The San Francisco Call. Newspaper, December 7, 1897, Page 3

THE SAN FRANCISCO CALL. TUESDAY, DECEMBER 7 'THE MESSAGE ‘OF McKINLEY TO CONGRESS Devoted Very Largely to Cuba and the Question of Currency. The President Utges the Annexation of Hawaii, but Admits There Are Elements in Its Population Not Exactly Adapted for Citizenship., Carr OrricE, Rices House, 1 ) WAsHINGTON, December 6.§ re full text of President McKiniey's message, as read to-day 10 the two houses of the Fifty-tifth Congress, is a follows: To the Senate and House of Representatives: B liEves we pieasure toextend greetiug to the Fifty-fi.th Congress assembled in regular a1 the seal of Government, with many «f those Senators and Representatives I have associnted in the legislative service. 1heir meeing cccurs under felicitous condi- stifying s e congratuiations and ng fc nowledgment to a encficent Providence, which has so signally prospered us as a nation. Peace 1 the nations of the earth continues zrateful ac ssed snd with of genuine satisiacti ng of ernal regard and unification ons of our country, the incomplete- which has too long delayed realization hest blessings of tne Union. The Tt o otism 1s reasing fervor. The public questior hich now most engross us are lifted far above n is the grow- sec affcct every part of e and permitof no on ancient lines. Questionsof for- venues, the sot nviolability of national oblige- nt of the public service conscience of every r parly he belong: the country he may this Congress, which 3 imporiant universal and is ever- partisanship. prejudice or former sec- | | | idness of the | | | | necessary banking powers to help ftse ar ects have not | realiz: already accom To tes time will be req with its operatior s far, are in d to withhold from it a fair trial. Tariff legislation Tariff Settled, the h ¢ been settled Currency Comes Up. by the exira session « Congress, the sestion mext press or consideration is 1t of the curr e k ot putting our fiuances basis, diflicult as it scem, wi easier w we recall ¢ fiunncia tion of the Government ce 1866 On June 30 of that year we had utstanding d-mand Libilitics in the sum of 28,568,447 41. Ou January 1, 1879, these is0iiiies had been reduced to $443.889.- 88 Of «nr intere:t-bearing obiigations figures are even more striking. Ou 1, 1866, the precipal of the in- earing debt of the Government was R 831,208 On July 1,1893, this fum 1ad been reduced to 583,037,100, or an ag- gregate reduction of ¥1,747,294.108. The terest nz debtof the United States on Decemter 1, 1897, was §847,365,620. The vernment monev now outstauding (D cember 1) consists of $346.651,016 of United simles notes, $107,793,280 of Ireasury notes by suthority ot the law or 1890, 3504 of siiver certficates and §61,- i1 of standard silver dollers, With the great resources of the Government, | | | { ance of bonds. But if the gold reserve falls below $100,000,000, how can 1tbe replenished except by selliug more bonds? Is tnere any other way praciicable under exisung law? The serious question then is, shall we con- tinue the policy that has been pursued in the past; thatis, when the gold reserve reaches the point of danger, issue more bonds and supply the needed gold, or shall we provide other means 1o prevent these recurring arains upon the gold reservc? If ne further legisia. tion is had, and the policy of selling bonds is to be continued, then Congress should give the Secretary of the Treasury authority to sell bonds at iong or short periods, bearing a less rate of interest than 1s now anthorized by law. I earnestly recommend as soon as the re. ceipts of the Government are quite sufficient to pay all the expenses of the Goverument, hat when any of the United States notes aro presented for redemption and ere redeemed in gold, such notes shall be kept and set apart, and only paid out in exchange for gold. This is an obvious duty. If the holder of the | United State note preters the gold and gets it fiom the Government, he should receive back from the Government a United States note without paying gold in exchange firit. Toe reason for this is made all the more apparent when the Government issues an interest-bear- ing debt to provide gold for the redemption of United States otes—a non-interest-bearing debt. Surely, it should not pay them out again except on cemand and forgold. Ifthey are put out in any other way they may return again 10 be followed by another bond 1ssue to re- deem them—another interest-bearing debt to redeem a non-interest-bearing debt. In my view it is Approves this Plan of the utmost im- . Secretarhy Gage. portance 1hat the Government should | be relieved from the business of providing for all the gold required for exchanges and port. This respousibility is mlone borne by ihe Government without any of the usual and Tne banks do not feel the strain of the gold re- demption. The whnole strain rests upon the Government, and the size of the gold reserva in the treasury has come to be, with or with- out reason, the signel of danger or of security. This ought to be stopped. If we are to have an era of prosperity in the country, with suffi- clent rec=ints for the expenses of the Govern- { ment, we may feel no immvdiate embnrrass- ment from our present curency; but the dan- ger ntil exisis and will be ever present, men- acing us as long es the existing system con- And, besides, it is fn times of ade- quate revenues and business tranquillity that he Government should prepare for the worst, We cannot avoid without serious consequences the wise consideration and prompt solution of this question, The Secretary of the Treasury has outlined a plan in great detail for the purpcse of remov- ing threatened recurrence of u depleted gold reserve and save us .rom fuiure embarras ment on that account. To this plan I invite your careinl consideration. I concur with the Secretary of the Treasury in his recommendation that nationsl banks be ailowed to issue notes 1o tne fuce value of the | bonds which ihey have deposited, for circuia- 74 with the time-honored example of the past before us, we ought not hesitate to enter | spon a curreney revision which will make our demand obligations less onerous to the nment and relieve our financial laws b, ¥ and doubt. w of whatwas accomplished the war until 1893 makes ot ist admonish Congress of the immedi- y of s0 lerislating s to make tne ie condiifons thea prevailing im- re many plans proposed as s remedy ¢ evil Before we can find the truc rem- edy we must apy te the real evil Iltis