ti I 1 1 1 1 IT RESIDENTS MESSAGE Document Deals with Questions of Vast Importance to the Nation TRUSTS AND THE TARIFF DEALT WITH Fitful Changes of Import Duties a Menace to the Business Interests of the Country Reciprocity Treaties Desirable Monetary Legislation Rela tions of Labor and Capital To the Senate and House of Represent tatlves We still continue in a period ol unbounded prosperity This prosperity Is not the creature of law but undoubt edly the laws under which we work have been instrumental in creating the condi tions which made it possible and by un wise legislation It would be easy enough to destroy it There will undoubtedly bo periods of depression The wave will recede but the tide will advance This nation Is seated on a continent flanked by two great oceans It is composed of men the descendants of pioneers or In a sense pioneers themselves of men winnowed out from among the nations of the old world by the energy boldness and love of adventure found In their own eager hearts Such a nation so placed will surely wrest success from fortune As a people we have played a large part in the world and we are bent upon making our future even larger than the past In particular the events of the last four years have definitely decided that for woe or for weal our place must be great among the nations We may either fail greatly or succeed greatly but we cannot avoid the endeavor from which either great failure or great success must come Even If we would we can not play a small part If we should try all that would follow would be that we should play a large part ignobly and shamefully No country has ever occupied a higher plane of material well being than ours at tho present moment This well being Is due to no sudden or accidental causes but to the play of the economic forces In this country for over a century to our laws our sustained and continuous policies above all to the high Individ ual average of our citizenship Great fortunes have been won by those who have taken the lead In this phenomenal industrial development and most of these fortunes have been won not by doing evil but as an Incident to action which thas benefited the community as a whole Never before has material well being been so widely diffused among our peo ple Great fortunes have been accum ulated and yet In the aggregate these fortunes are small indeed when com pared to the wealth of the people as a whole The plain people are better off than they have ever been before The Insurance companies which are prac tically mutual benefit societies especially helpful to men of moderate means rep resent accumulations of capital which are among the largest in this country There are more deposits in the savings banks more owners of farms more well paid wage workers in this country now than ever before in our history Of course when the conditions have favored tho growth of so much that was good they have also favored somewhat the growth of what was evil It is eminently neces sary that we should endeavor to cut out this evil but let us keep a due sense of proportion let us not in fixing our gaze upon the lesser evil forget the greater good The evils are real and some of them are menacing but they are the outgrowth not of misery or decadence but of prosperity of the progress of our gigantic industrial development This industrial development must not be checked but side by side with it should go such progressive regulation as will diminish the evils We should fail in our duty if we did not try to remedy the evils but we shall succeed only if we proceed patiently with practical common sense as well as resolution separating the good from the bad and holding on to the former while endeavoring to get rid of tho latter National Action to Control Trusts In my message to the present Congress at its first session I discussed at length the question of the regulation of those big corporations commonly doing an in terstate business often with some ten dency to monopoly which are popularly known as trusts The experience of the past year has emphasized in my opin ion the desirability of the steps I then proposed A fundamental base of civil ization is the inviolability of property but this is in no wise inconsistent with the right of society to regulate the ex ercise of the artificial powers which it confers upon the owners of property un der the name of corporate franchises In such a way as to prevent the misuse of these powers Corporations and espe cially combinations of corporations should be managed under public regula tion Experience has shown that under our system of government the necessary supervision cannot be obtained by state action It must therefore be achieved by national action Our aim is not to do away with corporations on the contrary these big aggregations are an inevitable development of modern Industrialism and the effort to destroy them would be futile unless accomplished in ways that would work the utmost mischief to the entire body politic We can do nothing of good 5n the way of regulating and supervising these corporations until we fix clearly in our minds that we are not attacking the corporations but endeavoring to do away with any evil in them We are not hos tile to them we are merely determined that they shall be so handled as to sub serve the public good We draw the line against misconduct not against wealth The capitalist who alone or in conjunc tion with his fellows performs some great industrial feat by which he wins money Is a welldoer not a wrongdoer provided only ho works in proper and legitimate lines We wish to favor such a man when he does well We wish to