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H CUBAN QUESTION FORCI-
B BLY DEALT WITH.
Hf , "SPAIN IS THREATENED.
B' > Srll ° Suited States Ready to Interferes In
B. ' ' Its Oivii Way Unless a Speedy Ccs-
BBBBBBL cation of Hostilities Is Brought
BBBBBBBBBBBTBb About The Question Exhaust-
HBBjjY' * * " Ucly Discussed In All Its
BBBBB L- Deplorable Features.
B "lnc Situation In Turkey Utile Changed
BBBBBB , XSut Reform Is I.ooltcil for The
B Ba ! Venezuelan Incident Practically
Hp - 4 ? Closed TarlIT un/J Financial
BBBBBAi Views Reiterated Offcas-
BBBBBB Partisanship.
B B B Bi
BiB
B To the Congress of the United States : A :
BBBBf g tfcnrcscntativc of the people in the lcglsla-
BBBBY tlve branch of their government you have
B B BK * assembled at a time w hen the strength and
B B BBexcellence of our free institutions and the
B B B Ps fitness of our citizens to enjoy popular rule
B B BBhave been again made manifest. A political
B B B * contest involving momentous consequences ,
BBBBf' fraught with feverish apprehension and
B B B VI creating aggressiveness so intense as to ap-
BBBBV \ preach bitterness and passion , has been
P J waged throughout our land and determined
BBBBf f "l > y the decree of free and independent suf-
B BJi fragc , without disturbance of our tran-
B B BB qullity or the least sign of weakness in our
B BBI national structure.
B B B7l > y When we consider these incidents and
BBBBY g contemplate the peaceful obedience and
BBBB ? jnanly submission v.hich have succeeded a
BBBBT \ heated clash of political opinions we dls-
BBBBscover abundant evidence of a determination
HBBBon the part of countrymen to abide by every
BBBBJ j * verdict of the \ opular will and to be con-
BBBB ) t trolled at all times by an abiding faith in the
BBBB * .agencies established for the direction of the
BBBB y affairs of their government Thus our peo-
BBBB * } pic exhibit a patriotic disposition which en-
BBBB I titles them to demand of those who undcr-
BBBv J' take to make and execute their laws such
BBVk | faithful and unselfish service in their behalf
BBBB\c as can only be prompted by a serious appre-
Vl ciation of the trust and confidence which the
BBBJ | .acceptance of public duty invites.
BBBL 1 In obedience to a constitutional requirc-
B BBTJ tnent , I herein submit to the Congress cer-
B BB\ > 'tain information concerning national af-
BBBJ * fairs , with the suggestion of such legislation
as in my judgment is necessary and expe
! dient To secure brevity and avoid tiresome
narration , I shall omit many details concerning -
-cerning matters within federal control ,
BBm vwhich , though by no means unimportant ,
B BBv -are more profitably discussed in depart-
BBBT \ mental reports. I shall also further curtail
Bft • / this communication by omitting a minute
BBB ? Srecital of many minor incidents connected
BBBwith our foreign relations which have here-
B BA i tofore found a place in executive messages ,
BBBL but arc now contained in a report of the
BB * Secretary of State , which is herewith
BBa ( submitted.
HPJ ! , ' TCKKET.
BtfBK At the outset ot a reference to the more
BBBB'Important matters affecting our relations
B B BJfcvwith foreign powers , it would afford me sat-
B B isfaction If I could assure the Congress that
BjM A " • * * tnc disturbed condition in Asiatic Turkey
BBl "v had during the past year assumed a less
BB > \ hideous and bloody aspect , and that either
BB f as a consequence of the awakening of
BB I the Turkish government to the demands
BB I of humane civilization or as the
t
BV t result of decisive action on the
BB * i part of the great nations having the right
BB g by treatto interfere for the protection of
BB % those exposed to the rage of mere bigotry
Bf $ • .and cruel fanaticism , the shocking features
BB -of the situation had been mitigated.
Bm Instead , however , of welcoming a softened
Bm } 1 -disposition or ] irotective intervention , we
Bk s have been afflicted by continued and not un-
B % frequent reports of the wanton destruction
V # -of home and the bloody butchery of men ,
B& u women and children , made martj-rs to their
BV' fe profession of Christian , faith.Vhilc none
B -of our citizens in Turkey have thus fat been
BJ A killed or wounded , though often in the midst
Bm -of dreadful .Scenes of danger , their safety in
BT the future is by no means assured. Our
Bv government at home and our minister at
BJ 'Constantinople have left nothing.undone to
H protect our missionaries in Ottoman terri-
Bt torj- , who constitute nearly all the individ-
BF -uals residing there who have a right to
H -claim our protection on the score of Amer-
H ican citizenship.
BJT . Cur efforts in this direction will not be rc-
H laxed , but the deep feeling and sympathy
V that have been aroused among our people
B , ought not to so far blind their reason and
K ) judgment as to lead them to demand impos-
h j * iblc things. The outbreaks of blind fury
f \ which led to murder and pillage in Turkey
H occur suddenly and without notice , and an
L "V attempt on our part to force such a hostile
Bm ? jpresence there as might be effective for pre-
BJ > " iH vcntSon or protection would not only be re-
y /sistcd by the Ottoman government , but
B * \ would be regarded as an interruption of
K their plans to the great nations who assert
L their exclusive right to intervene in their
B * . own time and method for the securitj-
life and property in Turkey.
