ft
I-
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i
4
manlv submission which have succeeded 1
heated clash of political opinions we
discover abundant evidence of a deter
mination on the part of our countrymen
to abide by every verdict of the popular
will and to be controlled at all times by
an abiding faith in the agencies establish
ed for the direction of the affairs of their
government Thus our people exhibit a
patriotic disposition which entitles them
to demand of those who undertake to
make and execute their laws such faith
ful and unselfish service in their behalf
as can only be prompted by a serious ap
preciation of the trust and confidence
which the aceptance of public duty in
Tites
In obedience to a constitutional require
ment I herein submit to the Congress cer
tain information concerning national af
fairs with the suggestion of such legisla
tion as in my judgment is necessary and
expedient
Outrages in Tnrkey
At the outset of a reference to the
more important matters affecting our re
lations with foreign powers it would
-afford me satisfaction if I could assure
the Congress that the disturbed condition
in Asiatic Turkey had during the last
year assumed a less hideous aspect and
that either as a consequence of the awak
ening of the Turkish Government to the
demand of humane civilization or as the
result of decisive action on the part of
the great nations having the right by
treaty to interfere for the protection of
those exposed to the rage of mad bigotry
and cruel fanaticism the shocking fea
tures of the situation bad been mitigated
Instead however of welcoming a soft
ened disposition or protective interven
tion we have been afflicted by continued
and not infrequent reports of the wanton
destruction of homes and the bloody
butchery of men women and children
made martyrs to their profession of Chris
tian faith
While none of our citizens in
Turkey have thus far been killed
-or wounded though often in the
midst of dreadful scenes of danger their
safety in the future is by no means as
sured Our government at home and our
minister at Constantinople have left noth
ing undone to protect our missionaries
in Ottoman territory who constitute
nearly all the individuals residing there
who have a right to claim our protection
-on the score of American citizenship Our
efforts in this direction will not be re
laxed but the deep feeling and sympathy
that have been aroused among our people
ought not to so far blind their reason and
judgment as to lead them to demand im
possible things
Several naval vessels are stationed in
the Mediterranean as a measure of cau
tion and to furnish all possible relief
and refuge in case of emergency and we
have made claims against the Turkish
Government for the pillage and destruc
tion of missionary property at Harpoot
and Marash during uprisings at those
places A number of Armenian refugees
having arrived at our ports an order has
lately been obtained from the Turkish
Government permitting the wives and
children of such refugees to join them
here I do not believe that the present
somber prospect in Turkey will be long
permitted to offend the sight of Christen
dom
The Cuban Rebellion
The insurrection in Cuba still contin
ues with all its perplexities It is diffi
cult to perceive that any progress has
thus far been made towards the pacifica
tion of the island or that the situation of
affairs as depicted in my last annual mes
sage has in the least improved If Spain
still holds Havana and the seaports and
all the considerable towns the insurgents
still roam at will over at least two thirds
of the inland country lr the determina
tion of Spain to put down the insurrec
tion seems but to strengthen with the
lapse of time and is evinced by her un
hesitating devotion of largely increased
military and naval forces to the task
there is much reason to believe that the
insurgents have gained in point of num
bers and character and resources and
are none the less inflexible in their re
solve not to succumb without practically
securing the great objects for which they
took up arms If Spain has not yet re
established her authority neither have
the insurgents yet made good their title
to be regarded as an independent state
Indeed as the contest has gone on the
pretense that civil government exists on
te island except so far as Spain is able
to maintain it has been practically aban
doned Spain does keep on foot such a
government more or less imperfectly in
the large towns and their immediate
suburbs but that exception being made
the entire country is either given over to
anarchy or is subject to the military occu
pation of one or the other party It is
THE PRESIDENTS MESSAGE I
n
To the Congress of the United States
As representatives of the people in the
legislative branch of their government
you have assembled at a time vfchen the
strength and excellence of our free insti
tutions and the fitness of our citizens to
-enjoy popular rule have been again made
manifest A political contest involving
momentous consequences fraught with
apprehension and creating aggressive
ness so intense as to approach bitterness
and passion has been waged throughout
our land and determined by the decree
of free and independent suffrage without
disturbance of our tranquillity or the least
sign of weakness in our national struc
ture
When we consider these incidents and