supervise and control his actions only to prevent him from doing ill Publicity can do no barm to the honest corpora tion and we need not be overtender about sparing the dishonest corporation The Necessity for Care In curbing and regulating the combina tions of capital which arc or may become injurious to the public we must be careful not to stop the great enterprises which have legitimately reduced the cost of pro duction not to abandon the place which our country has won in the leadership of the International industrial world not to strike down wc3ih with the result of closing factories and mines of turning the wage worker idle in the streets and leaving the farmer without a market for what he grows Insistence upon the im possible means delay in achieving the possible exactly as on the other hand the stubborn defense alike of what la good and what is bad In the existing sys tem the resolute effort to obstruct any attempt at betterment betrays blind ness to the historic truth that wise evolu tion is the sure safeguard against revo lution Importance of the Subject No more important subject can come before tho Congress than this of the regulation of interstate business The country cannot afford to sit supine on the pica that under our peculiar system of government we are helpless in the presence of the new conditions and un able to gi apple with them or to cut out whatever of evil has arisen in connec tion with them The power of the Con gress to regulate interstate commerce is an absolute and unqualified grant and without limitations other than those pre scribed by the constitution The Con gress has constitutional authority to make all laws necessary and proper for executing this power and I am satisfied that this power has not been exhausted by any legislation now on the statute books It is evident therefore that evils restrictive of commercial freedom entail ing restraint upon national commerce fall within the regulative power of the Con gress and that a wise and reasonable law would be a necessary and proper ex ercise of congressional authority to the end that such evils should be eradicated Evils Can Be Done Away With I believe that monopolies unjust dis criminations which prevent or cripple competition fraudulent overcapitaliza tion and other evils in trust organiza tions and practices which injuriously af fect interstate trade can be prevented under the power of the Congress to regu late commerce with foreign nations and among the several states through regu lations and requirements operating di rectly upon such commerce the instru mentalities thereof and those engaged therein I earnestly recommend this subject to the consideration of the Congress with a yiew to the passage of a law reasonable In Its provisions and effective in its oper ations upon which the questions can be finally adjudicated that now raise doubts as to the necessity of constitutional amendment If it prove impossible to ac complish the purposes above set forth by such a law then assuredly we should not shrink from amending the constitu tion as to secure beyond peradventure the power sought The Tariff Question One proposition arlvnm trvi hoc k reduction of the tariff as a means of reaching the evils of the trusts which fall within the category I have describ ed iNot merely would this be wholly ineffective but the diversion of our ef forts in such a direction would mean the abandonment of all intelligent attempt to do away with these evils Many of the largest corporations many of those which should certainlv ho iniiwwi t any proper scheme of regulation would not be affected in the slightest degree by a change in the tariff save as such change interfered with the general pros perity of the country The only relation of the tariff to big corporations as a whole is that the tariff makes manufac tures profitable and the tariff remedy proposed would be in effect simply to make manufactures unprofitable To re move the tariff as a punitive measure di rected against trusts would inevitably re sult in ruin to the weaker competitors who are struggling against them Our aim should be not by unwise tariff changes to give foreign products the advantage over domestic products but by proppr regulation to give domestic com petition a fair chance and this enri nan not be reached by any tariff changes which would affect unfavorably all do mestic competitors good and bad alike The question of regulation of the trusts stands apart from the question of tariff revision Fitful Tariff Changes Decried Stability of economic policy must al ways be the prime economic need of this country This stability should not be fossilization The country has acquiesced in the wisdom of the protective tariff principle It is exceedingly undesirable that this system should be destroyed or that there should be violent and radical changes therein Our past experience shows that great prosperity in this coun try has always come under a protective tariff and that the country cannot pros per under fitful tariff changes at short intervals Morever if the tariff laws as a whole work well and if business has prospered under them and is pros pering it is better to endure for a time slight inconveniences and inequalities in some schedules than to upset business by too quick and too radical changes It is most earnestly to be wished that we could treat the tariff from the stand point solely of our business needs It Is pernaps too mucn to hope that partisan ship may be entirely excluded from con sideration of the subject but at least it can be made secondary to the busi ness interests of the country that is to the interests of