The San Francisco Call. Newspaper, December 8, 1896, Page 2

2 — e — THE SAN FRANCISCO CALL, TUESDAY, DECEMBER 8, 1896. tioned twenty-eight National banks, located in fifteen States, of which twelve were organized in the Eastern States, witha capital of $1,180,000; six in the Western States with a capiial of $375,000, and ten in the Eouth- ern States with a capital of $1,190,000. During the year, however, thirty banks voluntari'y abandoned (neir iranchises under the National law, and in the case of twenty-seven others it was found necessary to appoint re- ceivers, Therefore, as compared with the year preceding, there Was a de- crease of thirtv-six in the number of active banks. The number of existing banks organized under the State laws is 5708. AN INCREASED IMMIGRATION. The number of immigrants arrived in the United States during the fiscal year was 343,2 of whom 340,463 were permitted to land and 2799 were debarred on various grounds prescribed by law and returned 10 the countries whence they *ame at the expense of the steamship com- by which they were brought in. The increase in immigration over preceding year amounted to 84,131, It is reported that, with some ptions, the immigrants of the past vear were of a hardy laboring s, sccustomed and able to earn a support for themselves, and itis imated that the money brought with them amounts to at least $5.000,000, though it was probably much in excess of thatsum, since only those having less thun $30 are required to disclose the exact amount, and it js known that many brought considerable sums of money to buy land aud build homes. Including all the immigranis arriving who were over 14 years of age, 28.63 per cent were illiterate, as against 20.27 per cent of those of arriving during the preceding fiscal year. The number of imr s over 14 yeats old, the countries from which they 1 the percentare of illiterates among them were as follows: 57.515. with 54.59 per cent; Ireland, 37,496, with 7 per cent; , 35,188, with 41.14 per cent; Ausiris-Hungary and province cith 3892 per cent; Germany, 25,334, with 2.96 per cent; 18,821, with 1.16 per cent, while from Portuzal there came 2067, of whom per cent were illiterate. There arrived from Japan during the year only 1110 immigrants, and it is the opinion of the immigration authorities that the apprehension heretofore existing to some extent of alarge immigration from Japan to the United States is without any sub- stantial foundation. REPORTED BY THE LIFE-SAVERS. ¥rom the life-saving service it is reported that the number of disasters to documented vessels within the limiis of its operations during the year was 437. These vessels had on board 4608 persons, of whom 4595 were saved and 13 lost. The value of such vessels is estimated at $8,830,140, and of their cargoes $3,946,380, making the total value of property im- periled 0. Of this amount $11,292,707 was savel and $14 Sixty-seven of the vesseis were toiaily wrecked. There ‘were besides 243 casualties to small undocumented crait, on board of which there were 594 persons, of whom 587 were saved and 7 lost The vaiue of the property iuvolved in these lalter casualties is estimated at $119,265, of which $114,915 was saved and $4350 was lost. The iife- saving crews daring the year also rescued or assisted numerous other vessels and warned many from danger by siguals coth by day and night. The number of disasters duriug the year exceeded that of any previous year in the history of the service; butth ng of both life and property was greater than ever before in proportion to the value of the properiy involved and to the number of persous imperiled. MARINE, NAVALAND MILITARY SERVICE. The operations of the marine hospital service, the revenue cutter service, the steamboat inspection service, the lighthouse service, the bureau of navigation and other branches of public work attached to the Treasury Department, together with various recommendations concera- ing their support and improvement are fully stated in the report of the Secretary to which the attention. of the Congress is especially invited. The report of the Secretary of War exhibits satisfactory conditions in the several branches of Lhe public service intrusted to his charge The limit of our military force as fixed by law is coustantly and readily maintained. The present discipline and morale of our army are excellent and marked progress and efficiency are apparent throughout its entire organization. With the exception of delicate dutlesin the suppression of slight Indian disturbances aiong our southwestern boundary, in which the Mexican troops co-operated, and the compulsory but peaceful return, with the consent of Great Britain, of a band of Cree Indians from Moniana to the British possessions, no active operations have been required of the army during tie yeer past. Changesin methods of adminisiration, the abandonment of uniecessary posts and consequent concentration of troops and the exercise of care and vigilance by the various officers charged with the responsibility, in the expenditure of the appropriations, have re- sulted in reducing to & minimum the cost of maintenance of our military establishment. During the past year the work of constructing permanent infantry and cavairy posts has been continued at the places heretofore designated. The Secretary of War repeats his recommendation that appropriations for barracks and quarters should more strictly conform to the nced of the seryice as judged by the department rather than respond to the wishes and importunities of local It is imperative that much o: the money provided for such construction should now be aliotted to the ercc- tion of necessary quarters jor the garrisons assigned to the coast de- fenses, where many men will be needed to properiy care for and operate ns. It1s essential, too, that early provision be mads to sup‘rly ry to meet the demands of this service. The new magazine arms, and wise pol and private resources should be so employed v to provide, within reasonable tiine, a sufficient number 10 suppiy the State militia with these modern weapons and provide an ample reserve for any e T The appropriations for he several States epproxima 800,000 annually, and £400,000 15 contributed by the Gener al Government. Investigation shows these roops to be usually drilled and inspirea with much military interest, but, in many instances, they are so dencient in proper arms and equip- ment thei s sudden call to sctive duty would find them inadequately pre- d for field service. I, efore, recommend that prompt measures be n to remedy this condition, and that every encouragement be given g body of unpaia and voluniary citizen soldiers, upon e must largeiy rely in time of trouble. PROTECTION OF THE SEA COASTS. During the past year rapid progess has been made toward the com- pletion of the scheme adopted for the protection and armament of fortifi- cations along our sea coast, while equai progress has been made in provid- ing the material for submarine defense in conmection with these works. It is peculiarly gratifying at this time to note the great advance that has been made in this important undertaking since the date of my annual message to the Fiity-third Congress ‘at the opening of its second session, in December, 1893. At that time I informed the Congress of the approach- ing completion of nine 12-inch, twenty 10-inch and thirty-four 8-inch high-power steel guns and _sevenis-five 13-inch rifled mortars. This total theu scemed insignificant wheun compared with the great work remain- ing to be dome. Yet it wes none the iessa source of satisfaction to every citizen when he reflected that it represented the first instaliment of the nce of American design and American manufactures, and de- our ability to supply from our own resources guns of unex- ceiled power and accuracy. At that date, however, there were practicaily no carriages upon which to mount these guns, and only 31 emplacements for guus and 64 for mortars. Nour were all these emplacements in condi- tion to receive their armament.. Only vne high-power gun was in that time in position for the defense of the entire coast. Since that time the number of guns actualiy completed has been in- creased 10 twenty-one 12-inch, fifiy-six 10-inch, sixty-one 8-inch high- power breech-loading sieel, ten rapid-fire guns and eighty 12-inch rified mortars. 