PRESIDENTS MESSAGE
CONSIDERATION OF THE MONEY
QUESTION MOST PRESSING
Sayn Time Is Not Opportune for the
Recognition of Insurgent Forces
in Cuba Urges Annexation of the
Sandwich Islands
Presidents Message
To tho Senate and House of Representa
tives It giveB me pleasure to extend
greeting1 to tho Fifty fifth congress as
sembled at the scat of government with
many of whom as senators and repre
sentatives I have been associated in the
leglslitlve service Their meeting occurs
under felicitous circumstances justifying
sincere congratulation and calling for our
grateful acknowledgment to a beneficent
providence which has so signally blessed
nd prospered us as a nation Peace and
pood will with nil the nations of the
earth continue unbroken
A matter of genuine satisfaction is the
growing feeling of fraternal regard and
unification or all sections of our country
the incompleteness of which has too long
delayed the realization of the highest
blessings of the union The spirit of pa
triotism Is universal and Is ever Increas
ing In fervor The public questions which
now most engross us are lifted far above
lthr partisanship prejudice or former
ectlonal differences They affect every
part of our common country alike and
of no division on ancient lines
uestions of foreign policy of revenue
tho soundness of the currency the invio
lability of national obligations the im
provement of tho public service appeal to
tho Individual conscience of every earnest
citizen to whatever party he belongs or
In whatever section of the country he may
reside
Tho extra session of this congress
which closed during July last enacted im
portant legislation and while its full ef
fect has not yet been realized what it has
already accomplished assures us of its
timeliness and wisdom To test its per
manent value further time will be re
quired and the people satisfied with its
operation and results thus far are In no
mind to withhold from it a fair trial
Currency Problem Comes First
Tho tariff legislation having been set
tled by tho extra session of congress the
question pressing for consideration is that
of the currency The work of putting our
finances upon a sound basis difficult as
It may seem will appear easier when we
recall the financial operations of tho gov
ernment since 1SGS On the 30th day of
June of that year we had outstanding de
mand liabilities in the sum of 72586844741
On the 1st at January 1879 these liabili
ties had been reduced to 44388949588 Of
our Interest bearing obligations the fig
ures are even more striking On July 1
1566 the principal of the interest bearing
debt of tho government was 2352331208
On the 1st day of July 1893 this gum had
been reduced to 585037100 or an aggre
gate reduction of 1747294105 The in
terest bearing debt of the United States
on the 1st day of December 1897 was 847
865C20 The government money now out
standing December 1 consists of 346
881016 of United States notes 107793280
of treasury notes issued by authority of
the law of 1890 384963503 of silver certifi
cates and G120761 of standard silver dol
lars
With the great reeources of govern
ment and with the honorable example of
the past before us we ought not to hesi
tate to enter upon a currencv revision
which will make our demand obligations
less onerous to the government and re
lieve our financial laws from ambiguity
and doubt The brief review of what was
accomplished from the close of the war to
1S93 xnskeis unreasonable and groundless
sny distrust either of our financial abil
ity or soundness while the situation from
1893 to 1897 must admonish congress of the
Immediate necessity of so legislating ns
to make tho return of the conditions then
prevailing Impossible
There are many plans proposed as a
remedy for tho evil Before we can find
Iho true remedy we must appreciate the
real evil It Is not that our currency of
every kind is not good for every dollar
f It Is good good because the govern
ments pledge Is to keep it so and that
pledge will not be broken However the
guaranty of our purpose to keep the
pledge will be best shown by advancing
toward Its fulfillment
Tho evil of the present 6ystem Is found
In the great cost to the government of
maintaining the parity of our different
forms of money that is keeping all of
them at par with gold We surely cannot
be longer heedless of the burden this im
poses upon the people even under fairly
prosperous conditions while the past four
years have demonstrated that it is not
only an expensive charge upon the gov
ernment but a dangerous menace o the
national credit
It Is manifest that we must devise si me
Elan to protect the government against
ond issues for repeated redemptions We
must either curtail the opportunity for
speculation made easy by the multiplied
redemptions of our demand obligations
or increase the gold reserve for their re
demption We have 900000000 of currency
which the government by solemn enact
ment has undertaken to keep at par with
gold Nobody is obliged to redeem in gold
but the government The banks are not
required to redeem in gold The govern
ment is obliged to keep equal with gold
all its outstanding currency and coin ob
ligations while Its receipts are not re
quired to b paid in gold They are paid
in every kind of money but gold and the
only means by which the government can
with certainty get gold is by borrowing
It can get It in no other way when it
most needs it The government without
any fixed gold revenue is pledged to
maintain gold redemption which it has
steadily and faithfully done and which
under the authority now given it will
continue to do
The law which requires the government
nrter navmg redeemed Its united State
notes to pay them out again as current
funds demands a constant replenishment
of the gold reserve This is especially so
in times of business panic and when the
revenues are insufficient to meet the ex
penses of the government At such times
the government has no other way to sup
ply its deficit and maintain redemption
but through tho Increase of Its bonded
debt as during the administration of my
predecessor when 26231t400 of 4Vs bonds
were issued and sold and the proceeds
used to pay the expenses of the govern
ment in excess of the revenues and sus
tain the gold reserve While it Is true
that the greater part of the proceeds of
these bonds were used to supply deficient
revenues a considerable portion was re
quired to maintain the gold reserve
With our revenues equal to our ex
penses there would be no deficit requir
