JTf I ti t AFKA 1 ItS OF STATU. The President Trnnsinitr, His An " nnal Message to Congress. 'Urj-eit nn Kxtciislon or Powers or National llfiiilm mill I'r in for llin Hold Ktiimliitil .Untnllllnii In.Netv Colonl ill Pon.i'Mtlon Iltndt Upon. Wnnltiiiffloit. I l'u. fi. I'renitleiiL M Kinhiy lo-dtty tnincmllU'd tho follow ing niusMifjo' to lliu Mfly-sixth con fn:nH: 'I'o (In) Hcnnlc iihI House of Itupitmcnlntlvc: At thu UiiohIioIiI of yi ur flollbortilli.iis you uru cullfd li inotim ulili otirvnmlr tmii tli(ili:itli of Vffti President llobiut, wlio pamd from llfo on (ho woridii of N. uiuberiill IiiM. Ills good OUl HOW M'HtS III I'tcllllll pOIICO M ptlVlltU lift' wiw pill i' mid eleiiited. while H.s public olreor wiik i'vit dlsl iigidsheil Iiv large cupiiclt.v. . hIjiIm'.ich Ititcrrltv. mill exulted uiollirM. Ilu ' tins In en icinovid from thohUhouicu which lio Honored Iiml dimmed lut bin lotty chuvuetor, llin devotion M iluty, Ills honoslV of purpose. unil inihlo tlitnes remain wltli us, UN a priceless legacy mill exiimp.c. A in 1 lift Countri's Ountltlnti. 'I'ho Flft-slxtH congress nui'vcnoH In Its Mrt rrgiilnr mission with lh(rouiilry In n condition of tmtisuiil piusierlty, of tinliersul good will ntnuig the propln at homo, und In rchillohsof lourn mid fitciulshlp with uvory government of Miawotid. Our foiol' n commerce has shown Krctil Increase In loltiiiioiind viiluo. 'llin roiii' Iilticd lmjioilHiindoxporls for tho ywir am lliu I lnrrcirt over xhowii In u hIii Id yo.ir In nil our ttltttory. Our c. 'orts for luwi iiH.nu cxci-eilcd by iiioro (hunll.o ii.uo.I.imi our Imporls mid oxporls ivmililntM In IH (I 'I h Imports pci cuplu uro CO jir cent, lens thi'ii In iM.O, whllo Iho uxporli fwrrupttu mo Ml per cent, moic than In IM7. jiliowln llin ( nliirccd nlU"llv oi' tin; United JiUitcH to Mitlf.lv tlie wanlHof IIh own Itii'ieaH Inu (lopulutlon. im well un to vontt Itmtc to thoso of Iho people of oilier Minimis Kx ports of u;Mli'iiltural products wer' T7HI, 770,142. Oi tmitiufiictiircd pioductN wu exiiortcd In viiluo S.HIJ.W.',! lit, beliu l.irer ih in unv pre vIuiih year. It is u milcwortliy liiot Ihul tho enly yearn In all our history when thu products Of our iiiiintlftiutorlcH Hold abroad were IHJH and (AM. (Jovcrumcnt receipts ft out all s, unci's for t)io flKcttt year ended .tune Hi, IW, IiicIiiiIImk ll,7Da,:ill 14, p.irt payment, of th'i (ivitr.il l'u clllo rallroiiil lnili)bt"dneHs. iikki'iu tt'il Sill '.WJ, tfOl.ns. Otisioms recelptH wore SM'i,l2Ml.7.', and ihciMi from Internal r'-M'tiui'. b!V..i 17,10 Jii. For tho lineal ,ir thuexpendlluieM wi,rtifti', C.t,rnf.iir. leavlni; a delleltof ni.lll.-.MU7. 'I'ho nscctetury of thy tro.isury e.stluiatiiH Hint the ro cclpts for thy curtent llscal jo.ir will nituroKiito 0lll,lirit,na, and upon tho basis of piem-nt ap propriations tho tixpunillturos will ui-c'k;iIo 4(I.HM'fiH,t lU, leaving u Hiirplus of ?l , ki '.id i. Kor tho IlKcalyimr untied .luno IP, 1HWJ, tho Intormil rovenuu to olpts wnro Incro.iNcd about tMiHI.OiiO.ooa. Thu prcHunt irratlfyliu,' NtroiiKth of Iho treasury Ih Miowu by tho fiua that on Do ccmbor I, IK'.i.), tho avalliiblu cash b.ilituco was r:78,0.1,B3r.7.', of which 3::,7II,0 fi.au wiih In rolil colli nml bullion, Thecomlltlousof coutl denco which prevail Ihioimlioul the country ditvo brought i.'tiltl Into mum j;cncrnl iimi ami icuslotim recelptH aio now almoNl eutliuly paid fn thai coin. Incronsotl nativity In liultistry. with Itu wel xouio utteniliuit. a hircnr I'lnployment for labor nt liluhur wiikiw lv's to the body of tho peoplo u lurKur ) lower to absorb Hit) circululliiK me dium. It is fuilher trtiu that jear by year, with 'lariter uroas of laud under cultivation tho In crctiHliiir voliimi) of aKrluiiltural prodiuits, cut flii, corn and wheat, calla for a luruer voluuiu of money Htipply. 'I Im Nutltiiiiil IIiiiiUIiii; Aet. In Its earlier lilslnry tlie national liaultlni; act reumed to provo a lOascniiblo avenue through v lit eh needful additions to iho circulation could 1rdlii tlmo to tlino bo iimile, CliamdliK cuudl 'tloiiH luno appurtuitly rendur.,d it now luopora tllvo to that und. Ti.uhUth tiuiruln In IuiihIko . curlUe.s rciiilreil, icsultliu; from liiruo l'lrcmi ttiuiN which covurnmenl bonds command In tho market, or tho lax on nolo Ihsuo.s, or both oper utlui; tok'i'tlier, appear to Im tho lnlluencoH which Impair Uh publlo utility. Tho attention of congress Ih respectfully In- vlted to this Important matter with lliu view of tiftct.'rlnlnluK whether or not Midi reasonable. tnodltlcallotiH can bo iniulo In lliu national (latilcluiT act uh will render Its servico In the par lUcularH huro roforrod to inoro rosponslvo to tho iIKJoplo's uoeilH. I aKaluiiniulhat national biinltH iJh) authorlod to or;uuUt) with a cap I nil of tli, 000. For the (luld Htiiuditril. n urKCntly recommnnd that to Ntipport thu ox IrIIiik cold Hlandaixl, and to maintain "tho par ity In vahio of lliu coins of thu two metals (k'olil and Hllvur) and thu eipial power of evury dollar utall times In tho market and In tho payment ot debts,"' tho heuretary of tho treasury bo j:lven aildltlonal power