1n addition there are in process of construction ome 16-inch 12-iuch, fity-six. 10-inch, twenty-seven 8-inch high-power yesix 12-inch rifled mortars, in all 428 guns and mortars, During the same year, immediately preceding the message referred to, the fizst modern gun-carriage nad been completed, and eleven more were in ss of construction. All but oue were of the non-disappearing type. These, however, were not such as to secure necessary cover for the artillery gunners against the intense fire of modern machine rapid-fire and hlgh-{:uwer guns. The in- ventive genius of oranance and civillan experts has been taxed in design- ing carriages that would obviate this fauit, resulting, it is believed, in the solution of thisdifficult problem. Since 1803 the numbe-r of gun-carriages constructed or building has been raised (o a total ot 139, of which thirty are on the disappearing principle, and the number of mortar-carriages to 153, while the ninety-five empiacements which were provided for prior to that time have been increased to 230, built and building. Tais improved situation is largely due to the recent generous response of Congress to the rccommendations of the War Department. Thus we we shall soon have completed about one-fifth of the comprehensive sys- tem, the first step in which was noted in my message to the Congress of December 4, 1 When 1t is understood that & masonry em placement not ouly furnishes & platiorm for the heavy modern high-power gun, but also in every particular serves the purpose and takes the place of the fort of former days, the imyortance oi the work accomplished is better com- prehended. in the hope that the work will be prosecuted with no less vigor in the future, the Secretary of War has submitted an estimate by which, 1f allowed, there will be provided and either built or building by the end of the mext fiscal year such additional guns, mortars, gun-car- riages.and emplacements as will represeut not far from one-third oi the total work to be cone under the pian adopted for our coast defenses, thus affording a prospecs that the shore work will be substantially compieted within six years. In less time than that, however, we shall have atiained d dagree of security. The experjence and 1ts of the past vear demonstrate that with a continuation of preseut careful methods the cost of remaining work will be much less than the original estimate. Wé should always keep in mind that of all forms of military preparation coast defense alone is essentially pacific inits nature. While it gives tae sense of security due to a con- sciousness of strengzh it is neither the pu-pose nor the effect of such per- manent fortification to involve us in foreign complieations, but rather to guarantee us against them. They are not a temptation to war, but rather security against it. Thus they are thoroughly in accord with all the tra- ditions of our National diplomacy. WORK OF THE ATTORNEY-GENERAL. The Attorney-General presents us a detailed and interesting state- ment of the importantwork done under his supervision Guring the last fiscal year. The ownership and management by the Government of peni- tentiaries for the confinement of those convicted in the United States courts of violation of Federal laws, which for many years has been a sub- ject of executive reccmmendation, has at last to & slight extent been real- ized by the utiization of tne abandoned military prison at Fort Leaven- worth as & United States penitentiary. This is certainly a move in the right direction, but it ought to be at once supplemented by the rebuilding or the extensive enlargement of this improvised prison, and the construce tion of at ieast one more, to be located in the Southern States. The ca- pacity of the Leavenworth penitentiary is so limited that the expense of its maintenance, calculated at a per capita rate upon the number of pris- oners it can accommodate, does not make as economical an exhibit as if it were larger and better adapted to prison purposes; but 1 am thor- oughly ed that economy and humanity ani a proper sense of responsibility and duty toward those whom we punish for violations of Federal law dictate that the Federal Government should have the eutire control and managemento! the penitentiaries where convicted violatorsare confined. Itappears thatsince the transfer of the Fort Lexvenworth mili- tary prison to i1s new uses the work previously done by prisoners confined there nnd for which expensive machinery has been provided has been Qis- continned. This work consisted of the manufactureof articles for army use now done elsewhere. On all grounds itis exceedingly desirable that the convicts confined in this penitentiary be aliowed to resume work of this description. 1t 1s most gratifying 10 note the satisfactory resalts that have foliowed the inauguration of the system provided for by the act of May 28, 1896, under which certain Federal cfficials arc compensated by salary instead of fees. The new plan was put in_operation on the st day of July, 1896, and already the great economy it enforced, its prevention of abuses and its tendency to a better enforcement of the laws are strik- ingly apperent. Detailed evidence of the usefulness of this long-delayed and now happily accomplished retorm wiil be found cleariy set forth in the Attorney-General's report. POSTAL REFORMS ARE URGED. Our Postoflice Depariment is ia good condition, and the exhibit made of its operations duriug the fiscal year ended June 30, 1896, if allowance is made for imperfections in the laws applicable to it, is very satisfactory. The total receipts during the year were $£82,409,208 40. The total e: penditures were $90.626,286 84, exclusive of $1,559,898 27, which was earned by the Pacific raitroads for transportation and credited on their debt 10 the G ni. There wasan increase of receipts over the previcus { $5.516,808 21, or 7.1 ver cent, and an_increase of expenditures of §3, 24 02, or4 42 per cent. The deficit was $1,679,956 19 less than that of the preceding year. The chief expenditures ‘of the postal service are regulated by lnw and arc not in the control of the Postmaster-General, All thathe can accomplish by the most wateniul administration and econ- omy is to enjorce prompt and thorough collection and accounting for ublic moneys wuc such mikor savings in smull expenditures and in etting thiose contracts ior postoffice supplics and star service which are not regulaied by statute. An effective co-operation between the anditor’s office and ibe Posioffice Department and the making and enforcement of orders by the department requiring immediate notification to their surcties of any delinquencies on the part of nostmusters and compelling i postmasters {o make moré frequent deposits ot postal (umfehnve resplted in a prompter auditing of their accouuts and much less deiault to the Governmént tnun heretofore. - The year’s report shows large extensions of both star route service ana » monstrate railway mail service. With increased postal facilities much higher accu- racy in handling mails has also been reacued, as appears by the decrease of érrors in the railway mail service and the reduction of mail matter returned to the Dead-letter Office. The deficit for the last vear, although much less than that of the lust and preceding years, emphasizes the ncces- sity for legislation to correct the .growing abuse of second-class rates, to which the deficicncy is mainly attributable. The transmission at the rate of 1 centapound of serial libraries, advertising sheets, “house organs” (periodicals advertising some particular “house” or institution), sample copies and the like ought certainly to be discontinued. A glance at the revenues received for the work dobe last year will show more plainly than any other statement the gross abuse of the postal service and the growing waste of 1ts earnings. The iree matter carried in the mails for the depart- ment, offices, etc., of the Government and for Congress in pounds amounted 10 94,480, 189. # 11 this is offset against buildings for postoffices and stations, the rental of which would more than compensate for such free postal service, we have this exhibit: Weight of mail matter (other than above) transmitted through the maiis for the year ending June 30, 1896: CLass. Welght. 