f
Principal Part Devoted to a Narra
tive of the War With Spain ,
NO STARTLING SUGGESTIONS ,
The I"onco Treaty Still Uiialgnori , the
President Doas Not Dbenw the Per
manent Colonial Policy The Ghl-
neso Question lilttlo Navr
on Currency Army Increase -
crease 100,000.
To the Senate and Housoof Roprossniatlves :
Notwithstanding tlic added burdens rendered
necessary by the war. cur people rojolcs in a
very satisfactory and steadily increasing
degree of prosperity , orldoiccJ by the larg
est volume or business over roordcd. Every
manufacture ha1 ? been produollvo , agriculture
pursuits have yielded abundant returns , labor
In the fields ot industry is better rewarded , rev
enue legislation wassod by the present congress
has Increased the treasury's receipts to the
amount estimated by in authorities the
finances of the government have been carefully
administrated and its crcdlG advanced to the
first rank. while its currency has boon main
tained at the world's highest standard. Mili
tary service under a common fla ? and for a
righteous cauc has strengthened the national
spirit and served to ccmontmoro closely than
over the fraternal bonds between every section
of the country.
A review of the relation of the United States
toother powers , always appropriate , is this
year of primary importance in view of the mo
mentous questions which htive arisen , demand
ing in one instance the ultimate determination
by arms and involving far-reaching consequences
quences which.wlll require the earnest atten
tion of congress.
TilK IVAIi WITH SPAIN .
Jn my last annual message vcrr full consid
eration was Given to the question of the duty
of the government of the United Siatos toward
Spain and the Cuban insurrection as
telng by far the mot important problem with
which we v. ere then called upon to deal. The
cpn-iidcrations then advanced , and the exposi
tion of the views therein expressed , disclosed
my sense ct the extreme gravity of the situa
tion.
tion.Tho
The message then reviews in detail the state
of affairs existing in Cuba up to the time of the
destruction of the battle .hip Maine , and con
tinues :
On the 1'tn of February , last , occurred the
destruction of the battleship Maine , while
t ightf ully lying in the harbor of Havana on a
mission of International courtesy and good
will a catastrophe the suspicious nature and
horror of which stirred the nation's heart pro
foundly. It is a striking evidence of the p > ise
and sturdy good sense distinguishing our na
tional character that this shoclsiu ; blow , fallIng -
Ing upon n. generous people already deeply
touchcd-by preceding events in Cuba , d'd not
move them. to an instant , desperate resolve to
tolerate no longer the existence of a condition
of danpor and disorder at our" doors that made
possible such a deed by whomsoever wrought.
Yet the instinct of justice prevailed.
and the nation anxiously awaited the
result of the searching investigation at once set
on foot. The finding of the naval board of in
quiry established that the origin of the explos
ion was external by a submarine mine , and only
halted through lack of positive testimony to fix
the responsibility of its authorship.
All those things carried conviction to the
most thoughtful , even before the finding of the
naval court , that a crisis In our relations with
Spain and toward Cuba was at hand. So strong
was this belief that it needed but a brief execu
tive suggestion to the Congress to receive im
mediate answer to the duty of making Instant
provision for the possible and perhaps speedily
probable emergency of war. and the remark
able , almost unique spectacle was presented of
a unanimous vote of both houses on theSth
ot March , appropriating 553,000,003 "for the
national defense and for each and every pur
pose connected therewith , to bo expended at the
discretion of the President"
That this act of provision came nona too soon
was disclosed when the application of the funds
< was undertaken. Our forts were practically
undefended. Our navy needed largo provision
-for Increased ammunition and supplies , and
even * * numbers , to cope with any sudden
attack from the uavy of Spain ,
which comprised modern vessels of the
highest type of continental perfection. Our
ifnnyalEO required enlargement of men and
munitions. The details ot the hurried prepara
tions for the dreaded contingency is told in the
reports of the secretaries of war and of the
navy , and need not bo repeated here. It is suf
ficient to say that the outbreak of war , when it
did come , found our nation not unprepared to
meet the conflict.
Nor was the apprehension of coming strife
confined to our own country. It was felt by the
continental powers which , on April 4th , through
their ambassadors and envoys , addressed to the
executive' expression of hope that humanity
nnd moderation might mark the course of this
gov/Jrnrncnt and people , and that further nego-
jintions would lead to an agreement , which ,
Awhile securing the maintenance of peace , would
affirm all necessary guarantees for the re-
cstabllshinent of order in Cuba In responding
to the presentation , I also shared the hope that
the envoys had expressed that pence might be
preserved In a manner to tormina to tha chronic
condition of disturbance in Cuba so injurious
aud menacing to our interests and tranquility ,
as well as shocking to our sentiments of hu
manity ; and , while appreciating the humanita
rian and disinterested character of the commu
nity they had made on behalf of the powers , it
stated that the confidence of this government
for Its part , that equal appreciation would bo
shown for its earnest and unselfish endeavors
to fulfill a duty of humanity by ending a situa
tion , the Indefinite prolongation of which had
become insufferable.