BV > s ' Several naval vessels are stationed in the
B/ * \ \ jaiediterranean as a measure of caution and
K , f y- -jo famish all possible relief and refuge in
BK < jP case of emcrgencj"VVe have claims against
f 1 * ' the Turkish government for the pillage and
L , destruction of missionary property at Har-
W sf 3 ol and Marash during uprisings at these
L M places. Thus far the validity of these del -
l ' \ \ mands has not been admitted through our
/ fjninistcr. Frior to such outrages and in an-
K itgf 'ticipation of danger we demanded protection
for the persons and" property of our missioa-
.ary citizens in the localities mentioned ,
.and notwithstanding that evidence exists of
actual complicity ot Turkish soldiers in the
-work of destruction and robbery. The facts
\ .as they now appear do not permit us to doubt
. the justice of these claims , and nothing will
Sf "Tje omitted to bring about their prompt set-
\l -tlement. A number of Armenian refugees
K ft having arrived at our ports , anorder has
B x latelybeen obtained from the Turkish gov-
m n rcnent ixrmitting the wives and children
of such refugees to join them here. It is
B k hoped that hereafter no obstacle will be in-
B yterposcd to prevent the escape of all those
/ . rC -who seek to avoid the perils which threaten
W JP them in Turkish dominions.
B Our recentlyappointedconsultoErzeroum
K Vk ds at his post and discharging the duties of
B & his office , though for some unaccountable
B m reason his formal exequator from the Sultan
• Si has .not been issued , I do not believe that the
K I ? -present somber prospect in Turkey will be
B f\ long permitted to offend the sight of Christ-
B Kendom. . It so mars the human and enlight-
St -cned civilization that belongs to the close ol
B y tae nineteenth century that it seems hardly
BB. possible that the earnest demand of good
Hf H people throughout the Christian world for
T " its correctIve treatment will remain xm-
BJ answered.
.i CUB.V.
\ The Insurrection in Cuba still continues ,
51with all its perplexities. It is difficult to
I n perceive that any progress has thus far been
& made toward the pacification of the island
\ or that the situation of affairs as depicted in
p my last annual message has in the least im-
1 | s arovei If Saain still holds Havana and the
ii m fg * W5M ii rim r na&rjxmtatm B zS - l . * 1" " j -
leiporta and all considerable towns , the In *
• urgent * still roam at will over at least
two-thirds of the Inland country. If the de
termination of Spain to put down the insur
rection seems but to strengthen with the
lapse of time , and Is Jcvidcnccd by her nn-
hcsltatlng devotion of largely increased
military and naval forces to the task , there
is much reason to believe that the insur
gents have gained la point of numbers and
character and resources , and are none the
less inflexible In their resolve not to succumb
without practically securing the great pro
jects for which they took up arms. If Spain
has not yet re-established her authority ,
neither have the insurgents yet made good
their title to be regarded as an independent
state. Indeed , as the contest has gone on ,
the rcrctense that civil Government exists on
the island , except so far as Spain is able to
maintain it , has been practically abandoned.
Spain does keep on foot such a govern
ment , more or less imperfectly , in the large
towns and their immediate suburbs. But.
that exception being made , the entire coun
try la either given over to anarchy or Is
subject to the military occupation of one or
the other party. It is reported , indeed , on
reliable authority that at the demand ol
the commander-in-chief of the insurgent
army , the putative Cuban government has
now given up all attempt to exercise its
functions , leaving that government confes
sedly ( what there is the best reason for sup
posing It always to have been in fact ) a gov
ernment merely on paper.
"Were the Spanish armies able to meet
their antagonists in the open , or in pitched
battle , prompt and decisive results might bo
looked for , and the Immense superiority ol
the Spanish forces in numbers , discipline
and equipment , could hardly fail to tell
greatly to their advantage. But'thcy are
called upon to face a foe that shuns general
engagements , that 'can choose and does
choose its own ground , that from the nature
of the country is visible or invisible at
pleasure , and that fights only from am
buscade and when all the advantages of po
sition and numbers are on its side. In a
country where all that Is indispensible to
life in the way of fooJ , clothing and shelter
is so easily obtainable especially by those
born and bred on the soil. It is obvious that
there Is hardly a limit to the time during
which hostilities of this sort may be pro
longed. Meanwhile as In all cases of pro
tracted civil strife , the passions of the com
batants grow more and more Inflamed and
excesses on both sides are more frequent
and more deplorable. .