and charued with tho Uuly to soil United Stales bonds and lo employ fcuch othur I'ffrrllvu mtinus as may lio necessary Ho theo ends. Tho authority hhould tucludo tho power lo Hell bonds on loin; und short time, 4is conditions .may require, and should provide for a rate of Itituiost lower than Hi t ll.ed by Ihoaclof.lantiary II, IS.v Wlille there Imiuw no comiiiutclal frlrjht wlili'h wit diaws nold from (io i;oviirunieut, but, on Hie contrary, Mich tvlde.spicad conlldcneo that uold M'Oks the treasury deni!iudln' paper motiev In oxcIiiiiiko, yol iho very hltuatluii points to tho picKutil as llio most llttlu.'J tlmo Id miilto tulctiunto provl- ilutt to liihure the coutlnuuucoof tlioKold stuinP aril and ot public conlldcneo In Hie ablllu and 4iurpohOf Ihojiovernment to meet all Us uUll gallons In tho money which the clvlllz il wurhl tvcoKiilos a tho best. The llni.iic ul transac tions of tho i.'overiinieul luo conducted upon a 4rold liasls. Vu receipt yold w hull we sell United -fitutos liondit und use koM for their pivm.'nt. Wo imi iiiiilniulniiiK tho parity of all tho money Issued or coined by authority of the mivoni inenL Wo niu didnu these ihIiiks with tho iiiciusnl hand. HappDy at the present tlmo wo .aro tint compelled to ic.sort to limns to hupplr iftolil. 11 Iiiih been douu In the past, houover, itintl may havo to bo doao In the future. It be hooves us, therefore, to piovlile at oinv thciiest inoaiiN to meet tho t'iueri,'eiic.v when It arises, dud I Ho best means aie those which aro tho jiitist certain and Vcomiinlcal. ThusO) now mi- . thor7.cd havo tho virt.uo neither of dliociuessor icooiiomy. Wo Havo already cUmlmicil ono of itho cmisosof our llniuul.il plUht imd'cmhttr- iciiKMiient during tho.yeais IHM, IM1!'. IMn i.nil IttUrt. Oiir"iecolptH noV tiiunlour o.pendltures; ' flcllclenl rcvuaiies no lmu'oi crcatu ulaim l'.ei nth ruinovu tho only lemalnla causo by confer rlui? tho full niid' noM"ss.iry power on tho seero .nry of tho treasury ami impose upon him tho dduly lo ii'iliolil thu presi'iil i.'i'ld stamlaid ami jirfACrtfu tho coins of the two mattdsaui u parity twlili each other, whle i .is the repeatedly do- dared Kitliiy i f Iho united Slates. In (his connection 1 iepe.it m fornler reciun "iiieiiilatluus thin a pin Hun of the cold holduics hhall bo placed in a tiust fund from whlOn itrttttiliacks.shall be redeemed iiiu presenta tion, but when ouco redeeinud shall iiJl theru iiftcr bo paid uui except for oil. fur it .M.'i elmiit Murine. Thu valip of an Aniurlcan luerchant marhio' 'to tho uvtcnslou ot our commorciul trade and llinhli'tiiKthonlnu ' four poft'or up jii t:o sei In vliojj tlio imiiutll.uo iifilon.of couiiross Our natitnal duploimieiit wfllbu one-slde.l and yn iiatistactury so Unix iis-ijio louHirk.ililu uruwth .of our Inland ltuluslilimMiun,ias uifaciiutw, ,vnletl by ;oijt0h oil ho stnu-. There Js iu luck of tonstliuti nil I luuliwtayforHHilii.iiloii whli li shall rite tu llif miiiliy maritime stiiHigin eomtm iiMtir.il' with " Mistrial .chlcvemi Ms mul Willi its rnnk among Ilu- nations of the Lllllll. - i In Trul iiml Coinlilimllnii. Tin lti.iinlrliil omnilslon, created liy tho nit of llin cngre-. d June ly. Ism, has been wigiigcd In ixiendid Flemings upon the ills puled quern lop Invoiud in the subject of toiii blniitloii In loitrnmi f tmilo ami coinpi'tltlon. Tln havHiml yut I'omp oiiil tlii'lr InvmtlKn tlmi of thlH hiiliji'cl, mill lliu cftii.'lim'oiw nml nf i tniin wlaUi Iih ul whlrh thoy may arrlvo aro ut'ili'tiTinltli'il. Tin- Mjbject In ono Bivlin? Hub nrnhcrmnliMii.ln th imuira und I vor cnuMi anil i-xlmtof llin Injurli to.l to inn varliit Iti- imlillc which iimv ii'-ult f.-om hvrtfo oomlil liulloiii ronccnlriitiliif tnoii) or Irs titituiiroim i ntfii rU'M i ii.l I'niiilillKhnn'iitM. whli'li unjvl niiHty to dm formation of thu roinhltiatlon wuie cnrrlcil on Ki'imrntoly. It U unlviimally t'oriwMcii that pomiiiniiuciiiH which iMixroNH or control thu inarhrt of any i pHj-tltMiar Idnil of iiiL'rrhiitiilUi) or commoillty mcii'Miiry lo t lit itPtii'rul cointiiuiiiiy. ny up ).iuhhIiu ntiliitiil mid onllnnry nnnpctll.ton. whi'icby prlcoi urn miiluly cull itircil to tho wniTiil (onsujimr. urn ulinoxIniiN not only U) thu common law, hutulo to th) puh Ic wolfurB. Thi'ii) must boui'incily for tho ovlls Involved launch oriraiilitlons. If tho prmrnt law can bo I'XtiMulcd morn ciirtalnly to control or check tlifwi tiiomip iIIuh or trusts, It hIiuiiM b done without dolny. Wlmimiir puwi-r tho oonKre Hmnsf,t'N uVcr this most IniporUut sulijuct hhoii'd bo promptly iiei,rtiilin,d anil assi-rtoV An act to protect I rutin und commoruo Ji.iltist ; unlaw ill louruinis ami moniipiiiuji wnsiunwu by lotwriHH onlhi'iM of ,luly, )rW. The pro vbilcntior this Htaliitoaiocornprohrnslve ncd Mrlnifcnt. It ilcclnri's tvery contract or coci blmKlon, In Iho form of it trust or othor- ..... . .. -i wlsc, or coiiHpirucy In lliu ri'strulnl of tr.wle or commi'rco umniiu tio mivitu! htutt's or with forolun nations, to bo unlawful, it denomi nates us a criminal anv person who make any ( hiuih contraetor ohkiikus in unv ucii lomuiaa Hon or conspiracy and p.ovldos a punishment by line or ImprlMinmimt. 