ing the Issuance of bonds But if the gold
reserve falls below 100000000 how will it
bo replenished except by selling more
bonds Is there any other way practica
ble under existing law The serious ques
tion then is shall we continue the aollcv
that has been pursued in the pastf that
in when the gold reserve reaches e point
of danger issue more bonds and supply
the needed gold or shall we provide other
means to prevent these Tecurrlng drains
upon the gold reserve If no further leg
islation is had and the policy of selling
bonds is to be continued then congress
chouldrgive the secretary of the treasurv
authority to sell bonds at long or short
periods bearing a less rate of Interest
than is now authorized by law
I earnestly recommend as soon as the
receipts of the government are quite suf
ficient to pay all the expenses of the
eminent that when any of the United
States notes are presented for redemp
tion in gold and are redeemed in gold
EUCh notes shall he lrenf nnil set nnarr
and only be paid out in exchange foe
gold This is an obvious duty If the
holder of the United States note prefers
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 rea
son for this is made all the more appar
ent when the government issues an in
terest bearing debt to provide gold for the
redemption of United States notes a non
interest bearing debt Surely It should
not pay them out again except on demand
and for gold If they are put but in any
other way they may return again- to be
followed by another bond issue to redeem
them another interest bearine debt to
redeem a non Interest bcaringwdebt
In my view it is of the utmost Impor
tance that the government should be re
lieved from the burden of providing all
the gold required for exchange and ex
port This responslbllty is alone borne by
the government without any of the usual
and necessary banking powers to help
Itself The banks do not feel the strain of
gold redemption The whole strain rests
upon the government and the size of the
gold reserve in the treasury has come to
oe with or without reason the signal of
danger or of security This ought to be
stopped if we are to have an era of
prosperity In the country With suffi
cient receipts for expenses of the govern
ment we may feel no immediate embar
rassment from our present currency but
the dancer still exists and will bo ever
present menacing us so long as the exist
ing system continues and besides it is in
time of adequate revenues and business
tranquillity that the government should
prepare for the worst We cannot avoid
without serious consequences the wise
consideration and prompt solution of this
question
The secretary of the treasury has out
lined a plan In great detail for the purpose
of removing the threatened recurrence of
a depleted gold reserve and save us from
future embarrassment on that account
To this plan I invite your careful con
sideration
I concur with the secretary of the
treasury in his recommendation that na
tional banks bo allowed to issue notes to
the face value of the bonds which thev
have deposited for circulation and that
the tax on circulation notes secured by
deposit of such bonds be reduced to one
half of 1 per cent per annum I join in
recommending that authqrltybe given for
the establishment or national flanks with
a minimum capital of 23000 This will en
able the smaller villages and agricultural
regions of the country to be supplied with
currency to meet their needs
I recommend that the issue of national
bank notes be restricted to the denomina
tion of 10 and upwards If the sug
gestions I have herein made shall have
the approval of congress then I would
recommend that national banks be re
quired to redeem their notes in gold
The Cuban Question
The most important problem with which
this government is now called upon to
deal pertaining to Its foreign relations
concerns its duty toward Spain and the
Cuban insurrection Problems and con
ditions more or less In common with those
now existing have confronted this gov
ernment at various times in the past Tho
story of Cuba for many years has been
ono of unrest growing discontent an
effort toward a larger enjoyment of lib
erty and self control of organized re
sistance to the mother country of depres
sion after distress and warfare and of
ineffectual settlement to be followed by
renewed revolt For no enduring period
since the enfranchisement of the conti
nental possessions of Spain in the west
ern continent has the condition of Cuba
or the policy of Spain toward Cuba not
caused concern to the United States
The prospect from time to time of the
weakness of Spains hold upon the Island
and the political vicissitudes and embar
rassments of the home government which
might lead to the transfer of Cuba to a
continental power called forth between
1823 and I860 various emphatic declara
tions of the policy of the United States to
permit no disturbance of Cubas connec
tion with Spain unless In the direction
of independence or acquisition by us
through purchase nor has there been any
change of this declared policjt since upon
the part of this government
The revolution which began in 1S68 last
ed for ten years despite the strenuous ef
forts of the successive peninsular govern
ments to suppress it Then as now the
government of the United States testi
fied its grave concern and offered its aid
to put an end to bloodshed in Cuba The
overtures made by Gen Grant were re
fused and the war dragged on entailing
great loss of life and treasure and in
creased Injury to American interests be
sides throwing enhanced burdens of neu
trality on the government In 1S7S peace
was brought about by the truce of Zan
jon obtained by negotiations between the
Spanish commander Martinez de Cam
pos and the insurgent leaders
Tho present insurrection broke out in
February 1895 It is not my purpose at
this time to recall its remarkable increase
or to characterize its tenacious resist
ance against the enormous forces massed
against it by Spain The revolt and the
efforts to subdue It have carried de
struction to every quarter of the island
developing wide proportions and defying
the efforts of Spain for its suppression
The civilized code of war has been dis
regarded no less so by the Spaniards than
by the Cubans The existing conditions
cannot but fill this government and the
American people with the gravest appre
hension There is no desire on the part ol
our people to profit by the misfortunes or
Spain We have only the desire to see
