ir be riv THE ANNUAL MESSAGE President McKinloys Communi cation to Our National Lawmakers REVIEW OF TROUBLE IN CEINA What the Administration Has Been Doing to Straighten Matters Out Again GRATIFYING SURrLUS REVENUES Congress ltcooininenrtcrt to llctluco Inteinnl Itcvunuo Taxes IuIi h in tliu Philippine This Army To the Scnnte nnil House of taUveb At the outgoing of the old and the Incoming of the new century you beg n the Inst session of the Fifty sixth con gress with evidences on every hnnd of Individual and national prosperity and with proof of the growing strength and lncrenslng power for good of republic an Institutions Your countrymen will Join with you In felicitation that Amer ican lihetty Is more firmly established than ever before and that love for It and the determination to preserve It are more universal than at uny former period of our history The republic was never so strong be cause never so strongly Intrenched In the hearts of the people as now The constitution with few amendments ex ists as It left the hands of Its authors The additions which have been made to It proclaim larger ficedom and moie extended citizenship Popular govern ment hns demonstrated In Its 124 years of trial here its stability and security and Its efficiency as the best Instiument of national development and the best Eafeguard to human rights When the sixth congress nssembled in November 1SC0 the population of the United States wns 630S4S3 It Is now 70304709 Then we hnd sixteen states Now we have forty five Then our territory consisted of 909050 sqtiu e miles It Is now 3S4GSflu square mbes Education religion and morality have kept pace with our advancement In oth er directions and while extending Its power the government has adhered to Its foundation principles and abated none of them In dealing with cur new peoples nnd possessions nntlon so preserved and blessed gives reverent thanks to God and invokeds His guid ance and the continuation 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 foreign pow ers have been happy The recent troubles In China srrlng from the anti foreign agitation which for the past three years has gained 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 Talp ing rebellion and the opening of Chi nese ports to foreign trade and sette ment disturbed alike the homogeneity and the seclusion of China Meanwhile foreign activity made It self felt in all quarters not alone on the const but along the great river ar teries and In the remoter districts car rying new Ideas and Introducing new associations nmong n primitive people which had pursued for centuries a na tional policy of Isolation PIlOlOSALS TO THE IOWKRS 8criounes of tho Sltuntloii in China Ap preciated The increasing gravity of the condi tions In China and the imminence of to our own diversified Interests fieril n the empire as well as to those of all the other treaty gpvernments were Boon appreciated by this government causing It profound solicitude The United States from the earliest days of foreign intercourse with China had fol lowed a policy of peace omitting no oc casions to testify good will to further the extension of lawful trade to respect the sovereignty of its government and to Insure by all legitimate and kindly but earnest means the fullest measure of protection for the lives and property of our law abiding citizens and for the exercise of their beneficent callings among the Chinese people Mindful of this it was felt to be ap propriate that our purposes should be pronounced in favor of such course as would hasten united action of the pow ers at Pekin to promote the administra tive reforms so greatly needed for strengthening the Imperial government and maintaining the Integrity of China In which we believe the whole western world to be alike concerned To these ends I caused to be addressed to the sev eral powers occupying territory and maintaining spheres of Influence in China the circular proposals of 1899 Inviting from them declarations of their Intentions and views as to the desira bility of the adoption of measures in suring the benefits of equality of treat ment of all foreign trade throughout China With gratifying unanimity the re sponses coincided in this common pol icy enabling me to see in the successful termination of these negotiations proof of the friendly spirit which animates the various powers Interested in the untrammeled development of commerce and industry in the Chinese empire as a source of vast benefit to the whole commercial world In this conclusion which I had the gratification to announce as a complet ed engagement to the interested powers on March 20 1900 I hopefully discerned a potential factor for the abatement of the distrust of foreign purposes which for a year past had appeared to in spire the policy of the Imperial gov ernment in the northern provinces most Immediately influenced by the Manehu sentiment Seeking to testify confidence in the willingness and stability of the impe rial administration to redrew the wrongs and prevent the evils we suffered nnd feared the marine guard which had been sent to Pekin in the summer of 1899 for the protection of the legation was withdrawn at the earliest practica ble moment and all pending questions were remitted as far as we were con cerned to the ordinary