1bs. Revenue, 1. Domestic and foreign letters and postal cards.etc, 65.587,343 $60,624.464 2. Newspapers and periodicals, 1 cent per pound....348, 988,648 2,996,403 8. Books, seeds, etc., 8 cents per pound 78,701,148 10,324,169 4. Parcels, etc., 16 cents per pound 19,950,181 8,150,321 Totals.. = e & $17,044,257 The remainder of our postal revenue, amounting to something more than $5,000,000, was derived from box reuts, regisier fees, money-order business und other similar items. Tie eutire expenditures of the depart- ment, including pay for transportation credited to the Pacific ratlroads, was $92,186,195 11, which may be considered as the cosiof receiving, carrying and delivering the above mail matter. It thus appears that though the sevond-class matter constituted more than two-thirds of the total that was carried, the revenue derived from it was less than one- thirtieth of the total expense. The average revenue from each pound of first-class matter was 9.3 cents; from each pound of second class, 84 mills (of the second class 62,348,297 was county free matter); from eacn pound of thira class, 13.1 cents; tiom each pound of fourth class, 15.6 cents. The growth of weight of second-class matter has been from 299,000,000 pounds in 1894 1o 318,- 000,000 in 1895 and to almost 349,000,000 in 1896, and it is quite evident that this incressing drawback is isT outstripping any possible growth ot postal revenues. Our mail service should, of'course, be such s to meet the wants and even the conveniences of our people at a direct charge upon them so light as perhaps 10 exclude the idea of our Postoffice Department being a money=- muking concern, but in the face of a constantly recurring deficiency in iis 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 onr annual deficit, i we concede the public policy of carrying weekly newspapers free in the county of publication, and even the policy of carrying at less than one-tenth of their cost. Otherthan bona-fide newspapers and periedicals, there can be no excuse for subjecting the service to the further immense and increasing loss involved in carrying at the nominal rate of 1 cent a pound the serial !ivraries, sometimes includ- ing trashy and even harmfu! iiterature and other matter, which under the loose in:erpretation of & ioose siatute has been gradually given secoud cluss rates, thus absorbing all profitable returns derived from first class matter. which pays three or four times more than its cost, and producing 8 iarge annual 1:8s to be paid by general taxation. It such second class matier paid merely the cost of its handling our deficit would soon disappear and & surplus result, which might be used to give the people still better mail iacilities or & cheaper rate of letter postage. Irecommend that legislation bg at once enacted to correct these abuses and introduce better business ideas in tneregulation of our postal rates. Experience and observation have demonstrated that certain im- provements in the organization of the Postoffice Department must be secured before we can gnin the full benefit of the immense sums expended in its administration. This involves the following reforms, which I earn- es'.l% recommend ; here should be a small addition to the inspector service to be em- ployed in the supervision of the carrier force, which now numbers 13,000 men and performs its service practically without the surveillance exer- cised uver all other branches of the postal or public service. Of course such a lack of.some supervision and freedom from wholesome disciplinary restraints must inevitably lead to imperfect service. There should also be appointed a jew inspectors who could assist the central cflices in neces- sary investigation concerning matters of postoflice, leases, posioffice sites, allowances for rent, fuel and lights, and in orgnnlztnfilnd securing the best results from the work of the 14,000 clerks now employed in first and second class cffices. Iamconvinced that the small expense attending the inauguratiou of these reforms would actually be a profitable invest- ment. 1 especially recommend such a recasting of the appropriations by Congress for the Po-toffice Department as will permit the Postmaster-Gen- eral to proceed with the work of consolidating postoffices. This work has already peen entered upon sufficiently to fuily demonstrate by experi- ment and experience that such consolidation is productive of beiter serv- ice, larger revenucs and less expenditures, to say nothing of the further advantage of gradually withdrawing postoflices from the spoils system. UNIVERSAL POSTAL UNION CONGRESS. The universal postal union which now embrares all the civilized worldand whose delegates will represent1,000,000,000 people, will hold its ‘fifth congress in the city of Washington in May, 1897. The Uuited States may be said to have taken the initiative which led to the first meeting of this congress in Berne in 1874, and the formation of the Unjversal Postal Union, whieh brings the postal service of all countries to every man’s neighborhood and has wrought marvels in cheapening postal rates and securing absolutely safe mail communication throughout the world. Pre- yious congresses have met in berne, Paris, Lisbon and Vienna, and the respective countries in which they have assembled have made generous provision for their accommodation and for the reception and entertain- ment of the delegates. In view of the importance of this assemblage and of its deliberations and of the honors and hospitalities accorded to our representatives by other countries on similar occasions I earnestly hope that such an appropriation will be made for the eXpenses necessarily at- tendant upon the coming meeting in our cayital city as will be worthy of our National hospitality, and indicative of ourappreciation of the event. CONSTRUCTION OF MODERN WARSHIPS. The work of the Navy Department, and 1ts present condition, are fully exhibited in the report of the Secretary. The construction of vesseis for our new nevy has been energeticaily prosecuted by the present admin- istration upon the general lines previously adopted, the department having seen no necessity tor radical changes in prior methods under which the work was found to be progressing in s mauner highly satisfac- tory. It has beer decided, however, 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 ‘preminms recently earned and some yet to be decided are features of the contracts made before this conclusion was reached. On March 4, 1893, there were in commission but two armored vessels, the double-turreted monitors Miantonomoh and Monterey. Since that date, of vessels theretofore authorized, there have been placed in