-contemplate the peaceful obedience and
reported indeed on reliable authority
that at the demand -of the Commander-in-chief-
of the insurgent army the puta
tive Cuban Government has now given
up all attempts to exercise its functions
leuving that government confessedly
what there is the best reason for sup
posing always to have been in fact a gov
ernment merely on paper Were the
Spanish armies able to meet their an
tagonists in the open or in pitched battle
prompt and decisive results might be look
ed for but they are called upon to face a
foe that shuns general engagements that
can choose and does choose its own
ground and it is obvious that there is
hardly a limit to the time during which
hostilities of this sort may be prolonged
Meanwhile as in all cases of protracted
civil strife the passions of the com
batants grow more and more inflamed
and excesses on both sides become more
frequent and more deplorable
The spectacle of the utter ruin of an ad
joining country hy nature one of the most
fertile and charming on the globe would
engage the serious attention of the gov
ernment and the people of the United
States in any circumstances In point
of fact they have a concern which
is by no means of a wholly sentimental
or philanthropic character It lies so near
to us as to be hardly separated from our
territory Our actual pecuniary interest
in it is second only to mat of the people
and government of Spain It is reason
ably estimated that at least from 30000
000 to 50000000 of American capital
are invested in plantations and in rail
road mining and other business enter
prises on the island The volume of trade
between the United States and Cuba
which in 1SS9 amounted to about 64000
000 rose in 1S93 to about 103000000
and in 1S94 the year before the present
insurrection broke out amounted to near
ly 9S000000 Besides this large pe
cuniary stake in the fortunes of Cuba the
United States finds itself inextricably in
volved in the present contest in other
ways both vexatious and costly Many
Cubans reside in this country and in
directly promote the insurrection through
the press by public meetings by the pur
chase and shipment of arms by the rais
ing of funds and by other means which
the sjurit of our institutions and the
tenor of our laws do not permit to be
made the subject of criminal prosecu
tions of a friendly power It follows from
the same causes that the United States is
compelled to actively police a long line
of seacoast against unlawful expeditions
the escape of which the utmost vigilance
will not always suffice to prevent
These inevitable entanglements of the
United States with the rebellion in Cuba
the large American property interests af
fected and considerations of philanthropy
and humanity in general have led to a
vehement demand in various quarters
for some sort of positive intervention on
the part of the United States It was
at first proposed that belligerent rights
should be accorded to the insurgents a
proposition no longer urged because un
timely and in practical operation clearly
perilous and injurious to our own inter
ests It has since been and is now some
times contended that the independence of
the insurgents should be recognized But
imperfect and restricted as the Spanish
Government of the jisland may be no
other exists there unless the will of the
military officer in temporary command of
a particular district can be dignified as a
species of government It is now also
suggested that the United States should
buy the island a suggestion possibly
worthy of consideration if there were any
evidence of a desire or willingness on the
part of Spain to entertain such a pro
posal It is urged finally that all other
methods failing the existing interneine
strife in Cuba should be terminated by
our intervention even at the cost of a
war between the United States and
Spain a war which its advocates con
fidently prophesy could be neither large
in its proportions nor doubtful in its issue
The correctness of this forecast need
be neither affirmed nor denied The Unit
ed States has nevertheless a character to
maintain as a nation which plainly dic
tates that right and not might should be
the rule of its conduct
It is in the assumed temper and dispo
sition of the Spanish Government to rem
edy its grievances fortified by indica
tions of influential public opinion in Spain
that this Government has hoped to dis
cover the most promising and effective
means of ending the present strife
with honor and advantage to Spain and
with the achievement of all the reasona
ble objects of the insurrection It was in
timated by this Government to the Gov
ernment of Spain some months ago that
if a satisfactory measure of home rule
were tendered the Cuban insurgents and
would be accepted by them upon a guar
anty of its execution the United States
would endeavor to find a way not ob
jectionable to Spain of furnishing such
guaranty While no definite response to
this intimation has yet been received from
the Spanish Government it is believed
to be not altogether unwelcome while
as already suggested no reason is per
ceived why it should not be approved
by the insurgents Whatever circum
stances may arise our policy and our in
terest would constrain us to object to the
acquisition of the island or an interfer
ence with its control by any other power
It should be added that it cannot be rea