Still animated by the hope of a peaceful solu
tion and obeying the dictates of duty , no effort
was relaxed to bring about a speedy ending of
the Cuban struggle. Negotiations to this ob
ject continued actively with the government ot
Spain , looking to the immediate conclusion of a
six months' armlstlco in Cuba with a view to
elect the recognition of her paople'.s right to
independence. BssldDS this , the Instant reo -
cation of the order of rcconcentration was
asked , so that the sufferers , returning to their
American and Spanish
homes and aided by untied
ish effort , might bo put in a way to support
themselves , and , by orderly ra-.uniptionof th3
well nigh destroyed productive energies of the
Island , contribute to the restoration of its tran-
oullity and well Icing. Negotiations continued
Madrid , resulting In
fo- some little tlmo at
offers by the Spanish government which could
not but bo regarded as inadequate. It was pro
posed to confide the preparation of peace to
the insular parliament , yet to bo convened
under the autonomous decrees of November ,
1SW but without Impairment in nny wise of the
constitutional powers of tha Madrid govern-
tnont which to that end , wou'.d grant an armis
tice , if soliclted.by the Insurgaais , for such
goneral-ln-ehicf might oo fit to fix
time as the
llov avl with what soopo ot dictionary
Inmonl was expected to
the Insular pir
powers
tha "preparation" of pcsc3 did not
lt v to be by negotiation with the
Issue seemed to rest on the ona
by a faction of thoU
U * term , out-
. - of
ortUrtinttodlro.of ,
In Cuba , and Its disappointing reception by I
Spain , the offer : of the oxojutlvo was broujat
to an end. I again rovlowad the alternative
courses of action which I had prepared , con
cluding that the only ono consonant with Inter
national policy and compatible with our firm
set historical traditions was Intervention as a
neutral to stop tha war and chock the hopeless
sacrlJco of llfo , oven though that resort
Invo'.vcd "hostile constraint upon both the
partle * to the contest , us well to enforce
a truce usf to guide the eventual settlement. The
grounds'justlfylng that step were , the interests
of humanity" ; the duty to protect llfo and prop
erty of our citizens in Cuba ; the right to check
injury to our commerce and people through the
devastation of the island , and , mo.st Important ,
the need of removing nt once and forove r
the constant menace and the bar-Jeas en - j
tolled upon our government by the uncer
tainties and perils of the situation caused
by the unendurable disturbance in Cuba.
The President then refers "to his message to
Congress on the Cuban question last spring ,
and the passage of the resolutions demanding
the withdrawal of Spanish sovereignty from
Cuba , and continues :
The demand , although , as abavo shown , of-
flslally made known to the Spanisheavoy here ,
was not dollvcrol at Madrid. After the In
struction reached General Woodford on the
morning of April SI , but befjro ho could pre
sent It , the Spanish minister of state notified
him that upon the President's approval of the
joint resolution the Madrid government , re
garding tha act as "equivalent to an evident
declaration of war. " had ordered its minister
in Washington to withdraw , thereby breaking
off diplomatic relations between the two coun
tries , and ceasing all cfilcial communication
between 'thoir respective representatives.
General Woodford thereupon demanded his
passports and quitted Madrid the same day.
Spain , having thus denied the demand of the
United States and initiated that complete form
of rupture of relations which attends a state
of war , the executive powers authorized by the
resolution were nt oaca used by ma to meet the
enlarged contingency of actual war between
Spain and tin United States.
On April 2i I proclaimed a blockade of the
northern coast of Cuba , including ports on said
coast between Cardenas and Bahia Hon-da
and the port of Clenfuegos ca the
south coast of Cuba ; and on tha 23d I
called for volunteers to execute the purpose of
these resolutions. By my message of April 25 ,
the Congress was informed of the situation ,
and I recommended formal declaration of the
existence of a state of war between the United
States and Spain. T&o Congress accordingly
voted on the same day the act approved April
25 , 193 , declaring the existence of such war ,
from and including the 21st day of April , and
rc-cnactcd the provision of the resolution of
April 2' , directing the President to use all the
armed forces of the nation to carry that act Into
effect.
THE 1TAR PREPARATION.
Our country th is , after an interval of half a
century of peace with all nations , found Itself
engaged in deadly conflict with a foreign enemy.
Every nerve was strained to meet the emer
gency. The response to the initi-il call for
123,100 volunteers was instant and complete as
was also the r- suit of the second call"of May
23 for 75.0JO additional volunteer ? . The ranks
of the regular army were lucre ised to the lim
its provided by the act of April 23. The en
listed force of the navy on the ir > th of August ,
when it reached its maximum , numbered 24,123
men and apprentice : . One hundred and three
vessels were added to the navy by purchase ,
one was presented to the government , one
leased and the four vessels of the International
Navigation company the St. Paul , St. Louis ,
Now York and P t ris were chartered. In ad
dition to these the revenue cutters and light
house tenders were turned over t > the navy de
partment and became temporarily a part of tha
auxiliary navy.
The maximum effective fighting force of the
navy during tin war , separated into classes ,
was as follows :
Four battleships of the firstclass , one battle
ship of the second clasi. two armored cruisers ,
six coast defease monitors , ono armored rcm.
twelve protected cruisers , three unprotected
cruisers , eighteen gunboats , ono dynamite
cruiser , eleven torpedo boats , fourteen old
vessels of the old navy , including monitors.
Auxlliarr navyc Auxiliary cruisers , twenty-
eight converted yachts , twenty-seven converted
tugs , nineteen converted colliers , four revenue
cutters , four lighthouse tenders and nineteen
miscellaneous vessels.
Muh alarm was felt along our entire Atlan
tic seaboard lest some attack might be mada
by the enemy. Every precaution was taken to
prevent possible Injury to our great cities ly
ing along the coast. Temporary garrisons were
provided , drawn from the state militia , and
infantry and light batteries were drawn from
the volunteer force. About 12,0 * ) troops were
thus employed. The coast signal service was
established for observing the approach of an
enemy's ship to the coast of the United States
and the lighthouse service eo-operated , whbh
eoablcd the navy department to have all portions
tions of the At-antlo coast , from Maine to Tex
as , under observation.
The auxiliary navy was created under the
authority of Congress and was offi
cered and manned by the raval
militia of the several states. This organization
patrolled the coast and performed the duty of
the second arm of defense.