com- mission three first-class and two secound-class battle-ships, two armored cruisers, one harbor defense ram, and five double-turreted monitors, 1n- cluding the Maine and the Puritan, just completed. Eight new un- armored cruisers and two new gunboats have also been commissioned. The Iowa, another battle-ship, will be completea about March 1, and at least four more gunbcats will be ready for sea in the early spring. Itis gratifying to state that our ships aud their outfits are believed to be equal 1o the best that can be manufactured eisewhere, and that such notable reductions have been made in their costas to justify the statement that quite & number of vessels are now being constructed at rates as low as those that prevail in European shipyards. Our manufacturing tacilities are at this time ample for all possible naval conungencies, Three of our Government navy-yards, those at Mare Island, Cal., Norfolk, Va., and Brookiyn Y., are equipped for ship-building, our ordnance plant in Washington is équalto any in the world, and at the torpedo station we are successfully making the highest grades of smokeless powder. Three first-class privaie shipyards, at New. port News, Philadelphia and San Francisco. are building batile-ships eleven contractors, situated in the States of Maine, Rhode Island, Pennsy! vania, New Jersey, Maryland, Virginia and the State of Washington, are constructing gunboats or torpedo-boats. Two plants are munufacturing large quantities of first-class armor and American factories are producing automobile torpedoes, powder, projectiles, rapid-fire guns and everything else necessary for the com- plete outfiv of naval vessels. There have been authorizad by Congress ce March, 1893, five battle-ships, six light draft gunboats, sixteen tor- pedo-boats and the submarine torpedo-boat. Coutracts for the building of all these have been let. The Secretary expressed the opinion thai we have for the present & sufficient xuppli’l of cruisers and gunboats and that herellt%r the construction of battle-ships and torpedo-boats will supply our needs. Much attention has been given to the methods of carrying on depart- mental business. Important modifications in the regulations have been made tending to unify the control of ship-building, &s far as may be, under the burcau of construction and repairs, and also to improve the mode of purchasing supplies for the navy by the bureau of supp.ies and accounts. The establishment under recent acts of Congress of a supply fund, with which to purchase these supplies in large quantities, and other modifications of methods, have tended materially to their cheapene ing and better quality. The War College has-developed into an institution which, it is be- lieved, will be of great value to the navyin teaching the science of war as well as in stimulating professional zeal in the navy, and it will be especially useful in the devising of plans for the ulilization, in case of necessity, of all the naval resources of the United States. The Secretary has persistently adhered to the plan he found in operation for securing lavor at the navy-yards through boards of labor employment and has done much to make it more comp eie and eflicient. The naval officers who are familiar with this system and its operation express the decided opinion that its results have been to vasily improve the casracter of the work done at our yards and greatly reduce its cost. Discivline amon officers and men of the navy has been maintained to & high stanaard -u& toe percentage of American citizens has been very much increased. The Secretary is considering, and wi.l formulate during the coming winter, a plan for laying up ships in reserve, thereby largeiy reducing the cost of maintaining our vessels afloat. % This plan contemplates that battle-ships, torpedo-boats and such of the cruisers as are not needed for active service at sea shall be kept in re. serve, with skeleton crews on board, to keep them in condition, cruising only enough to insure the efficiency of the ships and their crews in time of activity. The somomy to restly from this system is t0o obvious to need comment. The naval militia, which was authorized a few years ago as an experiment, has now developed into a body of enterprising young men, active ard energetic in the discharge of their duties and promising great usefulness. This establishment has neariy the same relutions to our navy ss the National Guard in the diffcrent States bears to our army; and it constitutes a source of supply for our naval forces, the importance of which is immediatey appareni. The report of the Secretary of the Interior presents a comprehensive ana interesiing exhibit of the numer- ous und important affairs committed to his supervision. It is impossible 1m this communication to do more than briefly refer to a few of the sub- jecti concerning which the Secretary gives full and instructive infor- mation, PUBLIC LANDS SHOULD BE GUARDED. The money appropriated on account of this department for its dis- bursement for the flscal year ended June 30. 1896, amounted to more than $157,000,000, or u}res\er sum then was appropriated for the entire maintenance of the Government for the two fiscal years ended June 30, 1861. Our public lands, originally amounting to 1,840,000,000 acres, has been so reduced that only about 600,000,000 acres still remain in Government control, excluding Alaska. The balance, being by far the most valuable portion, has been Eiven aWay to settlers, to new States and 10 railroads or soid at a comparatively nominal sum. The patenting ot land in execution of railroad grants has progressed 3 ut rapidly during this year, aud since the jourth day of Mareii, 1893, 25.000,000 acres have thus been conveyed io those corporations. I agree with the Secretary tuat the remainder of our pubiic lands should be more carefuliy dealt with and their alienation guarded by better economy and greater prudence. The commission appointed from the mem- bership of the National Academy of Sciences, provided for by an act of Congress, to formulate plans for & National foresiry system will, it is hoped, soon be prepared to present the result of thorough and intelligent examination of this important subject. IMlP.ROVEMENT OF THE INDIANS. The total Indian population of the United States is 177,235, according to a census in 1895, exclusive of those within the State of New York and those comprising the five civilized tribes. Of this number the:e are ap- proximately 38,000 children of school rge. During the year 23,398 of these were enrolied in schocls. The progress which has attcnded recent efforts to extend Indian school facilines and the anticipation of continued liberal appropriations (o that end, cannot fail to afford the utmost satis- faction to those who believe that the education of indian children is a prime factor in the accomplishment of Indian civilization. It may be said in general terms thatin every particular the improvement of the Indians under government has been most marked and encouraging. The Commissioner of Indian Affairs and the agents laving charge of Indians- to whom allotments haye been mude, strongly urge the passage of a iaw™ prohibiting -the sale of liquor to allotlees who bave taken theip lands in severaity. I earnestly ?mn in this recommendation, and venture to express the hope that the Indian may bespeedily protected against this one greatest of ailevils to his well-being and advancement, The condition of affairs among the five civilized tribes, who occupy 7 hrg tracts of land in the Indjan Territory, and who have governments of r own, has assumed such an aspect as to render it almost indispens- able that there should be an entire change 1n the relations of these Indians 1o the General Government. This seems to