnestly hope that Congress will, without increasing post office appropria- tions, so adjust them as to permit in proper cases a consolidation of these post offices, to the end that through this pro- cess the result desired may to a limited extent be accomplished. The civil service ruJes as amended dur- ing the last year provide for a sensible and uniform method of promotion, basing eli- gibility to better positions upon demon- strated efficiency and faithfulness. The absence of fixed rules on this subject has been an infirmity in the system, more and more apparent as its other benefits have been better appreciated. The advantages of civil service methods in their business aspects are too well un- derstood to require argument. Their appli- cation has become a’ nécessity to the ex- ecutive work of the'kov But those who gain positions tprotiéh the operation of these methods sholiid ‘$# made to under- stand that the non-vdrtivan scheme through which they receive*thell! appointments de- mand from them, ‘ty Way of reciprocity, non-partisan and’ fiitn@if performance of duty under ever¥"“adininistratton, and cheerful fidelity to &vet¥' chief; while they should be encouraght t#°decently exercise their rights of citizenship and to support through their suffrazesthe political beliefs they honestly profess, the noisy, pestilent and partisan empleye, who loves political turmoil and contentign, gr who renders lax and grudging servipg tg an administration not representing his,poligical views, should be promptly and feaslegsly dealt with in such a way as to,fyrmish a warning to others who may be:likewlse disposed. The annual‘report of the commissioners will be duly transmitted, and I commend the important matter they have in charge to the careful consideration of the Con- gress. ‘The interstate commerce commission has during the last year supplied abundant evi- dence of its usefulness and the importance of the work committed to its charge. INTERSTATE (COMMERCE. Public transportation is a universal ne- cessity, and the question of just and rea- sonable charges therefor has become of vital importance, not only to shippers and carriers, but also to the vast multitude of preducers and consumers., The justice and equity of the principles embodied in the existing law passed for the purpose of reg- ulating these charges are everywhere con- ceded, and there appears to be no question that the policy thus entered upon has. a permanent place in our legislation. As the present statute when enacted was in the nature of the case more or less ten- tative and experimental, it was hardly ex- pected to supply an adequate system. While its wholesome effects are manifest and have amply justified its enactment, it is evident that all desired reforms in trans- portation methods have noc been fully ac- complished. In view of the Judicial inter- pretation which provisions of this statute have received and the defects disclosed by the efforts made for its enforcement, its revision and amendment appear to be és: sential to the end that it may more effe2 ually reach the evils designed to be cor- rected. I hope the recommendations of the commission upon this subject will be promptly and favorably considered by the Congress. THE TARIFF. recur to the statements else- concerning the government's receipts and expenditures for the purpose of venturing upon some suggestions touch- ing our present tariff law and its opera- tion. This statute took effect on the 28th day of August, 1804. Whatever may be its shortcoming as a complete measure of tariff reform, it must be conceded that it has opened the way to a freer and greater exchange of commodities between us and other countries, and thus furnished a wider market for our products and manufactures. The only entire fiscal year during which this law has been in force ended on the 30th day of June, 1896. In that year our im- ports increased over those of the previous year more than $6,500,000, while the value of the domestic products we exported and which found market abroad was nearly $70,000,000 more than during the preceding year, Thos» who insist that the cost to our peo- ple of articles coming to them from abroad for their needful use should only be in- ed through tariff charges to an extent y to meet the expenses of the gov- ernment, av well as those who claim that tariff charges may be laid upon such ar- ticles beyond the necessities of government enue, and with the additional purpose of so increasing their price in our markets as to give American manufacturers and producers better and more profitable op- portunities, must agree that our tariff laws are only primarily justified as sources of revenue to © the need ‘ons spect the present law can by fall under just condemnation. --T desire to where made ne bu only complete fiscal year of its op has yielded nearly $5,000,000 more revenue n was received from tariff duties in the preceding year. There was, neverthe- less, a deficit between our receipts and expenditures of a little more than $25,000, ouv, This, however, he situation wa: was not unexpe such in December last, ven months before the close of the fiscal year, that the Secretary of the Trea fereiold a deficiency of $17,000,000, T. great und Increasing apprehension and tim- s