Under the direction of the chief of engineers ,
submarine mines were placed at the most exposed -
posed points. Before the outbreak of the war
permanent mining encasements and cable gal
leries had pecn constructed at all important
harbors. Most of the torpedo material was not
to be found in the market and had to be specially
manufactured. Under date of April 19 district
officers were directed to take all preliminary
measures , short of the actual attaching of , the
loaded mines to the cables , and on April 2.2 tele
graphic orders -were issued to place the loaded
mines in position.
The aggregate number of mines placed was
1,535 at the principal harbors from Maine to
California. Preparations were also made for
the planting of mines at certain other harbors ,
but owing to the early destruction of the Span
ish fleet , those mines were not placed. The
signal corps was promptly organized and per
formed service cf the most difficult and import
ant character. Its operations during the war
covered the electrical connection of all coast
fortifications , the establishment of telephonic
and telegraphic facilities for the camps at Ma
nila , Santiago and Porto Rico. There were
constructed 80J miles of line at ton great
camps , thus facilitating military movements
from thosa points In a manner heretofore
unknown in military administration. Field
telegraph lines were established and maintained
under the enemy's fire at Manila , and later the
Manila-Hong Kong cable was re-opened.
In Porto Kico cable communications were
opened over a discontinued route , and on land
the headquarters of the commanding officer was
kept In telegraphic and telephonic communica
tion with the division commanders on four dif
ferent lines of operations.
There was placed in Cuban waters a complete
ly outfitted cable ship with war cables and cable
gear suitable both for the destruction of commu
nications belonging to the enemy and the estab
lishment of our own. Two ocean cables were
destroyed under the enemy's batteries at Santi
ago. The day previous to the landing of Gen
eral Shatter's corps nt Caimanera , within twenty
miles of1 the landing place , cable communica
tions were established and cable station opened ,
giving direct communication with the govern
ment at Washington. This service was invalu
able to the Executive in directing the operations
of the army and navy.
With a total force of over 1,3)0 , the loss was
by disease In camp and field , officers and men
Included , only five.
The national defense , under the 530.000-
0)0 fund , was expended In large part by the
army and navy , and the objects for which
it was used are fully shown In the reports
of the several secretaries. It was a most time
ly appropriation , enabling the government to
str.-ngthcn Its defense and to make prepara
tions greatly needed in case of war. This fund
being Inadequate to the requirements of equip
ment and for the conduct of the war , the patriotism
provided the means In
triotism of the congress
the war revenue act of Juno 13 , by authorizing
n three per cent popular loan not to exceed four
hundred million dollars and by levying addi
tional imports and taxes Of the authorized
millions were offered and
loan , two hundred
promptly taken , the subscriptions so far ex
ceeding the call as to cover it many times over ,
being Slven to the smaller
while , preference
exceeded five thousand
bids , no single allotment
sand dollars. This was a most encouraging
and significant result , showing the vast resources -
sources of the nation and the de ermination of
the people to uphold their nation's honor.
THE BATTLE OP MANILA.
It Is not within the province of this message
to Birrato the history of the extraordinary war
that followed the Spanish declaration of April
rist , but a brief recital of its more salient fea
tures Is appropriate. The first encounter of the
war In point of date , took place April 27 , when
n detachment of the blockading squadron made
a rcconnalsanco In force at Matanzas , sh lied
the harbor and dcmoll bed sivtral new works
in construction. Tha n.-xt engagement
was destined to mark a memorable
epoch in maritime warfare. The Pacific fleet ,
under Commodore George Dewey , had lain for
some weeks at Hong Kong Upon the colonial
proclamation of neutrality being issued and the
customary twenty-four hours notice being ,
given , it repaired to MIrs bay , near Hong Kong ,
whence It proceeded to the Philippine islands
under telegraph orders to capture or destroy
the formidable Spanish fleet then assembled at
Manila. At daybreak on the 1st of May. tha
A me lean force entered Manila bay and after a
few hours' engagement , effected the total de
struction of the Spanish fleet , consisting of ten
warships and a transport , besides capturing the
naval station and forts at Cavitc , thus annihil
ating the Spanish naval power in the Pacific
ocean and completelycontrolling the bay of
Manila with the ability to take the city at will.
Not a llfo was lost on our ships , the wounded
only numbering seven , while not a vessel was
materially injured. For this gallant achieve
ment the Congress , upon my recommendation ,
fitly bestowed upon the actors preferment and
substantial reward.
The effect of this remarkable victory upon the
spirit of our people and upon the fortunes of
the war was instant. A prestige of invinci
bility thereby attached to our arms , which con
tinued throughout the struggle. Reinforce
ments were hurried to Manila under the com
mand of Major General Merritt and firmly
established within sight of the capital which lay
helpless before our guns. On the 7th day of
May the government was advised officially of
the victory at Manila , and at once inquired of
the commander of our fleet what troops would
bo required. The information was received on
the loth day of May and the first army expedi
tion sailed May 23th and arrived at Manila
Juno SJth. Other expeditions soon followed ,
the total force consisting of Gil officers and 15.-
03S men.
Only reluctance to cause needless loss of life
and property prevented the early storming and
capture of the city and therewith the absolute
military occupancy of the whole group. ThS
Insurgents , meanwhile , had resumed tha active
hostilities suspended by the uncompleted truce
of December , 1897. Their forces invested Ma
nila from the northern aud eastern side , but
were constrained by Admiral Dawcy and Goa -
oral Merritt from attempting an assault It
was fitting that whatever was to be done In the
way of decisive operations in that quarter
should bo accomplished by the strong arm of
the United States alone. Obeying the stern pre
cept of war which enjoins 'tho overcoming of
the adversary and the extinction of his power
wherever assailable as the speedy and sura
means to win a peace , divided victory was not
permissablo , for no partition of the rights
and responsibilities attending the enforce
ment of a just and advantageous peace could
bo thought of. Following the coming of
the comprehensive scheme of general attack ,
powerful forces were assembled at various
points on our coast to invade Cuba and Porto
Rica Meanwhile naval demonstrations were
made at several exposed points. Oa May 11
the cruiser Wilmington aud torpedo boat
WInslow were unsuccessful in an attempt to
silcnco the batteries at Cardenas , against
Matanzas , Worth Bagley and four seamen fall-
Ing. These grievous fatalities were strangely
enough among the very few which occurred
during our naval operations in this extraordin
ary conflict.