be necessary in furthernnce of their own interests as well as for the protection of non-indian residents in their territory. A commission organized and empowered under several Tecent laws is now negotiating with thesc Indians for the relinquishment of their courts and the division of their common lands in severaity, and are sidingin the settlement of the troublesome question of tribal mem- bership. The reception of their first proffers of negotiations was not en- couraging, but through patience und such conduct on their part asdem- onstrated that their intentions were friendly and in the interestof the tribes, the prospect of success has become more promising. The effort should be to save these Indians from the conseguences of their own mis- twkes and improvidence and to secure (o the real Indian his rights as against intruaers and prof:ssed friends who profit by his retrogression. ‘A change is also needea to protect lifc and property through the operation of courts conducted according to strict justice and stroni enough to enforce their mandates. As a sincere friend of the Indian, am exceedingly anxious that these reforms shou’d be accomplished with the consent and aid of the tribes and tnat no necessity may be presented for radical or drastic legislation. 1 hope, therefore, that the Commission now conducting negotiations will soon be able o report that progress has been made toward u friendly adjusument of existing difficulties. It appears that a very valuabie deposit of silsonite or asphaltum has been found on the reservation in Utah, occupied by the Uncompagre Iu- dians. Every consideration of care for the public interest and every sen- sible business reason dictate sueh management or dispusal of this impor- tant source cf public revenue as will except it from tne general rules and incidents attending the ordinary disposition of public iands and secure to the Government a far share at lesst ot its advantages in place of its transfer for a nominal sum to interested individuals. I indorse the recommendaiion made by the present Secretary of the Interior as well as his predecessor that a_permanent commission consist- ing of three members, one of whom shall be an arwy officer, be created to perform the duties now devolving upon the Commissioner nnd Assisiant Commissioner of Indjan Affairs. The management of the bureau involves such numerous and diverse detailsand the adventages of an uninter- rupied policy are <o apparent that I hope the change suggested will meet the approval of the Congress. DIMINUTION OF THE PENSION ROLL. The diminution of our enormous pension roll and the decrease of pen- sion expenditures, which has been so often confidently foretold, still fail in materiai reslization. The number of pensioners on the rolis at the close of the fiscal year ended June 30,1896, was 970,678, This is the largst number ever reported. The amount paid exclusively for the pen- sions during the year was $138,214,761 94, a slight decrease from that of the preceeding year, while the total expenditures on account of peusions, including the cost of maintaining the departnfent and expenses attending the pension distributions amounted to $143,206,550 59 or within a very small fraction of one-third of the entire expense of supporting the Govern- ment during the sume year. The number of new peusion certificates issued wes 90,649. Of tnese 40,374 represent original allowances of claims and 15,678 increase of existiug pensions. The number of persons receiving pensions from the United States, but residing in foreign coun- tries at the close of the last fiscal year, was 3731, and the amount paid to them during the year was $032,735 38. The sum appropriated for the ayment of peusions for the currcnt fiscal year ending June 30, 1897, 18 140,000,000 and ior the succeeding year it is estimated that ihe same amount will be necessary. The Commissioner of Pensions reports that during the last fiscal year 339 indictments were found against vioiators of the pension laws. Upon these indictments 167 convictions resulted. In my opinion, based upon such statements as these and much other information and observation, the abuses which have been ailowed to creep into aur pensions have done incalculable herm in demoralizing our people and undermiuing good citizenship. Ihave endeavored within my sphere of official duty to pro- tect our pension and make it what it should be, a roll ot honor, contain- ing the names of those disabled in their country’s service and wortby of their country’s affectionate remembrance. When I have seen those who pose as the soldiers’ friends active and alert in urging gieater laxity and more reckiess pension expenditures, while nursing selfish schemes, I nave deprecated the approach of & situation when necessary retrenchment and eniorced economy may lead to an attack upon pension abuses so deter- mined as to overlook the discrimination due to those who, worthy of & K‘uaz“‘:l care, ought to live aud die under the protection of a Nation’s gratitude. DEBTS OF PACIFIC RAILROADS DUE. The Secretary calls attention to the public interests involved in an ad- justment of the obligation of the Pacific railroads to the Government. I deem it to be an important duty to especially present this subject to the consideration of the Congress. On January 1, 1897, with the amount already matured more than $13,000,000 of the principal of the subsidy bonds issued by the United Stutes in aid of the construction of the Union Pacific Railway, including its Kansas line, and more than $6,000,000 of like bonds issued in aid of the Central Pacific Railroad, including those issued to the Western Pacific Railroad Company, will have fallen due aud paid or must on that day be paid by the Government. Without any reier- ence to the application of the sinking fund now in the treasury this will create such a default on the part of these companies to the Government as will give it the right to at once institute proceedings to foreciose its mort- gage lien. Inaddition to this incebtedness, which will be cue January 1, 1897, 1here will mature between that date and Junuary 1, 1899, the re- maiing princl{ml of such subsidy bonds, which must a.so be met by the Government. These amount to more than $20,000,000 on account of the Union Paeific lines and exceed $21,000,000 on account of the Central Pacific lines. The situation of these roads and the condition of their indebtedness to the Government have been fully set forth in the reports of various com- mittees to the present and prior Congress; and as early as 1887 they were thoroughly examined by a special commission appointed pursuant to an act of Congress. The consideration requiring an adjustment of the Gov- ernment’s relations to the companies have been clearly presented and the conclusion reached with practical uniformity that i1 these relations are not terminated they should b2 revised upon a basis assuring their sale continuance. Under = section 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 in- cumbrance paramount to the interest of the United States in the property of the Pacific railroads shail exist and be lawfully lirb e to be enforced, to direct the sction of the Departments of Treasury and of Justice in the pro- tection of the interest of the United States by redemption or through judi- cial proceedings, including foreelosures of the Government liens. In view of the fact that Congress has for a number of years almost constantly had under consideration various plans for dealing with the conditions exist- ing between these roads and the Government I have thus far felt justified in witbholding action under the statu.e above mentioned. In the case of the Union Pacific, however, the situation has become especlally and immediately urgent. Procsedings