not thatour curreney of every kind is not ause every dolisr of itis good; good pledge is out 1o keep iat pledge will pot be broken. guaranly of our purpose to keep il be best shown by advancing fillment. the present system st to the Government in main- par! of our different forms of is, keeping all of them at We surely cannot be longer heed- e burden this imposes upon the peo- cven under fairly prosperous conditions, while the pest four years have demonstrated that itis not only an expensive charge upou the Government, but & dengerous merace to the nationai credit. the pledge toward its fi The evil o e great ¢ ing the ey, that is found in Stop the Chain of Bond Kedem ption. we must devise some vlan to protect the Government arains tbond issues for repeated redempiions We must either curtail the opportunity for speculation, made ea-y by the muitipiied re- demptions of our demand obligations or in- crease the zoid reserve for their redemption. We nave $900,000,000 of ¢ irrency which the Government, by so.emn. :aciment, has uun- dertaken to keep at par with gold, Nobody is obliged to redeem in gola but the Govern- The banks are not required to redeem id. The Government is obliged to kerp equal with gold all its outstanding currency and c required to be paid in gold. They are psid in every kind of money but goid, and the only means by which the Government can, with certainty, get gold is by borrowing. Itean getit in no other way when it most needs it. The Government, without any fixed gold reve- 31u€, 1s pledged to maintain go.d redemption, which it has steadily and faithfully done, and which, under tke authority now given it, will continue to do, Tae lav whica requires the Government, eiter having redeemed its notes, to pay them out again as current funds, demands a con- siant replenishment of the gold reserve. This is especially 50 in times of business panic and when the revenues are insufficient to meet the scpenses of the Government. At such times the Government Lias no other Way 1o supply its deficit aud maintain redemption but through the increase of its bonded debt, at the urgent administration of my predecessor, when $262 315,400 of 415 per cent bonds were issued und sold and the proceeds used 10 pay the « Xpentes of the Government in excess of fevenues and sustain the gold reserve. While ilis true that the greater part of the proceeds of these bonds were used to supply deficient revenues, & considerable portion was required to maintain the gola reserve. With our revenues equal to our expenses, here would be no deficit requiring the issu. neb.e and groundless any distrusi of our financial ability or| ; while the situation from 1893 to par 3 | It is manifest that obligations, while its receipts arénot | | | | | | | | i | Give Spain a Chance | the Cuban insurrection. tion, and that the tax on circulating notes secured by deposit of such bonds be reduced to oue-hialf of one per cent per annum. I also juin bim in recommending tiat authority be given for the establishment ot national banks with & minimum capital of $25,000. This wiil enable the smaller villages and agricultural regions of the country to be supplied with cur- rency to meet their needs. 1 recommend that the 1ssue of nationsl bank notes be restricted to the denomination of ten dollars and upward. If tife suggestions I have herein made shail have the approval of Con- gress, then I would recommend that national banks be required to redeem iheir notes in goid. The most import- tant probem with which this Gov- ernment is now called uvon to deal, periaining to its foreign relations, concerns its duty toward Spain and Problems and con- ditions more or less in common with those now existing have conironted this Govern- ment at varfous times in the past. The story of Cuba for many years has been one of un- rest, erowing discontent; an effort toward the larger enjoy.aent of libérty and sel-control; of organizea resistance try; of depression aiter distress and warfare, and of ineffectual seitlement to be followed by renewed revolt. For no enduring period since the enfranchisement of the continental possessions of Span 1n the Western Continent nhas the condition of Cuba or the policy of Spain toward Cuba not caused concern 1o the United State: The prospect from time to time that the weakness of Spain’s hoid upon the island and the polidcal vicissitudes and embarrassments of home government might iead to the trans- ier of Cuba to & continental power, cailed forth, between 1823 ana 1860, various em- phatic declarations of the policy of the United States to permit no disturbance of Cuba’s con- nection with Spain unlessin the direction of independence, or ncquisition by the United States through purchess; nor has there been any change of this declared policy since upon the part of the Government. The revolution which began in 1868 lasted for ten years despite the strenuous efforis of the successive peninsular governments to sup- press it. Then, as now, the Government of the United States testitied i1s grave concern and offered its aid to put an end to bloodshed in Cuba. The overtures made by Geueral Grant were rejused and the war dragged on, to Pacify Cuba. | entailing great loss of jife and treasure and incressed injury 1o American interests, be- | sides throwiug enhanced burdens of neutral- ity upon this Government. In 1878 peace was brought about by the iruce of Zanjon, ob- tained by negotiations between the Spanish commander, Martinez de Campos, azd the in- surgent leaders, The present insurrection broke out in Feb- ruary, 1895, It is not my purpose at this time to recallits remarkable increase or to charac- terize its tenaclous resistance against the enor- mous forces massed against it by Spain. The revolt and the efforts to subdue it carried de- struciion to every quarter of the island, de- veloping wide proportions and defying the efforts of Spain forits suppression. The civil- ized code of war has been disregarded, no less s0 by the Spauniards than by the Cubans. The existing conditions cannot but #ill this Governmen: and tho American peopie with the gravest apurehension. There is no desire on the purt of our people to profit by the mis- fortunes of Spain; we huve only the desire to see the Cubans prosperous and contented, en- Jjoying that measure of seif-control which is to the mother coun-| 'he tnalienable right of man, protected in their right to reap the benefit of the exhaust~ less treasures of their country. The offer made by my prelccessor in