the Cubans prosperous and contented en
joying that measure of self control which
is the inalienable right of man protected
in their right to reap the benefit of the
exhaustless treasures of their countrv
ihe offer made by my predecessor in
April 1896 tendering the friendiv offices
of this government failed Any mediation
on our part was not accepted In brief
the answer read There is no effectual
way to pacify Cuba unless it begins with
the actual submission of the rebels to the
mother country Then only could Spain
act in the promised direction of her own
action and after her own plans
The cruel policy of concentration wis
initiated February 16 1S96 The product
ive districts controlled by the Spanish
were depopulated The agricultural in
habitants were herded in and about tlv
garrisons to die and their lands laid waste
and their dwelllings destroyed This pol
icy the late cabinet of Spain justified as a
necessary measure of war and as a means
of cutting off supplies from the insur
gents It has utterly failed as a war meas
ure It was not civilized warfare It was
extermination
Against this abuse of the lights of war
T have felt constrained on repeated occa
sions to enter the firm and earnest pro
test of this government There was muh
of public condemnation of the treatmeni
of American citizens by alleged illegal ar
rests and long imprisonment awaitinR
trial or pending protracted judicial pro
ceedings I felt it my first duty to make
Instant demand for the release or speedy
trial of all American citizens under ar
rest Before the change of the Spanish
cabinet in wvuber last twenty two pris
oners citizens of the United States had
been given their freedom For the relief
of our own citizens suffering because of
the conflict the aid of congress was
sought in a special message and undr
the appropriation or April 1S9i effeetue
aid has been given to American citizens
in Cuba many of them at their own re
quest having been returned to the United
States
The instructions given to our new min
ister to Spain before his departure for his
post directed him to Impress upon tha
government the sincere wish of the United
States to lend its aid toward the ending
of the war in Cuba by reaching a peace
ful and lasting result just and honoiabie
alike to Spain and to the Cuban people
These Instructions recited the character
and duration of the contest the wide
spread losses it entails the burdens and
restraints It imposes upon us with con
stant disturbance of national interests
and the injury resulting from an indefi
nite continuance of this state of things
It was stated that at this juncture our
government was contrained to seriously
inquire if the time was not ripe when
Spain of her own volition moved by her
own interests and every sentiment of hu
manity should put a stop to this de
structive war and make proposals of set
tlement honorable to herself and just to
her Cuban colony It was urged that as
a neighboring nation with large interests
In Cuba we could be required to wait
only e reasonable time for the mother
country to establish its authority and re
5ore order within the borders of the
inland that we could not contemplate ni
indefinite period for the accomplishment
of this result No solution was proposed
to which the slightest idea of humiliation
to Spain could attach and indeed pre
cise proposals were withheld to avoid
embarrassment to that government All
that was asked or expected was that
some safe way might be speedily provided
and permanent peace restored
It so chanced that the consideration of
this offer addressed to the same Spanish
administration which had declined the
tenders of my predecessor and which for
more than two years had poured men and
treasure into Cuba in the fruitless effort
to suppress the revolt fell to others Be
tween the departure of Gen Woodford
the new envoy and his arrival jn Spohi
the statesman who Tiaa shapeG the policy
of his country fell by the hand of an as
sassin and although the cabinet of the
late premier still held office and received
from our envoy the proposals he bore
that cabinet gave place within a few
days thereafter to a new administration
under the leadership of Sagasta
The reply to our note was received on
the 23d day of October It is in the direc
tion of a better understanding It appre
ciates the friendly purposes of this gov
ernment It admits that our country Is
deeply affected by the war in Cuba and
that Its desires for peace are just It de
clares that the present Spanish govern
ment is bound by every consideration to
a change of policy that should satisfy
the United States and pacify Cuba within
a reasonable time To this end Spain has
decided to put Into effect the political re
forms heretofore advocated by the present
premier without halting for any consid
eration in the path which In its judg
ment leads to peace The military opera
tions it is said will continue but will be
humane and conducted with all regard for
private rights being accompanied by po
litical action leading to the autonomy of
Cuba while guarding Spanish sovereign
ty This it is claimed will result in in
vesting Cuba with a distinct personality
the island to be governed by an executive
and by a local council or chamber reserv
ing to Spain the control of the foreign re
lations the army and navy and the judi
cial administration To accomplish this
the present government proposes to mod
ify existing legislation by decree leaving
the Spanish cortes with the aid of Cuban
senators and deputies to solve the eco
nomic problem and properly distribute the
existing debt
In the abeence of a declaration of the
measures that this government proposes
to fake in carrying out its profferofgood
offices It suggests that Spain being free
to conduct military operations grant
the reforms while the United States for
its part shall enforce its neutral obliga
tions and cut off the assistance which it
is asserted the insurgents receive from
this country The supposition of an in
definite prolongation of the war is de
nied It is asserted that the western prov
inces are already well nigh reclaimed
that the planting of cane and tobacco
therein has been resumed and that bv
force of arms and new and ample
reforms very early and entire pacifi
cation is promised The immediate al
teration of existing conditions under the
new administration of Cuban affairs is
predicted and therewith all the disturb
ance and all occasion for any change of
attitude on the part of the United States