have been instituted to foreclose a first mortgage uvon toese aided parts of the main line upon which the Governmert holds a recond and subordinate mortgage lien. In consequence of these proceedinyzx and increasing complications, added to the delault occurring on the 1st day of January, 1897, a condition will be presented at that date so far as this company is concerned that must em- hasize the mandate of the act of 1887 and give to executive duty under ts provisions a more 1mperative aspect. Therefore, unless Congress shall otherwise direct, or shall have pre- viously determined upon a different solution of the problem, there will hardly appear to exist any reason for delaying beyond the date of the defauit aboyve mentioned, such executive action as will promise to sub- serve the public interests and save the Government from the loss threat- ened by further inaction. DEPARTMENT OF AGRICULTURE. The Department of Agriculture isso intimately related to the welfare of our people and the prosperity of our Nation thatit shou!d constantly receive the care and encouragement of the Government. From smali be- ginnings it has grown to be the center of agriculiural intelligence and the source of aid and encouragement to agricultural efforts. Large sums of money are annually appropriated for the maintenance of this depart- ment, and it must be confessed that the legislation relating to it hasnot always been directly in the interest of practical farming or proverly guarded against waste and extravagance. So far, however, the public money has been appropriated fairly and sensibly to heip those who actually till the soil. No expenditure has been more profitably made or more generally approved by the people. Under the present management of the department its usefulness has been ennanced 1n every direction, and at the same time strict economy has béen enforced to the utmost extent permittea by Coneressional action. From the reports of the Secretary it appears that through careiul and Emflsnt financial management he has annuelly saved a large sum from is appropriations, aggregating during his incumbency and up to the close of the fiscal year nearly one-filth of the entire amount appropriated. These results have been aecomplished by a conscientious study of the reul needs of the farmer and such a regard for ecouomy as the genuine farmer ought to appreciate, supplemented by a rizid adherence to eivil service methods in a department which should be conducted in the inter- est of agriculture instead of partisan politics. The Secretary revorts that the value of our exportsof farm products during tne last fiscal vear amounted to $570,000,000, an_increase of $17,000,000 over thos> of the year immediately preoedmf. This statement is not the less welcome be- cause of the fact that, notwithstanding such increase, the proporiion of exported agriculiural products to our total exports of all descriptions fell over during the year. The benefits of an increase in agricultural exports being assured, the decrease in ifs proportion to our lotal exports is the more gratifying when we consider that it is owing to thoe fact that such total exporis tor the year increased more than $75.000,000. The large and increasing exportation of our ngriculiural products sug- gests the great usefulness of the organization lately established in the de- partment for the purpose of giving to those engaged in farming pursuits reliable information concerning the condition, needs and advantages of different foreign markets. Inasmuch as the success of 1he farmer depends upon the advantageous sale of his products avd inasmuch as foreign markets must largely be the destination of such products, it is quite . apparent thata knowledge of the conditions and wauts that affect those markets ought to result in sowiug more intelligently and reaping with a better promise of profit. Such information points out the way to a prudent foresight in the selection and cultivation of crops and to a relense from the bondage of unreasoning monoiony of production. a X rlnu.ed ard devressed market and constantly recurring unprofitable toil. (11 my opinion, the gratuitous distribution of seeds by the department, as at presencconducted, ought to be discontinued. No one can read the s ment of the Secretary on this subject and doubt the extravagance and questionable results of this practice. The proiessed friends of the farmer and certainly the farmers themselves are naturally expected to be willing to rid a department devoted to the promotion of farming interests of a feature which tends so much toits discredit. The Weather Bureau, now attached to the Department of Agriculture, has continued to extend 1ts sphere oi usefulness, and by an uninterrupted improvems in whe accuracy of its jorecasts has greatiy increased its efficiency n aid and protection to all whose occupations are related to weather conditions. Omitting further reierence to the operations of the depurtment. I commend the Secretsry’s report and the suggestions it contains to the careful consideration of the Congress. PROGRESS IN CIVIL SERVICE REFORM. ‘The progress made in civil service refcrm calis for the urmost congrat ulations. It has survived the doubts of its friends as well as the rancor of ts enemies, and has gained a permanent piace among the agencies dese tined to cleanse our politics and to improve, economize and elevate the public service. There are now in the competitive classified service up- ‘ward of 34,000 places. More than half of these have been included from time to time since March 4, 1893. A most radical and sweeping exten- e by executive order 1ated the sixth day of May, 1896; and if fourtn-class postmasterships are not inciuded in the statement, it may be said that practicaily all positions contemplated by the civil service law fied. Abundant reasons exist for including these postmas- tersnips based on economy, Improved service and the peace and quiet of mneighborhoods. 1f, however, obstacies prevent such action at present, I earnestly hope that Con, will, without increasing postoffice appro- priations, so adjus: them t permit in proper cases a cons.lidation of these postoffices. to the end that through this process the result desired may, to a limited extent, bé aceomplished. "Phe etvil service rult's as amended during the last year-provide for a sensible and uniform method of promotion, basing &ligibility to better s(:mons upon demonstrated efficiency and faithfulness. The absence of ed rules on this subject has been aa infirmity in the system more and 1more apparent, as its other benefits have been beiter appreciated. The advantages of civil service methods in their business aspects are too well understood 10 require argument. Their application has become a neces- sity to the executive work of the Goverument. But those who gain positions through the operation of these methods should be made to understand that the non-partisan scheme through which they receive their appointments demands from them, by way of reciprocity, non- ygnlun and faithful periormance of duty under every administration and cheerful fideiity to every chief. While they shouid be encouraged to detently exercise their nihu of citizenship and to support through their suffrages the political beliefs théy honesfiy profess, the noisy, pestilent and partisan employe who loves political tarmoil and mmt({m. or who renders lax and zmdgipr service to an adminisiration not representing his political views, shonld be promptly and 1nrlwli dealt with in such a way a8 to furnish a warning to others who may be likewise disposed. The snnual report of the Commissioners will be duly transmitted, and I come mend thé important matter they have in charge to the careful considera- tion of Congress. g INTERSTATE CCMMERCE