y
w
J
ii amis i state
President McKinley Discusaes Them in a
Lengthy Message
IMPORTANT MATTERS MENTIONED
e
Cho Situation Present and JTutnre of
Cliiucso Affairs Given Much Space
Decrease of Wur Tax Advocated As to
Pensions Cuban Matters lite Etc
To the Senate and House of Represen
tatives At the outgoing of the old and
the Incoming of the new century you be
gin the last session of the Fifty sixth
congress with evidences on every hand
of individual and national prosperity and
with proof of the growing strength and
increasing power for the good of repub
lican institutions Your countrymen will
join with you in felicitation that Amer
ican liberty is more firmly established
than ever before and that love for it
and the determination to preserve it are
more universal than at any former per
iod of our history
The republic was never so strong be
cause never so strongly entrenched in
4he hearts of the people as now The
constitution with few amendments ex
ists as it left the hands of its authors
Tnc additions which have been made to
it proclaim larger freedom and more ex
tended citizenship Popular government
has demonstrated in its 124th year of trial
here its stability and security and its
ernciency as the best instrument of na
tional development and the best safeguard
to human rights
When the Sixth congress assembled in
November 1800 the population of the
United States was 5308483 It is now
76304799 Then we had sixteen states
Now we have forty five Then our ter
ritory consisted of 809050 square miles It
is now 3846503 square miles Education
religion and morality have kept pace
with our advancement in other direc
tions and while extending its power the
government has adhered to its founda
tion principles and abated none of them
in dealing with our new peoples and pos
sessions - A nation so preserved and
blessed gives reverent thanks to God
and invokes His guidance and the con
tinuance of His care and favor
In our foreign intercourse the domi
nant question has been the treatment
of the Chinese problem Apart from this
our relations with the powers have been
happy
REVIEW OF AFFAIRS IN CHINA
The recent tioubles in China spring
from the anti foreign agitation which
for the last three years has been gaining
in strength in the northern provinces
Their origin lies deep in the character
of the Chinese races and in the tradi
tions of their government The Taiping
rebellion and the opening of the Chinese
ports to foreign trade and settlement
disturbed alike the homogenity and the
seclusion of China
Meanwhile foreign activity made Itself
felt in all quarters not alone on the
coast but along the great river arteries
and in the remoter districts carrying new
ideas and introducing new asosciatlons
among a primitive people which had
pursued for centuries a national policy
oji Jsolatlon The telegraph and the
railway sperading over their land the
steamers plying on their waterways the
mcrclanJJs and the mlsionaries pene
trating year by year to the interior be
came to the Chinese mind types of an
alion invasion changing the course of
their national life and fraught with
vague forebodings of disaster to their
beliefs and their self control
For seveial ye3rs before the present
troubles all the resources of foreign di
plomacy backed by moral demonstra
tions of the physical force of fleets and
arms have been needed to secure due
respect for the treaty rights of for
eigners and to obtain satisfaction from
the responsible authorities for the
outrages upon the persons and
property of unoffending sojourners which
from time to time occurred at widely
separated points in the northern prov
inces as in the case of the outbreak in
Sze Chuen and Shan Tung
Posting of anti foreign placards became
a dally occurrence which the repeated
reprobation of the imperial power failed
to check or punish These inflammatory
appeals to the ignorance and supersti
tion of the masses mendacious and ab
surd In their accusations and deeply hos
tile in their spirit could not but work
cumulative harm They aimed at no
particular class of foreigners they were
impartial in attacking everything for
eign An outbreak in -Shan Tung in
which German misionaries were slain
was the too natural result of these
malevolent teachings The posting of se
ditious placards exhorting to the utter
destruction of foreigners and of every
foreign thing continued unrebuked Hos
tile demonstrations toward the stranger
gained strength by organization
The sect commonly styled the Boxers
developed greatly in the porvinces north
of the Yang Tse and with the collusion
of many notable officials including some
In the Immediate councils of the throne
itself brcame alarmingly aggressive
No foreigners life outside of the pro
tected treaty ports was safe No for
eign interest was secure from spoliation
The diplomatic representatives of the
powers in Pekln strove in vain to check
this movement Protest was followed by
demand and demand by renewed protest
to be met with perfunctory edicts from
fce palace and evasive and futlte assur
ance from Ihs The cir
cle of the Boxer Influence narrowed
about Pekln and while nominally stig
matized a seditious it was felt that
the spirit psrvaded the capital itself that
the imperial forces were imbued with
its doctrines and that immediate coun
selors of tlm empress dowager were in
full sympathy with the anti foreign move
ment
The increasing gravity of the condi
tions In China and the imminence of
peril to our own diversified interests in
the empire as wall as to those of all
the bother treaty governments were soon
appreciated by this government caus
ing it profound soJJoltude The United
States from the eilies days of for-
eign intercourse with China had Toliowed
ai policy of peace omitting no occasion
tto testify good will to fur i her the ex
tension of lawful trade to respect the
sovcreignty of its government and to In
ifiure by all legitimate and kindly but
earnest means the fulest measure of
protection for the lives and pioperty of
our law abiding citizens and for the ex
ercise of their beneficent callings among
the Chinese people
Mindful of this it was felt to be ap
propriate that our purpose should be pro
nounced In favor of such a course as
would hasten united action of the pow
ers at Pekln to promote the administra