onably assumed that the hitherto expect
ant attitude of the United States will be
indefinitely maintained When the ina
bility of Spain to deal successfully with
the insurgents has become manifest and
it is demonstrated that her sovereignty
is extinct in Cuba for all purposes of its
rightful existence and when a hopeless
struggle for its re establishment has de
generated into a strife which means noth
ing more than the useless sacrifice of
human life and the utter destruction of
the very subject matter of the conflict
a situation will be presented in which our
obligations to the sovereignty of Spain
will be superceded by higher obligations
which we can hardly hesitate to recog
nize and discharge Deferring the choice
of ways and methods until the time for
action arrives we should make them de
pend upon the precise conditions then ex
isting and they should not be deter
mined upon without giving careful heed
to every consideration involving our honor
and interest or the international duty we
owe to Spain A contemplation of emer
gencies that may arise should plainly lead
us to avoid their creation either through
a careless disregard of present duty or
even an undue stimulation and ill timed
expression of feeling But I have deemed
it not amiss to remind the Congress that
a time may arise when a correct policy
and care for our interests as well as a
regard for the interests of other nations
and their citizens joined by considera
tions of humanity and a desire to see a
rich and fertile country intimately re
lated to us saved from complete devasta
tion will constrain our Government to
such action as will subserve the interests
thus involved and at the same time prom
ise to Cuba and its inhabitants an oppor
tunity to enjoy the blessings of peace
Other Foreign Matters
Negotiations for a treaty of general
arbitration for all differences -between
Great Britain and the United States are
far advanced and promise to reach a suc
cessful consummation at an early date
The scheme of examining applicants
for certain consular positions to test
their competency and fitness adopted un
der an executive order issued on Sept 20
1595 has fully demonstrated the useful
ness of this innovation
The inspection of consular offices pro
vided for by an appropriation for that
purpose at the last session of the Congress
has been productive of such wholesale
effects that I hope this important work
will in the future be continued I know
of nothing that can be done with the
same slight expense so improving to the
service
We have during the last year labored
faithfully and against unfavorable con
ditions to secure better preservation of
seal life in the Behring Sea Both the
United States and Great Britain have
lately dispatched commissioners to these
waters to study the habits and condition
of the seal herd and the causes of their
rapid decrease Upon thoreports of these
commissioners soon to be submitted and
with the exercise of patience and good
sense on the part of all interested par
ties it is earnestly hoped that hearty co
operation may be secured for the protec
tion against threatened extinction of seal
life in the Northern Pacific and Behring
Sea
Treasury Info mation
The Secretary of the Treasury reports
that during the fiscal year ended June 30
1596 the receipts of the Government
from all sources amounted to 409475
40S7S During the same period its ex
penditures were 434 GTS 65448 the ex
cess of expenditures over receipts thus
amounting to 2520324570 The ordi
nary expenses during the year were 4
015S5221 less than during the preceding
fiscal year Of the receipts mentioned
there was derived from customs the sum
of 1S002175107 and from internal rev
enue 146S3061566 The receipts from
customs show an increase of 7S6313422
over those from the same source for the
fiscal year ending June 30 1S95
and the receipts from internal
revenue an increase of 338453791
The value of our imported dutiable mer
chandise during the last fiscal year was
369757470 and the value of free goods
imported 409967470 being an increase
of 6323675 in the value of dutiable goods
and 41231034 in the value of free goods
over the preceding year Our imports of
merchandise foreign and domestic
amounted in value to SS260693S being
an increase over the preceding year of
7506S773 The average ad valorem
duty paid on dutiable goods importeddur
ing the year was 3994 per cent and on
free and dutiable goods taken together
2055 per cent The cost of collecting our
internal revenue was 27S per cent as
against 281 per cent for the fiscal year
ending June 30 1895 The total produc
tion of distilled spirits exclusive of fruit
brandies was S6JSS703 taxable gallons
being an increase of 063910S gallons over
the preceding year There was also an
increase of 1443076 gallons of spirits
produced from fruit as compared with the
preceding year The number of barrels
of beer produced was 35S59230 as
against 335S97S4 produced in the preced
ing fiscal year being an increase of 2269
466 barrels
The total amount of gold exported dur
ing the last fiscal year was 112409947
and of silver 60541670 being an in
crease of 45941466 of gold and 13
2463S4 of silver over the exportations of
the preceding fiscal year The imports of
gold were 33525065 and of silver 2S
7771SG being 2839695 less of gold and
S566007 more f silver than during the