Meanwhile the Spanish naval preparations
tiad been pushed with great vigor. A powerful
squadron under Admiral Cervera , which had
assembled at the Capo Verde islands before the
outbreak of hostilities had crossed the ocean
and by its erratic movements in the Caribbean
sea delayed our military operations whila
baffling the pursuit of oufleets. . For a time
fears were felt lest the Oregon and Marietta ,
then nearing homo after their long voyage from
San Francisco of over 13,003 miles , might bo
surprised by Admiral Cervera'a fleet , but their
fortunate arrival dispelled the apprehensions
ind lent much needed reinforcements. Not
until Admiral Cervera took refuge in the har
bor of Santiago do Cuba about May 0 , was it
practicable to plan a systematic military at
tack upon the Antilleau possessions of Spain.
Several demonstrations occurred on the
: east of Cuba and Porto Rico In preparation
for a larger event. On May 13 the North Atlan
tic Squadron shelled San Juan de Porto Rico.
On Al ay 30 Commodore Schley's squadron bom
barded the fort ; guarding the mouth of Santi
ago harbor. Neither attack had any material
result. It was evident that well ordered land
operations were indispensibks to achieve a de
cided advantage.
SINKING OF THE ITCERRIMAC.
The next act In the war thrilled not alone the
hearts of our countrymen , but the world , by its
Exceptional heroism. On the night of Juno 3 ,
Lieutenant Hobson. aided by seven devoted
volunteers , blocked the narrow outlet from
Santiago harbor by sinking the collier Merri-
mac In the channel , under a fierce fire from the
shore batteries , and escaping with their lives
as by a miracle , but falling into the hands of
the Spaniards. It i. a most gratifying incident
of the war that the bravery of this little band
of heroes was cordially appreciated by the
Spaniards , who sent a flag of truce to notify
Admiral Sampson of their safety and to com
pliment them upon their daring act They
were subsequently exchanged July 7.
By June 7 , the cutting of the last Cuban cable
Isolated the island. Thereafter the invasion
was vigorously prosecuted. On Juno 10 , under
a heavy protecting fire , a landing force of 6GO
marines from the Oregon , Marblehead and
Yankee was effected in Guantanamo bay , where
it had been determined to establish a naval
station. This important and essential port
was taken from tdo enemy after severe
fighting by the marines , who were
the first organized forces of the United States
to land in Cuba.
DESTRUCTION OF CREVEUA'S JEXEET.
The position so won -was held despite desper
ate attempts to disloJgo our forces. By June *
16 additional forces wcro landed and strongly
entrenched. On June 22 the advance ot tha in
vading army under Major General Shatter
landed ut Daiquiri , about fifteen miles east of
Santiago. This was accomplished under great
difficulties , bnt with marvelous dispatch. On
June 23 the movement against Santiago was
begun. On the 2lth the first serious engage
ment took place , In which the First and Tenth
cavalry and the First Volunteer cavalry. Gen
eral Young's brigade of General Wheeler's di
vision , participated , losing heavily. By night
fall , however , ground within five miles of San
tiago was won. The advantage was steadily
increased. On July 1 a severe battle too'.c
place , our forcss gaining ths outer works of
Santiago , and El Canoy and San Juan were
taken after a desperate charge and the Invest
ment of the city was completed. The navy co
ops rated by shelling the town and the coast
forts. Oa the day following this brilliant
achlavemcnt cf our land forces. July S.occurrcd
the decisive naval combat of the war. The
Spanish floe t , attetnp tin : to leave the harbor ,
was met by the American squa2r3n , under
command of Commodore Sampson. In less
than three hours all the Spanish ships
wore destroyed , the two torpedo boats
sunk , and the Maria Teresa , Almlranto
Oqucndo , Vizcaya and Cristobal Colon driven
a-hcro , The Spanish admiral and over 1. 03
men were t ikn prisoners , while the enex.y's
loss of life was daplorably larje , tome 0)0 per
ishing. On our side but ono man was killed
and one man seriously wounded. Although our
ships were repeatedly struck not ono was seri
ously Injured. Where nil so conspicuously dis
tinguished thomsolvoa. from the commanders
to the gunners and the unnamed heroes In the
boiler rooms , each and all contributing toward
the achievement of this astounding victory , for
which neither ancient no.- modern history af
fords n parallel in the completeness of the
event and the marvelous disproportion of cas
ualties. It would bo invidiom to slnglo out nny
for spec nl honor. Deserved promotion ha * re
warded the more conspicuous actors. The na
tion's profoundest gratitude Is duo to all of
those bravo men w ho by their skill and devo
tion In a few short hours crushed the sea power |
of Spain and wrought a triumph whoso decis
iveness and far reaching effects con scarcely be
iaeasur-'d. Nor can w be unmindful of the
achievements of our builders , mechanics and
nr.Kans for their skill In the construction of
our worships.
THE SURRENDER OF SANTIAGO.