They also are participated in by bands ol
marauders , who , now in the name of one
party and now in the name of the other , as
may best suit the occasion , harass the coun
try at will and plunder its wretched inhab
itants for their own advantacc. Such a
condition of things would inevitably entail
immense destruction of property even if it
were the policy of both parties to prevent it
as far as practicable. But while such
r.cemed to be the original policy of the Span
ish government it has now apparently
abandoned it , and is acting upon the same
theory as the insurgents , namely that the
exigencies of the contest require the whole
sale annihilation of property , that it may
not prove of use and advantage to the ene
my. It is to the same end that in pursuance
of general orders , Spanish garrisons are
now being withdrawn from plantations and
the rural population rcqnlrcd to concentrate
itself in the towns.
The sure result would seem to be that the
industrial value of the island is fast dimin
ishing and that unless there is a speedy and
radical change in existing conditions , it will
soon disappear altogether. That value con
sists very largely , of course , in its capacity
to produce sugars a capacity already much
reduced by interruptions to tillage which
have taken place during the last two years.
It is reliably asserted that should these in
terruptions continue during the current
year , and practically extend , as is now
threatened , to the entire sugar producing
territory of the island , so much time and so
much money will be required to restore the
land to its normal productiveness that it is
extremely doubtful if capital can be induced
to even make the attempt
The spectacle of the utter ruin of an ad
joining country by nature , one of the most
fertile and charming on the globe , would
engage the serious attention of the govern
ment and people of the United States under
any circumstances. In point of fact , they
have a concern with it which is by no means
of a wholly sentimental or philanthropic
character. It lies so near to us as to be
hardly separated from our country. Our
actual pecuniary interest in it is second
only to that of the people and government
of Spain. It is reasonably estimated that
at least from 530,000,000 to $50,000,00 of
capital is invested in plantations , in rail
road , mining and other business enter
prises on the island. The volume of trade
between the United States and Cuba , which
in 1889 amounted to about 504,000,000 , rose
in 1S93 to about 5103.000.000 , and in 1894 ,
the year before present insurrection broke
out , amounted to nearly 596,000,000. Be
sides this large pecuniary interest staked in
the fortunes of Cuba , the United States finds
itself inextricably involved in the present
contest in other ways both vexatious and
costly.
Many Cubans reside in this country , and
indirectly promote the Insurrection through
the press by public meetings , by the pur
chase and shipment of arms , by the raising
of funds , and by other means which the
spirit of our institutions and the tenor of
our laws do not permit to be made the sub
ject of criminal prosecution. Some of them ,
though Cubans at heart and in all their feel
ings and interests , have taken out pipers as
naturalized citizens of the United States , a
proceeding resorted to with a view to pos
sible protection by this government and
not unnaturally regarded with much indig
nation by the country of their origin. The
insurgent * are undoubtedly encouraged and
supported by the widespread sympathy of
the people of this country always instinct
ively felt for every struggle forbetter and
freer government and which in the case of
the more adventurous and restless elements
of our population , leads in only too many
instances to active and personal participa
tion in the contest
The result is that this government is con
stantly called upon to protect American cit
izens , to claim damages for injuries to per
sons and property , now estimated at many
millions of dollars , and to ask explanations
and apologies for the acts or Spanish offi
cials whose zeal for the repression of rebel
lion sentiments blinds them te the immun
ities belonging to the unoffending citizens
of a friendly power.
It follows from the same causes that the
United States is compelled to actively police
a long line of sea coast against unlawful ex
peditions , the escape of which the utmost
vigilance will not alwavs suffice to prevent
These inevitable entanglements of the
United States with the rebellion in Cuba ,
the large American property interests af
fected and considerations of philanthropy
and humanity in general , have led to a ve -
hement demand in various quarters for
some sort of positive intervention on the
part of the United States. It was at first
proposed that belligerent rights should be
accorded to the insurgents , a proposition no
longer urged because untimely and in prac
tical operation clearly perilous and injurious
to our own interests. It has since been and
is now sometimes contended that the inde
pendence of the insurgents should be recog
nized , but imperfect or restricted as the
Spanish gsvernment of the island may be ,
no other exists there , unless the will of the
military officer in temporary command of a
particular district can be dignified as a
species of government It is now also sug
gested that the United States should buy the
island , a suggestion possibly worthy of con
sideration if there were any evidence of a
desire or willingness on the part of Spain to
entertain such a proposal. It is urged ,
finally , that all other methods falling , the
existingintemecinestrife in Cuba should be
terminated by our Intervention , even at the
cost of a war between the United States and
Spain a war which its advocates confidently
prophecy could be neither large in its pro
portions nor doubtful in its issue. The cor
rectness of this forecast need be neither
affirmed nor denied. The United States has
nevertheless a character to maintain as a
nation , which plainly dictates that right and
might should be the rule of its conduct
Further , though the United States is not a
nation to which peace is a necessity , It is , in "
truth , the raost pacific of powers and desires
nothing so much as to live at amity with all
the world. Iti own ample and diversified
domains satisfy all possible longings for ter
ritory , preclude all dreams of conques and
prevent the easting of any covetous eyes
upon neighboring : regions , however attract
ive. That our conduct towards Spain and
her dominions has constituted no exception
to this national disposition Is made manifest
by the course of our government , not only
thus far during the present insurrection , but
during the ten years lhat followed the rising
atYarain 18C8. No other great power , it
may safely be said , under circumstances of
similar perplexity , would have manifested
the same restraint and the same patient en
durance.