April, 1896, tendering the friendly offices of this Government, failed, and mediation on our PArt was not accepted. In brief, the answer | rend: “There isno effectusl way to pecify Cuba unless it begins with the actual suomis- sion of the rebels to the mother country.” | Then only cou!d Spain act in the promised di- rection of her own motion and after her own plans. The cruel policy of coneentration was initiated February 16, 1896. The productive districts controlied by the Spauish armies were depopulated, and the agricultural fnhab- itants were herded in and about the garrison towns, their lands iaid waste and their dwell- ings destroyed. This policy the la‘e Cab- inetof Spein justified as & necessary measure of war end as a means of cutting off supplies | from the insurgents. It has utterly failed as & war measure. It was not civiiized wariare; it was extermination. Against this abuse of the rights of war I have felt constrained on repeated occasions to | enter the firm ana earnest protest of this Gov- | ernment. There was much of public condem- | nation of the treatment of American citiz -ns | by alieged illegal arrestand long imprisonment awaiting trial or pending protracted judicial procedures. 1 felt it my first duty to make in- | siant demand for the reless: or speedy trial ot #ll American citizens under arrest. Before the | change of the Spanish Cabinet in October last twenty-two prisoners, citizens of the United States, had been given their freodom. For the relief of our citizens suffering be- cause of the conflict the nid of Congress was sought in & special message, and under the appropriation of April 4, 1897, effective aid has been given to American citizens in Cuba and many of them at their own request bave | been returned tc the United States. The instructions | Minister Woodford given w0 our new and His Mission, Miuister to Spain before his depart- ure for his post directed him to impress upon that Government the sincere wish of the | United States to lend its aid toward ending | | the war in Cuba by reaching a pesceful and Insting result, just and honorable slike to Spain and the Cuban people. These instruc- | tions recited the character and duration of | the contest, the widespread losses it entails, the burdens and restraint it imposes upon u: with constant disturbance of national inter- ests and the injury resulting from an indefi- | nite coutinuance of this state of things. It was stated that at this juncture our Gov- ernment was constrained to seriously inquire if the time was not ripe when Spain, of her own volition, moved by her own interests and by sentiment sof humanity, should put a stop | 10 this destructive war and make proposais of settlement honorable to herseif and just to | her Cuban colony. It was urged that as a | neighboring nation with large interests in Cuba, we coula be required to wait only & reasonable time for the mother country to es- { tablish its authority and restore perce aad order within the bordersof the isiand; that we could not contemplate ar indefinite period for 1he accomplishment of this result. No solution was proposed to which the | slightest idea of humiliation to Spain could attach, and indeed, precise proposais were withheld to avoid embarrassment to that Gov- ernment. Al that was asked or expected | thatsome saie way might be speedily providea #nd permanent peace restored. It so chanced that the consideration of this offer, addressad to the Spanish administration which had de- clined the tenders of my predecessor, and | which for more than two years had poured | men and treasure into Cuba in the fruitless ef- lort to suppress the revolt, fell to others. Be- | tween the departure of General Woodford, the new Eavoy, and his arrival in Spein, the statesman who had shaped tne policy of his country feil by-the hand of an sssassin, and although the Cabinet of the late Premier still held cffice and received from our Envoy the | proposals he bore, that Cabinet gave place | within a few days thereafter 1o & new admin- istration under the leadership o Sagasta. The reply to our note was received on the | 234 day of October It is in the direction of | & better understanding. It appreciates the | friendly purposes of this Government. It ad- mits that our country is deeply affected by the war in Cuba, and that its desires for peace are just. It declares that the Spanish Govern- ment is bound by every consideratfon toa change of policy that should satsfy the United States and pacify Cuba within & rea- | sonaple time. To this end Spain hes decided | to put into effect the political reforms hereto- iore advocated by the present Premier, with- | out halting for any considoration in the path which, in its judgment, leads to peace. | | The miltary operations, it is said, will continue, but will be humane and conducted with all regard for private rights, being accompanied by political action leading to the autonomy of Cuba while guarding Spanish sovereignty. This, it is claimed, will result in investing Cuba with a d.stinct personality; the island | 10 be governed by an executive snd by a local council or chamber, reserving to Spain the control of the foreign relations, the army and navs and the judicial administration. To accomplisk this the present Government proposes to wodify existing legislation by de- | cree, leaving the Spanish Cortes, with the aid | of Cuban Senators and Depu ties, 1o solve the economic probiem and properly distribute the | existing debt. | Inthe absence of a declaration of the meas- | ures that the Government pioposes 1o talgs i carrying out its proffer of good offices it Sug- gests that Spain be left free to conduct mili- tary operations and grant political reform: while the Unitea States, for its part, shall en- | force i1s neutral obligatious and cut off the | assistance which it is asserted the insurgents receive from this country. The supposition of an indefinite prclongation of the war is de- nied. Itis asseried that the western pro: | inces are alresdy well nigh reclaimed; that the planting of cane and tobacco therein has | been resumed, and that by force of arms and new and ample reforms very early and com- | plete pacification is hoped for. | Theimmediate umelioration of existing con- ditions under the new administration of Cu- ban affairs is predicied, and therewithal the d:sturbance and ail occision for any change of attitude on the part of the United States, | Discussion of the question of international du- ties and Tesponsibil.tics