With the catastrophe of Santiago Spain's ef
fort upon the ocean virtually ceased. A spasmodic
medic effort toward the end of Juno to send
her Mediterranean fleet under Admiral Camara
to relieve Manila wasabandoaed , tha expedition
being recalled after it had passed through the
Suez canal. The capulation of Santiago fol
lowed. The city was'closely besieged y land ,
while the entrance of our ships Into the harbor
cut off all relief on that side. After a truoa to
allow the removal of non-combatants"protract-
ed negotiations continued from July 3 until
July 13 , when under the msnaco of iinmo .late
assault the preliminaries of surrender wore
agreed upon. On'tho 17th General Shatter oc
cupied the city. The capitulation embraced
the entire eastern end of Cuba. The number of
Spanish soldiers surrendered was 2J.OJO , all of
whom --ubsequontly jconvoyed to Spain at
the charge of the United States.
The story of this successful campaign is told
in the report of tha secretary of war which will
bo laid before you. The Individual valor of offi
cers and soldiers was neve/ more strikingly
shown than in the s veral engagements loading
to the surren dor of Santiago , while the prompt
movements and success ! vo victories won in
stant and universal npplauso. To those who
gained this complete triumph which established
the ascendency of the United States upon land
as the flght off Santiago had fixed our suprem
acy on the seas , the oarnast gratitude of the
nation Is unsparingly duo. Ncr should wo alone
remember the gallantry of the living , the dead
claim our tears and losses by battle and disease
must cloud any exultation at the result and
teach us the weight and awful cost of war. however -
over , rightful the cause or signal the victory.
With the fall of Santiago , the occupation of
Porto Rico became the next statoglc necessity.
General Miles had previously been assigned to
organize an expo lltlon for that purpose. For
tunately ha was already at Santiago , where he
had arrived ou the 1 Ith of July with reiuforoo-
mcnts for General Shatter's army.
OCCUPATION OF PORTO RICO.
With these troops , consisting of 3,115 Infantry
and artillery , two comoaniajof enginaors and
o-e company of the signal corps , General Miles
left Guantanamo on July 21 having nlao trans
ports convoyed by the fleet under Captain Hig-
ginson with the Massachusetts ( flagship ) ,
Dixie. Gloucester , Columbia and Yale , the two
latter carrying traops. The expedition landed
at Guanlca July 2" , which port was entered
with little opposition. Here the fleet was
joined by the Annapolis and Wasp , whila the
Puritan and Amphitrita went to San Juan and
joined the New Orleans , which was enaged In
blockading that port The major general com
manding was subsequently reinforced by Gen
eral Schwann's brigade of the Thirtl army
corps by General Wilson , with a part of his di
vision and also by Ge'neral Broolce with a part
of his corps , numbering in all 16,973 officers and
men.
& On July C7 ho entered Ponce , one of the most
important ports in the island , from which ho
thereafter directed operations of the capture of
the Island.
With the exception of encounters with the
enemy at Guayama , Ilormlguerez , Coamo and
Yauco , and an att.ick oa a foreo landed at Cape
San Juan , there was noscricus resistance. The
campaign was prosecuted with great vigor and
by the lith of August , much cf the Island was
in our possession and the acquisition of the re
mainder was only a matter cf a short time. At
most of the points in the island , our troop ;
were enthusiastically welcomed Protestation *
of loyalty to the flag and gratitude for delivery
from Spanish rule met our commanders at every
stage. A-t a potent innuencc toward peace , the
outcome of the Porto Ricau expedition was of
great consequence and gcieroas commendation
is due to those who participated in it
LAST SCENE OF THE WAK.
The last scene of the war was enacted at Ma
nila , its starting place. On August I5th after a
brief assault upon the works by the land
forces , in which the squadron assisted , the cap
ital surrendered unconditionally. Tha casual
ties were comparatively few. By this conquest
of the Philippine islands virtually accomplisned
when the Spanish capacity for resistance was
destroyed by Admiral Dewey's victory of the
1st of Kay , was formally sealed. To General
Merritt , his officers and men for their uncom
plaining and devoted services for their gal
lantry in action , the nation is sincerely grate
ful. Their long voyage was made" with singular
success , and the soldierly conduct of the men.
as of whom many were without previous ex
perience in the military services , deserves un
measured praise.
The total casualties In killed and wounded in
the army during the war was as follows : Ofllcers
killed , 23 ; enlisted men killed , 237 ; total i8J ;
officers wounded , 113 ; enlisted men wounded
1,461 ; total 1,577 of the navy , killed 17 ; wounded
07 ; died as result of wounds , one ; invalidoa from
service 6 ; total 91.
It will be observed that while our navy was
engaged in two great battles and in numerous
perilous undertakings in the blockades , and
bombardment and more than 50,003 of our troops
were transported to distant lands , and engaged
in assault and siege and battle and many skirm
ishes in unfamiliar territory , we lost In both
arms of the service a total of 1.C6S killed and
wounded ; and in the entire campaigning by
land and sea wo did not lose a gan or a flag or a
transport or a ship , and with the exception of
the crew of the Merimac , not a soldier or a sailor
was taken prisoner.
On August 7th. , forty-six days from the date
of landing of General Shatter's army in Cuba
and twenty-one days from the surrender of San
tiago , the United States troops commenced em
barkation for homo and our entire force was re
turned to the United States as early as August
SJth. They were absent from the United States
only two months.
It is fitting that I should b ar testimony to
the patriotism and devotion ot that largo portion
tion of our army which , although eager to bo
ordered to the post of grc.ite.st exposure , for
tunately was not required outside cf the United
States. They did their whole duty and like
their comrades at the front , have earned the
gratitude of the nation. In HKC manner , the
officers and men of tha army and of the navy
who remained In their departments and sta
tions of the navy , performing most important
duties connected with the war , and whose re
quests for assignment in the field and at sea it
was compelled-to refuse because their services
were Indispensable here , arc entitled to the
hlgbest commendation. It Is my regret that
there seems to be no provision for their suit
able recognition.