tive reforms so greatly needed for
strengthening the imperial government
and maintaining the integrity of China
In which we believed the whole western
world to be alike concerned To these
ends I caused to be addressed to the
several powers occupying territory and
maintaining spheres of influence in China
the circular proposals of 1899 inviting
-from them declarations of their inten
sions and views as to the desirapility
of the adootlon of measures insuring the
benefits of equality of treatment of all
foreign trade throughout China
4- With gratifying unanimity the re
isponses coincided with this common
Hey enabling me to see in the successful
termination of these negotiations proof
of the friendly spirit which animates the
various powers interested in the untram
mcled development of commerce and in
dustry of the Chinese empire as a source
of vast benefit to the whole commercial
world
In this conclusion which I had the
gratification to anounce as a completed
tn the interested powers on
March 20 1900 I hopefully discerned a
potential factor ror me aoaieraeni oi
the distrust of foreign purposes -which
for a year past had appeared to Inspire
the policy of the Imperial government
nd for the effective exertion by it of
upower and authority to quell the critical
anti foreign movement in the northern
provinces most immediately influenced
Jiy the Hanchu sentiment
Seeking to testify confidence in the
willingness and ability of the imperial
Administration to redress the wrongs and
m i tmu im9n tsryj
prevent the evils we suffered and reared
tne marine guard which had been sent
to Pekln in the autumn of 1899 for the
protection of the- legation was with
drawn at the earliest pra ctical moment
and all the pending questions were re
mitted as far as we were concerned to
the ordinary resorts of diplomatic inter
course
The Chinese government proved how
ever unable to check the rising strength
of the Boxers and appeared to be a
prey to internal dissensions In the
unequal contest the anti foreign Influ
ences soon gained the ascendancy under
the leadership of Prince Tuan Organ
ized armies of Boxers with which the
imperial armies affiliated held the coun
try between Pekln and the coast pene
trated into Manchuria up to the Russian
border and through their emissaries
threatened a like rising throughout
northern China
Attacks upon foreigners destruction of
property and slaughter of native con
verts were reported from all sides The
already permeated with
hostile sympathies could make no ef
fective response to the appeals of the le
gations At this critical juncture in the
early spring of this year a proposal was
made by the other powers that a com
bined fleet should be assembled in Chi
nese waters as a moral demonstration
under cover of which to exact of the
Chinese government respect for foreign
treaty rights and the suppression of the
Boxers
The United States while not partici
pating in the joint demonstration
promptly sent from the Philippines all
ships that could be spared for service on
the Chinese coast A small force of ma-
i rines was landed at Taku and sent to
Pekln for the protection of the Amencna
legation Other powers took similar ac
tion until some 400 men were assembled
in the capital as legation guards
Still the peril increased The legations
reported the development of the seditious
movement In Pekin and the need of in
creased provision for defense against it
While preparations were in progress for a
larger expedition to strengthen the lega
tion guards and keep the railways open
an attempt of the foreign ships to make
a landing at Taku was met by a fire from
the Chinese forts The forts were there
upon shelled by the foreign vessels the
American admiral taking no part in the
attack on the ground that we were not at
war with China and that a hostile dem
onstration might consolidate the anti
foreign elements and strengthen the Box
ers to oppose the relieving column Two
days later the Taku forts were captured
after a sanguinary conflict Severance of
communication with Pekin followed and
a combined force of additional guards
which were advancing to Pekln by the
Pel Ho was checked at Lang Fang The
Isolation of tne legations was complete
On June 19 the legations were cut off
An identical note from the yamen or
dered each minister to leave Pekin un
der a promised escort within twenty
fpur hours To gain time they replied
asking prolongation of the time which
was afterward granted and requesting
an interview with the tsungll yamen on
the following day No reply being re
celved on the morning of the 20th the
German minister Baron von Ketteier set
out for the yamen to obtain a response
and on the way was murdered
An attempt by the legation guard to
recover his body was foiled by the Chi
nese Armed forces turned out against
the legations Their quarters were sur
rounded and attacked The mission
compounds were abandoned their inmates
taking refuge in the British legation
where all the other legations and guards
gathered for more effective defense Four
hundred persons were crowded in Us
narrow compass Two thousand native
converts were assembled in a nearby
palace under protection of the foreign
ers Lines of defense were strengthened
trenches dug barricades raised and prep
arations made to stand a siege which
at once began From June 20 until July
17 writes Minister Conger there was
scarcely an hour during which there was
not firing upon some part of our lines
and into some of the legations varying
from a single shot to a general and con
tinuous attack along the whole line Ar
tillery was placed around the legations
and on the overlooking palace walls and
thousands of 3 inch shot and shell were
fired destroying some buildings and dam
gaing all So thickly did the balis rain
that when the ammunition of the be
sieged ran low five quarts of Chinese
bullets were gathered in an hour in one
compound and recast
Attempts were made to burn the lega
tions by setting neighboring houses on
fire but the flames were successfully
fought off although the Austrian Bel
gian Italian and Dutch legations were
then and subsequently burned
To save life and ammunition the be
sieged sparingly returned the incessant
fire of the Chinese soldiery fighting only
to repel attack or make an occasional