preceding year The total stock of
metallic money in the United States at
the close of the last fiscal year ended the
30th day of June 1S9G was 1228320
035 of which 599597964 was in gold
and 62872S071 n silver On the 1st
day of November 1S96 the total stock of
money of all kinds in the country was
22S5410590 and the amount in circula
tion not including that in the treasury
holdings was 1627055641 being 22K
per capita upon an estimated population
of 71992000 The production of the
precious metals in the United States dur
ing the calendar yearlS93 is emated to
have been 2254750 fine ounces of gold
of the value of 10610000 and 53727000
ounces of silver of the commercial value
of 36445000 and the coinage value of
72051000 The estimated production
of these metals throughout the world dur
ing the same period was 96S8S21 fine
ounces of gold amounting to 200283700
in value and 1691S9249 fine ounces of
silver of the commercial value of 110
654000 and of the coinage value of 218
73S100 according to our ratio The coin
age of these metals in the various coun
tries of the world during the same cal
endar year amounted to 23270143S in
gold and 121995219 in silver The total
coinage at the mints of the United States
during the fiscal year ending June 30
1S96 amounted to 711S846852 of
which 5SS7S490 was in gold coins and
1230997852 in standard silver dollar
subsidiary coins and minor coins
National Banks
The number of national banks organ
ized from the time the law authorizing
their creation was passed up to Oct 31
was 5051 and of this number 3679 were
ait the date last mentioned in active oper
ation having authorized capital stock of
630014S95 held by 288902 sharehold
ers and circulating notes amounting to
21412020 The total outstanding circu
lating notes of all national banks Oct
31 1S96 amounted to 234553807 in
cluding unredeemed but fully secured
notes of banks insolvent and in process of
liquidation The increase in national
bank circulation during the year ending
on that day was 21099429 Oct 6
1S96 when the condition of national
banks was last reported the total re
sources of the 3679 active institutions
was 326368531383 which included Sl
S9323S83931 in loans and discounts and
30216573385 in money of all kinds on
hand Of their liabilities 1597891
05S03 was due to individual depositors
and 209944019 consisted of outstand
ing circulating notes
There were organized during the year
preceding the date last mentioned twenty-eight
national banks located in fif
teen different States of which twelve
were organized in the Eastern States
with a capital of 1180000 six in the
Western States with a capital of 875000
and ten in the Southern States with a
capital of 1190000 During the year
however thirty seven banks voluntarily
abandoned their franchises under the
national law and in the case of twenty
seven others it was found necessary to
appoint receivers Therefore as com
pared with the year preceding there was
at decrease- of thirty six in the number of
active banks The number of existing
banks organized undtr State laws is
570S
Tmmlirratloa
The number of immigrants arriving in
the United States during the fiscal year
was 343267 of whom 34046S were per
mtited to land and 2799 were debarred
on various grounds prescribed by law and
returned to the countries whence they
came at the expense of the steamship
companies by which they were brought
in The increase in immigration over the
preceding year amounted to S4731 It is
reported that with some exceptions the
immigrants of the Jast year were of a
hardy laboring class accustomed and
able to earn a support for themselves
and it is estimated that the money
brought with them amounted to at least
5000000 though it was probably much
in excess of that sum since only those
having less than 30 are required to dis
close the exact amount and it is known
that many brought considerable sums of
money to buy land and build homes
The War Department
The report of the Secretary of War ex
hibits satisfactory conditions in the sev
eral branches of the public service in
trusted to his charge The limit of our
military force as fixed by law is con
stantly and readily maintained The
present discipline and morale of our army
are excellent and marked progress and
efficiency are apparent throughout its en
tire organization With the exception of
delicate duties in the suppression of slight
Indian disturbances along our southwest
ern boundary in which the Mexican
troops co operated and the compulsory
but peaceful return with the consent of
Great Britain of a band of Cree Indians
from Montana to British possessions no
active operations have been required of
the army during the year past
Jea Coast Defense
During the last year rapid progress has
been made toward the completion of the
scheme adopted for the erection and arma
ment of fortifications along our seacoast
while equal progress has been made in
providing the material for submarine de
fense in connection with these works
This improved situation is largely due
to therecent generous response of Congress
to the recommendations of the war de
partment Thus we shall scon have com
plete about one fifth of the comprehensive
system the first step in which was noted
in my message to the Congress of Dec 4
1893 When it is understood that a ma
sonry emplacement not only furnishes a
platform for the heavy modern high power