It may also be said that this .persistent at
titude of the United States towards Spain in
connection with Cuba will unquestionably
evince no slight respect and regard for
Spain on the part of the American people.
They in truth do not forget her connection
with the discovery of the Western hemis
phere , nor do thej' underestimate the great
qualities of the Spanish people , nor fall to
fully recognize their splendid patriotism
and their chivalrous devotion to the national
honor. They view with wonder and admira
tion the cheerful resolution with which vast
bodies of men arc sent across thousands of
miles of ocean and an enormous debt accum
ulated , that the costly position of the gem of
the Antilles may still hold its place in the
Spanish crown. And yet neither the govern
ment nor the people of the United States
have shut their eyes to the course of events
in Cuba or have failed to realize the exist
ence of conceded grievances which have led
to the present revolt from the authority of
Gpain , grievances recognized by the Queen
Regent and by the Cortes , voiced by the
most patriotic and enlightened of Spanish
statesmen , without regard to part- , remon
strated by reforms proposed by the execu
tive and approved by the legislative branch
of the Spanish government
It is in the assumed temper and disposi
tion of the Spanish government to remedy
these grievances , fortified by indications of
influential public opinion In Spain , that this
government has hoped to discover the most
promising and effective means of composing
the present strife , with honor and advan
tage to Spain and with the achievement of
all the reasonable objects of the insurrec
tion.
It would seem that if Spain would offer to
Cuba genuine autonomy , a measure of home
rule which , while preserving the sover-
elrnlty of Spain , would satisfy all rational
requirements of her Spanish subjects , there
hhould be no just reason why the pacifica
tion of the Island might not be effected on
that basis. Such a result would appear to
be in the true interest ot all concerned. It
would at once stop the conflict , which is now
consuming the resources of the island and
making it worthless for whichever party
iuay ultimately prevail. It would keep In
tact the possessions of Spain without touch
ing her honor , which will be consulted
rather than impugned by the adequate re
dress of admitted grievances. It would put
the prosperity of the Island and the fortunes
of Its Inhabitants within their own control ,
without severing the natural and ancient
ties which bind them to the mother country ,
and would yet enable them to test their ca
pacity for self government under the most
favorable conditions.
.It has been objected on the one side that
Spain should not promise autonomy until
her insurgent subjects lay down their arms.
On the other side , that promised autonomy ,
however liberal , is insufficient , because
without assurance of the promise being ful
filled.
But the reasonableness of a requirement
by Spain , of unconditional surrender on the
part of the Insurgent Cubans before their
autonomy is conceded is not altogether ap
parent It ignores important features of
the situation the stability two years' dura
tion has given to the insurrection ; the feas
ibility of its prolongation in the nature of
things , and as shown by past experience the
utter and imminent ruin of theisland.unless
the present strife Is speedily composed ;
above all , the rank abuses which all parties
in Spain , all branches of her government
and all her leading public men concede to
exist and profess a desire to remove. Facing
such circumstances , to withold the proffer
of needed reforms until the parties demand
ing them put themselves atmercy by throw
ing down their arms , has the appearance of
neglecting the gravest of perils and inviting
suspicion as to the sincerity of any pro
fessed willingness to grant reforms. The
objection on behalf of the insurgents that
promised reform canot be relied upon must
of course be considered , though we have no
right to assume , and no reason for assum
ing , that anything Spain undertakes to defer
for the relief ol Cuba will not be done ac
cording to both the spirit and the letter of
the undertaking.
Nevertheless , realizing that suspicions
aiiC precautions on the part .of the weaker
of two combatants are always natural and
not always unjustifiable , being sincerely de
sirous in the interest of both as well as on
its own account that the Cuban problem
should be solved with the least possible de
lay , it was intimated by this government to
the government of Spain some months ago
that if a satisfactor- measure of home rule
were tendered the Cuban insurgents , and
would be accepted by them upon a guaranty
of its execution , the United States would en
deavor to find a way not objectionable to
Spain of furnishing such guaranty. While
no definite response to this intimation has
yet been received from the Spanish govern
ment , it is believed to be not altogether un
welcome , while , as already suggested , no
reason is perceived why it should not be ap
proved by the insurgents , neither party can
fail to see the importance of early action
and both must realize that to prolong the
present state of things for even a short
period will add enormously to the time and
labor and expenditure necessary to bring
about the industrial recuperation of the
island. It is , therefore , fervently hoped
on all grounds that earnest efforts for head
ing the breach between Spain and the in
surgent Cubans , upon the lines above indi
cated , may be at once inaugurated and
pushed to an immediate successful issue.
The friendly offices of the United States ,
either in the manner above outlined or in
any other way consistent with our constitu
tion and laws will always be at the disposal
of either party.
Whatever circumstances may arise , our
policy and our interests would constrain us
to obtect to the acquisition of the Island or
an interference with its control by any other.
It should be added that it cannot be reason
ably assumed that the hitherto expectant
attitude of the United States will be indefi
nitely maintained.