will bo removed
Discussion of the question of interna
tional duties and responsibilities of the
United States ns Spain understands
them is presented with an apparent dis
position to charge us with failure in this
regard This charge is without any basis
in fact It could not have been made if
Spain had been cognizant of the constant
efforts this government has made at the
cost of millions and by the employment
of the administrative machinery of the
nation at command to perform its full
duty according to the law of nations
That it has successfully prevented the
departure of a single military expedition
or armed vessel from our shores in viola
tions of our laws would seem to be a suf
ficient answer But of this aspect of the
Spanish note It Is not necessary to speak
further now Firm In the conviction of
a wholly performed obligation due re
sponse to this charge has been made in
diplomatic course
Through all these horrors and dangers
to our own peace this government has
never broken nor In any way abrogated
its sovereign prerogative of reserving to
Itself the determination of its policy and
course according to its own high sense
of right and in consonance with the in
terests and convictions of our own people
should the prolongation of the strife so
demand
Of the untried measures these only re
main Recognition of the insurgents as
belligerents recognition of the independ
ence of Cuba neutral intervention to end
the war by imposing a rational compro
mise between the contestants and inter
vention in favor of one or the other party
I speak not of forcible annexation for
that cannot be thought of That by our
code of morality would be criminal ag
gression
Recognition of the belligerency of the
Cuban insurgents has often been can
vassed as a possible if not inevitable step
both In regard to the previous ten years
struggle and during the present war I
am not unmindful that the two houses of
congress in the spring of 1S96 expressed
the opinion by concurrent resolution that
a condition of public war existed requir
ing or justifying the state of belligerency
in Cuba and during the extra session the
senate voted a joint resolution of like im
port which however was not brought to
a vote in the house of representatives In
the presence of these significant expres
sions of the sentiment of the legislative
branch it behooves the executive to
soberly consider the conditions on
which so important a measure must
needs rest for justification It is to be
seriously considered whether the Cuban
insurrection possesses beyond dispute the
attributes of statehood which alone can
d mand the recognition of belligerency in
its favor Possession in short of the es
sential qualifications of sovereignty by
the insurgents and the conduct of war
by them according to the received code of
war are no less important factors to
ward the determination of the problem
of belligerency than are the Influences an
consequences of the struggle upon the in
ternal policy of the recognizing state
The utterances of Gen Grant in his
memorable address of December 7 1875
are signally relevant to the present situa
tion in Cuba and It may be wholesome
now to recall them At that time a ruin
ous conflict had for seven years wasted
the neighboring Island During all these
years an utter disregard of the laws of
civilized warfare and of the just demands
of humanity which called forth expres
sions of condemnation from the nations
of Christendom continued unabated
Desolation and ruin pervaded that pro
ductive region enormously affecting the
commerce of all commercial nations but
that of the United States more than any
other by reason of proximity and larger
trade and Intercourse At that juncture
Grant uttered these words which now as
then sum up the elements of the prob
lem
A recognition of the independence of
Cuba being in my opinion Impracticable
and indefensible the question which next
presents Itself is that of the recognition
of belligerent rights In the parties to the
contest In a former message to con
gress I had occasion to consider this ques
tion and reached the conclusion that the
conflict in Cuba dreadful and devastat
ing as were its incidents did not rise to
the fearful dignity of war
It Is possible that the acts of foreign
powers and even the acts of Spain her
self of this very nature might be point
ed to in defense of such recognition But
now as in its past history the United
States should carefully avoid the falsa
lights which might lead it into the mazes
of doubtful law and of questionable pro
priety and adhere rigidly and sternly to
the rule which has been its guide of do
ing only that which is right and honest
and of good report The question of ac
cording or of withholding rights of bel
ligerency must be Judged In every case
In view of the particular attending facts
Unless justified by necessity it is always
and Justly regarded as an unfriendly act
and a gratuitous demonstration of moral
support to the rebellion It is necessary
and it Is required when the interests and
rights of another government or of its
people are so far affected by a pending
civil conflict as to require a definition of
its relations to the parties thereto but
this conflict must be one which is recog
nized in the sense of international law as
war
Belligerency too is a fact The mere
existence of contending armed bodies and
their occasional conflicts do not consti
tute war In the sense referred to Apply
ing to the existing condition of affairs in
Cuba the tests recognized by publicists
and writers on international law and
which have been observed by nations of
dignity honesty and power when free
from sensitive or selfish and unworthy
motives I fail to find in the insurrection
the existence of such a substantial po
litical organization real palpable and
manifest to the world having the forms
and capable of the ordinary functions of
government towards its own people and
to other states with courts for the ad
ministration of justice with a local habi
tation possessing such organization of
force such material such occupation of
territory as to take the contest out of the
category of a mere rebellious Insurrection
or occasional skirmishes and place it on
the terrible footing of war to which a
recognition of belligerency would aim to
elevate It
The contest moreover is solely on land
the Insurrection has not possessed itself
of a single seaport whence It may send
forth its flag nor has it any means of