successful sortie for strategic advantage
such as that of fifty five Americans Brit
ish and Russian marines led by Captain
Myers of the United States Marine corps
which resulted in the capture of a for
midable barricade on the wall that grave
ly menaced the American position It
was held to the last and proved an in
valuable acquisition because commanding
the water gate through which the relief
column entered
During the siege the defenders lost
sixty five killed 135 wounded and seven
by disease the last all children
On July 14 the besieged had their first
communication with the tsungli vamen
from whom a message came inviting to
a conference which was declined Cor
respondence however ensued and a sort
of armistice was agreed upon which
stopped the bombardment and lessened
the rifle fire for a time Even then no
protection whatever was afforded nor any
aid given save to send to the legations
a small supply of fruit and three oacks
of flour
Indeed the only communication had
with the Chinese government related to
the occasional delivery or dispatch of a
telgeram or to the demands of the ttungll
yamen for the withdrawal of the legation
to the coast under escort Not only are
the protestations of the Chinese govern
ment that it protected and succored the
legations positively contradicted but ir
resistible proof accumulates that the at
tacks upon them were made by Imperial
troops regularly uniformed armed and
officered belonging to the command of
Jung Lu the imperial commander-in-chief
Decrees encouraging the Boxers
organizing them under prominent im
perial officersT provisioning them and even
granting them large sums in the name
of the empress dowager are known to
exist Members of the tsungli yamen who
counseled protection of the foreigners
were beheaded Even In the distant prov
inces men suspected of foreign sympathy
were put to death prominent among
these being Chang Yen Hooh formerly
Chinese minister in Washington
With the negotiation of the partial ar
mistice of July 14 a proceeding which was
doubtless promoted by the representations
of the Chinese envoy in Washington the
way was opened for the conveyance to
Mr Conger of a test message sent by
the secretary of state through the Kind
offices of Minister Wu Ting Fang Mr
Congers reply dispatched from Pekln on
July 18 through the same channel afford
ed to the outside world the first tidings
that the inmates of the legations were
still alive and hoping for succor
This news stimulated the powers for a
joint relief expedition in numbers suffi
cient to overcome the resistance which
for a month had been organizing between
Taku and the capital Reinforcements
sent by all the co operating governments
were constantly arriving The United
States contingent hastily assembled from
the Philippines or dispatched from this
country amounted to some 5000 men un
der the able command first of the la
mented Colonel Llscum and afterward of
General Chaffee
Toward the end of July the movement
began A severe conflict followed at Tien
Tsin In which Colonel Liscum was killed
The city was stormed and partly de
stroyed Its capture afforded the base of
operations from which to make the final
advance which began In the first days
of August the expedition being made of
Japanese Russian British and American
troops at the outset
Another battle was fought and won at
Yang Tsun Thereafter the disheartened
Chinese troops offered little show of re
sistance A few days later the import
ant position of Ho Si Woo was taken
A rapid march brought the united forces
to the populous city of Tung Chow which
capitulated without a contest
On August 14 the capital was reached
After a brief conflict beneath the walls
the relief column entered and the lega
tions were saved The United States sol
diers sailors and marines officers and
men alike in those distant climes and
unusual olirroundlngs showed the same
valor discipline and good conduct and
gave proof of the same high degree of
intelligence and efficiency which have dis
tinguished them in every emergency
The imperial family and the govern
ment had fled a few days before The
city was without visible control The
remaining imperial soldiery had made on
the night of the 13th a last attempt to
exterminate the besieged which was gal
lantly repelled It fell to the occupying
forces to restore order and organize a
provisional administration
Happily the acute disturbances were
conflned to the northern provinces It is
a relief to recall and a pleasure to record
the loyal conduct of the viceroys and
local authorities of the southern and east
ern provinces Their efforts were con
tinuously directed to the pacific control
of the vast populations under their rule
and to the scrupulous observance of for
eign treaty rights At critical moments
they did not hesitate to memorialize the
throne urging the protection of the
Uons the restoration of communication
and the assertion of the imperial author
ity against the subversive elements They
maintained excellent relations with the
official representatives of foreign powers
To their kindly disposition is largely due
the success of the consuls in removing
many of the missionaries from the in
terior to places of safety In this rela
tion the action of the consuls should be
highly commended In Shan Tung and
eastern Chi Li the task was difficult but
thanks to their energy and the co-operation
of American and foreign naval com
manders hundreds of foreigners includ
ing those of other nationalities than ours
were rescued from imminent peril
The policy of the United States through
all this trying period was clearly an
nounced and scrupulously carried out
A circular note to the powers dated
July 3 proclaimed our attitude Treat
ing the condition in the north as one
of virtual anarchy in which the great
provinces of the south had no share we
regarded the local authorities in the lat
ter quarters as representing the Chinese
people with whom we sought to remain
in peace and friendship Our declared
aims involved no war against the Chi
nese nation We adhered to the legiti
mate office of rescuing the imperiled le
gation obtaining redress for wrongs al
ready suffered securing wherever pos
sible the safety of American life and
property in China and preventing a
spread of the disorders or their recur
rence