resorts of dip lomatic intercourse fKINGK TUAN THE LFADEK Antl Foreign Infliiriicei Hold 8ny Under Hii 1ower The Chinese government proved how rver unable to check the rising strength of the Boxers nnd appeared to be a prey to internal dissensions In the unequal contest the anti foreign influences boon gained the ascendancy under the leadership of Prince Tuan Organized armies of Boxers with which the imperial forces affiliated held the country between Pekin nnd the coast penetrated into Manchuria up to the Russian border end through their emissaries threatened a like rising throughout nort vrn China Attacks upon foreigners destruction ef their property and slaughter of na tive converts were reported from oil -v r IiiIch The already pormonted with lc stile sytnt nthles could make no effective response to the upienls of the legations At this crit ical Junctute In the enr y spring if this year a proposal was made by the other poweis that n eomblnid fleet should be assembled In Chinese wntcis as a moi nl demonstration under cover of which to exact of the Chinese gov ernment lespect for fotelgn treaty rights and the suppression of the Hox ers The United States while not ynrtlcl patlng In the Joint demonstration promptly sent from the Philippines nil ships that could be spnied for service on the Chinese const A small fotre f marines were landed at Taku and sent to Pekin for the protection of Mi Amerlcnn legation Other powers took similar action until some 400 men were ospembled In the capital as legation guards The president here tolls of the siege of the legations at Pekin the Inndlng of troops nnd the tescue of the foreign mlnlstets Taking as a point of departure the Imperial edict appointing Karl LI Hung Chang nnd Prince Chlng plenipotentiar ies to arrange n settlement and the edict of Sept 21 whereby certain high otllclnls wor deslgnnted for punish ment this government hns moved In Conger assisted by Mr Itnekhlll hns been authorized lo conduct on behalf of the United States General buses of negotiation forniu lnted by the government of the French rnniihllr hnvn been accented with ress of the negotiation The disposi tion of the empeiors government to ndmlt liability for wrongs dt ne to for eign governments and their nationals nnd to net upon such additional desig nation of the guilty persons ns the for tlgn ministers nt Pekin tuny be In n po sition to make gives hope of a complete settlement of all questions Involved as suring foreign rights of residence nnd Intercourse on terms of equality fr nil the world I regard ns one of the essential fac tors of n dllinble adjustment the m curement of ndequnte guarantees for liberty of faith since Insecurity of those natives who mny embrace alien creeds is a scarcely less pfTeetunl as sault upon the rights of foreign wor ship nnd teaching thnn would be the di rect lnvnslnn thereof The matter of Indemnity for our wronged citizens Is a question of grave concern Measured In money nlone a sufficient rennrntion mny prove to be bevond the ability of China to meet All the powers concur In emphatic d s clolmers of any purpose of aggrandize ment through dismemberment of the foreign rights mrc Imnnrlnnt of nil bv the opening of China to the equal commerce of pll the world These views nave bepn nnd will be enrnestly ndvocated by our rep resentntlves The government of Pussln hns put forward a suggestion that In the event of protracted divergence of views In regnrd to Indemnities the matter may be relegnted to the court of arbitration at The Hacne I favorably Inrlne to this believing thnt high tribunal could tint fnll to reach a solution ro less conducive to the stability and enlarged be awaited I commend to the enrly nttentlon of the fenate the convention with Great Britain to facilltnte the constructs n i f such n canal and to remove any objec tion which might arise out of the con vention commonly culled the Clayton- Huiwer trenty Portugal growing out of the seizure of the Delagoa liny railway hns been n Inst determined by a favorable awar nrliltrntliVn rVVn of the tribunal or to which it was su of the award which was deposited 1 London awaiting arrangements by tl governments of the United States and Great Britain for Its disposal has re cently been paid over to the two gov ernments SPAIN AND UNITKD BlATKS Irogreia Toward Treaty oraeiirral Friend flip and Intercuurip Satisfactory progress has been made toward the conclusion of a general treaty of friendship and intercourse with Spain In replacement of the old treaty which pnsted Into abeyance by reason of the late war A new conven tion of extradition is approaching com pletion and 1 should be much pleased were a commercial arrangement to fol low I feel that we should not suffer to pass any opportunity to reaffirm the cordial ties that existed between us and Spain from the time of our earliest In dependence and to enhance the mutual benefits of that commercial Intercousn wnicn is naiurni oetween me two coun tries By the terms of the treaty of peace the line bounding the ceded Philippine group in the southwest railed to In THE NORFOLK NEWS KU11UY DISCRMBKK 7 MKK In consideration of this eePon the United States Is to ny to Ham the mm of icoroo nOMtUClH IAI UKlATIONS Countrli wllli Whloti Sirrlnl Agrrenirtitn lln Hem Irurliiliueil