While we are anxious to accord all due re
spect to the sovereignty of Spain , we cannot
view the pending conflict in all its features
and properly apprehend our inevitable rela
tions to it and its possible results without
considering that by the course of events we
may be drawn into such an unusual and un
precedented condition as will fix a limit to
our patient waitiag for Spain to end the
conflict cither alone and in her own way ,
or with our friendly co-operation.
When the inability of Spain to deal suc
cessfully with the insurrection has become
manifest and it is demonstrated that her
sovereignty is extinct in Cuba for all pur
poses of its rightful existence , and when a
hopeless struggle for its re-establishment
has degenerated into a strife which means
nothing more than the useless sacrifice of
human life ind then utter destruction of the
very subject matter of the conflict , a situa
tion will be presented in which our obliga
tions to the sovereignty of Spain will be
superseded by higher obligations which we
can hardly hesitate to recognize and dis
charge. Deferring the choice of ways and
methods until the time for action arrives ,
we should make them depend upon the pre
cise conditions then existing , and they should
not be determined upon without giving care
ful heed to every consideration involving
our honor and interest or the international
duty we owe to Spain. Until we face the
contingencies suggested or the situation is
by other incidents imperatively changed we
should continue in the line of conduct here
tofore pursued , thus in all circumstances ex
hibiting our obedience to the requirements
of public law and our record for the duty
enjoined upon us by the position we occupy
in the family of nations.
A contemplation of emergencies that may
rise should plainly lead lis to avoid their
creation , cither through a careless disregard
of present duty or even an undue stimula
tion and lll-tlmed expression of feeling.
Bet Ibave deemed not amiss to remind the
congress that a time may arrive when a
correct policy and a care for our interests
as well aa a regard for the Interests of other
nations and their citizens , joined by consid
erations of humanity and a desire to see a
rich and fertile country Intimately related
to us , spared from complete devastation ,
will constrain our government to such action
as will mibserve the interests thus Involved
and at the same time promise to Cuba and
Its Inhabitants an opportunity to enjoy the
blessings of peace.
VENEZUELA.
The Venezuelan boundary question has
ceased to be a matter of difference between
Great Britain and the United States , their
respective governments having agreed upon
the substantial provisions of a treaty be
tween Great Britain and Venezuela submit
ting the whole controversy to arbitration.
The provisions of the treaty are so emi
nently just and fair that the consentof Ven
ezuela thereto may confidently be antici
pated.
Negotiations for a treaty of general arbi
tration for all differences between Great
Britain and the United States are far ad
vanced and promise to reach a successful
consummation at an early date.
TKEASUKY DEPARTMENT.
The secretary ot the treasury reports that
during the fiscal year ended June 30,189G ,
the receipts of the government from all
sources amounted to 8409,475,408.78. Dur
ing the same period its expenditures were
$434,078,654.48. The excess of expenditures
over receipts thus amounted to 525,203-
235.70. The ordinary expenditures during
the year were 84,015.852.21 less than dur
ing the preceding fiscal year. Of the re
ceipts mentioned there was derived from
customs the sum of 8160,021,751.07 , and
from internal revenue 5140,830,015.00. The
receipts from customs show an Increase of
57,863,134.22 over those from the same
source for the fiscal year ended June 30 ,
1895 , and the receipts from internal revenue
an increase of 53,534,537.91.
The value of our imported dutiable mer
chandise during the last fiscal year was
53G9.757.470 , and the value of free goods
imported $409,967,470 , being an Increase of
50,523,075 in the value of dutiable goads ,
and $91,231,034 in the value of free goods
over the preceding 3-ear.
Our exports of merchandise , foreign and
domestic , amounted in value to $882G0G,938 ,
being an increase over the preceding j-ear
of 575,008,773. The average ad valorem
duty paid on dutiable goods imported dur
ing the year was 39.94 per cent , and on free
and dutiable goods taken together , 20.55
per cent
The cost of collecting our internal revenue
was 2.78 per cent as against 2.81 per cent
for the fiscal j-ear ending June 30 , 1893.
The total production of distilled spirits , ex
clusive of fruit brandies , was 85,588,703
taxable gallons , being an increase of 0,039 , -
103 gallons over the preceding year. There
was also an increase of 1,443,070 gallons of
spirits , produced from fruit as compared
with the preceding year. The number of
barrels of beer produced was 35,859.250 as
against 33,589,784 produced in the preced
ing fiscal year , being an increase of 2,269-
466 barrels.
OTHER DEPARTMENTS.
The report of the secretary of war exhibits
satisfactory conditions in the several
branches of the public service intrusted to
his charge. The various recommendations
of the secretary are indorsed.
The attorney general 'presents a detailed
and interesting statement of the important
work done under his supervision during the
last fiscal year. The ownership and man
agement by the government of peniten
tiaries for the confinement of the convicted
in United States courts of violations of
federal laws , which for manyyears has been
a subject of executive recommendation , has
at last to a light extent been realized by the
utilization of the abandoned militar- prison
at Fort Leavenworth as a United States
penitentiary.
Federal Penltcntiarv.