As was then said the policy of the
government of the United States is to
seek a solution which may bring about
permanent safety and peace to China
preserve Chinese territory and adminis
trative entity protect all rights guaran
teed to friendly powers by treaty and in
ternational law and safeguard for the
world the principle ofequal and impar
tial trade with all parts of the Chinese
empire
Faithful to those professions which as
it proved reflected the views and pur
poses of the other co operating govern
ments all our efforts have been directed
toward ending the anomalous situation
In China by negotiations for a settlement
at the earliest possible moment As soon
as the sacred duty of relieving our le
gation and its dependents was accom
plished we withdrew from active hos
tilities leaving our legation under an
adequate guard at Pekin as a channel
of negotiations and settlement a course
adopted by others of the interested pow
ers Overtures of the empowered repre
sentatives of the Chinese emperor have
not been considerably entertained The
Russian propositions looking to the res
toration of the Imperial power in Pekin
has been accepted as in full consonance
with our own desires for we have held
and hold that effective reparation for
wrongs suffered and an enduring settle
ment that will make their recurrence im
possible can best be brought about
under an authority which the Chinese
nation reverences and obeys While so
doing we forego no jot of our undoubted
right to exact exemplary and deterrent
punishment of the responsible authors
and abettors of the criminal acts where
by we and other nations have suffered
grievous injuries
Taking as a point of departure the im
perial edict appointing Li Hung Chang
and Prince Chin plenipotentiaries to ar
range a settlement and the edict of Sep
tember 25 whereby certain high officials
were designated for punishment this
government has moved in concert with
the other powers toward the opening
of negotiations which Mr Conger as
sisted by Mr Rockhill has been author
ized to conduct on behalf of the United
States
General bases of negotiation formulated
by the government of the French repub
lic have been adopted with certain res
ervations as to details made necessary
by our own circumstances but like sim
ilar reservations by other powers open
to discussion in the progress of the ne
gotiations The dlsDOsItion of the em
perors government to admit liability for j
wrongs aono to roreign governments and
their national representatives and to act
upon such additional designation of the
guilty persons as the foreign ministers at
Pekin may be in a position to make
gives hope of a complete settlement of
all questions involved assuring foreign
rights of residence and intercourse on
terms of equality for all the world
The matter of indemnity for our
wronged citizens is a question of grave
concern Measured in money alone a
sufficient reparation may prove to be be
yond the ability of China to meet All
the powers concur in emphatic disclaim
ers of any purpose of aggradizement
through the dismemberment of the em
pire I am disposed to think that due
compensation may be made in part by
Increased guaranties of security for for
eign rights and immunities and most
Important of all by the opening of China
to the equal commerce of all the world
These views have been and will be ear
nestly advocated by our representatives
TREASURY OPERATIOMS FAVOR
ABLE
It is gratifying to be able to state that
the surplus revenues for the fiscal year
ended June 301900 were 795270601S For
the six preceding years we had only de
ficits the aggregate of which from 1894
to 1899 inclusive amounted to 283022
99114 The receipts for the year from all
sources exclusive of postal revenues ag
gregated 56724085189 and expenditures
for all purposes except for the adminis
tration of the postal department aggre
gated 48771379171 The receipts from
customs were 23316487116 an increase
over the preceding year of 2703638941
Receipts from internal revenue were
29532792676 an increase of 2189076525
over 1899 The receipts from miscellane
ous sources were 3874805397 as against
3639497692 for the previous year
It is gratifying also to note that during
the year a considerable reduction is
shown in the expenditures of the gov
ernment The war department expendi
tures for the fiscal year 1900 were 134
77476778 a reduction of 9506648669 over
those of 1899 In the navy department
the expenditures were 5595307772 for the
year 1900 as against 6394210425 for the
preceding year a decrease of 798902653
In the expenditures on account of In
dians there was a decrease in 1900 over
1899 of 263060438 and in the civil and
miscellaneous expenses for 1900 there was
a reduction of 1341806574
Because of the excess of revenues over
expenditures the secretary of the treas
ury was enabled to apply bonds and
other securities to the sinking fund to
the amount of 5655455606 The details
of the sinking fund are set forth in the
report of the secretary of the treasury
to which I invite attention The secre
tary of the treasury estimated that the
receipts for the current fiscal year will
aggregate 580000000 and the expendi
tures 500000000 leaving an excess of
revenues over expenditures of 80000000
The present condition of the trtusury is
one of undoubted strength The available
cash balance in November was 139303
79450 Under f he form of statement prior
to the financial law of March 14 last
there would have been Included in the
statement of available cash gold coin and
bullion held for the redemption of United
States notes
If this form were pursued the cash bal
ance including the present gold reserve
of 150000000 would be 28930379450 Such
balance November 30 1899 was 296495
30155 In the general fund -which is
wholly separate from the reserve and
trust funds there was on November 30
57009007315 In gold coin and bullion to
which should be added 22957300 in gold
certificates subject to issue against which
there is held in the division of redemp
tion gold coin and bulpllon making a
total holding of free gold amounting to
9304737315
It will be the duty as I am sure it will
be the disposition of the congress to pro
vide whatever further legislation is
needed to insure the continued parity
under all conditions between our two