The President here pays a graceful tribute to
the Red Cross , and continues :
In tracing these events wo are constantly re
minded of our obligations to the Dlvlno Master
for His -watchful care over us and His safe
guidance , for which the nation makes reverent
acknowledgement and offers humble prayer for
the continuance of His favor.
The annihilation of Admiral Ccrvcra's fleet ,
followed by the capitulation of Santiago , having
brought to the Spanish government a realizing
sense of the hopelessness of continuing a strug
gle now becoming \\holly unequal , it rootle over
tures of peace through the French ambassador ,
who , with the assent of his government , hod
acted as the friendly representative of Spanish
Interests during the war.
THE PEACE NEGOTIATIONS.
The message then reviews the opening of
peace negotiations on the signing of the fol
lowing protocol :
"Article 1. Spain will relinquish all claim of
sovereignty over and title to Cuba.
"Article 2. Spain will cede to the United
States tha Island of Porto Rico and other
Islands now under Spanish sovereignty in the
West Indies , and also an Island in the La-
drones to be selected by the United States.
"Article 3. The United States will occupy
and hold the city , bay and harbor of Manila ,
pending the conclusion of a treaty of peace
which shall determine the control , disposition
and government of the Philippines. "
The fourth article provided for the appoint
ment of joint commissions on the part of the
United States and Spain , to meet In Havana
and San Juan , respectively , for the purpose of
arranging and carrying out the details of the
stipulated evacuation ot Cuba , Porto Rico and
other Spanish islands In the West Indies.
The fifth article provided for the appoint
ment of not more than five commissioners on
each side to meet at Paris not later than Octo
ber 1st. and to proceed to the negotiations and
conclusions of a treaty of peace , subject to rati
fication according to the respective constitu
tional forms of the two countries.
The sixth and last article provided that upon
the signing of the protocol , hostilities between
the two countries should bo suspended and
that notice to that effect should bo given as
soon as possible by each government to the
.commanders of Its military and naval forces
The appointment of peace commissions to
Paris and military commissions to Cuba and
Porto Rico to arrange for evacuation are ra-
ferred to.
The Porto Rican joint commission speedllr
accomplished it * task Octobar 18 , and the
American flog was raised over the island at
noon that day Owing to the difficulties In the
way of removing the largo numbers of Spanish
troops still In Cuba , the evacuation cannot bo
completed before the 1st of January next.
Of the Paris peace negotiations the message
says :
The negotiations have made hopeful pro
gress , so that I trust soon to ba able to lay a
definite treaty of peace before the Senate , with
a review of the stops lending to its signature.
I do not discuss at this tlmo the government
or the future of the new possessions which will
come to us as the result of the war with Spain.
Such a discussion will be appropriite after the
treaty of peace shall bo ratified. In the mean
time : md until Congress ha- legislated
otherwise , It will be my duty to con
tinue the military governments which
have existed sinca our occupation and
give Its people security in life and property and
encouragement under a juss and bcneflclent
rule.
CUBAN GOVERNMENT.
As soon as wo are ii possession of Cu' * a and
have pa ified tha Island , 16 will ba necessary to
give aid and direction to this people tj forma
government for themselves. This should bo
undertaken at the earliest moment consistent
with safety and assured success. It Is Important
that our relations with these people shall bo
ot the most friendly character end our com
mercial relations close and reciprocal. It
should b3 our duty to assist in every proper
way to build up tha waste places of the island ,
encourage the industry of the people and as-ist
them to form a government which shall ba
free and Independent , thus realizing tha best
aspirations of the Cuban poople.
Spanish rule must be replaced by a just , be
nevolent and humane government , created by
the people of Cuba , capable of performing all
International obligations and which shall encourage -
courage thrift , industry and prosperity and
promote paace and good will among all of the
inhabit ints , whatever may have been their re
lations In the past. Neither revenge nor pas-
si n should have a place in tha nsw govern
ment. Until there Is complete tranquility in
the island and a stable government inaugur
ated , military occupation will ba continued.
With the exception of tha rupture with Spain
the intercourse of tha United States with the
great family of nations has been marked with
cordiality , and the close of the eventful year
finds most of the Issues that necc-ssarlly arisa
In the complex relations of sovereign states
adjusted or presenting no sorlous obsticles tea
a just and honorable solution by amicable
agreement.
NICARAGUA CANAI *
The Nicaragua canal commission , u cr the
championshiT of Hoar Admiral John O.
Walker , appointed July 21 , IS37 , under tha au
thority of a provision in the sundry civil net of
Juno 4 of that year , lias no ir'y < ; ornpleted Its
labors , and the results of its exhaustive inquiry
int i the proper route , the feasibility and the
cost of construction of an inter-oceanic canal
by a Nica1 aguan route will bo laid before you
In the performance of its task the commission
received all possible courtesy and assistance
from the governments of _ Nicaragua and Costa
Itica , which thus testified their appreciation
of the importance of giving a speedy and prac
tical ou come to the great project tht has Tor
so many years engrossed tha attention of the
respective countries
As the scope cf recent inquiry embraced tha
whole subject , with the aim of making plans
and surveys for n canal by the most convenient
route , it necessarily included a review of the re
sults of previous surveys and plans , and in par
ticular those adopted by the Maritime Canal
company under its existing concessions from
Nicaragua ana Costa Rica , so that to this extent
those grants iicfessarily hold an essential part
in the deliberations and conclusions of the canal
commission , us t'aey have held , and must needs
hold. In the discu-ssion of thyia.itter by the Con
gress. Under these circumstances , and in view
of overtures , made to tie governments ot Nic
aragua and Costa Uica by other parties for a
new canal concession predicated on the assumed
approaching lap.se of the contracts of the Mari
time Canal company , with those states I have
not hesitated to exnrass my conviction that con
siderations of expediency and international pol
icy as between the several governments inter
ested in the construction and control of an inter-
oceanic canal by this route require the mainten
ance of the status quo , until the f anal commis
sion shall have reported and the United States
Congress shall' have had the opportunity to
pass finally upon the whole matter during the
present session , without prejudice by reason of
any change in the existing conditions.