communication with foreign powers ex
cept through the military lines of the ad
versaries No apprehension of any of
those sudden and difficult complications
which occur on the ocean ls iapt to pre
cipitate upon the vessels both commer
cial and national and upon the consular
officers of other powers calls for the
definition of their relations to the parties
to the contest
Considered as a question of expediency
I regard the accordance of belligerent
rights still to be as unwise and prema
ture as I regard It to be at present inde
fensible as a measure of right Such rec
ognition entails upon the country accord
ing the rights which flow from It difficult
and complicated duties and requires the
exaction from the contending parties of
the strict observance of their rights and
obligations It confers the right of search
upon the high seas by vessels of both
parties It would subject the carrying of
arms and munitions of war which now
may be transported freely and without in
terruption in vessels of the United States
to detention and possible seizure it would
give rise to countless vexatious questiona
would release the parent government
from responsibility for acts done by the
Insurgents and would Invest Spain with
the right to exercise the supervision rec
ognized by our treaty of 1795 over our
commerce on the seas a very large part
of which in its traffic between the At
lantic and the gulf states and between
all of them and the states on the Pacific
passes through the waters which wash
the shores of Cuba The exercise of this
supervision could scarce fail to lead if
not to abuse certainly to collisions per
ilous to the peaceful relations of the two
states There can be little doubt as to
what result such supervision would be
fore long draw upon this nation It would
be unworthy of the United States to in
augurate the possibilities of such result by
measures of questionable right or ex
pediency or by any indirection
Turning to the practical aspects of a
recognition of belligerency reviewing its
inconveniencies and positive dangers stiil
further pertinent considerations appear
In the code of nations there is no such
thing as a naked recognition of belliger
en y unaccompanied by the assumption
of international neutrality Such recog
nition without more will not confer upon
either party to a domestic conflict a status
not theretofore actually possessed or af
fect the relation of either party to other
states The act of recognition usually
takes the form of a solemn proclamation
of neutrality which recites the de facto
condition of belligerency as its motive
It announces a domestic law of neutrality
in declaring the state It as
sumes the international obligations
of a neutrality in the presence
of a public state of war It warns
all citizens and others within the juris
diction of the proclaimant that they vio
late those rigorous obligations at their
own peril and cannot expect to be shield
ed from the consequences The right of
visit and search on the seas and seizure
of vessels and cargoes and contraband of
war and good prize under admiralty law
must under international law be admitted
as a legitimate consequence of a procla
mation of belligerency While according
the equal belligerent rights defined by
public law to each party in our ports dis
favors would be imposed on both which
while nominally equal would weigh
heavily In behalf of Spain herself Pos
sessing a navy and controlling the ports
of Cuba her maritime rights could be
asserted not only for the military invest
ment of the island but up to the margin
of her own territorial waters and a con
dition of things would exist for which the
Cubans within their own domain could
not hope to create a parallel its
creation through aid or sympathy from
within our domain would be even more
impossible than now wkii the ad itiunal
obligations of international neutrality we
would perforce assume
The enforcement of thi3 enlarged and
onerous code of neutrality woikl onlv bt
influential within our jurisdiction on both
land and sea and applicable to our own
instrumentalities It could impait to the
United States no jurisdiction with Son in
or the insurgents It would give the
United States no right of intervention to
enforce the conduct of the strife within
the paramount authority of Spain accord
Ing to the international code of war
For these reasons I regard the recogn
tion of the belligerency of the Cuban in
surgents as now unwise and therefore
inadmissible Should that step hereafter
be deemed wise as a measure of right and
amy tne executive will take it
Intervention upon humanitarian ground
has been frequently suggested and nu
not failed to receive my most anxious and
earnest consideration But should sucli
a step be now taken when it is apparent
that a hopeful change has supervened in
the policy of Spain toward Cuba A new
government has taken office In the moth
er country It Is pledged in advance to
the declaration that all the effort in the
world cannot suffice to maintain peace in
Cuba by the bayonet that vague prom
ises of reform after subjugation afford
no solution of the insular problem that
with a substitution of commanders must
come a change of the past system of war
fare fon one in harmony with a new pol
ey wnich shall no longer am to urivt
the Cubans to the horrible alternative
of taking to the thicket or succumbing
in mjaery that reforms must tbe insti
tuted in accordance with the ieeds am
circumstances of the time and that these
reforms while designed to give full au
tonomy to the colony and to create a vir
tual entity and seli controlled administra
tion shall yet conserve and affirm the
sovereignty of Spain by a just distribu
tion of powers and burdens upon a basis
of mutual interest untainted by methods
of selfish expediency
Tha first acts of the new government
lie in these honorable paths The policy
of cruel rapine and extermination that so
long shocked the universal sentiment of
humanity has been reversed Under the
new military commander a broad clem
ency is proffered Measures have al
ready been set on foot to relieve the hor
rors of starvation The power of the
Spanish armies It is asserted is to be
used not to spread ruin and desolation
but to protect the resumption of peace
ful agricultural pursuits and productive
industries That past methods are futile
to force peace by subjugation is freely
admitted and that ruin without concilia
ton must inevitably fail to win for Spain
the fealty of a contented dependency