forms of metallic money silver and gold
Our surplus revenues have permitted
the secretary of the treasury since the
close of the fiscal year to call in the
funded loan of 1891 continued at 2 per
cent in the sum of 25364500 To and
including November 30 23458100 of these
bonds has been paid This sum to
gether with the amount which may
accrue from further redemptions under
the call will be applied to the sinking
fund
The beneficial effect of the financial act
of 1900 so far as it relates to the modifica
tion of the national banking act is al
ready apparent The provision for the
incorporation of national banks with a
capital of not Hess than 25000 in places
not exceeding 3000 inhabitants has re
sulted in the extension of banking fa
cilities to many small communities hith
erto unable to provide themselves with
banking institutions under the national
system There were organized from the
enactment of the law up to and including
November 30 369 national banks of which
266 were with capital less than 50000 and
103 with capital of 50000 or more
Our foreign trade shows a remarkable
record of commercial and industrial prog
ress The total of Imports and exports
for the first time in the history of the
country exceeded 2000000000 The ex
ports are far greater than they have
ever been before the total for the fiscal
year 1900 being 13944830S2 an Increase
over 1899 of 167459780 an Increase over
1898 of 163000072 over 1S97 of 343489526
and greater than 1896 by 511876144
The growth of manufactures in the
United States is evidenced by the fact
that the exports of manufactured pro
ducts last year exceed those of any pre
vious year their value being 483851756
against 339592146 in 1899 an increase of
28 per cent
Agricultural products- were also ex
ported during 1900 in greater volume than
in 1899 the total ofr the year being 835
S5S123 against 784776142 in 1899
EXTENSION OF AMERICAN TRADE
The failure of action by the senate at
its last session upon the commercial con
ventions then submitted for Its considera
tion and annroval although caused bv
the great pressure of other legislative
business has caused much disappoint
ment to the agricultural and industrial
interests of the country which hoped to
profit by their provisions The conven
tional periods for their ratification hav
ing expired it became necessary to sign
articles extending the time for that pur
pose This was requested on our part
and the other governments interested
have concurred with the exception of one
convention in respect to which no formal
reply has been received In my last com
munication to congress on this subject
special commercial agreements under the
third section of the tariff act have been
proclaimed with Portugal with Italy and
with Germany Commercial conventions
under the general limitations of the
fourth section of the same have been con
cluded with Nicaragua with Ecuador
with the Dominican republic with Great
Britain on behalf of the Island of Trini
dad and with Denmark on behalf of the
Island of St Croix This will be early
communicated to the senate Negotiations
with other governments are In progress
for the improvement and security of our
commercial relations
The policy of reciprocity so manifestly
rests upon the principle of international
equality and has been so readily approved
by the people of the United States that
there ought to be no hesitation in either
branch of congress in giving to it full
effect
This government desires to preserve the
most just and amicable commercial rela
tions with all foreign countries unmoved
by the industrial rivalries necessarily de
veloped in the expansion of international
trade It is believed that the foreign gov
ernments generally entertain the same
purpose although in some instances there
are clamorous demands upon them for
legislation specifically hostile to American
interests Should these demands prevail
I shall communicate with congress with
a view of advising such legislation as
may be necessary to meet the emergency
The exposition of the resources and
products of the western hemisphere to be
held at Buffalo next year promises im
portant results not only for the United
States but for the other participating
countries It is gratifying that the Latin
American states have evinced the liveliest
interest and the fact that an interna
tional American congress will be held in
the City of Mexico while the exposition
is in progress encourages the hope of a
larger display at Buffalo than might
otherwise be practicable The work of
preparing an exhibit of our national re
sources Is making satisfactory progress
under the direction of the different offi
cials of the federal government and the
various states of the union have shown
a disposition toward the most liberal par
ticipation in the enterprise
The Bureau of American Republics con
tinues to discharge with the happiest re
sults the important work of promoting
cordial relations between the United
States and the Latin American countries
all of which are now active members of
the International union The bureau has
been instrumental in bringing about the
agreement for another international
American congress which is to meet in
the City of Mexico In October 190L The
bureaus future for another term of ien
years is assured by the international com
pact but the congress will doubtless have
much to do with shaping new lines of
work and a general policy Its usefulness
to the interests of Latin American trade
is widely appreciated and shows a grat
ifying development
line practical utility of the consular
service in obtaining a wide range of in
formation as to the industries and com
merce of other countries for introducing
the sale of our goods has kept steadily in
advance of the notable expansion of our
foregin trade and abundant evidence has
been furnished both at home and abroad
of the fact that the consular reports in
cluding many from our diplomatic repre
sentatives have to a considerable extent
pointed out ways and means of disposing
of a great variety of manufactured goods
which otherwise might not have found
sale abroad
REVISION OF REVENUE LAWS
I recommend that the congress at Its
present session reduce the internal reve
nue taxes imposed to meet the expenses
of the war with Spain in the sum of 30
000000 This reduction should be secured