our people as a whole Unquestionably these business interests will best be served if together with fixity of principle as regards the tariff we combine a system which will permit us from time to time to make the neces sary rcapplication of the principle to the shifting national needs We must take scrupulous care that the reapplication shall be made in such a way that it will not amount to dislocation of our sys tem the mere threat of which not to speak of the performance would pro duce paralysis in the business energies of the community The first considera tion in making these changes would of course be to preserve the principle which underlies our whole tariff system that is the principle of putting American busi ness interests at least on a full equal ity with Interests abroad and of always allowing a sufficient rate of dutj to more than cover the difference between the la hnr pnst here and abroad The ing of the wage worker like the well- Oeing UL LilU UI1CI UL UiU SUII IIUU1U be treated as an essential in shaping our whole economic policy There must never be any change which will jeopardize the standard of comfort the standard ofj wages of the American wage worker For Reciprocity Treaties One way in which tho readjustment sought can be reached is by reciprocity treaties It is groatly to be desired that such treaties may bo adopted They can bo used to widen our markets and to Blve a greater field for the activities of our producers on the one hand and on the other to secure in practical shape the lowering of duties when they are no longer needed for protection among our own people or when the minimum of damage done may be disregarded for the sake of the maximum of good accom plished If It prove Impossible to ratify the pending treaties and If there seem to be no warrant for the endeavor to execute others or to amend the pending treaties so that they can be ratified then the same end to secure reciprocity should be met by direct legislation For Expert Tariff Commission Wherever the tariff conditions are such that a needed change cannot with ad vantage be made by the application of the reciprocity idea then it can be made outright by a lowering of duties on a given product If possible such change should be made only after the fullest consideration by practical experts who should approach the subject from a business standpoint having In view both the particular Interests affected and the commercial well being of tho people as a whole The machinery for providing such careful investigation can readily be supplied The executive department has already at Its disposal methods of col lecting facts and figures and if the con gress desires additional consideration to that which will be given the subject by its own committees then a commission of business experts can be appointed whose duty it should be to recommend action by the Congress after a deliberate and scientific examination of the various schedules as they are affected by the changed and changing conditions The unhurried and unbiased report of this commission would show what changes should be made in the various schedules and how far these changes could go without also changing the great pros perity which this country Is now enjoy ing or upsetting its fixed economic pol icy Tho cases in which the tariff can pro duce a monopoly are so few as to con stitute an inconsiderable factor in the question but of course if in any case it bo found that a given rate of duty does promote a monopoly which worktf ill no protectionist would object to such reduction of the duty as would equalize competition In my judgment the tariff on anthra cite coal should be removed and anthra cite put actually where it now is nom inally on the free list This would have no effect at all save in crises but in crises it might be of service to the peo ple Monetary Legislation Interest rates are a potent factor In business activity and in order that these rates may be equalized to meet the vary ing needs of the seasons and of widely separated communities and to prevent the recurrence of financial stringencies which injuriously affect legitimate busi ness it is necessary that there should be an element of elasticity in our mone tary system Banks are the natural ser vants of commerce and upon them should be placed as far as practicable the burden of furnishing and maintaining a circulation adequate to supply the needs of our diversified industries and of our domestic and foreign commerce and the issue of this should be so regulated that a sufficient supply should be al ways available ior the business Interests of tho country It would be both unwise and unneces sary at this time to attempt to recon struct our financial system which has been the growth of a century but some additional legislation is I think desir able The mere outline of any plan suffi ciently comprehensive to meet these re quirements would transgress the appro priate limits of this communication It is suggested however that all future legislation on the subject should be with the view of encouraging the use of such instrumentalities as will automatically supply every legitimate demand of pro ductive industries and of commerce not only in the amount but in the character of circulation and of making all kinds of money interchangeable and at the will of the holder convertible into the established gold standard Relations of Labor and Capital How to secure fair treatment alike for labor and for capital how to hold in check the unscrupulous man whether employer or employe without weakening individual initiative without hampering and cramping the industrial development