1 Invests the elrruU courts t;f tho United Htate with Jurisdiction to piovent nml restrain violation of tho act and limit" It tho duly of the wvcrnl United Slates district alli.rii"VN, under the direction of the attorney general, to Institute pn-eerdin.'s in eipilty to prevent and i estnln suoh violation. It further confers upon any imrson who shall be Injured in his business or property by miy j person or corporation by re.isoii vi uiiviiinif forbidilen or declared to bo unlawful by the act Hit' jiower to sue therefor In any ilroult court or Hid United Stales without rep-ctto ! tho amount In lontmvorsv, and to lecover throe- ' fold Hie damages by lilm sustained and the costs of thu suit, IncliidlUK reusonublo attorney i fees. It will be l er. elvul Unit llx) act Is nlinvd ' at every kind of I'umb.uat'on In thu nature of a trail or niuaop ilv in restraint of in.orswle ', or lnleriiatloiul commerce. The losecii'ili ii bv tho United States of of fenses under the aet of ,M)i has been frequently resulted to In the federal court and notable ef forts In tho i est r.ilnt of InUTstato commrce, such as the TrausmlsKourl Krt'UHt association and the Joint Tnillle tiHLi'liitton. havo boen sttccessfull ojip'ised and suppressed MnUi l.ii.'l-liillou llillili;lH lie. Tho Ktato llsliitlon to which l'rosldoni Cleve land looked for n:l et fn m tho cvI'.h of trusts has falU'il tu accomplish fully thatobjent. This Iirobiblv Is duo lo a cru.it ext'iit to the fact thai different statos I ike dlfforcnt views as to tho proper wav to ills rlmlnate between evil Injurious combinations mil t'uisu associations which are benellclal and necemary to the busi ness prosperity of the country. Tno Rre.it di versity ofl treatment in different stales aris ing from this cause, nml tho Intimate rela tions of all parti of thu eiuntry to each other without roiriirdlm; slat) lines in thu conduct of business, have mailu thu enforcement of slate lawHtlinicult. It Is app irent that uu'.firmlty of legislation upon this subject in the k ivor.il si ites Is inuclt to bo desired. It Is to lio hoped Hi it hujIi imi foimlty founded In n wise and just dlscriinl nutlon between what Is injurious and what is useful ami necoss'irv la business operations may lie obtained, and th it moans uiav bo found for tho couuress v llhlu the limitation of Its rouKllltillonal power so to supplemental! effect ive code of Ntato liuisl.itl in as to make a com plete syHtem of laws throughout tlie Uirtod Stuto-i adequate to compel n Kenoral observance ot tno salutiry rules to which I havo referred. I'niiir- ih" .Mi'iinmuii Caiiiil. The Nicaragua canal commission which hml been cuiMUcd urou tho work of examination mid survey for a ship canal route across Nica ragua, h ivIiik comploted Its labors and madu Its ruport, was dissolved on May lit, und ou .luno II) a now commission, known iih the Istliuilate canal commission, wiih ormiul.d umlor the (rrms of tho act approved March It, I8W. for the purpose of examlului; tho American Isthmus with a view todoturmliihu; tho most practicable and feasible route for a ship canal acruiis that isthmus, with Its probable cost ami other es sential details. Hood progress has bran made, but under the law a com.irohenslvo nml com plete Investigation H called for, which will re lulto much labor and considerable time for Its accomplishment. The woik Will bo prosecuted us expeditiously us possible and a ruport in ule at the earliest practicable date. Th Kreat Im portance of this work cannot bo too often or toostroiiKlv pressed upoa the attention of tho oiu!iess. In inv tnessau'o of u yoaniKoIex- yressed my views of tho necessity of a canal which would link Iho two ureal oceans, to which I iiunlu Invito your iMusidurutli n. Tho timsous then pioseiiteil for early action avo even strohuer aow. Our Inler.ists In Cliliiit. In vlow of dlsturnanoeii In th'ip ipulous prov lucos of northern I'lilnu where aro iiianv of aur citizens, and of the imminence of disorder near tho ci pltal und tof.u 1 th" Hi'itliiiard, u tuard of nun lues wiW lundei' u Ibe Huston mil st itloucil durluu last . Ill'1 leuatli u onipouud at i'eklii . l. . me rottoratloii of arder this proteelion wW Wllll.lr.t"Ji. The In terests of our cilPous In tnat vast empire have not been tieiilivtcd dm liw tho past .tear. Ade quate prmeuilou has b )un sucin ed for our mis sionaries mid noiuo Injuflos to their property tuivu neen ledrcssed, Aniurlcan capital bus s in jHt an 1 found varl ous opportunities of comtiotltii! to carry out the Intel mil linprovouieiits which the Imperial iwv rtimcnt It wisely eneoui'mjlnf, tin I ti develop iho natural rosouroe.s of tin emplie. Our trade with Chin i ha uotttlnuud to crow, and our com ineiclal lights under exlHtlnc truatlus have been every where maintained 'durlni; tho p ist year, as they will bo In tho future. The ex tension of the ixrax open to International foreluu settlement lit Shamthnl nml the opening of the ports of Nankins'. T.stuc-Tun (Klao j Cliao) ami Tu-Men-Wan to forclu'.i trade und settiemi'iit will iioubiius. aiiom American cn