by the remission of those taxes which
experience has shown to be the most
burdensome to the industries of the peo
ple
I specially urge that there be included
In whatever reduction is made the legacy
tax bequests for public uses of a literary
educational or charitable character
American vessels during the last three
years have carried about 9 per cent of our
exports and imports Foreign ships should
carry the least not the greatest part of
American trade The remarkable growth
of our steel industries the progress of
ship building for the domestic trade and
our steadily maintained expenditures for
the navy have created an opportunity to
place the United States in the first rank
of commercial maritime powers
Besides realizing a proper national as
piration this will mean the establishment
and healthy growth along all our coasts
of a distinctive national industry ex
panding the field for profitable employ
ment of labor and capital It will increase
the transportation facilities and reduce
freight charges on the vast volume of
products brought from the interior to the
seaboard for export and will strengthen
an arm of the national defense upon
which the founders of the government and
their successors have relied In again
urging immediate action by the congress
on measures to promote American ship
building and foreign trade I direct at
tention to the recommendations on the
subject in previous messages and par
ticularly to the opinion expressed in the
message of 1899
I am satisfied the judgment of the
country favors the policy of aid to our
merchant marine which will broaden our
commerce and markets and upbuild our
sea carrying capacity for the products of
agriculture and manufacture which with
the increase of our navy mean more
work and wages to our countrymen as
weir as a safeguard to American interests
i jswiffpwanaB
N
in every part of the world
The attention of congress Is Invited to
the recommendation of the secretary of
the treasury in his annual report for leg
islation in behalf of the revenue cutter
service and favorable action is urged
In my last annual message to the con
gress I called attention to the necessity
for early action to remedy such evils as
might be found to exist in- connection
with combinations of capital organized
into trusts and again invite attention
to my discussion of the subject at that
time which concluded with these words
It is apparent that uniformity of leg
islation upon this subject in the several
states is much to be desired It is to bo
hoped that such uniformity founded in
a wise and just discrimination between
what is injurious and what is useful and
necessary in business operations may be
obtained and that means may be found
for the congress within the limitations of
its constitutional power so to supple
ment an effective code of state legislation
as to make a complete system of laws
throughout the United States adequate to
compel a general observance of the
torr TMlloo tn TTfHIrtVi T Tiova TntnyroA1 ff
t The whole Question is so important and
far reaching that I am sure no part of it
will be lightly considered but every
phase of it will have the studied delib
eration of the congress resulting in wise
and judicious action
Restraint upon such combinations as
are injurious and which are within fed
eral jurisdiction should be promptly ap
plied by the congress
GOVERNMENT OF PORTO RICO
The civil government of Porto Rico pro
vided for by the act of congress approved
April 12 19C0 is in successful operation
The courts have been established The
governor and his associates working In
telligently and harmoniously are meet
ing with commendable success
On November 6 a general election was
held in the island for members of the
legislature and the body elected has been
called to convene on the first Monday In
December
I recommend that legislation be enacted
by the congress conferring upon the sec
retary of the Interior supervision of the
public lands in Porto Rico that he be
directed to ascertain the location and
quantity of lands the title to which re
mained in the crown of Spain at the date
of cession of Porto Rico to the United
States and that appropriations necessary
for surveys be made and that the meth
ods of the disposition of such lands be
prescribed by law
FRAMING CONSTITUTION FOR CUBA
On July 25 1900 I directed that a call
be issued for an election in Cuba for
members of a constitutional convention
to frame a constitution on a basis for a
stable and Independent government in the
island In pursuance thereof the military
governor issued the following Instruc
tions
Whereas The congress of the United
States by its joint resolution of April 20
1S98 declared
That the people of the Island of Cuba
are and of right ought to be free and in
dependent
That the United States hereby dis
claims any disposition or intention to ex
ercise sovereignty jurisdiction or control
over said island except for the pacifica
tion thereof and asserts its determina
tion when that is accomplished to leave
the government and control of the Island
to Its people
And whereas the people of Cuba have
established municipal governments de
riving their authority from the suffrages
of the people given under just and equal
laws and are now ready In like manner
to proceed with the establishment of a
general government which shall assume
and exercise sovereignty jurisdiction and
control over the island
Therefore it is ordered that a general
election be held in the island of Cuba on
the third Saturday of September in the
year 1900 to elect delegates to the con
vention to meet in the city of Havana at
12 oclock noon on the first Monday of
November in the year K00 to frame and
adopt a constitution for the people of
Cuba and as a part thereof to provide
for and agree with the government of the
United States upon the relations to exist
between that government and the gov
ernment of Cuba and to provide for the
election by the people of officers under
such constitution and the transfer of gov
ernment to the officers so elected
The election will be held in the several
voting precincts of the island under and
pursuant to the provisions of the elec
toral law of April 18 1900 and the amend
ments thereof
The election was held on September 15
and the convention assembled on Novem