of the country is a problem fraught with great difficulties and one which it is of the highest importance to solve on lines of sanity and far sighted common sense as well as of devotion to the right This is an era of federation and combination Exactly as business men find they must often work through corporations and as it is a constant tendency of these cor porations to grow larger so it is often necessary lor iacormg men 10 ivum m federations and these have become im portant factors of modern industrial life Both kinds of federation capitalistic and labor can do much good and as a neces sary corrollary they can both do evil Opposition to each kind of organization should take the form of opposition to whatever is bad in the conduct of any given corporation or union not of at tacks upon corporations as such nor upon unions as such for some of the most far reaching beneficent work for our peo ple has been accomplished through both corporations and unions Each must re frain from arbitrary or tyrannous inter ference with the rights of others Organ ized capital and organized labor alike should remember that in the long run the interest of each must be brought into harmony with the interest of the general public and the conduct of each must conform to the fundamental rules of obe dience to the law of individual freedom and of justice and fair dealing toward all Each should remember that in addition to power it must strive after the realization of healthy lofty and generous ideals Every employed every wage worker must be guaranteed his liberty and his right to do as he likes with his property or his la bor so long as he does not infringe upon the right of others It is of the highest im portance that employer and employe alike should endeavor to appreciate each the viewpoint of the other and the sure dis aster that will come upon both in the long run if either grows to take as habit ual an attitude of sour hostility and dis trust toward the other Few people de serve better of the country than those representatives both of capital and labor and there are many such who work continually to bring about a good under standing of this kind based upon wisdom and upon broad and kindly sympathy be tween employers and employed Above all we need to remember that any kind of class animosity in the political world is if possible even more wicked even more destructive to national welfare than sectional race or religious animos ity We can get good government only upon condition that we keep true to the principles upon which this nation was founded and judge each man not as a part of a class but upon his individual merits All that we have a right to sk of any man rich or poor whatever his creed his occupation his birthplace or his residence is that he shall act well and honorably by his neighbor and by his country We are neither for the rich man as such nor for the poor mat as such we are for the upright man rich or poor So far as the corstitu IonaI powers of the national government Amch these matters of general and vital mo ment to the nation they should be trer cbed in conformity with the principles abovo set forth Department of Commerce Needed It Is earnestly hoped that a Secretary of Commerce may be created with a seat in the Cabinet Tho rapid multipli cation of questions affecting labor and capital tho growth and complexity of the organizations through which both labor and capital now find expression tho steady tendency toward the employment of capital in huge corporations and the wonderful strides of this country toward leadership In tho International business world Justify an urgent demand for the creation of such a position Substantial ly all tho leading commercial bodies In this country have united in requesting its creation It is desirable that some such 1 measure as that which has already passed the Senate be enacted kito law The creation of such a department would In itself be an advance toward dealing with and exercising supervision over the whole subject of the great corporations doing an Interstate business and with this end in view the Congress should endow the department with large powers which could be increased as experience might show the need Cuba Must Have Consideration I hope soon to submit to the Senate a reciprocity treaty witii Cuba On May 20 last the United States kept its promise to the island by formally vacating Cuban soli and turning Cuba over to those whom her own people had chosen as the first officials of the new republic Cuba lies at our doors and whatever affects her for good or for ill affects us also So much have our people felt this that in the Piatt amendment we definite ly took the ground that Cuba must here after have closer political relations with us than with any other power Thus in a sense Cuba has become a part of our international political system This makes it necessary that in return she should be given some of the benefits of becoming part of our economic system It is from our own standpoint a short sighted and mischievous policy to fail to recognize this need Moreover It Is un worthy of a mighty and generous nation itself the greatest and most successful republic in history to refuse to stretch out a helping hand to a young and weak sister republic just entering upon Its career of independence We should al ways fearlessly insist upon our rights In the face of the strong and we should with ungrudging hand do our generous duty by the weak I urge the adoption of reciprocity with Cuba not only because It Is eminently for our own Interests to control the Cuban market and by every means to foster our supremacy