COMMISSION. The Interstate Commerce Commission has during the last year sup- plied abundant evidence of its usefulness and the importance of the work committed to its charge. Public trensportation is o universal necessity and the question of just and reasonable charges therefore has become one of vital importance, not only to shippers and carriers, but aiso to the vast multitude o1 producers and consumers. The justice and equity of the Fri_nciple! embodied in the existing law passed for the purpuse of regu- ating these charges are'everyWhere conceded, and there appears to be no question that the policy thus entered upon has a permanent piace in _our legisiation. As the present staiute when enacted was, in the nature of the case, moré or less teutative and experimental, it was hardly expected 10 upply & complete and adequate system. While its wholesome e{fects te manifest and have amply jnstified its enactment, it is evident that all desired reforms and transportation methods have nol been fuliy accomplished. In view of the judicial interpretation which some provisions of this statute bave received and the defects disclosed by the efforts made for its enforcement, its revision and amendment appear to be essential to the end that it may more effectually reach the evils designed o be cor- rected. I hope the recommendations of the commission.upon this subjact will be promptly and favorably considered by Congress. SUGGESTIONS ON THE TARIFF LAWS. I desire to recur to the statements elsewhere made concerning the Government’s receipts and expenditures for the purpose of venturing upon some suggestions touching our present tariff law and its operations. This statute took effect on the 28th day of August, 1894. Whatever may be its shoricomings as a complete measure of tariff reform, it must be conceded that it has opened the way to & freer and greater exchangze of commodities between us and other countries, ana thus furnisheo a wider market for our products and manufacturing. The only entire fiscal year during which this law has been in force ended on tue th day of June, 1896. In that year our imports increased over those of tne pre- vious year more than $6,500,000, while the value of the domestic prod. uets we exported and which found markets abroad was nearly $70,000,000 more than during the preceding year. Those who insist that_the cost to our people of articles coming to them from abroud ior their needful use should only be increased through tariff charges to an extent necessary to meet the expenses of the Government, as weil as those who claim that tariff charges may be lald upon such articles beyond the necessities of Government revenue, and with the additional purpose of increasing their price in our mar- kets so as 1o give American manu:acturers and producers better ana more profitable opportunities, must agree that our tariff laws are only primarily justified as sources of revenue to enable the Government {o meet the necessary expenses of ifs maintenance. Consid. erad as to its sufficiency in 1his aspect, the present law ¢an by no means fall under just coudemnation. During the only complete fiscal year of iis operation 1t has yieided nearly $8.000,000 more reveuua than was re- ceived from tariff duties in the preceding year. There was, nevertheless, a deficit between our receipts and expenditures of a little more than $25,- ‘I'he situation was such in December, seven months before the close of the fiscal vear, that the Sceretary of the Treasury foretold a deficiency of $17,000,000. The great and increasing apprehension and timidity in busiuess circles and the depression in all activities iutervening since that time, resulting from causes perfectly well understood, and eutirely dis- connected with our tariff law or its operations, seriously checked the im- ports we would have otherwise received, and readily account tor the d.ffer- ence between the estimate of the Secretary and the actuai deficiency as well as for a continued deficit. Indeed, it must be confessed that we cou!d hardly have had a more unfavorabie period than the iast two years for the coliection of & tariff revenue. We cannot reasonably hope that our recuperation from this business depression will be sudden, but it has already set in, with a promise of acceleration and continuance. I belizve our gl’eleut tariff law, 1f allowed a fair opportuuity, will in the near future yield a revenue which, with reasonably economical expenditure, will overcome all deficiencies. In the meantime no deficit that has occurred or may occur need excite or disturb us. - To meet any such deficit we have in the treasury, in addition to a gold reserve, of one hundred millions, a surplus ofmore than one nundred and twenty-eight miiions of dollars, applicabie to the payment of the expenses of the Government and which must, unless expended for that purpose, re- main a useless hoard or, if not extravegantly wasted, must in any event be perverted from the purpose of its exaction from our people. The pay- ment, therefore, of any deticiency in the revenue from this fundisnothing more than its proper and legitimate use. The Government thus applying & surplus fortunately in i s treasury to the payment of expenses not met by its currert revenuesis not to be likened to & man living beyond his income and thus incurring deb’, or encroaching on his priucipal. It is not one of the functions of our Government to accumulate and make addi- tions to a fund not needed for immediate expenditure. With individua it is the chief object of struggle and effort. The application of an aceumu- }:\e& fund by the Government to the payment of its running expenses aduty. An individual living beyond his means and emberrassing himself with debt, or drawing upon his accumulated fund of principal is either unfortunate or improvident. The distinction is between a Government charged with the dm{ of expending for the bencfit of the people and for proper purposes &l the money it receives {from any sou and the individusal who is expected to manifest a natural desire to avoid debt or “to accumulate as much as possib.e and tolive within the income derived ifrom such accumulation, to tne end that they may be increased, or at least remain unimpaired ‘for ths future use and enjoyment of himself and objects of his love and aoection who may survive him. Tt is immeasurably better 16 appropriate our surplusto the payment of justifiable expenses than to allow it to become an invitation to reckless appropriations and extravegant expenditures. Isupposeit will not be denied that under the preseut iaw our people obtain the necessaries of a comfortable existence at a cheaper rate than formerly. This is a matter of supreme importance since it 1s the palpable duty of every just govern- ment to make the burdens of taxation as light as possible. The people should not be required to relinquish this privilege of cheap living except under the stress of their governments necessarily made plainly manifest. A FINANCIAL REFORM REQUIRED. This reference to the condi‘ion and prospects of our revenues natur- ally suggests an aliusion to the weakness ana vices of our financial methods. They have been frequently pressed upon the attention of Con- gress in previous executive communications and the inevitable dunger of their continued tolerstion pointed out. Without now repeaiing these evils, I cannotrefrain from again earnestly presenting the necessity of the prompt reform of a system oprosed to every rule of sound finance and shown by experience to be frauzht with the gravest peril and perplexity. The terrible Civil War, which s:ook the foundatious of our Goyernment more than thirty years ago, brought in its train the destruction of prop- erty, the wasting of our couniry’s substance and the