Decrees In application of the foreshad
owed reforms have already been promul
gated The full text of these decrees hds
not been received but as furnished in a
telegraphic summary from our ministry
are All civil and electoral rights of pe
ninsular Spaniards are in virtue of ex
isting constitutional authority forthwith
extended to colonial Spaniards A schem
of autonomy has been proclaimed by de
cree to become effective upon ratification
by the cortes It creates a Cubau parlia
ment which with the insular executive
can consider and vote upon all subjects
affecting the local order and Interests and
will possess unlimited powers save as to
matters of state war and the navy as
to which the governor general acts by his
own authority as the delegate of the cen
tral government This parliament re
cievea the oath of the governor general to
preserve faithfully the liberties and priv
ileges of the colony and to it the colonial
secretaries are responsible It has the
right to propose to the central govern
ment through tha governor general mod
ifications of the national charter and to
invite new projects of law or executive
measures In the interest of the colony
Besides it3 local powers it Is competent
first to regulate electoral registration
and procedure and prescribe the quali
fications of electors and the manner of
exercising suffrages second to organize
courts of justice with native Judges from
members of the local bar third to frame
the insular budget both as to expendi
tures and revenues without limitation o
any kind and to set opart the revenues
meet the Cuban share of the natlona
budrret whch latter would be voted by
the natonal cortes with the assistance i
of the Cuban senators and deputies
fourth to initiate or take part in the ne
gotiations of the national government for
commercial treaties which may affect
public interests fifth to accept or reject
commercial treaties which the national
government may have concluded without
the participation of the Cuban govern
ment sixth to frame the colonial tariff
acting In accord with the peninsular gov
ernment in scheduling articles of mutual
commerce between the mother country
and the colonies Before introducing or
voting upon a bill the Cuban govern-
ment or the chambers will lay tne proj
ect before the central government and
hear its opinion thereon all the corre
spondence In such regard being made
public Finally all conflicts of Jurisdiction
arising between the different municipal
provincial and Insular assemblies or be
tween the latter and the insular executive
power and which from their nature may
not be referable to the central govern
ment for decision shall be submitted to
the courts
That the government of Sagasta has
entered upon a course from which reces
sion with honor Is impossible can hardly
be questioned that in the few weeks It
has existed it has made earnest of the
sincerity of Its professions Is undeniable
I Bhall not impugn its sincerity nor
should Impatience be suffered to embar
rass it In the task it has undertaken It
x honestlv due to Snaln and to our
ly relations with Spain that she should
be given a reasonable chance to realize
her expectations and to prove the assert
ed efficiency of the new order of things
to which she stands irrevocably commit
ted She has recalled the commander
whose b ital orders inflamed the Amer
ican mind and shocked the civil world
She has modified the horrible order of
concentration and has undertaken to care
for the helpless and permit those who de
sire to resume the cultivation of their
fields to do so and assures them of the
protection of the Spanish government in
their lawful occupations She has just
released the Competitor prisoners who
were sentenced to death and who have
been the subject of repeated diplomatic
correspondence during both this and the
preceding administration
Not a single American citizen Is now
under arrest or In confinement in Cuba
of whom this government has any knowl
edge The near future will domonstrate
whether the indispensable condition of a
righteous peace just alike to the Cubans
and to Spain as well as equitable to all
Interests so Intimately involved in the
welfare of Cuba is likely to be attalnod
If not the exigency of further and other
action by the United States will remain to
be taken When that time comes the
action will bo determined in the line of
indisputable right and duty It will be
faced without misgiving or hesitancy in
the light of the obligation this government
owes to itself to the people who have
confided to it the protection of their in
terests and honor and to humanity
Sure of the right keeping free from nil
offense ourselves actuated only by up
right and patriotic considerations moved
neither by passion nor selfishness the
government wlil continue Its watchful
care over the rights and property of
American citizens and will abate none of
its efforts to bring about by peaceful
agencies a peace which shall be honora
ble and enduring If it shall hereafter ap
pear to be a duty Imposed by our obliga
tions to ourselves to civilization and hu
manity to intervene with force it shall
be without fault on our part and only
because the necessity for such action will
be so clear as to command the support
and approval of the civilized world
Crjjes Annexation of Hawaii
By a special message dated the Ijlh
day ofl June last I laid before the seiate
a treaty signed that day by the plenipo
tentiaries of the United States and of the
republic of Hawaii having for Its purpose
the Incorporation of the Hawaiian islands
as an integral part of the United States
and under its sovereignty The senate
having removed the injunction of secrecy
although the treaty is still pending before
that body the subject may be properly
referred to In this message because the
necessary action of the congress Is re
quired to determine by legislation many
details of the eventual union should the
fact of annexation be accomplished as
I believe it should be
While consistently disavowing from a
very early period any aggressive policy
of absorption In regard to the Hawaiian
group a long series of declarations
through three quarters of a century
has proclaimed the vital iiiteiest of the
United States in the independent life ot
tho islands and their intimate commer
cial dependence upon this counfy At
the same time it has been repeatedly as
serted that in no event could tiie entity
of Hawaiian statehood cease by the
passage of the islands under the tioirri