In the tropical lands and waters south of us but also because we of the giant repub lic of the North should make all our sis ter nations of the American continent feel that whenever they will permit it we desire to show ourselves disinterestedly and effectively their friend International Arbitration As civilization grows warfar becomes less and less the normal condition of for eign relations The last century has seen a marked diminution of wars between civilized powers wars with uncivilized powers are largely mere matters of inter national police duty essential for the welfare of the world Wherever possible arbitration or some similar method should be employed in lieu of war to settle dif ficulties between civilized nations al though as yet the world has not pro gressed sufficiently to render it possible or necessarily desirable to invoke arbi tration in every case The formation of the international tribunal which sits at The Hague is an event of good omen from which great consequences for the welfare of all mankind may flow It is far better where possible to invoke such a permanent tribunal than to create spe cial arbitrators for a given purpose It Is a matter of sincere congratulation to our country that the United States and Mexico should have been the first to use the good offices of The Hague court This was done last summer with most satisfactory results in the case of a tuuim at issue Between us and our sister republic It is earnestly to bo hop ed that tms first case will serve a3 a precedent for others in which not only tho United States but foreign nations may take advantage of the machinery al ready in existence at The Hague I commend to the favorable considera tion of the Congress the Hawaiian tire claims which were the subject of care ful Investigation during the last session Panama Canal Favored The Congress has wisely provided that we shall build at once an isthmian ca nal if possible at Panama The attorney general reports that we can undoubted ly acquire good title from tho French Panama Canal Company Negotiations are now pending with Colombia to se sure her assent to our building the canal This work should be carried out as a continuing policy without regard to change of administration and it should be begun under circumstances which will make it a matter of pride for all administrations to continue the policy The canal will be of great benefit to America and of importance to all the world It will be of advantage to us industrially and also as improving our military position It will be of advan tage to the countries of tropical Amer ica It Is earnestly to be hoped that all of these countries will do as some of them have already done with signal success and will invito to their shores commerce and improve their material conditions by recognizing that stability and order arp the prerequisites of suc cessful development Xo independent na tion in America need have the slightest fear of aggression from the United States It behooves each one to main tain order within its own borders and to discharge its just obligations to for eigners When this is done they can rest assured that be they strong or weak they have nothing to dread from outside interference More and more the increasing interdependence and complex ity of international political and eco nomic relations render it incumbent on all civilized and orderly powers to in sist on the proper policing of the world Pacific Cable Assured During the fall of 1901 a communication was addressed to the Secretary of State asking whether permission would be granted by the President to a corpora tion to lay a cable from a point on the California coast to the Philippine islands by way of Hawaii A statement of con ditions or terms upon which such cor poration would undertake to lay and operate a cable was volunteered Inasmuch as the Congress was shortly to convene and Pacific cable legislation had been the subject of consideration by the Congress for several years it seem ed to me wise to defer action upon the application until the Congress had first an opportunity to act The Congress ad journed without taking any action leav ing the matter in exactly the same con dition in which it stood when the Con gress convened Meanwhile it appears that the Com mercial Pacific Cable Company had promptly proceeded with preparations for laying its cable It also made applica tion to the President for access to and ufce of soundings taken by the U S S Nero for the purpose of discovering a practicable route for a trans Pacific ca ble the company urging that with ac cess to these soundings it could complete its cable much sooner than if it were required to take soundings upon its own accounr In consequence of this solicitation of tho cable company certain conditions were formulated upon which the Presi dent was willing to allow access to these foundings and to consent to the landing and laying of ie cable subject to any alterations or additions thereto Imposed by the Congress This was deemed prop er especially as It was clear that a cable connection of some kind with China a foreign country was a part of tho com panys plan These conditions prescribed among other things a maximum rate for com mercial messages and that the company should construct a line from the Philip pine Islands to China there being at present as Is well known a British line from Manila to Hong Kong The representatives of the cable com pany kept these conditions long under consideration continuing In the mean time to prepare for laying the cnble They have however at length acceded to them and an all Amerlcan line be tween our Pacific