This is certainly a movement in the right
direction , but it ought to be at once supple
mented by the rebuilding or extensive en
largement of this improvised prison and the
construction of at least one more , to be
located in the southern states. The capacity
of the Leavenworth penitentiary is so lim
ited that the expense of its maintenance ,
calculated at a per capita rate upon the
nvmber of prisoners it can accommodate ,
does not make as economical an exhibit as it
would if it were larger and better adapted
to prison purposes ; but I am thoroughly
convinced that economy , humanity and a
proper sense of responsibility and duty to
wards those whom we punish for violations
of federal law dictate that the federal gov
ernment should have the entire control and
management of the penitentiaries where
convicted violators are confined. It appears
that since the transfer of the Fort Leaven
worth military prison to its new uses the
work previously done by prisoners confined
there , and for which expensive machinery
has been provided , ftas been discontinued.
This work consisted of the manufacture of
articles for array use , now done elsewhere.
On all grounds it is exceedingly desirable
that the convicts confined in this peniten
tiary be allowed to resume work of this de
scription.
Our postoffice department Is in good condi
tion and the exhibit made of its operations
during the fiscal year ended June 30 , 1896 ,
if allowance is made for imperfections in
the laws applicable to it is very satisfac
tory. The total receipts during the year
were 532,499,20b.40. The total expenditures
were 890,020,296.84 , exclusive of 51559 , -
898.27 which was earned hy the Pacific rail
roads for transportation and credited on
their debt to the government There was
an increase of receipts over the previous
year of 55,516,0dU.21 , or 7.1 per cent , and an
increase of expenditures of 53,836,124.02 , or
4.43 per cent The deficit was 51,079,956.19
less than that of the preceding year. The
chief expenditures of the postal service arc ]
regulated by law and are not in the control I
of the postmaster general.
The deficit for the last year , although
much less than that of the last and preced
ing years , emphasizes the necessity for leg
islation to correct the growing abuse of
second-class rates , to which the deficit is
mainly attributable. The transmission at
the rate of one cent a pound of serial libra
ries , advertising sheets , "house organs"
( periodicals advertising some particular
"house" or institution ) , sample copies and
the like , ought certainly be discontinued.
This subject is discussed at considerable
length and reforms urgently recommended.
Navy.
The work of the navy department and its
present conditions are fully exhibited in
the report of the secretary. The construc
tion of vessels for our new navy has been
energetically prosecuted by the present ad
ministration upon the general lines pre
viously adopted , the department having
seen no necessity for radical changes in
prior methods under which the work was
found to be progressing in a manner highly
satisfactory. It has been decided , however ,
to provide in every ship building contract
that the builder should pay all trial ex
penses , and it has also been determined to
pay no speed premiums in future contracts.
Interior.
The report of the secretary of the Interior
presents a comprehensive and interesting
exhibit of the enormous and important af
fairs committed to his supervision.
The report which has already been pub
lished , is reviewed at some length , and the
secretary's recommendations concurred in.
FIVE CIVILIZED TRIBES.
The condition of affairs among the five
civilized tribes who occupy large tracts of
land in the Indian Territory , and who h.ve
governments of their own , has assumed such
an asspect as to render it almost indispens
ible that there should be an entire change
in the relations of these Indians to the gen
eral government This seems to be neces
sary in furthRrance of their own interests
as well a * for -protection of noa-Indiaa
residents In their territory. A commission
organized and empowered under several
recent laws Is now negotiating with these
Indians for the relinquishment of their
courts and the division of their common
lands In severalty , and aiding in the settle
ment of the troublesome question of tribal
membership. The reception of their first
proffers of negotlons was not encouraging ;
but through patience and such conduct on
their part as demonstrated that their Inten
tions were friendly and In the Interest of
the best prospect of success has become
more promising. The efforts should be to
save the Indians from the consequences of
their own mistakes and Improvidence , and
to secure to the real Indian his rights as
against intruders and professed friends who
profit by his retrogression.
A change is also needed to protect lite and
property through the operations of courts
conducted according to strict justice and
strong enough to enforce their , mandates ,
ys a sincere friend of the Indian I am ex
ceedingly anxious that these reforms should
be accomplished with the consent and aid of
the tribes and that no necessity may be pre
sented for radical or drastic legislation. I
hope , therefore , that the commission now
conducting negotiations will soon be able to
report that progress has been made toward
a lrlendly adjustment of existing difficul
ties.
TACIFIC RAILROADS.
On January 11 , 1897. with the amount
already matured , more than $13,000,000 of
the principal of the sub3idary bond Issued
by the United States in aid of the construc
tion of the Union Pacific railway , including
its Kansas line , and more than 50,000,000 ot
like bonds , issued In aid of the Central Pa
cific railroad , including those issued to the
Western Hallway company will have fallen
due and been paid or must on that day be
paid by the government Without any ref
erence to the application of the sinking fund
now in the treasury this will create such a
default on on the part of the companies to
the government as will give it the right teat
at once institute proceedings to foreclose Its
mortgage lien. In addition to this Indebted
ness which will be due January 1 , 1897
there will mature between that date and
January 1 , 1899 the remaining principal of
such subsidy bonds which must also be met
b- the government These amount to more
than 520,000,000 on account of the Union
Pacific lines and exceeds $21.000,000 on ac
count of the Central Pacific lines.