of the United States, as Spain understands them, is presented, with an apparent disposition to charge us with failure in this regard. This charge is without any basis in fact. It could not have been maae if Spain bhad been cognizant of the constant efforts this Government hasmade at the cost of miliions and by the employment of the administrative machinery at the national command 1o perform its full duty, according 10 the law of nntions. That it has successfuliy prevented the departure of & single military expedition or armed vessel from its shores in | violation of our iaws would seem to be a suffi- cient answe But on this aspect of the Spanish note it {s not necessary to speak further now. Firm in the conviction of a wholly performed obliga tion duo response (o this charge haus been | made in diplematcissues. Throughout il these horrors and dangers 10 our own peace this Government has uever in any way abro- gated {is sovercign prerogutive of reserving to itself the determination of its policy and course according to 11s own high sente of right and in consonance wizh the dearest in- teresis ana_convictions of our own people should the prolongation of the strife so de- mand. Of the untried measures there remain only: Recognition of the insurgents belliger- ents; recognition of the independence of neutral intervention to end the war by imposiag a rational compromise betwean the contestants, and intervention in favor of one or the other pariy. Ispeak not of forcible au- nexation, for tuat cannot be :hought of. That by our code of morality would be crimi- nnl aggression. Recognition of the belligerency of the Cuban insurgents hes often been canvassed as a possible if uot inevitable step, both in re- gard to the previous ten years' struggle and during the present war. Iam not unmindful toat the two houses of Congress in the spring of 1896 expressed the opinion by concurren: resoiution that a condition of public war ex- isted requiring or justifying the recognition of ustate of beliigerency in Cuba, and duriug the extra session the Senate voted & joint re olution of like'import, which, however, wai not brought 10 & vote in the House. 1z the presence of these significant expres- litis always, and just sions of the sentimentof the legi-l1tive branch it behooves the executive to soberly consider the conditions upon wuich so important s | measure must needs rest for justification. It | consideration. But should such & step be now is to be seriously considered whether the Cuban insurrection possesses beyond dispute the attributes of statehood which alone can demard the recognition of beliigerency in it favor. Possession, short of the essential qualifi- cations of sovereigaty, by the insurgents, and the conduct of the war by them according to the recognized code of war, are no less impor- tant factors toward the deternination of the problem of beliigerency than are the influences and consequences of the struggle upon the internal policy of the recognizing state. The utterances of President Grant in bis memorable mes- sage of December 7, 1875, are signally relevaut to the present situation in Cubs, and it may be wholesome now to recall them. Atthattime a ruinous conflict had for seven years wasted the neigh- boring island. During all those years an utter General Grant's Words Fit the Situation. | disregard of the laws of civilized warfare and of the just demands of humanity, which called forth expressions of condemnation from the mations of Christendom, continued un- abated. Desolation and ruin pervaded that productive region, enormously nffecting the commerce of all productive nations, but that of tne United Stales more than any other. by ress)m of proximily ana larger trade and in- tercourse. At that junc.ure General Grant uttered tnese words, whick now as then sum up the elements of tne problem: “A recognition of the independence of Cuba being, tn my opinion, impracticabie and inde- fensible, tho question Which next presents ttsclf is that of the recognition of peliigerent rights in the parties 1o the coutest. Ina for- mer message to Congress I had occasion 10 consider this question and reached the con- | clusion that the conflict 1njCuba, dreadful and devastating as_were its incidents, did not rise 10 the fearfol dignity of war. “It 18 possible that the acts of foreign powers, and even acts of Spain hersel: of this very nature, might be pointed to in defense of such recognition. But now, as in its past his- tory, the Unitea States should earefully avoid the false lights which might lead it into the mazes of doubtiul Iaw and of unquestionable propriety, and adhere rigidiy and sternly to the ru'e, which has been iis guide, of doing only tuat which is Tight ana honest and o1 good report. The question of according or of withholding rights of beliigerency must be | judged,in every ease, in view of the particular attenaing facts. Unless justified by necessity regarded as an un- friendly sct and a gratuitous demonstration of moral support to the rebellion. It is neces- sary and it is required when the interests and rights of another Government or of its people are so tar aflected by a pending civil conflict as to require deflmition of its rela- tions to the parties thereto. But this conflict must be one which will be recogu zed in the seuse of international law as war. “'Belligerence, 100, is & fact. The mere ex- istence of contending armed bodies and their occasionel conflicts ao not constitute war in the sense referred to. Applying to the exist- ing condition of affairs in Cuba the tests recognized by publicists and writers on inter- national iaw, nnd which have been observed by nations of digniiy, honesty and power when free from sensitive cr selfish and un- worthy motives, 1 fail 10 find in the insur- rection the existence of such a substantial political organization, real, paipable aud manifest to the world, having the forms ant capuble of the ord:nary functions of ordinery government toward its own people and to other states, with courts for the adminis- tration of justice, witha local habitation, pos- sessirig such organization of force, such material, such occupation of territory as to take the contest out of the eategory of a mere rebe:lions insurrection, or occasional skirm- isbes, and piace iton the terrible footirg of war, to which a recognitiou of belligerency would aim to clevate it. “The contest, morcover, is solely on land; the insurrection hias not possessed itself of a seaport whence it may send forth