tlon or influence of another power i trm
the United States Under these circum
stances the logic of events required that
annexation heretofore offered but de
clined should in the ripeness of tme
come about as the natural result of the
strengthening ties that bind us to tose
islands and be realized by the free will
of the Hawaiian state The treaty
was unanimously ratified without amend
ment by the senate and by the republic
at Hawaii on the 10th of September last
and only awaits the favorable action of
the American senate to effect the
aborption of tbe islands into the
domain of the United States What the
eonditions of 6uch a union shall be thr
lolltical relation thereof of the United
States the character of the local admin
istration the quality and degree of elect
ive franchise of the inhabitants the ex
tension of the federal laws to the terri
tory or the enactment of special laws
to fit the peculiar condition thereof the
regulation if need be of the labor system
therein are all matters which the treaty
has wisely relegated to the congress
If the treaty is confirmed as every con
sideration of dignity and honor requires
the wisdom of congress will see to it that
avoiding abrupt assimilation of elements
perhaps hardly yet fitted to share in the
highest franchises of citizenship and hav
ing due regard to the geographical condi
tions the most just provisions for self
rule in local matters with the larges
political liberties as an integral part ol
our nation will be accorded to thf
Hawalians No less is due to a people
who after nearly fifty years of demon
strated capacity to fulfill the obligations
of self government statehood come of
their own free will to merge their desti
nies in our body politic
The questions which have arisen be
tween Japan and Hawaii by reason of
treatment of Japanese laborers emlrat
ng to the islands under the Hawaiian
Japanese convention of 1SS8 are In a sat
sfactory state of settlement by nego
tiation This government has not beer
nvited to mediate and on the other nana
has sought no intervention in that matte
further than to evince Its kindliest dis
position toward such a speedy and direct
adjustment by the two sovereign states
as shall comport with equity and honor
It is gratifying to learn that the appre
hensions displayed on the part of Japan
lest the cessation of Hawaiis natlona
Hfe through annexation might impair
privileges to which Japan honorably lair
claim have given place to confidence ir
the uprightness of this government anr
in the sincerity of purpose to deal with
ill possible ulterior questions in the
jroad3t spirit of friendliness
As to the representation of this gov
ernment to Nicaragua Salvador ant
osta Rica I have concluded that Wm
Merry confirmed as minister of thf
United States to the states of Nicaragua
Salvador and Costa Rica shall proceed
o San Joae Costa Rloa and there tem
jorarlly establish the headquarters of the
United States to those three states I
rook this action for what I regarded as
the paramount Interests of this country
It was developed upon an investigation
by the secretary of state that the govern
ment of Nicaragua while not unwilling
to receive Mr Merry in his diplomatic
quality was unable to do so because of
the compact concluded June 20 1895
whereby the republic and those of Salva
dor and Honduras forming what Is known
as the greater republic of Central Amer
ica had surrendered to the representa
tive diet thereof their right to receive
and send diplomatic agents The diet was
not willing to accept him because he was
not accredited to that body I could not
accredit him to that body because the ap
propriation law of congress did not per
mit It Mr Baker the present mlnistei
at Managua has been directed to presen
V letters of recall
v Godfrey Hunter has likewise bee
-edited to the governments of Guate
a and Honduras the same as his pre- j
ror Guatemala Is not a member o
greater republic of Central America
hut Honduras is Should this latter gov
ernment decline to receive him he has
been instructed to report this fact to his
government and await its further in
structions
A subject of large importance to our
country and increasing appreciation on
the part of the eople is the completion
of the great highway of trade between
the Atlantic and Pacific known as the
Nicaraguan canal Its utility and value
to American commerce Is universally ad
mitted The commission appointed under
date of July 24 last to continue the sur
veys and examinations authorized by the
act approved March 218S5 in regard to
the proper route feasibility and cost of
construction of the Nicaragua canal with
a view of making complete plans for tho
entire work of construction of such a
canal 13 now employed in tne unuer
taklng In the future I shall take occa
sion to transmit to congress the report of
this commission making at the same tim
such further suggestions as may then
seem advisable
Bimetallic Commissions Work
Under the provisions of the act of con
gress approved March 3 1S97 for the pro
motion of an International agreement re
specting bimetallism I appointed on the
14th day of April 1SD7 Hon Edward O
Wolcott of Colorado Hon Adlal E Stev
enson of Illinois and Hon James A
Payno of Massachusetts as special en
voys to represent the United States They
have been diligent in their efforts to se
cure the co operation of European coun
tries in the international settlement of
the question but up to ths tme have not
been able to secure an agreement con
templated by their mission
The gratifying action of our great sis
ter republic of France In joining this
country in the attempt to bring about an
agreement among the principal commer
cial nations of Europe whereby a fixed
and relative value between gold and sil
ver shall be secured furnishes assurance
that wo are not alone among the larger
nations of the world In realizing the in
ternational character of the problem and
in the desire of reaching some wise and
practical solution of it The British gov
ernment has published a resume of the
views takon Jointly by the French ambas
sador in London and the special envoy
of the United States with whom our
ambassador at London actively co-operated
in the presenting of tho subject to
her majestys government This will be
laid before congress Our special envoys
have not made their final report as furth
er negotiations between the representa
tives of this government and the govern
ments of other countries are pending and