lerprlbi) a Idltlonal faolllttos anil new Holds of which it will not be slow to take tidvutilucd. In my inrss-iico to cohkics of Dccoinhor f, I Ul'H, I urced, that tlie recommeudatl. u which I had been tu ulu to the sHul;cr of tho house of retireseutattvo by the secretary of tho tieas.' ury on the nth of .lim. 18 h, for mi approprta tloa for u commlsiloii t'o'sliury tho roiumerclal und Industrial conditions In the t'tilnis.' miplro titid repult us to the i pportiinltles for, and ob stacles to, thu enliircenieiit ot uiarkeis In China for the raw puuluCts mid munulnatures of the United .Stales, should lecelvolit your hands.the cunslilenitlou which Its Importance and tlmoll iuss'un.'rteii;i)ul Hie cous'iess falleti to taKo actlp'.i. . ' . . I mut ronew this recoinineml.itlon, ns thu Itn- f portan o of tlio subject has steadily crown sluco" It. was tlrt sabmlitud to you, ami nfl tlmo shijuld bo loit in studyltix for'ourhelvoh tjio losourcus o'f this iruu Iltrfd fflr'Ainerlcan trade und ciuur prlsut . i tiiiim i rr i.. limn I l'rrpi' .iUkim fi't (hn lulu u.' rli, nut pruilii I- . f .'" ''ullvl Htm.--. i ihf ttrhl h i'- jkwiII 'i i. i ' ii vn r.iru ii vi n-iir it'iiiunii1 jlinniiii' r !(' .iilc.':Mpri it - 1". Uiilliki ti ilu' ii i d H" iippii'ilrtll. ii t'i Ii1ih1 (i imii Kiis. uti I ! tli-. friendly Hiinr-I .! l''roiirli jiA'Tiiin ni '.it- vhonn In furtlii ilni? ulyploil ixhli'it of Aiii'-rliMn jiriitfnH-. Thi'ti" hiw iwrniiUot im lo (h rnltfil Stutnt n ciiilili,Mil'l twtilltlon of up uf. which, vrhllo plucKiK nur coiuilrf In the llrit rn ntnanic pxhlliliors. d"'" iwt HliBliw to ini-fl tho Iihtciin Inulv in, rut clcmiindi nf our mtiniifttcturuni. I'h" rffurtH nf tfiu conittilirl'itior nnur.il uii) M.ly lln-il lowiinl Mrirtly rpirn.oiiUitl-o llpl-if of nil that in.wtclmriiflrNiU-al.i-murlM uml most nilnqiliit'.'ly hows ibe uxcullunoj of iur niitiirul prmliicllonH. riitimiint lli'lx I Ion Willi ('riiiunv. Our trlntlciii with Gunhimy contlnuo to ho mmi iHirtllal. Ttf UicrtMln.' lntlninur of (llni t aAiwHlatluti hn been marketl d irtni; tho year by thf Jtruntlnir pt'rmlslon in April for tho land' Inir nn our shorv of a cable from llorkiiin Km. den. ou thi' North fi3, by wv i'f the Azotiw, and a I mi bv the cohcIuvIoo on epteuitHr '.' of n pttrculo pwt ewnventtoo wMh ta- Uvnutui cm pii''. In all that fttmtMtt oU'T rOlattuhs o: ItitorcourM and coaaMtrt aad Ootter uadyr stHtrtllmr bnewtssa two rttti a1ntf so many trult.v in wmmoo. vii'iuiaaj ca bo u.vsurvd ot tho most cordial cc-cfi,'gato: o.' thb icoveru tnent awl pcopl'-. W aaajr 6 nvuls ia innny patlix, but our ritIry t.HtM rtorous nr.d own. ever auxuai towwM im .altant o! i.r ..... ...ults ad tk mu'i txwrdrlnl iuI vwHcem-n: of tw Ua M 9bm x Its twpootur aduptubihJy. ik Tr-!)! W Thl . unn-:: kw nanri i d aa atlle y. nfutra i: ia :V amtii.!.' s atirsI.btvnrs jlreat Ur.:n tai tft B rr :- of Africa. We have rratili tU:aft to Uw precept of " ' ' - : noidia eaMOttUftx aUtaarin i w afialrs w; , otff (Urvrt Eb4 eireuawtaaees wt- I (Mted tt Um poxtie-s to t& tiuarrel wtfukl I are we.eoaetf aay kladtr exprv-shm of ?b op of the AmfntM people tiit war mbrh; tM i verted. rxi omoen mya3A iiav beea rlaJiy , .fndered. The UttteJ State prei-estatire a; I'rewrli ura early instructed s) $e that all aevitral AmerWan latis be rc-ipcet4 by the 1 sjtnbatants. This ban beea aa e-y tas in i rlc-.v bt the potttre deelaratt as oa both Hrit- jh and Iioer authorities tka. Utt fe.-sooal and property rifhu of oar citlMOi shottkl be ob- served. Upon the withdrawal of the Dritlsh aceat at Pretoria the United Status consul was author .zed. upon the request of the British govern ment and with the asneat of the South African md Oraniw Free State governments, to e.ier :te the custom irr rood oCSoes of a neutral tor ihecni-eof British interest. In the discharge , )f this function i am happy to say th.itab'indant ; ipportunlty has been aCordt-l to show the lm I ;rtlal.tv of this jtoyernment toward both the .ombaunt t. I Want C'.ble to Innllu. , The Jnpunese government has shown a lively Interest in the proposition of the I'acitlc Cable , ;ompnny to atid to .Is projected cable Hues to Hawaii. Guam and the I'hlllppnot ti branch connection with the const of Japan. It would i no u trratifyimr consummation wero the utility i M the contemplated scheme enhanced by brlnif- ni; Japan and tho United States Into direct lylecrnphlc relation. Without repealing the )bvrvnllons of my special messMcuof I-'cbruary IC. I-9J, conceminK the nfcessit, of a enblo to Manila, I respectfully Invite attention to It. I recommend that In case the c in tress should not Hike measure to brint nbiut this result by tho Jlreet action of t ic government, the postmaster uneral be authorle I to Invite competitive bids for the establishment of a cable; tho company maklnc tho best responsible bid to b ) awarded tho contract, tho successful e mipuny to clvo tiuplo bonds to Insure tho completion of the 1 work within a reasonable tluie. Th- Problem In Culm. I The withdrawal of the authority of Spain Ironi tho Island of Cuba was ulTccted by tho llrst 1 af .January, ho that