Since my last communication to thn congress on this subject special com mercial agreements under the third section of the tariff act have been pio clalmed with Portugal with Italy ami Oernuiny Commercial conventions under the general limitations of the fourth section of the mine act have been concluded with Nlcutngun with Ilcniidnr with the Dominican republic with Iroiit Hrltnln on behalf of the Island of Tilnldad and with Denmark on behalf of the Island of St Croix These will be early coiiiinutilcntod to the senate Negotiations with other governments nie In progn for the Improvement and secuilty of our com mercial relations I The policy of reciprocity so manifest ly rests upon the principles of Inlcrnn ttouril equity and hns been so repeated ly approved by the people of the Unit ed States that there ought to bo no hesitation In either branch of the con gtoss In giving to It full effect TMa ifnvnriimntit ilenlres tn tiroscrVO concert with the other powers toward H most Just and amtcnble commercial the opening or negotiations wuioii air relations with all foreign countries un moved by the Industrial rivalries neces sarily developed In the expansion of Internntloiiol trade It Is believed that the foreign governments generally en tertnln the snme purpose although In some Instances there nie clamorous tnln reservations ns to details made j nijutds upon them for legislation nceessnry ny our own circuiimumii M mlly hostile to American interests but like similar resorvntlt ns by other J5ii0ilcl these demands prevail 1 shall iinwcrs mien to discission 111 the prog pmnlrp T nm dlsnosed to think thnt nus venr V communicate with the congress with the view of advising such legislation as may be necessary to meet the emer gency NATIONAL FINANCI Inrgo BnrpliiM lletiiiur for I tin Fli nl Yi nr Uniting i mm io moo It Is gratifying to be nble to state that the surplus revenues for the fiscal jonr ended lune 30 1900 were 79 rrJ70fi0lS For the six preceding years we had only deficits the ag gregate of which from 1SM to 18U9 In clusive amounted to 283022991 14 Tho receipts for the year from all sources exclusive of postal ieeiiiS aggregated 1072 Wsril 89 and oxpendltuios for nil purposes except for the administration of the postnl department aggregated 18771379171 The receipts from cus toms were J2331C1871 10 an Inereae over the preceding year of 270303S941 The leeeipts from Internal revenue were J29i32792G7fi nn Increase of 21S90 7im2R over 1S99 The receipts from riilliiiinnllu ciiurnim lliipn XI1S7 IS0i397 ns against 3639497692 for tile due comnensntlon mny be mndc In part I n s irrntlfvlnir to note that during bv Increased guarantees of security for inp rear n considerable reduction Is and Immunities nn shown in the expenditures of the gov ernment The war department ex penditures for the fiscal year 1900 were 134 77476778 a reduction of 9r0G0 4SGG9 over thoFe of 1899 In the nnvy department the expenditures were trr 91307772 fo the year 1900 ns against 6394210425 for the preceding year a decrease or 798902663 In the ex penditures in account of Indians there was a decrease In 1900 over 1899 of 2 G306043S nnd in the civil and miscel laneous exi for 1900 there was a reduction - f J1341S0C574 It will 1 the duty ns I nm sure it nrosneritv of China itself thnn m h iinnsitinii nf thn oontrress nteiv beneficial to the powers to roviiP whatever further fThe president here teIs or our i tIon ncen ei t0 insure the continued tlnns with other foreign countries which nre very friendly Ue devotes considerable space to our exhibit nt the Paris exposition the Famoan settle ment boundnrv ouesllnns and other matters in which the United States Is Interested with other countries TIIK NICAKACUA CANAL Overtnr for n rticritlon to KlTect Itn Hi tiding liy the United Mnlen The all Importnnt matter of an Inter oceanlc canal hap assumed a new phase Adhering to Its refusal to reopen the question of the forfeiture of the con tract of the Maritime Canal company which was terminated for alleged non execution In October 1899 the govern ment of Nicaragua hns since supple- the building of a cannl under the aus parity under nil conditions between our two forms of metallic money silver nnd gold FINANCIAL ACT OF lOOO Ita KITeot n to Motllflrntlon of National Itnnldng Ait I Apiurent The beneficial effect of the financial act of 1900 bo for as It relates to the modification ot the national banking act is already apparent The provision for the Incorpointion of national banks with n capital of not Icbs thnn 50C0 in plnces not exceeding 3000 inhabitant has resulted In the extension of bank ing facilities to many small commun ities hitherto unable to provide them selves with banking institutions under the nniionii sysiein i nere were or- merited that action uy aecianng so- anlze3 fr0m the enactment of the law styled Eyre Cramln option void for nnd rriudlng Nov 30 3C9 of he stipulated advance anUs of whlcn ZG6 wei with lc Protests in relations to these acts have nta e hln jno000 and 103 with ea pi been filed in the state department and tlanof 5000o or more are under consideration Deeming It- lat woy of mention thnt the self relieved from existing engage- of banks creater nuil er being organ ments the Nicaraguan government PJf under he new in ware n sections