gun but also in every particular serves
the purpose and takes the place of the
fort of former days the importance of the
work accomplished is better compre
hended
We should always keep in mind that of
all forms of military preparation coast
defense alone is essentially pacific in its
nature While it gives the sense of se
curity due to a consciousness of strength
it is neither the purpose nor the effect of
such permanent fortifications to involve
us in foreign complications but rather to
guarantee us against them They are not
temptation to war but security against it
Thus they are thoroughly in accord with
all the traditions of our national diplo
macy
Fees of Federal Officers
It is most gratifying to note the satis
factory results that have followed the
inaugxiratbn of the new system provided
for by the act of May 2S 1S96 under
which certain Federal officials are com
pensated by salaries instead of fees The
new plan was put in operation on July 1
1S96 and already the great economy it
enforces its prevention of abuses and its
tendency to a better enforcement of the
laws are strikingly apparent Detailed
evidence of the usefulness of this long
delayed but now happily accomplished
reform will be found clearly set forth in
the Attorney Generals report
The Postal ierv ce
Our Postoffice Department is in good
condition and the exhibit made of Its
operations during the fiscal year ended
Juno HO 1S96 if allowance is made for
imperfections in the laws applicable to it
is very satisfactory The total receipts
during the year were S249920S40 The
total expenditures were 90620296S4
exclusive of 1539S9S27 which was
earned by the Pacific Railroad for trans
portation and credited on their debt to
the Government There was an increase
of receipts over the previous year of 3
31008021 or 71 per cent and an in
crease of expenditures of 383612402
or 442 per cent The deficit was 1
67995619 less than that of the preceding
year
Our postal service should meet the
wants and even the conveniences of our
people at a direct charge upon them so
flight as perhaps to exclude the idea of our
postoffice department being a money-making
concern but in the face of a constant
ly recurring deficiency in its revenues and
in view of the fact that we supply the
best mail service in the world it seems to
me it is quite time to correct the abuses
that swell enormously our annual deficit
I recommend that legislation be ait once
enacted to correct these abuses and in
troduce better business ideas in the regu
lation of our postal rates This involves
the following reforms which I earnestly
recommend
The Navy
The work of the Navy Department and
its present condition are fully exhibited
in the report of the Secretary The con
struction of vessels for our new navy has
been energetically prosecuted by the pres
ent administration upon the general lines
previously adopted the department hav
ing seen no necessity for radical changes
in prior methods under which the work
was found to be progressing in a manner
highly satisfactory It has been decided
however to provide in every shipbuilding
contract that the builder should pay all
trial expenses and it has also been de
termined to pay no speed premiums in
future contracts The premiums recently
earned and some yet to be decided are
features of the contracts made before this
conclusion was reached
Interior Affairs
The report of the Secretary of the Interior
presents a comprehensive and Interesting ex
hibit of the numerous and Important affairs
committed to his supervision I agree with
the Secretary that the remainder of our
lie lands should be more carefully dealt with
and their alienation guarded by better econ
omy and greater prudence
The Indiana
The total Indian population of the United
States Is 177235 according to a census made
In 1805 exclusive of those within the State
of Now York and tboso comprising the Ave
civilized tribes Of this number there are
nproxlmately 38000 children of school age
During the year 23393 of these were en
rolled In schools The progress which has
uninterrupted Improvement In the accuracy J
of Its forecasts has greatly Increaeod It
efficiency as an aid and protection to all
whoso occupations are related to weather
conditions Omitting further reference to
the operations of the department I com
mend the Secretarys report and tho sug
gestions It contains to the careful consider
ation of Congress
rivll Service Reform
The progress mado In civil service reform
attended recent efforts to extend Indian furnishes n ennae for thn ntmnnt mnpntn
school facilities and the anticipation of con- iatlon There are now In the competitive
tmueu liberal appropriations to that end j classified service upward of eighty four thou-
cannot fall to afford the satisfac
utmost satisfaction
tion to those who believe that the educa
tion of Indian children 48 a prime factor In
the accomplishment of Indian civilization
It may be said In general terms that In
evory particular the Improvement of the
Indians under Government care has been
most marked and encouraging
The Secretary the Commissioner of In
dian Affairs and the agents having charge of
Indians to whom allotments have been made
strongly urge the passage of a law prohib
buuu yiawes a must rauicm uau sweep
ing extension was mado by executive
order dated the 0th day of May 1S0C and If
the fourth class postmastershlps be not In