circles and the depress in all activities intervening since that time, resulting from causes perfectly well under- stood and entirely disconnected with our tariff law or its operation, seriously che ed the imports we would have otherwi recelved, and readily account fer the dif- ference between this estimate of the Sec- retary and the actual deficiency, as well as for a continued deficit. Indeed, it must be confessed that we could hardly have had a more unfavorable period than the i lost two years for the collection ef tariff revenue. We cannot reasonably hope that our re- cvperation from this business depression Will be sudden, but it has already set in, With a promise of acceleration and con- I believe our present tariff law if allowed fair opportunity will in the near future eld a revenue which, with reasonable ical expenditures, will overcome all In the meantime no defi that has occurred er may occur need exe: To mect any such deficit we have in the treasury, in addition to a gold resetve of $10,000,000, a surplus of more than 000,000 applicable to the payme: of the expenses of the government, and which must, unless expended for that pur- pose, remain a useless hoard, or if not ex- travagantly wastcd, must in any event be perverted from the purpose of its exac- tion from our people. The payment, there- fcre, of any deficiency in the revenvie from this fund is nothing more than its proper and legitimate use. The government thus applying a surplus fortunately in its treas- ury to the payment of expenses rot met by its current revenues, is not-at all to be Lkened to a man living beyond his income and thus incarring debt or encroaching on his principal. It is not one of the functions of our gov- ernment to accumulate and make additions to a fund not needed for immediate ex- penditure. With individuals It is the chief object of struggle and effort. The applica- ite ‘tion of an accumulated fund by the govern- ment to the payment of its running ex- penses is a duty. An individual living be- yond his income and embarrassing him- self with debt, or drawing upon his ac- cumulated fund of principal, is either un- fortunate or improvident. The distinction is between a government charged with the duty of expending for the benefit of the people, and for proper purposes, all the money it receives from any source, and the individual who is expected to manifest a natural desire to avoid debt or to ac- cumulate as much as possible, and to live within the income derived from such ad= cumulations, to the end that they may be increased, or, at least, remain unimpaired fcr the future use and enjoyment of him- self or the objects of his love and affection who may survive him, It is immeasurably better to appropriate our surplus to the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravagant expenditures. I suppase it will not be denied that, un- der the present law, our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly. This is a matter of supreme importance, since it is the palpable duty of every just govern- ment toumake the burdens of taxation as light a8.possible. The: people ‘should not be required to relinquish this privilege of cheaper living, except under the stress of their government's necessity made plainly manifest. PROPOSED CURRENCY REFORM. This reference to the condition and pros- pects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods. They have been frequently pressed upon the attention of Congress in previous executive communica- tions and the inevitable danger of their continued toleration pointed out. Without now repeating these detaiis, I cannot re- frain from again earnestly presenting the necessity of the prompt reform of a system opposed to every rule of sound finance, and shown by experience to be fraught with the gravest peril and perplexity. The terrible civil war which shook the foundations of our government more than thirty years ago brought in its train the destruction of prop- erty, the wasting of our country’s sub- stance and the estrangement of brethren. These are now past and forgotten. Even the distressing loss of life the conflict en- tailed is but a sacred memory, which fos- ters patriotic sentiment and keeps alive a tender regard for those who nobly died. ‘And yet there remains with us today, in full strength and activity, as an incident of : that tremendous struggle, @ feature of its circulation and canceled the door of it. offering. Carpets made, laid 1t ULAR OST AE SOON STANT ERR LEED De Pe SPRSE SRE DPOPEDDD EDD financial necessities, not only unsuited to our present circumstances, but manifestly a disturbing menace to business security and an ever-present agent of monetary cis- tress. Because we may be enjoying a temporary relief from its depressing influence this should not lull us into a false security nor lead us to forget the suddenness of past visitations. I am more convinced than ever that we can have no assured financial peace and safety until the government currency ob- ligations upon which gold may be demand- ed from the treasury are withdrawn from This might be done, as has becn heretofore recommcnded, by their exchange for long term bonds bear- ing a low rate of interest or by their re- demption with the proceeds of such bon¢ Even if