Nevertheless , it appears that the gov
ernment of Nicaragua , as one of its
last sovereign acts before merging its
powers in those of the newly-formed United
States of Central America has granted an op
tional concession to another association to be
come effective on the expiration cf the present
grant. It does not appear what surveys have
been made or what route is proposed under this
contingent grantc-d so thit an examination of
the feasibility of it's plans is necessarily not
embraced in the report of the canal commis
sion. All these circumstances suggest the
urgency of some definite action by the Congress
at this session if the labors of the past are to be
utilized and the linking of the Atlantic and Pa
cific oceans by a practical waterway is to bo
realized. That the construction of such n mari
time highway Is now more than ever indispens
able to that intmnt3 ! and ready later-commun
ication between our eastern and western sea
boards dcmmdcd l y the annexation cf the
Hawaiian islands and the prospective expan
sion of our influence and commerce to Pacific
and that our national policy now more impera
tively than ever wills for Its control of this
government , are p-op jsitions which I doubt
not the Congress will duly appreciate and wisely
act upon.
SITUATION IN CHINA.
The United States has notbejn an Indifferent
spectator of the extraordinary events transpir
ing in the Chinese empire , whereby portions of
its maritime provinces ara passing under the
control of various European power ; : but tha
prospect that tha vast commerce which the
energy of our citizens and the necessity of our
staple productions for Chinese r.scs has built
up In the o regions may not Le prejudiced
through any exclusive treatment by the new
occupants has obviated tUi need of oar country
becoming an actjr in thi scene.
Our position aniong nations having a large
Pacific coast , and a constantly expanding direct
trade with the farther orient , gives us the
equitable claim to consideration and friendly
treatment in this regard , and It will be my aim
to subserve our lar o Interests In that quarter
by all means appropriate to tha constant policy
of our government. The territories of Kiao
Chow , of Wei-Hal-Wei , and of Port Arthur and
Talien Wan , leased to Germany. Great Britain
and Russia respectively for terms of years wilL
It Is announced , bi open to Inter
national commerce during such alien
occupation ; nnrt If no discriminating
treatment of American citizens and their trade
be found to exist , or bo hereafter developed ,
the dc-slra of this govornaunt would appear to
bo realized.
OUK RELATIONS WITH ENGLAND.
Our relations with Great Britain have con
tinued on the most friendly fcclm ; . Assoit-
Ing to our request , the protection of Americans
and their Interests in Spanish jurisdiction , was
assumed by the dii-lomatio and consular repre
sentations of Great Britain , who fulfilled their
delicate and arduous trust with tact and zeal ,
eliciting high commendation. I may be allowed
to make fitting allusion to the Instance of Mr.
Ramsdcn. her majesty's consul at Santiago do
Cuba , whoso untimely death after distinguished
service and untiring effort during the siege ot
that city , was sincerely lamented.
In the early part of April lost , pursuant to a
request made at the instance of the secretary of
state , the British ambassador at this capital ,
the Canadian government granted facilities for
States revenue cutters
way of the Canadian
river. The vasal * had reached Lake
and were there awaiting the
tlon. when war was declared
United States and Spain. Her
government thereupon , by a communication
of the latter port of April , stated that the per
mission granted before the outbreak of hostili
ties would not be withdrawn , provided the Unit
ed States government gave assurance that tne
v sssls Id question will proceed direct to a
United States port without engaging In any
hostile operation. This the government
promptly agreed to the stipulated condition ,
It being understood that the vessels would net
bo prohibited from resisting uny hostile at-
It will give mo special satis : notion If I shall
bo authorized to communicate to you n favor
able conclusion of the pending negotiations
with Great Britain In respect to the Dominion
of Canada It Is the earnest wish of this gov-
e rnznent to remove all sources of discord and Ir
ritation In the relations with the neighboring
dominion. The trade between the two pountries
Is constantly Increasing and It Is importat to
both countries that all reasonable facilities
should go granted for Its development.
MONETARY MATTERS.
The secretary of the treasury reports that ths
receipts of the government from nil sources
during the fiscal year ending Juno 3J , 1S03 , In
cluding 331,751,223 ro.-elved from sale of Pacific
railroads , amounted to Si05.3.'lS3j and Its ex
penditures to 5113,303,537. There was obtained
from customs 8U9.575.03 : , and from Internal
revenua 8173,903,011. Our dutiable Imports
amounted fo 323,733.479 , a decrease of SJ3.156-
0.3 over the preceding year , and Importations
free of duty amounted to 82U.41i,17 > , a decrease
from the preceding year of $9Ji31,033. Internal
revenue receipts exceeded those of tae preced
ing year by 8ii.212.OJ3.
Tbo total tax collected on distilled spirits
was5J-V > 43,009 ; on manufactured tobacco S3C-
2S0.522 , and on fermented liquors 839.515,421.
We exported merchandise during the year -
amounting to 51,23I,482 , : 0 , an increase of SI8J-
4Sa74 from the preceding year. l
It is estimated upon the basis of present rev
enue laws that the receipts of the government 4 *
for the year ending Juno 30 , 1809. will be 3377-
871 C07. cud Its expenditures 563 ,871,617 , re
sulting In a defisieney of 8112 , WO.OO ) .
On the IstofDecamber , 1SU3 , thera was held
in the treasury gold coin amounting to 5138-
41l,54i , gold bullion amounting to glSS,502,515.
silver bullion amounting to 533,309.200 , and
other forms of money amounting to 3151,933-
181.