its flag, nor has it any means of communication with foreign powers except through the military unes of its adversaries, No mpprehension of anyof these sudden and difficult complica- tions, which & war upon the ocean is apt 1o precipitate upon the vessels, both commercial and national, and upon the consuiar officers of other powers, calis for the definition of their relations 1o the parties 10 the contest. Considered as a question of expediency, I re- gard the accordance of belligerent rights. still 10 be as unwise and premature as Iregard it 10 be at present indefensible asa messure of | right. “Such recognition entails upoa the country according the rights which flow from it difii. cultand complicated duties and requires the exaction from the contending parties of the strict observance of their rights and obligs- tions. Itconfers the right of search upon the high seas by vessels of both parties; it would subject the carrying of arms and munitions of war, which now may be transported freely and without interruption in vessels of the United Siates, to detentfon and to possible seizure; it would give rise to countless vexs- tious questions; would release the parent Gov- ernmeat from responsibility for acts done by the insurgents and would invest Spain with the right to exercise the supervision recog- nized by our treaty of 1795 over our commerce on the high seas, a very large part of which, in its traflic between the Atlantic and the Guif ates and between all of them and the Siates on the Pacific, passes through the waters which wash the shores of Cuba. The exercise of this supervision could scarce fail to lead, i1 not to abuses, certainiy to collisions perilous to the peaceful relations of the two states. There can be little doubt es to what result such supervision would before iong draw this nation. It would be unworihy of the United States to inaugurate the possibilities of such result by measure of questionable right or ex- pediency or by any indirection.” Turning to the Recognition of practical aspects of Belligerency Not a recognition of 1o Be Accorded. belligerency —and reviewing f{ts in- conveniences and positive dangers, stiil fur- ther pertirent considerations appear. In the code of nations there is no such thingasa usked recognition of belligereney unaccom- panied by the assumption of international neutrality. Such recognition without more will not confer upon either party to a domes- tic conflict a status not therotofore sctua:ly possessed or affect the relations of either party 10 other states. The act of recognition usually takes the form of & solemn proclamation of neutrality which recites the de facto condi- tion of belligerency es its motives. Itannounces & domestic law of neutrality in the deciaring state. It assumes the intern tional obligations of aneutral in the preseuce of & public state of wer. It warns all citizens and others within the jurisdiciion of the pre- claimant that they vioiate those rigorous ob- ligations at their own peril and canuot expect to be shielded from the consequences. The right of visit aud search on the seas and seizure of vessels and cargoes and contraband of wurand good prize uader admiralty law must under international law be admitted as a legltimate con-equence of a yroclamation of belligerency. ‘Whi.e according equal bellig- eient rights, defined by public law, to each party in your ports disfavors would be im- posed upon both, which, while nominally equal, would weigh heavily in bebalf of Spain herself. Pos.essing a navy and claiming the ports of Cuba her maritime rights couid be asserted not only for the military investment of the island, but up to the margin of our own terrizorial waters, and a condition of things would exist for which the Cubans within their own domain could not hope to ereate a paral- lel,while 1s creation through aid or sympathy from within our domain would be even more impossibie than now with the additfonal ob- ligations of internatioaal neutrality we would perforce assume. The enforcement of thislarge and onerous code of neutrality would only be influential within our own jurisdiction by land and sea, and applicable by our own instrumentalities. 1t could impart to the Unitea States no juris- diction between Spain and the insurgents. It would give the United States no right of intervention to enforce the conduct of tne strife within the paramount authority of Spain according to the. international code of ar Mo these reasons I regard the recognition of the belligereney o the Cuban Insurgents as now unwise and therefore inrdmissible. Should that step hereafter be deemed wise as a measure of right and duty the executive wiil take it. « Intervention upon humaniterian grounas Las been frequently suggested, and hasnot failed to receive my most anxious and earnest t taken when it is apparent that a hopeful change has supervened in the policy ot Spain toward Cuba? A new government hes taken office in the mother country. Itis pledged in advance to the declaration that all the effort in the world cannot suffics 10 maintain peace in Cuba by the bayonet; that vague promises of reform aiter subjugation afford no solution of the insular problem; that with a substitu- tiou of commanders must come a change of the past system of warfare forone in har- mony with a new pol ¢y which shall no longer aim to drive the Cubans to the horrible alter- native of taking to the thicket or succumbing in misery; that reforms must be instituted in accordance with the needs and circumstances of time, and that these reforms, while de- signed to give full autonomy, to create virtusl entity and self - control ed administrations, shall yetconserve asd sflirm the sovereignty of Spain by a just distribution of powers and burdens upon a basis ot mutusl interest un- tainted by methods of seifish expediency. The first acts ot the new Government lie in these honorable paths. The policy of cruel rapine and extermination thatsolong shocked the universal sentiment of humanity has been reversed. Uader the new military com- mander a broad clemency ‘s proffered. M ures have already b:en set on joot (o relieve tne horrors of starvation. T.ae power of the Spanish armies, it is asserted, 1s to be used not to spread ruin and desolation, but to vrotect the resumption of peaceful agricultural pur- suits and productive industries. That past methods are futtle to force & peace by subju- gation is freely admitted. and that ruin with- out conciliation must inevitably fail to win for Spain the