coast and the Chinese empire by way of Honolulu and the Philippine islands Is thus provided for and is expected within a few months to be ready for business Philippine Policy Vindicated On July 4 last on the one hundred and twenty sixth anniversary of the declara tion of our independence peace and am nesty were promulgated In the Philip pine islands Some trouble has since from time to time threatened with tho Mohammedan Moros but with the late insurrectionary Filipinos the war has en tirely ceased Civil government has now been Introduced Not only does each Filipino enjoy such rights to life liberty and tho pursuit of happiness as he has never before known during the recorded history of the Islands but tho people taken as a whole now enjoy a measure of self government greater than that granted to any other orientals by any foreign power and greater than that en joyed by any other orientals under their own governments save the Japanese nlone We have not gone too far in granting these rights of liberty and self government but we have certainly gone to the limit that In tho interests of the Philippine people themselves it was wise or just to go To hurry matters to go faster than we are now going would en tail calamity on the people of the Islands No policy ever entered into by the Amer ican people has vindicated itself In more signal manner than the policy of holding the Philippines The triumph of our arms above all the triumph of our laws and principles has come sooner than we had any right to expect Tod much praise cannot be given to the irmy for what it has done in the Philippines both in warfare and from an administrative standpoint in preparing the way for civil government and similar credit belongs to the civil authorities for the way in which they have planted the seeds of self-government in the ground thus made ready for them The courage the unflinching endurance the high soldierly efficiency and the general kind heartedness and humanity of our troops have been strik ingly manifested There now remain only some 15000 troops In the islands All told over 100000 have been sent there Of course there have been Individual in stances of wrongdoing among them They warred under fearful difficulties of climate and surroundings and under the strain of the terrible provocations which they continually receive from their foes occasional instances of cruel retaliation occurred Every effort has been made to prevent such cruelties and finally these efforts have been completely suc cessful After making all allowance for these misdeeds it remains true that few indeed have been the instances in which war has been waged by a civilized power against semi civilized and barbarous forces where there has been so little wrongdoing by the victors as in the Phil ippine Islands On the other hand the amount of difficult important and bene ficient work which has been done is well nigh incalculable Praise for Friendly Filipinos Taking the work of the army and the civil authorities together it may be ques tioned whether anywhere else In modern times the world has seen a better exam ple of real constructive statesmanship than our people have given in the Philip pine islands High praise should also be given those Filipinos in the aggregate very numerous who have accepted tho new conditions and joinrd with our rep resentatives to work with hearty good will for the wiifaie of tho islands National Guard Reorganization The measure providing for the reor ganization of tho militia system and for securing the highest efficiency in the na tional guard which has already passed the House should ree ive prompt atten tion and action It is of great impor tance that the relation of the national guard to the militia and volunteer forces of the United Stater should be defined and that in place of our present obsolete laws a practical and efficient system should be adopted Irrigation in the West Few subjects of more Importance have been taken up by the Congress In re cut years than the inauguration of the svstem of nationally aided Irrigation for the arid regions of tho far West A goer beginning therein has been made Xow that this policy of national irrigation has been adopted the in ed of thorough and bci entitie forest protection will grow moro rap Idly than ever throughout the public land states So far as they are available for agriculture and to whatever extent they nicy be reclaimed under the national Irrigation law the remain ing public lands should be held rigidly for the home builder the settler who live on his land and for no one ele Iii their actual use the desert land law the timber and stone law and the commutation clause of the home stead law have been o perverted from the in tention with which they v ere enacted as to permit the acquisition of large areas of the puhlic domain for others than actual settles and the consequent prevention of settlement Tho sound and steady development of the West depends upon the building up of homes therein Much of our prosperity as a nation has been due to the operation of the homestead law On the other hand we should recognize the fact that In the grazing region the man who cor responds to the homesteader may be unable to settle permanently If only allowed to use the same amount of pasture land that his brother the homesteader Is allowed to use of arable land One hundred and sixty acres of fairly rich and well watered soil or a much smaller amount of Irrigated land may keep a family In plenty whereas no one could get a livlnir from 160 acres of dry pasture land capable of supporting at the outside only one head of cattle to every ten acres