In the case of the Union Paeitic company ,
the situation has become especially urgent.
Proceedings have been instituted to fore
close a first mortgage upon those aided parts
of the main lines upon which the Govern
ment holds a second and subordinate mort
gage lien. In consequence of these proceed
ings and increasing complications , added to
the default occurring on the first day of
January. 1897 , a condition will be presented
at that date , so far as this company is con
cerned that must emphasize the mandate ol
the act of 1887 and give to executive dutj
under its provisions a more imperative
aspect
Unless Congress shall otherwise direct or
shall have previously determined upon a
different solution of the problem there will
hardly appear to exist any reason for delay
ing beyond the date of the default above
mentioned such executive action as will
promise to subserve the public interests and
save the government from the loss threat
ened by further inaction.
OFFENSIVE PARTISANSHIP.
The progress made in civil service reform
furnishes a cause for the utmost congratu
lation. It has survived the doubts of its
friends as well as the rancor of its enemies ;
and has gained a permanent place among
the agencies destined to cleanse our politics
and improve , economize and elevate the
public service. There are now in the com
petitive classified service upwards of 84,000
places. More than half of these have been
included from time to time since March 4 ,
1893. A most radical and sweeping exten
sion was made bj- executive order dated the
0th daof May , 1890. And if fourth class
postmasterships are not included in the
statement it may be said that practically
all positions contemplated by the civil ser
vice law are now classified. Abundant rea
sons exist for including these postmaster-
ships , based upon economy , improved ser
vice and the peace and quiet of neighbor
hoods. If , however , obstacles prevent such
action at present I earnestly hope that con
gress will , -n ithout increasing postoffice ap
propriations , so adjust them as to permit in
proper cases a consolidation of these
postofflces to the end that through this pro
cess the result desired may to a limited ex
tent be accomplished.
nThe civil service rules as amended during
the last year provides for a sensible and
uniform method of promotion , basing elig
ibility to better positions upon demon
strated efficiency and faithfulness. The
absence of fixed rules on this subject has
been an infirmity in the system more and
more apparent , its other benefits have been
better appreciated. The advantage of civil
service methods in their business aspects
are too well understood to require argu
ment Their application has become a ne
cessity to the executive work of the govern
ment But those who gain through the
operation of these methods should be made
to understand that the non-partisan scheme
through which they receive their appoint
ments demands from them , by way of re
ciprocity , non-partisan and faithful per
formance of duty under every administra
tion , and cheerful fidelity to every chief.
While they should be encouraged to de
cently exercise their rights of citizenship
and to support through their suffrages the
political beliefs they honestly profess , the
noisy , persistent and partisan employe , who
loves political turmoil and contention , or
who renders lax and grudging service to an
administration not representing his political
views , should be promptly and fearlessly
dealt with in such a way as to f urni-h a
warning to others who may be likewise dis
posed.
THE TARIFF LAW.
I desire to recur _ to the statements else-
wnere mace concerning the government's
receipts and expenditures for the purpose
ot venturing upon some suggestions touch
ing our present tariff law and its operation.
This statute M' ' < elect on the 28th day of
* ' - . . - , . . .
S ! ; .s slort.
comings as a complete Measure of tarirr
reform , it must be conceded that it has
opened the way to a freer and greater ex
change of commoditiesbetwecn us and other
countries , and thus furnished a wider mar
ket for our products and manufactures.
The only entire year during which this
law has been in force ended on the 30th day
of June , 1596. In that year our imports in
creased over those of the previous year
more than 56,500,000 , while the value of the
domestic products we exported and which
found markets abroad was- nearly $70,000 , -
000 more than during the preceding year.
Those who insist that the cost to our people
ple of articles coining to them from abroad
for their needful use should only be in
creased through tariff changes to an extent
necessary to meet the expenses of the gov
ernment as well as those who- claim that
tariff charges may be laiduponsuch articles
beyond the necessities of government
revenue , and with the additional purpose of
so increasing their price in our markets as
to give American manufacturers and pro
ducers better and more profitable opportu
nities , must agree that our tariff laws are
only primarily justified as sources of revenue
to enable the government to meet the naces-
sary expenses of its maintenance. Consid
ered as to its sufficiency in this aspect the
present law can by no means fall under just
condemnation. During the only complete
fiscal year of its operation it has yielded
only 53,000,000 more revenue than was re
ceived from tariff duties in the preceding
year. There was. nevertheless , a deficit be
tween our receipts and expenses of a little
more than S25.00O.000. This , however , was
not unexpected.