in contemplation They believe that
doubts which have been raised in certain
quarters respecting the question of main-
taining the stability of the parity between
the metals and kindred questions may be
solved by further negotiations
Meanwhile it gives me satisfaction to
state that the special envoys have already
demonstrated their ability and fitness to
deal with the subject and it is to be
carnestly hoped that their labors may re
sult In an International agreement which
will bring about recognition of both gold
and silver as money upon such terms antf
with such safeguards as will secure the
use of both metals upon a ba3s which
shall work no Injustice to any class of
our citizens
Merchant Marine
In order to execute as nearly a3 possi
ble the provisions In the 3d and 4th sec
tions of the revenue act approved July 24
1S97 I appointed the Hon John A Kas
son of Iowa a special commissioner
plenipotentiary to undertake the requisite
negotiations with foreign countries de
siring to avail themselves of these pro
visions The negotiations are now pro
ceeding with several governments both
European and American and It is believed
that by a careful exercise of the powers
conferred by that act some grievances
of our own and of other countries in our
mutual trade relations may be either re
moved or largely alleviated and that the
volume of our commercial exchanges may
be enlarged with advantage to both con
tracting parties
Most desirable f om every standpoint ot
national interest and patriotism Is the
effort to extend our foreign commerce
To thi3 end our merchant marine should
be improved and enlarged We should do
our full share of the carrying trade of the
world We do not do it now We should
be the laggard no longer The Inferiority
of our merchant marine is Justly humili
ating to the national pride The govern
ment by every proper constitutional
means should aid in making our ships
familiar visitors at every commercial port
of the world thus opening up new anl
valuable markets to the surplus products
of the farm and the factory
The efforts which had been made during
the two previous years by my predecessor
to secure better protection to the fur
seals in the north Pacific ocean and Bear
ing sea were renewed at an early date t
by this administration and have been J
pursueu wun earnestness upon my in-
viKiuuii i nc Huvei Jiiuttius ol japan ana
Russia sent delegates to Washington and
an international conference was held dur
ing the months of October and November
last wherein it was unanimously agreed
that under the existing regulations thhj
species of useful snimaTs was threatened
with extinction and that an International
agreement of all the Interested parties
was necessary for their adequate protec
tion
The government of Great Britain did
not see proper to be represented at this
eonference but subsequently sent to
Washington as delegates the expert com
missioners of Great Britain and Canada
who had during the past two years visited
the Prybyloff islands and who met in
conference similar commissioners on the
part of the United States The result of
this conference was an agreement on Im
portant facts connected with the condi
tion of the seal herd heretofore in dis
pute which should place beyond contro
versy the duty of the governments con
cerned to adopt measures without delay
for the preservation and restoration of
me nera Negotiations to this end are
now in progress the result of which I
hope to be able to report to congress at
an early day
International arbitration cannot be
omitted from the list of subjects claiming
our consideration Events have only
served to strengthen the general views on
this question expressed In my Inaugural
address Tho best sentiment of the civil
ized world is moving toward the settle
ment of differences between nations with
out resorting to the horrors of war Treat
ies embodying these humane principles on
broad lines without in any way lmper
ling our interests or our honor shall
have my constant encouragement
Tho acceptance by this government of
he invitation of the republic of France
o participate in the universal exposition
of 1900 at Paris was immediately fol
lowed by tho appointment of special
commissioner to represent the United
States in the proposed exhibition with
special reference to the securing of spacw
for an adequate exhibit on behalf of the
United States
The special commissioner delayed bis
leparture for Paris long enough to ascer
ain the probable demand for space by
American exhibitors His inquiries de
veloped an almost unprecedented inter
st in the proposed exposition and the in
ormatlon thus acquired enabled him to
iustify an application for a much larger
illotment of space for the American eec
Mon than had been reserved by the ex
position authorities The result was par
ticularly gratifying In view of the fact
that the United States was one of the list
ountries to accept the invitation ol
France
The reception accorded our special com
missioner was most cordial and he waa
dven every reasonable assurance that the
United States would receive conalder
uion commensurate with the proportions
of our exhibit The report of the specal
omrnlsslon es to the magnitude and Im
bortance of the coming exposition and the
reat demand for space by American ex
ilbltora supplies new arguments for a
iberal and judicious appropriation by
zonzress to the end that an exhibit fairly
representative of the industries and re
sources of our country may be made in
an exposition which will illustrate the
worlds progress durimr the nineteenth
century That exposition is Intended
to be the most Important and compre
hensive of the long series of international
exhibitions of which our own at Chicago
n a brilliant example and it is desired
he United States make a worthy
of American genius and skill in
unrivalled achievements in every
of industry-
Xavai Forces
The present immediately effective navy
consists of four battleships of the first
class two of the second class and forty
eight other vessels ranging from armored
cruisers or torpedo boats There are
under construction five battleships of tho
first class sixteen torpedo boats and ono
submarine boat No provision hc yet
Seen made for armor for three of the five
battleships as it has been Impossible to
abtajQ it at the price fixed by congress
It is of great Importance that congress
provide this armor as until then tha
shins are of no fighting value
A
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