only ihe United States notes known as greenbacks were thus retired, it is prob- able that the treasury notes issued in pay- ment of silver purchases under the act of July 14, 189, now paid in gold when de- manded, would not create much disturb- ance, as they might from time to time, in the treasury by redemp- +, be gradually and silver coin. when receive tion in gold or otherw: prudently replaced by ‘yhis plan of issuing bonds for the purpose the of redemption certainly appears to bi most effective and direct path to the nec reform. In default of this, however, it would be a step in the right direction, if currency obligations redeemable in gold, whenever so redeemed, should be canceled instead of being reissued. This operation would be a slow remedy, but it would improve present conditions. National bauks should redeem their own nctes. They should be allowed to issue cir- culation to the par value of bonds de- posited as security for its redemption, and the tax on their circulation should be re- duced to one-fourth of 1 per cent. In considering projects for the retirement of United States notes and treasury notes issued under the law of 18%), I am of the opinion that we have placed too much stress upon the danger of contracting the currency, ana have calculated too little upon the gold that would be added to o: circulation if Invited to us by better and safer financisl methods. It is not so much a contraction of our currency that should be avoided a; its unequal distribution. This might be obviated, and any fear of harmful contraction at the same time re- moved by allowing the organization of smaller banks, and in less populous com- munities than are now permitted, and also authorizing existing banks to establish branches in small communities under proper restrictions. The entire case may be presented by the statement that the day of sensible and sound financial methods will not @awn upon us until our government abandons the banking business, and the accumulation of funds, and confines its monetary operations to the receipt of the money contributed by the people for its support, and to the ex- penditure of such money for the people's benefit. Our business interests and all good citi- zens long for rest from feverish agitation, and the inauguration by the government of a reformed financial policy, which will en- courage enterprise and make certain the rewards of labor and industry. TRUSTS AND MONOPOLIES. Another topic in which our people right- fully take a deep interest may be here briefly considered. I refer to the existence of trusts and other huge aggregations of capital, the object of which is to secure the monopoly of some particular branch of trade, industry or commerce and to stifle wholesome competition. When these are defended it is usually on the ground that though they increase profits they also re- duce prices and thus may benefit the public. It must be remembered, however, that a reduction of prices to the people is not cne of the real objects of these organizations, nor is their tendency necessarily in that direction. If it occurs in a particular case, it is only because it accords with the pur- poses or interests of those managing the scheme. Such occasional results fall far short of compensating the palpable evils charged to the accounts of trusts and monopolies. ‘Their tendency is to crush out individual independence and to hinder or prevent the free use of human faculties and the full de- velopment of human character. Through | them the farmer, the artisan and the small trader is in danger of dislodgment from the proud position of being his own’ master, watchful of all that touches his country's prosperity, in which he has an individual lot, and interested in all that affects the advantages of business of which he is a factor, to be relegated to the level of a mere appurtenance to a great machine. With little free will, with no duty but that of passive obedience, and with little hope of opportunity of rising in the scale of re- sponsible and helpful citizenship: To the instinctive belief that such is the inevitable trend of trusts and monopolies is due the widespread and deep-seated popu- lar aversion in which they are held and the not unreasonable insistence that whatever may be their incidental economic advan- tages thelr, general effect upon personal character, prospects and usefulness cannot bé otherwise than injurious. Though Congress has attempted to dezl with this matter by legislation. the laws Passed for that purpose thus far have proved ineffective, not because of any lack of disposition or attempt to force them, but simply because the laws themselves as interpreted by ‘the courts do not reach the difficulty. If the insufficiencies of existing laws can be remedied by further legislation it should be done. The fact must be recognized, however, that all fed- eral legislation on this subject may fall shcrt of its purpose because of inherent obstacles and also because of the com- to a most important opportunity for you—and we want you to come in and take advantage We’ve announced another of our famous sales of Housefurnishing Goods. Most everything anybody needs is included in this The prices are lewer than they otherwise could be because we were fortunate