The situation was such on December last ,
seven months before the close of the fiscal
rear , that the secretary of the treasury
foretold a deficiency of 517,000.000. The
great and increasing apprehension and
timiditv in business circles and the depres
sion inall activities intervening since that
time , resulting from causes perfectly well
understood and entirely disconnected with
our tariff law or operation seriously checked
the imccrts we would have otherwise. , re-
• _ _ _
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tariff revenue. We cannot reasonably liopa I B Bfl
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near future yield a revenue which , with -iBBBI
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us. To meet any such deficit we have In the I BBI
treasury , in addition to the gold reterve of , j BBBJ
9100.000,000 , a surplus of more than $128- ' H
000,000 applicable to payment of the expenses - H
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pie , the payment , therefore , of any defl- BBBJ
clencyln the revenue from this fund 1 | BBBJ
nothing more than Its proper and legitimate BBBJ
use. It Is Immeasurably better to approprl- BBH
ate our surplus to the payment of Justifiable < . BBBj
expenses than to allow it to become an lnvl- j BBH
tatlon to reckless appropriations and ex- . , HHB
travagant expenditures. I' BBBJ
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the present law our people obtain the ncccs- ; ' |
saries of a comfortable existence at a 1 BBBJ
cheaper rate than formerly This is a mat- \ \ BB ]
ter of supreme importance , since it is the ' BBBJ
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make the burdens of taxation as light as , \ BBBJ
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except under the stress of their govern- BBBJ
ment's necessity made plainly manifest BBBJ
FINANCIAL. |
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allusion to the weakness and vices of our B BJ
financial methods. They have been fre- H
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Congress In previous executive commuulca- H
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from again earnestly presenting the ncces- BBBJ
slty of the prompt reform of a system op- BBB
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shown by experience to be fraught with the BBB
gravest peril and perplexity. The terrible BBB
civil war which shook the foundations of BBB
our government , more than thirty years H
ago , brought in its train the destruction of H
property , the wasting of our country's substance - H
stance , and the estrangement of brethren. I BBB
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the distressing lo s of life the conflict en- BBB
tailed is but a sacred memory , which fosters - H
ters patriotic sentiment and keep * alive a t H
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financial necessity not only unsulted to our BBB
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we can have not assured financial peace and , / j H
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gations upon which gold may be demanded iBBB
from the treasury are withdrawn from dr- ' I BBB
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as has been recommended , by their exchange * |
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gations redeemable in gold whenever so BBB
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culatlon to the par value of bonds deposited J H
as security for its redemption and the tax flBBBJ
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day of sensible and sound financial methods ' |
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abandons the banking business and the accumulation - ' H
cumulation of funds , and confines its mone- j BBfl
tary operations to the receipts of money BBl
contributed by the people for its support , - H
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TKISTS. M
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fully take a deep interest may be hero cBBl
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industry or commerce , and to stifle whole- BBl
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membered , however , that a reduction of \iH \ BBl
prices to the people is not one of the , e , B
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poses or those managing their
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of composing the palpable evils charged to s1 * BB ]
the account of trusts and.monopolies. Their _ BB |
tendency Is to crush out Individual inde- .j , M
pei .encc and to hinder and to prevent the i o M
free use of human faculties and the full de 1 B
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with this matter by legislation , the laws y M
passed for that purpose thus far have * \ BBl
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disposition or attempt to enforce them but BB |
simply because the laws themselves as In- V. M
terpreted by the courts do not reach the y M
difficulty. If the insufficiencies of existing S BA
laws can be remedied by further legislation 5 y |
it should be done. The fact must be recog- A B
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on this subject may fall short of it3 purpose < 3 M
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because of the complex character of our - m M
governmental system , which , while making S M
the federal authority sui reme within its t \ $ BB ]
there , has carefully limited that sphere by - * jt M
metes and bounds which cannot be trans- ' 3 BB ]
gressed. The decision of our highest court f M
on this precise question renders It quite y |
doubtful whether the evils of trusts and monopolies - * \ H
nopolies can be adequately treated through S BBl
federal action unless the- seek directly and -J M
purposely to include in their objects trans- K M
portation or intercourse between states or jfi BB ]
between the United States and foreign JI * a BBJ
countries. y BBj
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limit of the remedy that may be applied. > • ; g BB ]
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of the several states to act effectively in the & BB ]
premises and there should be no reason ta k > BB ]
doubt their willingness to judiciously exer- J H
cise such power. In concluding this com- * H
municatioa its last words shall be an appeal 2 BB ]
to the congress for the most rigid X BB ]
economy la the expenditure ot 4 , BB ]
the money it holds in trust for BB ]
the people. The way to perplexing extrava- v BBJ
gance is easy , but a return to frugality is jE" | BBJ
difficult When , however , it is considered - y |
that those who bear the burdens of taxation 5 M
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fidelity of their reliable servants , the duty < t BB ]
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ifest < > BB ]
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our contests of political opinion are nc ' % H
longer remembered , nothing in the retro- i. 5 HBJ
spect of our public service will be as fortu- I BB ]
nate and conrtortlng as the recollection of & BB ]
official duty well performed and the memory 3 * BB ]
of a cocstzjEt devotion to the Interests of ous v > j BJ
confiding fellov. countrymen. 5. * BBJ
Gaovra CXsvela ix V jflBJ
Executive ilaasioa. December 7.183&- frvfBBJ