ber 5 1900 and is now in session In call
ing the convention to order the military
governor of Cuba made the following
statement
As military governor of the island
representing the president of the United
States I call this convention to order
It will be your duty first to frame
and adopt a constitution for Cuba and
when that has been done to formulate
what In your opinion ought to be the re
lations between Cuba and the United
States
The constitution must be adequate to
secure a stable orderly and free govern
ment
When you have formulated the rela
tions which In your opinion ought to ex
ist between Cuba and the United States
the government of the United States will
doubtless take such action on its part as
shall lead to a final and authoritative
agreement between the people of the two
countries to the promotion of their com
mon interests
All friends of Cuba will follow your
deliberations with the deepest interest
earnestly desiring that you shall reach
just conclusions and that by the dignity
individual self restraint and wise con
servatism which shall characterize your
proceedings the capacity of the Cuban
people for representative government
may be signally Illustrated
EXPLAINS NEEDS OF THE NAVY
The personal strength of the army is
100000 men 65000 regulars and 35000 vol
unteers Under the act of March 2 1899
on June 30 next the present volunteer
force will be discharged and the regular
army will be reduced to 2447 officers and
29025 enlisted men
In 1888 a board of officers convened by
President Cleveland adopted a compre
hensive scheme for coast defense fortifi
cations which involved the outlay of
something over 100000000 This plan re
ceived the approval of congress and since
then regular appropriations have been
made and the work of fortification has
steadily progressed More than 60000000
has been invested in a great number of
forts and guns with all the complicated
and scientific machinery and electrical
appliances necessary for their use The
proper care of this defensive machinery
requires men trained to its use The num
ber of men necessary to perform this
duty alone is ascertained by the war de
partment at a minimum allowance to
be 19420
There are fifty eight or more military
posts in the United States other than the
coast defense fortifications The number
of these posts is being constantly In- J
creasea Dy congress man
000 has been expended in Dunning and
equipment and they can only be cared
for by the regular army The posts now
In existence and others to be built pro
vide for accommodations for and if
fully garrisoned require 26000 troops
Many of these posts are along- our fron
tier or at important strategic points the
occupation of which is necessary
We have in Cuba between 5000 and C000
troops For the present our troops in
that island cannot be withdrawn or ma
terially diminished and certainly not
until the conclusion of the labors of the
constitutional convention now in session
and a government provided bv the new
constitution shall have been established
and its stability assured
In Porto Rico we have reduced the gar
risons to 1636 which includes 856 native
troops There is no room for further re
duction here We will be required to keep
a considerable force in the Philippine
islands for some time to come From the
best information obtainable we shall need
there for the immediate future from 50000
to 60000 men I am sure the number may
be reduced as the insurgents shall come
to acknowledge the authority of the
United States of which there are assur
ing indications
It must be apparent that we will re
quire an army of about 60000 and that
during the present conditions in Cuba
and the Philippines the president should
have authority to Increase the force to
the present number of 100000 Included
in this number authority should be given
to raise native troops in the Philippines
nn tn 15000 which the Taft commission
believes will be more effective in detect-
ing and suppressing guerillas aasassfna
and ladrones than our own aoUHcrg
The full discussion of this suWectl
the secretary of war in his annual report
is called to your earnest attention
I renew the recommendation f1
my last annual message that the con
gress provide a special medal pf honor and
for the volunteers regulars sailors
marines on duty in the Phillpp Ines who
voluntarily remained in th6 service after
their terms of enlistment had expired
I favor the recommendation ottttesec
retary of war for a detail of officers ol
the line of the army when vacancies- oc
cur in the adjutant generals depart
ment inspector generals department
quartermaster generals department sud
sistence department pay department
ordnance department and signal corps
une army cannot ue iuu -
mended for its faithful and effective-service
in active military operations In tne
field and the difficult work of civil ad
ministration
RURAL FREE DELIVERY A FEA
TURE
The continued and rapid growth of the
postal service is a sure index of the ffreat
and increasing business activity of tne
country Its most striking new develop
ment is the extension of rural free de
livery This has come almost wholly
within the last year At the beginning
of the fiscal year 1899 1S00 the number of
routes in operation was only 391 and most
of these had been running less than
twelve months On the 15th of November
1900 the number had Increased to 2614
reaching into forty four states and ter
ritories and serving a population of
1801524 The number of applications now
pending and awaiting action nearly
equals all those granted up to the present
time and by the close of the current
fiscal year about 4000 routes will have
been established providing for the daily
delivery of mails at the scattered homes
of about 3500000 rural population
This service ameliorates the isolation of
farm life conduces to good roads and
quickens and extends the dissemination
of general information Experience thus
far has tended to allay the apprehension
that It would be so expensive as to for
bid its general adoption or to make it a
serious burden Its actual application has
shown that it Increases postal receipts
and can be accompanied by reductions in
other branches of the service so that
the augmented revenues and the accom
plished savings together materially re
duce the net cost The evidences which