In the past great tracts of the public domain have been fenced in by persons- having no title thereto in direct defiance of the law forbidding the maintenance or construction of any such unlawful lnclnsre of public land For various reasons there has been little interference with such inclosures in the past hut ample notlee has now- been given the trespassers and all the resources at the command of the government will hereafter be used to put a stop to such trespassing Pressing Needs of the Navy For the first time in our history naval ma neuvers on a large scale are being held under the immediate command of the admiral of the navy Constantly Ini teasing attention is being paid to the guunery of the navy but It Is yet far from what it f hould be I earnestly urge that the Increase asked for by the Secretary of the avy in the appropriation for wmmiiiBwaiirtottMffittfflMgTTffhfiaW of superior utrength Tho Monroe jtris feature or should bo treated as tho cardinal African foreign poller but It won W than Idle to aasort It unless we ttoAjA to back it up and It can b backed us Julr tr A good nary l not a thorouxhly food nay a prorocatlro of war It U th wrest guaranty of peace More Sailors Called For Z call your ipacitl attention to tho Med of prorldlnr for the manntnf of the ship Be rloua trouble threatens us If we cannot do let ter than we are now coin aa rejarfi ecurin the sarvlcea of a aufflclent number of the wen eat type of aallormen of sea mechanic It U no more possible to Improvlit a crew than u Is possible to ImproTlse a warship To tmlld the finest ship with tho deadliest battery ana to send It afloat with a raw crow no matter bow brave they were individually would do to insure disaster If a foe of arerage capacity were encountered Neither ships nor men can be lmproTlsed when war lias begun We need a thousand additional officers lr order to properly man the ship now provided for and under construction The classes at the naval school at Annapolis should be greatly enlarged At the same time thiit wo Urn add the officer where we need them wo should facilitate the retirement of those at the bend of the list whoso usefulness has become Impaired Promotion must be fostered If the sendee Is to be kept ctllclent There Is not a cloud on the horizon nt pres ent There seems not the slightest chance of trouble with n foreign power Wo most ear nestly hope that this state of things may con tinue and the way to Insure its contlnuanco is to provide for u thoroughly ellleleiit navy The refusal to maintain such a uavy wouid invito trouble and If trouble came would in sure disaster Fatuous self complacency or vanity or short sightedness In refusing to pre pare for danger Is both foolish and wtefca In such a nation as ours and past experlehe has shown that such fatnlty In refusing to rec ognize or prepare for any crisis in advance Is usually succeeded by n mad panic of hysterical fear once the crisis has actually arrived Rural Free Delivery a Success The striking Increase In the revenues of tho postotDee department shows dearly the pros perity of our people and the Increasing activ ity of the business of the country The receipts of tho postolflee department for the flicnl year ending June 30 last amovnted to fl21SI8M728 an Increase of 1021685387 over the preceding yenr the largest Iiicrease known In the history of the postal service The mag nitude of this Increase will best appear from the fact that the entire postal receipts for the year 1860 amounted to but 3518007 Rural free delivery service Is no longer in the experimental stage It has- become a fixed policy The results following ls Introduction have fully justified the Congress In the largo appropriations made for Its establishment and extension Tho average yearly Increase lu post olllce receipts lu the rural districts of thu country Is about two per cent We are now able by actual results to show that where rural free delivery bcrvlee has been established to such nit extent us to enable us to maka comparisons the yearly Increase has bcin up ward of ten per cent On Nov 1 1302 11650 rural free delivery routes had been established and were In opera tion covering about of the territory of the United Stale available for rural free delivery service There are now awaiting the action of the department petitions und appli cations for the establishment of 10713 addi tional routes This shows conclusively the want which the establishment of the service has met and the need of further extending It aa rapidly as possible It Is justlticd both by the financial results and by the practical bene fits to our rural population it brings the men who live on the soli Into clone relations with the active business world It keeps the farmer lu dally touch with the markets It Is a po tential educational force It enhances the value of farm property makes farm life far pleas ant er and less Isolated and will do much to check the undesirable current from couutry to city It Is to be hoped that the Congress will make liberal appropriations for the continuance of the service already established and for its further extension Need of Legislation for Alaska I especially urge upon the Congress the need of wise legislation lor Alaska It is not to our credit as a nation that Alaska which has been ours for thirty five years should still have as poor a system of laws as Is the case Alaska needs a good laud law and such pro visions for homesteads and pre emptions as will encourage permanent settlement We should shape legislation with a view not to the ex ploiting and abandoning of the territory but to the building up of homes therein The laud