tho full rc-ustnlillslunent of i peace found the relinquished territory held by i us In trust for thu inhabitants, niulutaiuliic, un- I Jer the direction ot tho executive, such covom ment and control the L-reln as should conserve i the productive conditions . '., .... ,,. i i, in,.. , public order, restoro af peace so Ions: disturbed by tho Instability ami disorder which prevailed for the creator . putt of thu preceding lliroo decades and build I up Hint tranquil development of tho domestic I state whereby nlouo can bo runllctl the hich purpose, us proclaimed In tho joint resolution l Adopted bv tho confess on tho Itith ot April, I ISOs, bv which thu United Statesdlsolaim"d any I opposition or Intention to oxerclso sovorelcnty, luniiiiutlou or control over Cuba, except for tho I pacillcatiou thereof, and asserted Its deterinl- nation when that was accomplished to leave the I irovernment and control of tho Island to its peo i pie. Tho plcdco conttili-.ed In this resolution Is i if the hlchest honorable obltcutlou und must bo nieroiilv kept. I 1 believe thut substantial jirocress has been i made In this dire -lion. All thu administrative measutes adopted In Cuba havo aimed to lit It for u lecenoraf'd uxlsionco by enforcing thu siiprciniun of law and justice; by placluc wdiur vur piactlcuble the nmcli'nerv of udinlilistra llon In thu hands of thu Inhabitants; bv instl tutliiK neeilid ninltary leforms; by stueiutltic Jducutlon; by fosturlnc Industry and tradu. by inculcaiiiu public morality und. in short, by taklnc every rational st(.p i aid tho Cuban peo ple to attain t that plane of self-conscious ru stled and solf-rellant unity which llts an en llcliteued community for sulf-ovornment with in Its. own sphere, while euabltuc ll to fulllll all 'jutward obligations. 'l'hls nation hns ussumod before tho world a ftviiM) lospoiistblllty for tho futttro cood cov inmentof Ciihu. We have ucccpted n tiust the fullHlment nf whtcu cads for tho sternest Integrity of purpose and tho exorcise of the liWiost wisdom. The now Culm yet to nriso from the ushes of th past must noeds bo bound tons by ties of slncular Intluiaov und Htron.th if Its endurlnc welfare Is to bo assured. Whether those ties shall ho organic or conven ttomi', the destinies of Cuba are In soiuorlxlit ful form ami manner inevocably linked with our own. but how or how far Is for tho future to determine In the rlj em s of events Whatever be tho outcome, we must see to It that free Cuba Do u tealltv, not a name, n perfect entity not a hasty oxper tnent heaitnc within Itsoif tho o o meats of fniluio Our mission, to accomplish which wo took up tho waff's of buttle. Ih nut to uo fulillled by tut nine mtrift nny loosely framed :omtmi!i wealth to fare the vicissitudes which too often fitt"lul weaker states whoso natural wealth and abundant resources mo offset by tho incoiiirujltes of their political orcanl'.utiim and the recurrlnc occuslons for internal rtvnlrlos to tiip-thelrstreii-'th und dtsslpatu their energies. I'ho urentcst blcsslui! which can come to ( uba ,s tho rvstoinlluu of her acrlcultural und itidtis trial prosperity, which will ulvo employmeni to idle men and le-eslablls'a tho pursuits ot pcaicu. I'his is her chief, and Immediate need. Iiv the treaty of peacxi thu Spanish pooplo on 11)0 Is iiml "have until April II, 1U '0, to elect whether they will remain oIIIzbus of Spain or Decojno,iitl.eiisorCu,bi. Until thou It cannot Un dollultelv nscertiilncd who shall bu entitled W pavllelputi'1 lu the formation of tho cov iiitneni of Cuba, lly that. tlmo tho .results ot die census will Ime been' tabulated, and wo duUl pnwoil to piovlito for elections which will commit the iiiimlclilal uovornmonts of thu Island to the i.ttlier elected Ijv tho people. Tho xpoiletu'o thus- ncqiured wl.ll provo of crout va.tio in the formation of n niprosontatlvo ein veatloiuif the pviple to draft. Iv cointltutluu jjnl estubllsh a cone.'iil sjstum of Imlupttiploiit ovo'tnmetit fur tao Island. In iho meanUmo ahdst lona as' wo exerclsi. control over t)o Island Pie products 'o.f CiiUa should Hvo a market'lu the Utdted StalBstfti us i;ood turm . it ml witu ait f ivornjil" inti's of duty as are clvou I to the eat Ifidta 11 hi Is under PhmIIcs of ro- clproclty whle i mil be made. niieeriiliii: Our Snliliri't uml Sitllnr. ' Since tnvlist nunii.il message and InoVedl ! dice to the nets of the um r s.s of April 2! and I ."ii, l-vs. the reifialninii v duateer force Unlisted fnrthespniilshwnr. eotisistmcof 3I.S3I teulars and II i. 'Jo.' volunteer, with over .1,0 0 volunteer oiHcerfl, hits bi"n dlsch ire 1 from the military service. Of the volunteer, dl? ofll -ers and 1 1, i.ll men wore servlnc In th l'lilllpji.nes uiull, tlfiti of tlie reuulnrs, wh were entitled to be mtis teiod out after the rntlllcal. on of the treaty of liice. They voluntsti lly remnltie 1 at thu front until their places could be HI led by now troops. They wero returned home In tho order In which they went to Manila, and arc now ull of them out of tho service und In the: ranks of citizen ship. I recommend that tho convress prmldo a special medal of honor for the volunteers, nvuhirs, snllors. and murines on duty lu tho l'hlllpplnes, who volun'mily remained In tho service aft t their terms of enlistment had ex pired. Hy the act of Mnrcli "ISii'J, conuress Has nu thurlty to Increase the recular army to a inuxl muni nut exceeding 0',xi enlisted men und to enlist n forco of :n,'H) i olunte'.'rs. to Ho reontlted from the country at larv;e. lly vntuuof tills au thority tho regular army Hih been Increased to the number of di.vtw enlisted men and .