point to these conclusions arc presented
in detail in the annual report of the-post-master
general which with its recom
mendations is recommended to the con
sideration of the congress The full de
velopment of this special service how
ever requires such a large outlay of
money that it should be undertaken only
nftor n nnrofni atnrtv and thnrouzh un
derstanding of all that It involves
INTERIOR DEPARTMENT AFFAIRS
The total area of public lands as given
by the secretary of the Interior is ap
proximately 1071881662 acres of which
917935880 acres are undisposed of and
154145782 acres have been reserved for
various purposes The public lands dis
posed of during the year amount to 13
45388796 acres including 6242309 acres of
Indian lands an increase of 427147485
over the preceding year The total re
ceipts from the sale of public lands dur
ing the fiscal year were 437975810 an
increase of 130962076 over the preceding1
year
The results obtained from our forest
policy have demonstrated its wisdom and
the necessity in the interest of the public
for Its continuance and increased appro
priations by the congress for the carrying
on of the work On June 30 1900 there
were thirty seven forest reserves created
by presidential proclamations under sec
tion 24 of the act of March 3 1891 em
bracing an area of 46456489 acres
SOME GENERAL RECOMMENDA
TIONS
In my annual message of December 5
1898 I called attention to the necessity
for some amendment of the alien con
tract law There still remain important
features of the rightful application of the
eight hour law for the benefit of labor
and of the principle of arbitration -and
I again commend these subjects to -the
careful attention of the congress
That there may be secured the best
service possible in the Philippine islands
I have issued under date of November
10 1900 the following order
The United States civil service com
mission is directed to render such as
sistance as may be practicable to the
civil service board created under the act
of the United States Philippine commis
sion for the establishment and mainte
nance of an honest and efficient civil
service in the Philippine islands and for
that purpose to conduct examinations for
the civil service of the Philippine Islands
upon the request of the civil service
board of said islands under such regu
lations as may be agreed unpn by the
said board and the said Unfted States
civil service commission
The civil service commission is greatly
embarrassed in its -work for want of an
adequate permanent force for clerical
and other assistance Its needs are fully
set forth in Its report I invite atten
tion to the report and especially urge
upon the congress that this important
bureau of the public service which passes
upon the qualifications and character of
so large a number of the officers and em
ployes of the government should be sup
ported by all needed appropriations to
secure promptness and efficiency
I am very much impressed with th
statement made by the heads of all the
departments of the urgent necessity of a
hall of public records In every depart
mental building in Washington so far
as I am informed the space for official
records is not only exhausted but the
walls of rooms are lined with shelves
the middle floor space of many rooms is
filled with file cases and garrets and
basements which were never Intended
and are unfitted for their accommodation
are crowded with them Aside from the
inconvenience there Is great danger not
only from fire but from the weight of
these records upon timbers not Intended
for their support There should be a
separate building especially designed for
the purpose of receiving and preserving
the annually accumulating archives of
the several executive departments Such
a hall need not be a costly structure but
should be so arranged as to permit of
enlargement from time to time I ur
gently recommend that the congress take
early action in this matter
The transfer of the government to thia
city is a fact of great historical interest
Among the people there is a feeling of
genuine pride In the capital of the repub
lic It is a matter of interest in this
connection that in 1800 the population of
the District of Columbia was 14093 today
It is 27871S The population of the city
of Washington was then 3210 today it
is 218196
The congress having provided for an
appropriate national celebration of the
centennial anniversary of the establish
ment of the seat of government in the
District of Columbia the committee
authorized by it have prepared a pro
gram for the 12th oC December 1900
which date has been selected as the an
niversary day Deep interest has been
shown in the arrangements for the cele
bration by the members of the commit
tees of the senate and house of repre
sentatives the committee of governors
appointed by the president and the com
mittees appointed by the citizens and in
habitants of the District of Columbia
generally The program in addition to
a reception and other exercises at the ex
ecutive mansion provides commemora
tive exercises to be held jointly by the
senate and house of representatives in
the hall of the house of representatives
and a reception in the evening at the
Corcoran gallery of art in Honor of the
governors of the states and territories
In our great prosperity we must guard
against the danger it Invites of extrava
gance in government expenditures and
appropriations and the chosen repre
sentatives of the people will 1 doubt not
furnish an example in their legislation
of that wise economy whicn in a season
of plenty husbands for the future In
this era of great business activity and
opportunity caution is not untimely It
will not abate but strengthen confidence
It will not retard but promote legitimate
industrial and commercial expansion
Our growing power brings with it the
complications and perils requiring con
stant vigilance to avoid It must not Te
used to invite conflicts nor for oppression
butrfor t5e mst elective maintenance
of those principles of equality and justice
upon which our Institutions and happi
ness depend Let us keep always in
mind that the foundation of our govern
ment is liberty its superstructure Deace
TVTLLIAM McKINLEY
Executive Mansion Dec 3 1900
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