laus should be liberal In type so as to bold out Inducements to the actual settler whom we most desire to see take iossesslon of the country The forests of Alaska should be pro tected and as a secondary but still Impor tant matter the game also nnd at the same time it is Imperative that the settlers should lie allowed to cut timber under proper regu lations for their own use Alaska should have n delegate In the Congress It would be well If a congressional committee could visit Alaska and investigate its needs on tho ground The Indian Problem In dealing with the Indians our aim shoull be their ultimate absorption Into the body of our piople Hut in many cases this absorption must and should 1 very slow The first und most iuipoitant step toward th absorption of the Indian is to tench him to earn bis living yet it is not necessarily to be assumed that in each community all Indians must lecoma either tillers of the soil or sto L rMsers Their industries may piopcrly lie diversified and thoso who show special desire or adaptability for industrial or even commercial pursuits ihoull be encouraged so far as practicable lu folluw out each his own bent Scientific Aid to Farmers In no department of governmental norK In recent years has there bten greater success than in that of giving scientific aid to the farming iopulatlon thieby showing them how mi it elliciently to hUp themselves There la no need of insisting upon Its Importance for the welfare of the farmer Is fundamentally ncessary to the welfare of the republic as a whole In addition to such work as yuaran tine against animal and vegetable plagues and warring against them when here Introduced much efficient help has been rendered to the farmer by the introduction of new plants spe cially fitted for eultlvutlon under the peculiar conditions existing In different portions of tha country In the Southwest the possibility of re grassing overstocked range lands has been demonstrated In the North many new forage crops have been introduced while in the Hast it has been shown that some of our choicest fruits can be stored and shipped In such a way a to hud a profitable market abroad Needs of Washington The District of Columbia Is the only part of our territory In which the national govern ment eereices local or municipal functions and where in consequence the government has a free hand in reference to certain types of social and economic legislation which must b essentially local or municipal in their charac ter The government should see to It for In stance that the hygienle and sanitary legis lation affecting Washington is of a high char acter The city should be a model in eTary respect for all the cities of the country More over while Washington Is not a great Indus trial city there is some industrialism bore and our lator legislation while It would not be Important in itself might be iade a model for the rest of the nation Wo should pass for Instance a employers Iiabllity act for the District of Columbia and we need such an act In our navy yards Uallroad companies In the district onght to be required by law to block their frogs Protection for Railway Men The law for the better pro tection of the lives and limbs of railvvy em ployes which was passed In 1SS3 went Into full effect Aug 1 1331 It has resulted la averting thousands of casualties Experience shows however the necessity of additional leg islation to perfect this law A bill to pro vide for this passed the Senate at the last session It is to be hoped that some such measure may now be enacted into law Gratifying progress has been made during the year In the extension of the merit system Ing the marksmanship be granted In battle of making appointments in the government the only shots that count are the shots that hit It Is necessary to provide ample funds- for practice with the great guns in time of peace These funds must provide not only for the purchase of projectiles but for allowances for prizes to encourage the gun crews and espe cially the gun pointers and for perfecting an Intelligent system under which alone It Is possible to get good practice There should be no halt In the work of build ing up the navy providing every year addi tional fighting craft We are a very rich coun try vast in extent of territory and great in population a country moreover which has an army diminutive indeed when compared with that of any other first class power We have deliberately made our own certain foreign poli cies which demand the possession of a first class navy The isthmian canal will greatly Incicase the efficiency of our navy If the navy Is of sufficient slie but If we have en inade quate navy then the building of the caual T suld bs merely glvisy a hostage to any power ice It Is much to be desired that our sular system be established by law on a basis providing for appointment and promotion only iu consequence of proved fitness Restoration of the White House Through a wise provision of the Congress at its last session the white bouse which has become disfigured by Incongruous additions and changes has now heen restored to what It was planned to be by Washington The white nous is the property of the nation and so far as is compatible with living therein it should be kept as It originally was for the same reasons that wc keep Mount Vernon as it originally was It is a good thing to preserve such bulldlnei as historic nonuments which keep alive our sense of cont nulty with the nation s past The reports of the several executive denarN ments are submitted to the Congress with thla communication - THEODORE E003EVBZ White House Dec 1 mv M i i 1 7 4 u i j jr