-iH olll eers and new volunteer rtMltnent.s Have been or ganized aK'reimtlni? 3I.DVJ eullste I men nml l,tV)!loaicers. Two of these volunteer reslinents are made up of colored met), with colored lino oWcers. The new trtntivs to tnko the placo of those reiurnin fro n tht I'hlllppltics h wo bcun transport d t Manila t the number of 581 olll een and J.irf enlist t men of the regular urmy and oO.vri aai O.Sct enlisted men of tho aew -oiuau-er force, while ail officers ami U,- U aeo o.' the volunteer fore are on th" ocean m route t Mntlt. Toe for.'e now In Manila coi:.s vf i vftte-.Ts and 3.i regulars and 9H - r4 1X3 of the volunt'ers, innUlnc aa a-ntn.ate of l. ofttcer und I.'iDiW men. beti tfc trKs now under orders shall reach MaatU. Ih to. -M In ta :trv.ilpt..i,i will com -prtxfi. At ofB-sfr and t).t$: ma. Th? muster out of .ae.cr-at volunteer arm organized for the Spanish war and th ere itlen of t new urmy, the traa-portaMon fr.'in Man! a t San Francis co ot these en lit ld to dis Hur-e and tho trans portation of the new troop to take their place have been a work ot emit magnitude well und ably done, for which loo much credit cannot be ptven the war department. During the past year we have reduced our fore- in Cubit and I'ortj Klco In Cuba we now ' have 34 oittcer und ll),(Wti men; in t'orto mm, 37 OCleers and .'.sVi enlistctl men ami u battalion of IU0 men. composed t.f native I'orto l.ic-uis; while stntloaetl throughout the United States are Old oRKcrs and I7..I17 men und in Hawaii, li onicers and 4 ii enlisted men The operations' of the urmy are fully present ed In the report of the secretary of war. I can not withhold from om.-ers and men tho hlchest commendation for their soldierly condu t In I iryln situations, their willing sacrltltos for 1 their country and tho Interest and ability with which they erfortned unusual und dllUcult du ties In our Island lMjssCvsions. In the orgunl.ution of tho volunteer regiments authorized by tho act ot March -, lfcO'J, It was 1 found that no provision hud been made for chaplains. This omission was doubtless from I Inadvertence. I recommended tho early au- . thuriz.uion for the appointment of one chap lain for each of sal.l regiments. These regl- I mnts nre In tho l'hlllpplnes and It Isimportaut j that Immediate action be taken. Postal Affairs In the Colonies. I In restoring peaceful conditions, orderly rule, and clt 1c progress In Cuba. Porto Klco, and, so I fur as practicable. In the l'hlllpp ties, tho re habilitation ot postal survlcu has been an Im portant p-irtof the work. It became necessary to provide mail facilities both for our f rees of occupation and for the native p ipululiuu. To mu't this reiiuliemeiit has inv dved u sub stantial reconstruction, 'ibe existing systems wove so fragment irv, defective and Inu.lequato that a now and compri hens e organization had to bo created. American trained ollkials havo been assigned to thu dlructln,' and executive possessions, while niiivos hav) b"on chlelly employed In making up tho b sly of tho forco. In working out this plan tho merit rule has b riBorousiv lllld raunrmiy applied, , . ,' ", Doiiinsilo l'osliil .s.-rvlen. Tho domestic postal servico continues to grow with extraordinary rapidity. The expenditures nml the rot entii's will each exceed $lu i O.O'HJ during the current ye ir. Fortunately, .since tho revival of prosperous tones the revenues have Clown much faster thuit, the expenditures, and there Is every Indtcalt m 'that a sh irt period will witness obliteration Of tho annual dutlelt. In this connection tho report of tho postmaster general cmht.d e.-, a statement of some evils which have crown up outsldu of tho contempla tion of law in the tiuiitmeiit of some classes of mull mint r which wrongly exercises tho privi lege of pound rate, and shows t uit if this mat ter had been properly ckissllietl and had paid tho rate which it should liuve paid. Instead of a postal delicti tho last Usual year of 40,01 0JiJ tlieto wotld h ive beun on one basis u surplus of i7,0J7,r?u, and on nnotherof .7.J.N.W. Tho re form thus suggested, in Iho opinion of thu postmaster general, wuuld not only put tie I ostul servico at oueo on a self-sustaining b isis, but would permit great and valu able linii'ovements, und I commend tho sub ject to the o itisideratlon of coiwiuss. The Oiii'-i .mi i,r I'iiiiniiiii. On thuilOtli of June, ISJ), tho pension roll of tho United States numbered til,.