estrangement of brethren. These are now pist and forgoteen. Even the distressing loss of life the conflict entailed is but a sacred memory which fosiers patriotic sentiment and keeps alive a tender regard for those who nobly died. And yetthere remains with us io-dey in full strengtn, as an incident of that tremendous struggle, a feature of its financial necessities, not only un- suited to our present circumstances, but mani‘est!y a disturbing meénace to business security and an T present agent of monetary distress. Because we may be enjo: a temporary relief from its depressing in- fluence this should not iull us into a false security nor lead us to forget the suddenness of past visitations. Iam more convinced ‘han ever that ‘we can have no assured financial peace and safeiy until the Government currency obligations upon which go'd may be demanded from the treasury are withdrawn from circulation snd canceled, This might be doue, as has been heretofore recommended, by their exchange for long term bonds bearing a low rate of inte:est or by iheir redemption with the proceeds of ruch bonds. Even if only the United States notes known us greenbacks were thus retired it is probable ihat the treasury notes issued in paymeut of silver purchases under the act of July 14,1890, now paid in gold when demanded, would not create such disturbance as they might from time to time when received in the tieasury by redemption in gold or otherwise, be grnd\ullilnd prudently r-plac-d by silver coin. This plan of issuing bonds for the purpose of redemption certainly appears to be the most effective and direct path to the needed reform. In default of this, however, it would be a step in the right direction if currency obligations redeemubie in gold, whenever so redeemed, should be canceled instead of being reissued. This operation would be & slow remedy, but it would improve present conditions. National banks should redeem their notes. They should be allowed to issuc circulated to the par value of bondsdeposited as seeurity for their redemption aud the tax on their circulation should be reduced to one-tourth of one per cent. In con- sidering projects for the retirement of United States notes and treasury notes issued under the law of 1890, I am of the opinion that we have laced tco much stress upon the danger of contracting the currency and ave calculated too littie upon the goid that would be sdded to our circu- lation if invitea to us by better and safer financial methods. It not so mueh a contraction of our currency that should be avoided as sucu un- equal distribution. This might be obviated and any fear of harmful contraction at the 'me time removed by allowing the organization of smaller banks and in less populons communities than are now permitied, and authorizing banks to establish branehes in small communiiies under proper restriction, The entire case may be presented by the statement that the day of sensi- ble and sound financial method will not dawn uvon us untii our Gov- ernment abandons the banking business and the sccumulation of funds and contives its monetary operations to the receipt of the money contrib- utea by the people for its supportand to the expenditure oi such money for the people’s benetit. Qur business interests and ail good citizens long for rest from fevarish agitation and the insuguration by the Government of a reformed financial policy which will encourage enterprise and make certain the rewards of labor and ind uslry' AS TO TRUSTS AND MONOPOLIES. Anotner topic in which our people rightfully take a deep interest may be here briefly considered. I refer to the existenca of trusts and other buge aggregations of capital, the object of which is to secured the monopoly of some particular branch of trade, industry or commerce and so stife whole- some competition. When these are defended it is usualiy on the ground that though tney increase profits they also reduce prices and thus may benetit the public. It must be remembered, however, that a reduction of prices to the people is not one of the real objects of these organizations, nor is their tendency necessarily in that direction. If it occurs in a par- ticular case it ic only because it_accords with the purpose or interest of those munaging the scheme. Such occasiomal results fall far sbortof compensating the palpabie evils charged to the account of trustsand monopolies, Their tendency is to crush out individual lnde{.enden('? and to hinder or prevent the free use of human faculties and the full develop- ment of human character. Through them the farmer, the artisan and the small trader is in dan. ger of dislodgment from the proud position of being his own master, watchful of all that touches his country’s prosperity, in which he nas an individual iot, and interested in ail thataffects the advaniages of business of which he is a factor, to ba releguted to the level of a mere appurtenance free will, with no duty but that of passive obedience, and with little Lope or opportnnity of rising in the scale of responsible and healthin] citizenship. To the instinctive belief that such is the inevitable trend of trusts snd monopolies is due the widespread and deep--eated populsr aversion in which they are held, and the not un- reasonable insistence that whatever may be their incidental economic ad- vaniages, their general effact upon personal character, prospects and use- julness cannot be otherwise than injurions. : Though Congress has atiempted (o deal with this matter by legisia- tion, lhs‘nws passed for that purpose thus fer have proved ineffective, not because of any lack of dispos itiun or attempt to enforce them, but simply because the laws themselves as interpreted by the courts do not reach tne aflicuity. If the insufficiencics of existing laws can be remedied by fur- ther legislation it shoutd be done. Itsuould be recognizea however, that all financial legislation on this subject may fall short of ’H! purpose be. cnuse of inherent obstacles, also because of the complex character of our Governmental system, which, while meking the Federal authority supreme within its sphere, has cxrefully limited that sphere by bounds which cannot be transgressed. The decision of our highest court on the precise question renders it quite doubtful whether the evils of trusts and monopolies can be adequatery treated through Federal action, unless they seek directly and purposely to include in their objects transportation or intercourse between States or between the United Siates and foreign countries. It doer not follow, however, that this 1s the limitof the remedy that may be applied. Even though it may be found that Federalaurhorities are not bre enobigh to fully reach the case there can be nodoubt of the power of the several States to act effectively in the premises, and there should be no reason to doubt their willinguess to judiciously exercise such power., AN APPEAL FOR RIGID ECONOMY. In concluding this communication its last words shall be an appeal to , Congress for the most rigid economy in the expenditure of the money it hoids in trust for the people. The way to rerpiexing extravagance is y, but & return to frugality is difficult. When, however, it is consid. ered that those who can bear the burdens of taxation have no guaranty ot honest care save in the fidelity of their public servants, the duty of all possible retrenchment is piainly manifest. ‘When our differences are for. - gotten and our contests and political opinions are no longer remem bered, nothing in the retrospect of our publi¢ service will be as fortunate and comforting as the recollection of official duiy well performed and the memory of a constant devotion to the interests of our confiding fellow- countrymen. GROVER CLEVELAND, Executive Mansion, December 7, 1896,