181.On
On the same date the amount of money of nil
kinds in circulation or not included In treasury
holdings , was 31,836,879,504. an increase for the
year of 81135,70 1,0 & Estimating our population
at 75.104.COJ at the time mentioned , the per cap
ita circulation was 8.5.
Oa the same data there was in the treasury
gold bullion amounting to 3I38.5US.515.
The provisions made for strengthening the
resources of the treasury In connection with
the war has gives Increased confidence In the
purpose and pjwcr of the government to main
tain the p eseits.andard , end has established
more firmly than ever the national credit at
h'jnie and abroad. A marked evidence of this
Is found in the Inflow of gold to the treasury.
Its set go d holdings on November I. 1893 , wera
5.3J.SS5.I6- compared with SI53.5-J.I17 on
November 1 , 1807 , and an increase of net cash
cf 8W.75e.lCO. November 1 , 1S97 , to SJJO 2S8.275 ,
November 1 , 1 W. The present ratio of ne *
treasury gold outstanding government liabil
ities. including United States treasury notes ol
1SCO silver certificates , currencv certificates.
standard silver dollars and fractional silver
coin , November 1 , 1:93 , was ; 5. 35 per cent as com-
p.ired with 10.EG per cent November 1 , 1S07.
I renew so much of my recommendation ot
December , 1S97 , as follows :
"
"That when any of the United States notes
are presented for redemption and are redeemed
in gold such notes shall be kept and set apart
and only paid out in exchange 'or gold. This Is
an obvious duty. If the holder of the United
States note prefer * the gold and gets it from
the government , he should not receive back
from the government a United States note
without paying gold in exchange for it. The
reason for this is made all the mare apparenS
when the government Issuas an interestbear -
In debt to provide gold for the redemption ol
United States notes a non-Interest bearing
debt- Surely ii should not pay them out again
except on demand a d for gold. If they nra " V
put out In any other way they may return "A
again , to be followed by another bond issue to
redeem them , another interest-bearing debt to
redeem a non-interest bearing debt. "
This recommendation was made in the belief
that such provisions of law would iasure to a
greater degree the safety of the present stan
dard and better protect our currency from tha
dangers to which it is subjected f.-oma disturb
ance In the general business conditions of tha
country.
In my judgment the present condition of tha
treasury amply justifies the Immediate enact
ment of the legislation recommcndjd one year
OKO , under which a portion of the gold holdings
should be placed in a trust fund from which.
greenbacks should be redeemed upon presenta
tion. but when once redeemed should not there
after be paid out except fogold. .
It t < not to be inferred that other legislation
relating to or currency is not required. On
the contrary , there is an obvious demand for It.
The Impjrtance of adequate provision which.
will insure to our future n money standard re
lated as our money standard now and to that of
our commercial rivals Is generally recognized.
The companion proposition that our doniesUo
paper currency shall be kept safe and yet boso
related to the need * of our Industrlej and In
ternal commerce as to be adequate and respons
ive to such needs Is a proposition scarcely less
important. The subject , in all its parts , la
commended to the wise consideration ot tha
Congress.
v INCREASE :
The Importance of legislation for tha perma
nent increase of the army is manifest , anl ths
recommendation of the secretary of war for
that purpose has my unqualified approval.
There can be no question that at this time and
probably for some time In the future 100.CCO
men will be none too many to meet the neces
sities of the situation. At all events , whether
that number shall 1x5 required pcnnrncatly or
not. the power should be given to the Presi
dent to enlist that fore if. in his uiscrotion. it
should be necessary , and the further discretion
should bo given him to recruit within thi abova
limit from the inhabi.smts ot the islands wltb
the government of whioh we are charged.
It Is my purpose to mustar oat the entt.-o
volunteer army ns soon as the Congress shall
provide for the increase of the regular estnb-
Ihihmant. This will be only nn act of juslc
and will bo much appreciated by the brave men
who lefc their home-i and employments to help
the country in its emergency.
The following recommendations of the Secre
tary of the navy relative to the Increase of taa
navy have my earnest approval :
1. Three sea-going sheathed and coppered
battleships of about 1.00 tons trial displace
ment , carrying tha heaviest armor and mosft
powerful ordnance for vessels of their class.
and to have the highest practicable speed and
great radius of astion. estimated cost , exclu
sive ot nrmor a'Sd armament , ? J.Oid)0-J each.
2. Three sheathed and coppered nrmoroj
cruisers of about 12.0JJ tons trial displacement ,
carrying the heaviest nrmor and most powerful
ordnance for vessels of their class , and to have
the highest practicable speed and great radius
of action. Estimated cost , exclusive ot armor
and armament , 31,0-JJ.OOJ each.
3. Three sheathed and copper protected
cruisers of about O.OJO trial displacement ; ta
have the highest practicable speed nnd troas
radius of action and to carry the most power
ful ordnance suitable for \essols ot their class.
Estimated cost , exclusive of nrmor nnd arma
ment. &V.50.000 each.
4. Six sheathed nnd coppered cruisers ot about
C.530 tons trial displacement ; to have the high
est speed compatible with good cruislnjr quali
ties. great radius of action and to carry the
most powerful ordnance suited to vessels ol
their class. Estimated cost , exclusive of arma
ment , SlHl.isX > each.
I join with the Secretary of the Navy In roc
ommcndlng that the grades of admiral and vie
admiral bo temporarily revived , to bo filled 1
oiUcors who have speoKilly , distinguished the
solves In the war with Spa'ln.
The several departmental reports will be
before you. They Rlvo In great dotivll I
duct of the affairs of .ho eovorumoat
thpiJs.ycar nna dtsouss ny QuesU
congress may bo called to a
- - $
" /.I