-lti. These In clude the penslnners of the urmy And navy In ull our wars. Tho number nil led to tho rolls durliw tho year was I i,9j, Thu numb t dropped by reason of death remarriage, minors bylo.al limitations, failure to claim within three years and other causes w is I ;, ltd. and tho number of claims dls.ulowe I was iu.,lii7. During tho year tt, hi pension certitlcatos were Issued, of which :I7,iT7 were for uotv or original pensions, 'i'ho amount iilsburscd for army and navy pensions during the year was ti.tti.lt A. J U which was TijItUril.tii less than tho sum of tho appropria tions. Tho (1 rand Armv of the li'punU' nt Its vo ct)nt national encampment held at I'hll i lelphla has brought to mv attention and to that of con gress tho wisdom tuid justice of a modification of the third section of the act of Juno 27, MM, which provides punsluns for tho widows of ufTJeers and unlisted men who surved j dnys or inoro during tho war of tho rebellion nnd wero honomHIv discharged, provided thut such widows aro wit limit other means of support than their daily labor and were reman led to tlie soldier, sailor or marine on account ot whoso service they claim pension prior to tho date ot tho act. Tho present Holding of tho department Is that If tho widow's Income asldo from herd illy labor does not exceed in amount what her pension would bo, to wit: ifJtl pir annum, sho would bo deemed to be without other means of support than her dally labor, and would bo entitled to n pension under this uct, whllo If tho widow's In come, independent of tho amount receivod by her as the icsult ot her dally labor oxceerts JDfl. sho wou d not bo pension ib o under the act. I am advised by tho eommlsslunor of pensions that the amount of thu Income allowed beforo title to pension would bo barred, has varied 'widely under diftorfltit administration of tho pension anvo us well as during turcorontpertoiiK of the same administration, nnd has been tho cuuso of Just complaint und crit eism. With tho approval of the -secretary .of the Interior, the commissioner of pensions rucommends thut. In order lo mnkotho pracdeo at all times' uniform unit to do justice to the dependent widow, tho amount of income ujloued lndopondorlt of tho pn feeds of her dally lalur should Ixt ntn less .ban t ..YMwrnnnuin; and he urgethat congress hall so umonJ thu act as t j porinU- the pouleti Men4 ui t'.-ant pen.slouafe o status, to wldewj under tho text of the third section of tho act ot Juno 27, 1 MM. whoso income usldo from tho pro- . ceeds of dully labor Is not In excass of !." per . annum. 1 ld1ivt?tlils to In u .simple not of Jus tice nnd I heartily recommend It. luor it I.iirger Nitty. I hetirtily cojictir lu the recommendations for tho Increase of tho navy, as suggested by tho sccretnry. Protecting tint I"nret. Protection of the national forests, Inaugu rated by the department tif tho Interior In 1807, has been nnusiti during tho past year and much Has been accomplished In the way of preventing forest llres nnil tho protection of tho timber. Tlierenro tiowlnr.'O tracts coverlid by forests which will eventu illy be reserved mid set apart for forest iisos. Until that can bo done con gress should lnctasu tin appropriations for tho work of protecting the forests. Market for Kami Product.. Markets nre being sought nnd opened up for surplus farm nnd factory pr duct in Kuropo nnd In Asia. Tno outlook for tho education of young fnrmnrs through ugrlcu'tuml college ox perimunl stations, with opportunities given to speclullzo In tho d-'purtmunt of agriculture, Is very promising. Tim pooplo of Hawaii, I'orto lllco und tie Philippine Islands havo been Helped by the e.stabllNiitn"nt of experiment st v tlons to It more sclent Uo knowledge of tho pro duction of coffo", India rubber nnd other trop ical products, for which tlioro Is a demand in the United Stntes. There Is widespread Interest lu tho Improve ment of our publlo Highways at the present time, nnd tho department of ngrlculturo Is co operating with the peoplo In each locality In making tio best possible ro-ids from thy local material and In expurltiuuting with steel tracks. i'ho All-AlHo-blng Philippine OneUlon. On tho 10th of Doi'tmibsr. 18D8, tho treaty ot peace between the United States mid Spain was signed. It prtivlded. utiung othur things, that Spain should ccdu lo tho United States thu urehlp" ug kn nvn uh the -Philippine Islands; that th'i United Stites should pay to Spain the sum of S. 0.0)) IK) J. an 1 tiint tho civil rights nnd political status ot the native Inhiibltati is ot the t"rr torles they ceded lo tho United States should bo determ.n-d by tho oju,ress. The treaty was ratdld by tho semite on tho OtH of February, lSvti. and by tho governmnnt of Spain on tho HUH of March following Tao ratlllca tlons wero exchanged on tho 11th of April and tho treaty publicly proclaimed On thu iJd of March the uongrosss voted tho sum contem plated by the treaty, nnd the amount was pild over to the Spanish government on tho 1st of Mny. In this manner the I'hllloplnes came to tho United States. The islands wero ceded by the government of Spain, which Had been In undis puted possession of them for centuries. They wero accepted not merely by our author ized ci nimlsslonurs In I'm Is under thu dliectlon of the executive, but by tho eonstltu Uonul