enough to catch some manufacturers bent on clesing out their surplus stock. Don’t wait—come as anehy as you can. House & Herrmann, Liberal Furnishers, Cor. 7th and I Streets. ‘This is the store where “your credit is xeod."" We've opened Ta es and lined free. Rerdontonteogeogeatongendegentontendetontoateoegentoateecgeegeeteateatedeeteate a] plex character of our governmen‘al tem, which, while making the fe 4 thority supreme within its sphere, has carefully limited that sphere by metes and bounds. which cannot be transgr The decision of our highest court en this precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequately treated Uhrough federal action, unless they seek directly and pur- posely to include in their objects trans- portation or intercourse between states or between the Unit and foreign countries. It does not follow, hewever, that this is the limit of the remedy that may be applied. Even though it may be found that fed enough to fully r be al authority ach th no doubt of the pow states to act effectively and ther their willingness such power. s not broad (here can the several premis« doubt cxercise of the e should be no reason 1 to j ‘ONOMY this communication its last is shall be an appeal to the Congr for the most rigid economy in the exp« ture of the y it ho! li- n trust for the Way to perplexing extr: mon) agzan iMient ‘red that those taxation is easy When, ever, it is ¢ who bear the bur no guaranty of honest fidelity of their publi reur , but a return to frugality is ho er have in the iy of mani- When our difveren our contests of pclitica! longer remembered not * of our public tunate and comforting as the r of. official duty well performed « memory of a constant devotion to th terests of our confiding fellow-countryme GROVER CLEVE Executive Mansion, Decemiy — © Journalists, remiten and mare no Ama: The first meeting of the Capital City Club of Amateur was held Saturday evening at dence of Miss Gertrude Moss Walsh, 14 Corcoran street. A large number of the members of the organization were present ason of th Journalists the resi- and the meeting was a delightful one from many standpoints. After a short business jon had been disposed of, an enjoy- able program of literary and masi¢ bers was offered to the gu 5 beth S. Tyler and Miss Beatri were the participants In the mu tion of the program, which was enjoyable in every re An or Election Epi y was rea Willara in original Poet’ was con Howard, whi >» entitled “You Mu: while Miss Gertrude n original dialect story Tharksgiving.” The 1 num- nde Sa Howe poem,“ ributed by Mv. Iso gave a short Master a Wo- Wal “The Eng next meeting will : trice « h offered Un At the regular mevting of Encampment No. 6%, Union Veteran Legion, at. their headquarters, No. 910 Pennsylvania ave- nue northwest, Saturday night, the Sth in- stant, the regular election of officers, to serve during the year 1897, was held, and resulted as follows: Colonel, Louis Schut- lieutenant colonel, E. B. Thompson; Soah Tryon; surgeon, Joshua R_ S: offices of th vB. K chaplain, H. D. Norton: quartermaste H. Merrill; R. Peddle. trustees, Frank Clark and W, ——— Joined the Army. James Price, Uon’s defende colored, s. Rume one of the n Ss of war have floated to Price's ears, and his patriotism became aroused to such an extent that Sat- urday he v a recruiting office a’ jeined the army. He then went out to c ebrale and imbibed freely ing a real soldier, Price somewhat higher than th: and he displayed no_hesi in so ex- pressing himself, His volubility came near resulting in his ine: ation in durance more or less vile for a month or more, ng Policeman Thompson, Price took asion to sta E d not give blank, compo: stions, for t police force, for any members th for Thompson in particular. ¥ soldier, he said, and expressed the that not a poli¢eman in Christen: Gare lay a finger on him, Thompson soon dispelled this illusion placing Price under arrest. “I am ordered to leave at 16 o'clock this morning.” said Price to the judge, ” my regiment at Salt Lake City, wil) lec me off.” Price was given a lecture and discharged cn his personal bends. —— Request Not Granted. by John Whalen, a man of imposing appear- ance, notwithstanding the lack of fine elothes, stood at the rail of the dock in the Police Court today. He was apparently well educated, and his mien was unusually dignified. The information in the case set forth vagrancy. “I was passing along Pennsylvania avenud Saturday, in company with Detective Sut- ton,” said Policeman Walsh. “This man approached us, demanded money, and when we refused him, shoved against us and cursed and swor “I would like to say, plained Whalen, “that this I was ever so unfortunate as to be ar- rested. I was intoxicated, so I do not know what happened Saturday. I am from Newport News, and, if given the oppor- tunity, will leave for Baltimore immediate- ly. I trust your honor will let me go this time.” “I shall do nothing of the sort,” replied the court, emphatically. “You men will realize sooner or later that you cannot come to this city and accost citizens on the public streets. Sixty days.” — Representative Charles A. Towne of Min- nesota has denied the report that he would contest the election of Judge Morris, our honor,” ex- is the first time