cluded In tho statement It may be said that
practically all positions contemplated by
the clvll servlco law are now classified
Nationnl Finances and the Tariff
I desire to recur to the statements else
where made concerning the Governments
receipts and expenditures for the purpose
iting the sale of liquor to allottees who have of venturing upon some suggestions touqh
taken their lands in severalty I earnestly
join In this recommendation
The condition of affairs among the five
civilized tribes who occupy large tracts
of land In the Indian Territory and who
have governments of their own has assum
ed sucn an aspect as to render it almost
1897 with the amount already matured
more than 13000000 of the principal of tho
subsidy bonds issued by the United States in
aid of the construction of the Union Pa
cific Railway including Its Kansas line and
more than 6000000 of like bonds issued
In aid of the Central Pacific Railroad in
cluding those Issued to the Western Pacific
Railroad Company will have fallen due and
been paid or must on that day be paid by
tho Government Without any reference to
tho application of the sinking fund now In
the treasury this will create such a default
on the part of these companies to the Gov
ernment as will give It the right td at once
institute proceedings to foreclose its mort
gage Hen In addition to this Indebtedness
which will be due Jan 1 1S97 there will
mature between that date and Jan 1 1S99
the remaining principal of such subsidy
bonds which must also be met by the Gov
ernment These amount to more than 20
000000 on account of the Union Pacific
lines and exceed 21000000 on account of
the Central Pacific lines
The situation of these roads and the con
dlton of their Indebtedness to the Govern
ment have been fully set forth In the reports
nf vjirions committees to the and
nrior Concresses In view of the fact that
the Congress has for a number of years al
most constantly had under consideration va
rious plans for dealing with the conditions
existing between these roads and the Gov
ernment I have thus far felt Justified in
withholding action under the statute above
mentioed In the of -the Union Pa
cific Company however the situation has
become especially and immediately urgent
Proceedings have been instituted to fore
close a first mortgage upon thote aided parts
of the main lines upon which the Govern
ment holds a second and subordinate mort
gage Hen In consequence of those pro
ceedings and increasing complications add
ed to the default occurring the 1st day of
Januarv 1S97 a condition will be presented
at that date so far as thia company Is con
cerned that must emphasize the mandate
of the act of 1887 and give to executive duty
under its provisions a more imperative as
pect Therefore unless Congres shall
otherwise direct or shall have previously
determined upon a different solution of the
problem there will hardly appear to exist
any reason for delaying beyond the date of
the default above mentioned such executive
action as will promise to subserve the pub
lic interests and save the Government from
tho loss threatened by further Inaction
Department t A rieuture
The Department of Agriculture is so in
timately related to the welfare of our peo
ple and the prosperity of our nation that
it should constantly receive the care and
encouragement of the Government From
small beginnings It has grown to be the cen
ter of agricultural intelligence and the
source of aid and encouragement to agri
cultural efforts
Under the present management of the de
partment Its usefulness has been enhanced
In every direction and at the same time
strict economy has been enforced to the
utmost extent permitted by congressional ac
tion The Secretary reports that the value
of our exports of farm products during the
last fiscal year amounted to C700CO000 an
Increase of 17000000 over those of the year
immediately preceding This statement 13
not the less welcome because of the fact
that notwithstanding such lncrp se the pro
portion of exported agricultural products of
our total exports of all descriptions fell dur
ing the year The benefits f an Increase
In agricultural exports being assured the de
crease In Its proportion to our total exports Is
the more gratifying wren we consfder that
It Is owing to the tcz mat sscn total ex
ports for the year Increased more than 75
000000
In my opinion the gratuitous distribution
of seeds by the department ar at present
conducted onght to be discontinued The
professed friends of the farmer and cer
tainly the farmers themselves are naturally
expected to be willing to rd a department
devoted to the promotion of farming In
terests of a feature which tends so much to
Its discredit
The weather bureau now attached to the
Department vt Agriculture has continued
Ihg our present tariff law and its opera
tion This statute took effect on the 23th
day of August 1894 Whatever may be Its
shortcomings as a complete measure of tar-
in rerprm It must he conceded that It has
opened the way to a freer and greater ex
change of commodities between us and other
ludlspensable that there should be an en- countries and thus fjirnlshed a wider mar-
mi tuuujiu in uiu relations oi tnese -- jvuulw uu uuuuiatiuuux
ans to ihe general government A com- Tbe onlr entire fiscal year during which this
mission organized and empowered under law has been in force ended the 30th day