nnd well considered action of tho repre sentatives of the people of thu United States in both houses of epngr ss I Had every reason to believe, and 1 still believe, that this transfer of sovereigns was In nccordanco with the wishes nnd the us)) rations of the great mass of tho Filipino p 'oplc. From the earliest moment no opi irlunity was lost of assuring tho peoplo of the Islands of our ardent desire for their wel fare end of the Intention of this government to do everything p isslble to sidv.inco thulr Inter-t-i In my i ler of the lUth of M.iv. 183J, tho commander of the military expedition dis patched to tlio Philippines was Instructed tc declare thut wu came not to make war upon the peoplo of tlio oiuntrr, "nor up m any pirtor taction uniting them, but to protect them in their homes. In their employments und In their p'l-timul und religious rights. That there should liu no doubt ns to tho pira mouut authority there, on the 17th of August, It was directed Unit "there must bo no joint oc cupation with th" Insurgents:" that the Uaited States must preserve tho puaeuund proluct per sons und property within Un tcrritirv occuplo I by their military und naval forces; that tlio in surgents and ull others must rec jgnl.o the military occupation and authority of the United States. As early as Deoombor 1, before tlio cession and In anticipation, of that event, the commander In Manila was urged to re'toro pcaco and tranquillity nnd to undertaku tho establishment of a beneficent government, which should aitjrd tho fullest security for life und property On thu 21st of December, nftcr tho treaty was signed, tho commander of tho forces of occupa tion was Instructed "to announce and proclaim in tho most public manner that we come, not as Invaders and conquerors, but as frlonds to pro tect tho natives in their homes, In their employ ments uml in their personal und religious rights." Tho sumo day, whllo ordering f!cn Otis to seo that tho peace should bo proserved In Hollo, he was admonished that: "It Is most Important that tliure should bo no conflict with tho Insur gents. On tho llrst day of January. 18 D, your general orders wero reiterated that tho kindly Intentions of this government should bo In every possible way communicated to tho Insur gents." On tin 21st of January I nnnouncod my In tentlons.of dlspatciiing to Manila a commission composed of thro- gentlemen of tho highest character and distinction, thoroughly acquaint ed with tho oil 'nt, who, lu .issoclatlon with Ad miral Dowoy and M.iJ. (Jon, Otis, wro instruct ed to "fuji.lt ito tho most hum mo un 1 oileotlvo extension of autlmitv throughout th- isun.ls nml to secure, Willi tho least possible del iy, ih i bmcllts of u wlso and generous protection of life and property to tho Inhabitants " These gentlemen wero Dr. Jacob Uould Schur mnn, president of Cornell Uuivorsity; Han. Charles Denb.v. for many years minister to China, and Prof. Dean C Worcester, of tho Uni versity of Mlcnig in, who had made a most care ful studv of life In the Philippines. While the treaty of peace was under consideration In the senate these committees set out on tueir mis sion ot good will and liberation. T.lelr char acter was a sum ievu guaranty ot iho bcnotlce.nt purpose with wlilih they went, even If they hud not borne the positive Instructions of this gov ernment, which made their errand pre-qmlnunt-ly ono of peace nnd friendship. Hut beforo their arrival nt Manllv tho sinis ter ambition of a few loaders of tho Filipinos nan crcmuu a situation run or embarrassments for us nnd most grievous In Its consequences to themselves. The clear and Impartial prelimi nary report of the commissioners, which I trans mit herewith, gives so lucid and comprelv nslva a History of the present lusurreotlonary move ment that tho story need not bo repeated. It Is enough to sav that tho claim of tho rooel leader that Ho was promised independence by any of ficer of tho United States In return for His as sistance Hus no foundation In fact and Is cate gorically denied by tho vory witnesses who worn culled to prove It. Tno most tho Insurgent leud or hoped fur when ho enmo back to Manila was tho liberation of tho lslanis from the'SpanlsU control, which they had boon laboring for yuan, without success to throw off. Tho prompt accomplishment of this work by tho American urmy und navv gave Him othor Ideas und ambitions, and Insidious suggestions from various quarters perverted tho purposes and Intentions with which Ho had taken up arms No soout hud our urmy captured Ma nila than the Filipino forces beg.m to assume an attitude of suspicion nnd hostility waich the uiuiosi euoris ot our onicers nml troops wero unablo to disarm or modify. Their kindness nnd forbearance wero tnken as a proof of cow tirdlco. Tho aggressions of tho Filipinos eon tlnually Increased until llnally, Just beforo tho tlma set for tho senato nf thu United States for a vote upon tho treaty, an attack, olrtoutly prepared lu advan o. was mndo nil nl at, thu American lilies, .which ruultd ;n u terribly in structive. imJ sanguinary repulte, of tho insur- 7 V f' ) i. ."if '. 1 ,e o