fidelity of & contented depend- ency. Decrees in application of the foreshadowed reforms have already been promulgated. The full text of these decrees has not been received, but, as furnished in a telegraphic summary, are: Allciviland electoral rightsof penin- sular Spaniards are, in virtue ot existing con- stitutional assembly. forthwith extended to colonial Spaniards. A schcme of autonomy has been proclaimed by decree. to become effective upon ratification by the Cortes. It creates s Cuban Parliament, which, with the insular executive, can considerand vote upon all subjects affecting local order and interests, possessing unlimited powers, save as to mat- ters of state, war and the navy, as 1o which the Governor-General acts by nis own author- ity as the delegate of the central Government. This Parlament receives the oath of the Governor-Geueral to preserve faithfully the liberty and privileges of the colony, and to it the Colonial Secretaries are responsible. It hes the right to propose to the central Govern- ment, tnrough the Spain’s Better Temper Governor - General, to Be Fairly Tested. modificationsof the nutional charter and to invite new projects o law or executive measures in the interest of the colony. Besides its local powers it is competent, first, to regulate electoral registiation and procedure, and prescribe ths qualifications of electors and the manner of exercising sul- frage; second, to organize courts of justice with native Judges from members of the local bar; third, to frame the insular budget both s Lo expenditures and revenues to meet the Cuban share of the national budget, which intter will be voted by the national Cortes with the assistance of Cuban Senators and Deputies; fourth, to initiate or take part in tne negotiationsof the national Government or commercial treaties which may affect Cuban interests; fiith, {0 accept or reject com- mercial treaties which ths national Govern- ment may have conc.uded without the par- ticipation of the Cubsn Government; sixth, to frame the colonial tarif, actiag in accord with the peninsular Government in schedulicg articles of mutual commerce between the mother ceuntry and the colonies. Before in- troducing or voting upon a bill, the Cuban Government or the Chambers will lay the projeci betore the central Government and hear its opinion thereon; all the correspond- ence in such regard being made public. Finally, ail conflicts of jurisdiction arising be- tween the diff ‘rent municipal, provincial and insular assemblies, or between the latter and the insular executive power, and which from their nature may not be referable to the cen- tral Government for decision, shall be sub- mitted to the courts That the Government of Sagasta has entered upon a course from which recession with honor is impossibie can hardly be questioned; thatin the few weeks it has existed it bas made earnest of the sincerity of its professious is undeniable. I snsll not impugn its sin- cerity, nor should impatience be suffered to embarress it in the task it has undertaken. It is honestly Cue to Spain and to our iricndly relatious with Spain that she should be given & reasonable chance to realize her expect tions and 1o prove the asserted cfficacy of the new order of things to which she stands irre- vocably committed. She has recalied the com- mander whose brutal orders inflamea the American mind and shocked the civilized world. She has modified the horrible order of concentration aad has undertaken to care for the helpless and permit those who desire to resume the cultivation of their fields to ao so, and assures them of the protection of the Spanish Government in their lawful occupa- tions. She has just released the Competitor prisoners heretotore sentenced to death and who have been the subject of repeated diplo- matic correspondenc: during both this and the preceding administration. Not a sitgle American citizen is now under arrest or fu confinement in C iba, of whom tnis Goverument has any knowledge. The near future will demonstrate whether the in- dispensable condition of a righteous peace, just alike to the Cubans and to Spain as well as equitable to all our interests so intimately involved in the weifare of Cuba, is likely to be attained. If not, the exigency of further aud other action by the United States will remain 10 be taken. When that ume comes that action will be determlned in the line of the indisputableright and duty. It wiil be iaced, without misgiving or besitancy, in_ the light of the obligation this Government owes to itself, to the people who have confided to it the protection of their interests and honor, and to humaniiy. Sure of the rignt, keeping free from all of- fense ourselves, actusted only by upright and patriotic considerations, moved neither by passion nor selfishness, the Government will continue its watchful concern over the rights and property of American citizens, and will abate none of its efforts to bring about by peaceful agencies a peac> which shall be hon- orable und enduring. 1f it shall hereafter be a duty imposed by our obligations to ourselves, to civilization and humanity to intervene with force it shall be without fault on our | part, and only because the necessity for such action will be so clear as to command the sup- port and approval of the civilized world, By a special mes- Hawaiian Annexation snge, delivered the as a Logical Sequence. 16:h day of June last, 1 laid before the Senate of the United States a treaty signed that day by the plenipotentiaries of the United States and of the republic of Hawaii having for its purpose the incorporation of the Hawaian Islands »s sn integral part of the United States and under its sovereignty. The Senate having removed the injunetion of secrecy, although the treaty is suil pending before that body, the subject may be properly reierred to in this message because the neces- sary action of Congress is required to de- termine by legislation many detaiis of the eventual union should the fact of annexa- tion be uccomplished, as I believe it should be. While consistently disavowing irom a very early perfod any sggressive policy of absorp- tion in regard (o the Hawaiian group, a long series of discussions through three-qusrters of a century has prociaimed the vital interest of the United States in the independent life of the islands and théir intimate commercial de- pendency upon this country. At the same time it has been repeatediy asserted that in no event could the entity of Hawaiian statehood