erai recent laws is now negotiating with KL uue iouu in iaat year our imports
these Indians for the rellnaulshment and
the division of their common lands In sev
eralty and are aiding In the settlement of
ine trouDiesome question of tribal member
creased over those of the previous year
more than 0500000 while the value of the
domestic products we exported nnd which
found markets abroad was n arly 70000-
shlD The effort should hp to mrs thM Tn 1 000 more than durlnir the nrecedlnc vear
dlans from the consequences of their own i Tue present law during the only complete
mistakes and Improvidence and to secure fiscal year of Its operation has yielded near-
to tne real Indian his rights as against In- 1 1T auuuuuu more revenue than was re-
truders and nrofessed frlendn who nrnflt
by his retrogression As a sincere friend
of the Indian I am exceedingly anxious that
these reforms should be accomplished with
the consent and aid of the tribes and that
no necessity may be presented for radical
or drastic legislation
The Pension Boll
The diminution of our enormous pension
roll and the decrease of pension expendi
ture which have been so often confidently
foretold still fall In material realization
The number of pensioners on the rolls at
the close of the fiscal year ended June 30
1S9G was 97007S This Is tho largest num
ber ever reported The amount paid ex
clusively for pensions during the year
wa 513821470104 a slight decrease from
that of the preceding year while the total
expenditures on account of pensions in
cluding the cost of maintaining the de
partment and expenses attending the pen
sion dlstributlonnmounted to 14220055050
or within a very small fraction of one third
of the entire expense of supporting the
Government during tho same year
The number of new pension certificates Is
sued was 90640 Of these 40374 represent
original allowances of claims and 15878 In
creases of existing pensions The number
of persons receiving pensions from the
United States but residing In foreign coun
tries at the close of the last fiscal year was
3781 and tho amount paid to them during
the year was 5S27353S The sum appro
priated for the payment of pensions for the
current fiscal year ending June 30 1S97 Is
140000000 and for the succeeding year It
Is estimated that the same amount will be
necessary
The Commissioner of Pensions reports
that during the last fiscal year 339 Indict
ments were found against violators of the
pension lavs Upon these indictments 107
convictions resulted In my opinion based
upon such statements as these and much
other Information and observation the abus
es which have been allowed to creep Into
our pension system have done incalculable
harm in demoralizing our people and under
mining good citizenship 1 have endeavored
within my sphere of official duty to protect
our pension rll and make it what it should
be a roll of honor containing the names
of those disabled In their countrys service
and worthy of their countrys affectionate
remembrance When I have seen those who
pose as the soldiers friends active and
alert in urging greater laxity and more reck
less pension expenditure while nursing self
ish schemes I have deprecated the approach
of a situation where necessary retrench
ment and enforced economy may lead to
an attack upon pension abuses so deter
mined as to overlook the discrimination due
to those who worthy of a nations care
ought to live and die under the protection
of a nations gratitude
Pacific Rairoads
The Secretary calls attention to the public
Interests Involved in an adjustment of the
obligations of tho Pacific railroads to the
celved from tariff duties In the preceding
year There was nevertheless a deficit be
tween our receipts and expenditures of a
little more than 25000000 This however
was not unexpected The situation was
such In December last seven mouths bo
fore the close of the fiscal year that the
Secretary of the Treasury foretold a defi
ciency of 17000000 The great and In
creasing apprehension and timidity In busi
ness circles and the depression in all activi
ties Intervening since that time resulting
from causes perfectly well understood and
entirely disconnected with onr tariff law or
Its operation seriously checked the Imports
we would have otherwise received and read
ily account for the difference between thla
estimate of the Secretary and the actual defi
ciency as well as for a continued deficit
Indeed It must be confessed that we could
hardly have had a more unfavorable period
than the last two years for the collection of
tariff revenue We cannot reasonably hope
that our recuperation from this business de
pression will be sudden but It has already
set In with a promise of acceleration and
continuance
I believe our present tariff law If allowed
a fair opportunity will In the near future
yield a revenue which with reasonably eco
nomic expenditures will overcome all de
ficiencies Meantime no deficit that has
occurred or may occur need excite or dis
turb us To meet any such deficit we have
In the treasury In addition to a gold re
serve of 100000000 a surplus of more
than 128000000 applicable to the payment
of the expenses of the Government and
which must unless expended for that pur
pose remain a useless hoard or If not ex
travagantly wasted must In any event be
perverted from the purpose of Its exaction
from our people The payment therefore
of any deficiency In the revenue from this
fund is nothing mor than its proper and leg
itimate use
It Is Immeasurably better to appropriate
our surplus to the payment of justifiable ex
penses than to allow It to become an Invi
tation to reckless appropriations and ex
travagant expenditures I suppose it will
not be denied that under the present law
our people obtain the necessaries of a com
fortable existence at a cheaper rate than for
merly This Is a matter of supreme Impor
tance since it is the palpable duty of every
government to make the burdens of taxa
tion as light as possible The people shonld
not be required to relinquish this privilege
of cheap living except under the stress of
their governments necessity made plainly
manifest
The Currency System
I am more convinced than ever that we
can have no assured financial peace and
safety until the government currency ob
ligations upon which gold may be demand
ed from the treasury are withdrawn from
circulation and canceled This might be
done as has been heretofore recommended
but their exchange for long term bonds bear
ing a low rate of Interest or by their re-
flomritlrKTi tplth tho nrnpppfln of such bonds
Government I deem it to be an Important Bye lf only g rjiiited States notes known
duty to especially present this subject to ag greenbacks were thus retired It Is proW
tne consiueration oi congress un Jan i hlft thRt thG treasure- notes issued In pay
ment of silver purchases under the act of
July 14 1890 now paid In gold when de
manded would nat create much disturbance
as they might from time to time when re
ceived In the treasury by redemption In gold
or otherwise be gradually and prudently
replaced by sliver coin
In default of this plan however It would
be d step in the right direction if currency
obligations redeemable in gold whenever
so redeemed should be canceled Instead of
being reissued
National banks should redeem their own
notes They should be allowed to Issue cir
culation to the par value of bond3 deposited
as security for Its redemption and the tax
on their circulation should be reduced to
one fourth of 1 per cent
In considering projects for the retirement
of United Stares notes and treasury notes
Issued under the law of 1890 I am of the
opinion that we have placed too much stress
upon the danger of contracting the currency
and have calculated too little upon the gold
that would be added to our circulation if
invited to us by better and safer financial
methods It is not so much a contraction of
our currency that should be avoided as
such unequal distribution This might be
obviated and any fear of harmful contrac
tion at the same time removed by allow
ing the organization of smaller banks and
In less populous communities than are now
permitted and authorizing banks to estab
lish branches In small communities under
proper restrictions
The entire case may be presented by the
statement that the day of sensible and sound
financial methods will not dawn upon us
until our government abandons the banKing
business and the accumulation of funds and
confines Its monetary operations to the re
ceipts of the money contributed by the peo
ple for its support and to the expenditure
of such money for the peoples benefit
Our business Interests and all good citi
zens long for rest from feverish agkatlon
and the Inauguration by the Government of
a reformed financial policy which will en
courage enterprise and make certain tne re
wards of labor and Industry
Koust for tilt - rust
Another topic In which our people right
fully take a deep Interest may here be brief
ly considered I refer to the existence of
trusts and other huge aggregations of cap
ital the object of which is to secure the
monopoly of some particular branch of trade
stifle whole
Industry or commerce and so
some competition When these are end
ed It Is usually on the ground that though
they Increase profits they also reduce prices
and thus may benefit the public It must
be remembered however that a reduction
of prices to the people Is not one of the
i real objects of these organizations nor ia
their tendency necessary m uia
tion Their tendency Is to crush out indi
vidual independence and to hinder or pre
vent the free use of human faculties and
the full development of human character
In concluding this communication Its last
words shall be an appeal to the Congress
for the most rigid economy In the expendi
ture of the money it holds in trust for the
people The way to perplexing extrava
gance Is easy but a return to frugality is
difficult When however It Is considered
that those who bear the burdens of taxation
have no guaranty of honest care save In
tho flflplltv of their nubile servants the duty
of all possible retrenchment Is plainly manl
iest
When our differences are forgotten and
our contests of political opinion are no long
er remembered nothing In the retrospect of
our public service will be as fortunate and
comforting as the recollection of official duty
well performed and the memory of a con
stant devotion to the Interests of oar con
fidlng fellow countrymen
jZ
cuoC
A comparison of the great cycle shows
of England and America shows that the
coming event to be held at the Chicago
Coliseum in January will bef ar ahead
to extend Its sphere oi usefulness and byan I anything yet attained
I