cease by the passage of the island under the domination or influence of another power than the United States. Uuder these circume stances ihe logic of events required that an- nexation, before offered but d-eclined, s ould in the ripeness of time come about as a nat- ural result of strengthening the ties that bind us 10 those is<iands and be realized by the tree will of the Haweiia\ stare. That treaty was unanimously ratified with- outamendm 'nt by the Seuate and President of the repubiic of Hawail on the 10th of Sep- tember last, and ouly awaits the favorable ac- t:on of the American Senate to effect the com- plete ab orption of the islands into the domains of the United States. What the conditions of such a union shall be, the political relation | approved March 3, 1 thereof to the ited States, the character of the local edministration, the quality and de- | gree of the eleciive franchise of the inhab- itants, the extension of the Federal laws to the territory or the enactment of special laws to fit the pecuiiar condition thereof, the regu- lation of needs of labor therein, ana all matters which the treaty has wisely rele- gated to Congress. If the treaty is confirmed, as every consid- eration of dignity ana honor requires, the wisdom of Congress will see to it inat, avoid- ing abrup: assimilation of elements perhaps hardly yet fitted to share in the highest fran- chises of citizenship and having due regard to the geographical conditions, the most just pro- visions for self-rule in local matters with the largest political Jiberties as an integral part of | our nation will be accorded to the Hawaiians. | No less is due to apeople who,aiter | neerly five years of demonstrated capacity to falfill the obligations of self-gov- erning statehood, come of their free will 1o merge their destinies 1n our bogy politic. The questions which have arisen between Japan and Hawaii by reason of the treatment <t Japanese laborers emigrating o the islands under the Hawaiian-Japanese convention of 1888 are in a satisiactory stage of settlement | by negoiation. This Government has not beea invited to mediate, aud on the other Dband has sought no intervention in that mai- ter further than to evince its kindliest dispo- sition toward such & speedy and direct aajust- | ment by the two sovereign states in interest as shall comport with equity and honor. Itis gratifying tolearn that the apprehen- sions at first displayed on the part of Jepan lest the cessation of Hawaii’s national life through annexation might impair privileges to which :Japan houorably iaid claim have given place toconfidence in the Government and the sincerity of its purpose to dval with all possible ulterior questions in the broadest spirit of friendliness. i As to the representation of thisGovernment to Nicaragus, Salvador and Costa,R.cs, I have | concluded that William L. Merry, confirmed as Minister of the United States to the States of Nicarague, Salvador and Costa Rica, shall proceed to San Jose, Costa Rica, and there tem- porarily establish the headquarters of the United States to those three states. 1 took this action for what I regarded as the paramount interests of this country. It was developed upon an invegtigation by the Secretary of State that the Government of Nicarague, whilo not unwitling toreceive Mr. Merry in hisdiplo- matic quality, was unubleto do so on account of the compact concluded June 20, 1895, whereby that republic and those of Silvador and Honduras, forming what is known as the Greater Republic of Central surrendered to the Represeatative Objectionable Elements of the Islands’ Population. Diet | agreement of America) had | their right to receive and send diplomatic | agents. The Diet was not willing to accept lim because ne was not accredited to that body. I could notaccredit him 1o that boay because the appropriation of Congress did not permit. Mr. Baker, the present Mintster at Manague, hus been directed to present his letters of recall. Mr. Godirey Hunter has iikewise been aceredited to the Government of Guatemala and Honduras, the seme as his predecessor. Guatemaia 1s not a member of the Greater Republic of Central America, but Honduras is. Should this latter Government decline to re- ceive him he has been instructed to report this fact 10 his Government and await its fure ther instructions in the matter. A subject of large importance to our country and in- creasing apprecia- The Greater Republic and the Canal. tion on the part of the people is the comple- | tion of the great highway of trade between the Atlaniic and the Pacific known as the Nicaragua canal. Its utility and value to American commerce are universally admitted, The commission appointed under daie of July 24 last to continue the surveys and examina- tions authorized by the act avproved March 2, 1885, 1n regara to the proper route, feasibility and cost of construciion of the Nicaragua canal, with a view of makiag compiete pians of the entire work of construction of such caal, is now employed in the undertaking. In the future I shail take occasion to transmit 10 Congress ihe report of this commisston, mak- ing at the same time suca further suggestions 5 may then seem advisabie. Under the provisicons of the act of Congress, 97, for the promotior. of an International agreement respecting bimer- allism, Iappointed on the Lith day of April, 1897, Hon. Edward 0. Wolcott of Colorado, Adlat E. Stevenson of {llinois and Honp, Charles J. Paine of Massachuseits as special envoys to represent the United States. They have been diiigent in their efforts to securo the concurrence and co-operation of European countries in the international settiement of the question, but up 10 this time have mnot been able to secure an agreemeut contem- plated by their mission. The gratifying ac- tion of our great sister republic of International Bimetallism and Wolcott’s Mission. this country in tne attempt to bring about an agreement between the principal commercial nations of Europe, whereby a fixed and relative value between gold and silver shail be secured, furnishes assurances that we a.e not alone among the larger nations of the'world in reauzing the international character of the problem and in the desire of reaching some wise and practi- cal solution of it. The British Government has published a re- sume of the steps taken jointiy by the French Embassador in London and the special envoys of the United States, with whom our Em- basssdor in Lonaon actively co-operated in the presentation of this subject to her Ma- jesty’s Government. This will be laid before Congress. Our special envoys have not made their final report, as further negotiations be- tween the representatives of this Government #nd the Governments of oiher countries are pending and in contemplation. They believe querters respecting the possibility of main- i | | Good Woods for France in joining | taining the stapility of the parity between the metals and kindred questions may yet be solved by further negotiatiats. Meanwhile it gives me satisfaction to state that the special envoys have aiready demon- sirated their ability and fitness to deal with the subject, and it is lo be carnestty hoped that their labors may result 10 an lnter- national agreement which wiil bring about recognition of both gold and silver as money upou such terms and with such safeguards as will secure tnc use of bo h wetals upon a basis | which saall work no injustice to auy class of our citizens. In order to execute as early as possible the provisions of the third and fourth scetions of the revenue act approved July 24. 1897, Iap- polnited the Hon. John A. Kesson of Iowas special commissioner plenipotentiary to un- dertake the requisite negotiations with foreign coun tries desiring 1o avail themselves of these proyisions. The negotiations are DOW Dros ceedings with several Goveramenis, both European and American. Itis be.icved that by & careful exercise ol the powers conierred by that act some gr evances of our own and of other countries in our mutual trade relations may be efther removed or largely elleviated and that the voiume of our commercial ex- changes may be enlarge1 w.ih acvantages to both contracting parties. Most aesirable from every standpoint of nationai interests and patriotism is the effort ‘0 extend our foreign commerce. o thi: end our merchant marine should be improved and enlarged. We should do our full share of the carryi g trade of the world. Wedonotdoit now. We should be the laggard no longer. The inferiority of our merchant marine is justly numiliatiug to the national pride. The Governmeut, by every proper consiitutional means, should aid in making our ships familiar visitors at every commercial port of the world, thus opening up new and valuable mar- kets to the surplus products of the larm and the factory. The efforts which had been made during the two previous years by my predecessor to xe- cure betier protection to the fur sealsin the Nortn Pacific Ocean and Bering Sea were re- newed atan early date by this administra- tion and nave been pursued with earnest- ness. Upon my invitation the Governments of Russia and Japan sent delegates to Wash- ingion und an international confercnce was held Curing the months of Octcber and No- vemter last, wherein it was unanimously agreed that under the existing regulations this species of useful animais was threatened with extinction, and that an international all the interested powers was necessary for their adequate proteciion. The Government of Great Britain did not see proier to be represented st this confer- ence, but subsequently sent to Washington as delegates the experi commissioners of Great Britain and Canada, who had during the past two years visited the Pribyloft Islands, and who met in conference stmilar commission- ers on the part of the United Sta‘es. The re- sult of this conference was an agreement on important facts connccted with the condition of the seal herd, heretofore in dispute, which The Merchant Marine Should Be Fostered. should place be- The Duty of Preserv- youd controversy ing the Seal Herd. the duty of the Governments con- cerned to adopt measures without delay for the preservation and restoration of the herd. Negotiations to this end are now in progress, the result of which I hope to be able to report 10 Congress at an earls day. International arbitration cannot be omitted from the list oi subjects claiming our consideration. Events have ouly served to strengthen the general views on this question expressed in my ioaugural ad- dress. The best sentiment of the civilized world is moving toward the set lement of dif- ferences between the nations without resort- ing to the horrors of war. Treaties embod: ing these humane principles on broad lines witnoutin any way imperiling our interests or our honor shall have my coustant encour- agement. 2 The acceptance by this Government of the invitation of the republic of France 1o parti- cipate in the universal exposition of 1900 at Paris was immediately fodowed b: the ap- pointment of a special commissioner 1o repre- sent the United Siates in the propcs d expos tion, with special reference to tne securing of space for an adequate exnibition on b.half of the United States. The special commissioner delayed his de- parture for Paris long enough to ascertain the probable demand for space by American ex- hibitors. His inquiries developed an almost unprecedeniea iuterest in tne proposed expo- sition und the information thus scquired ena- bled him to justiiy an application for a much larger ailotment of space lor the American section than had been reserved by the exposi- tion authorities. The result wes particularly | gratifying in view of the fact that the United States was one of the Inst countries to accept the invitation of France. The reception ac- corded our special the Paris Exposition. commissioner was most cordial and he was given every reasonable assurance that the United States would recetve a considera- tion commensurate with the proportion of our extubit. The report of the special.com- missioner as to the magnitude -and impor- tance cf the coming expo-ition and the great demand for space for American cxbibits sup- plies new arguments tor & liberal and judi- cious appropriation by Congress to the end that an exhibit fairly representative ot the in- dustries and resources of our country may be made in an exposition which will illustrate the world’s progress during the nineteenth century. The exposition is intended to be the mést important and comprehensive of the long series of international exhibitions, of which our own at Chicago was a brilliant ex- ample, and it is desiruble that the United States should make a worthy exhibit of Amer- ican genius and skill aud their unrivaled | achievements in every branch of industry. that doubls which have been raised in ceriain | The present immediate effective force of the navy consists of four battleships of the firsge - NOT EVEN THAT! 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