shows a dlspos ton to deal freely with h he Vci d of banking faclltfc SaS the canal question either in the way of t nronounwd Iowa stands hPpn mo negotiations with the United States or n iV thirty bankB of ih smaller by taking measures to promote the 5 t nS nkinlLn W terway Overtures for a convention to effect Territory and the middle and western sections of the country have also availed themselves largely or the pices oi wie uiiueu niuies are unoer iippp under the new law lieges unutr me iie ia In thp mnnnllmo tho views of the congress upon the general A large Increase In nntlonnl bank note circulation has resulted from th onlv 90 per ent thereof ns heretofore The Increnso in circulating notes fiorn March 14 to Nov 30 Is 77889570 The party in power Is committed to such legislation as will better make the currency re ponsive to the vorylng needs or business nt nil sensons and In nil sections IllJV81 nlei0wUJl I Our trnde shows n rerrnrkn Die record o commercial and Induhtrlnl progress The total of Imports and ex lor tne nrst lime in the Mi P0rtS bmltted ThS tory of he countrv exceeded 2 000000 i n amoimt 000 The or orts are grenter than thy OUIl MEKCIIANT MARINE have ever een before the total for the fiscal nr 1900 being 139448308 nn Increase over 1899 of 1G7 457S0 on Increase 1898 of 163 000752 over 1897 of 343489520 ar J grenter than 1S9G by 511876144 I recommend that congress at Its present sesski reduce the Internal rev enue taxes I posd to meet the expenses of the war with Spain In the sum o 30000000 This reduction should he secured by the remission of those taxes which experience hns shown to be the most burdensome to the industries of the people I specially urge that there be in cluded In whatever reduction Is mnde the legacy tax bequests for public used of a llteror educational or charitable character American VeMelu Carry 0 Fer Cent of Our KxpurU anil Import American vessels during the past three years have carried about 9 per cent of our exports and imports For eign ships snould carry the leaBt not the greatest part of American trade elude several small Islands lying west I Tne growth of our t teel In of the Sulus which have always been dU6tret tn nroF res of t hlphuildlng rprnc nlzeil as under Knnn sli cnntrnl u hmuc uiiu uui The occupation of Slbutu and Cagaynn Sum by our naval torces elicited a claim on the part of Spain the essen tial equity of which could not be galn ald In order to cure the defect of the Ireaty by removing all possible ground of future misunderstanding respecting the Interpretation of its third article I directed the negotiation of a supple mentary treaty which will be forth with laid berore the senate whereby Spain quits all title and claim or title to the Islands named as well as to any and all Islards belonging to the Philip pine archipelago lying outside the lines described in i uid third article and agrees thnt all such Islands shall be comprehended In the cetslon or the ily mnintaJied expenditures ror the navy hnve created nn opportunity to place the United States in the fliht rank of commercial maritime powers Besides r nlizlng a proper national aspiration this will mean the estublls ment and healthy growth nlong nil our coasts of n distinctive national indus try expanding the field ror profitable employment or labor and capital will increase the transportation facili ties and reduce freight charges on tlu vast volume or products brought fror the Interior to the seaboard for export and will strengthen an arm of the na tional defense upon which the founder at the government and their succefcsors hnve relied In again urging Immedl archipelago as fully uf if they hnd been 1 otp oon hy the congress on tnentures expressly Included within these lines 0 Promote American snipping and elgn trade 1 direct uttcntlon to the reveirnrneudatlens on tho suljrct In ptolotis nusMiges nrd pnrth utility lo the opinion rprefed In tie message or 1S99 1 nm sntlsfied the ludgminl or the country fnvots the policy of aid lo our inerchniit mnilne whlili will biinden our coinmeue find rnaikets nnd up build our scnrim vlug capacity for tho products of nKilcultuie and manufact ure which with the Inerenfe of our nnvy menu moie woik and wages to our countrymen ns well ns a saf gunrd to Airier lean Inteiests III evety putt of the wot Id The attention of congress Is Invited to the recommendation of the seiretary f the treoMiry In bis nnniinl tepoit for legislation In behalf of the revenue service and favorable action Is uiged tiii imistiiin or thuht4 Itirty Ilinxr lit It Nlioulil III tnroriilly Mnilltiil liy ilium In my last annual message to tho eongtc s I called attention to the neces sity ror early action to temedy such evils as might be found to exist In run ueitlon with combination of capital organized Into trusts and again Invito attention to my discission of the sub Jed at thnt time wlilth concluded with these wolds II Is apparent thnt unlfoi mlty of legislation upon this subject In the sev eral stales Is much to be ilrshed It In to be hoped that such unlfotinlty founded In n wise and Just discrimina tion between what Ih Injurious and what Is useful and nercssniy In busi ness opeintleins may be obtained anel thnt menus may be feiiind ror the iiui giess within the llniltatlettis or Its con stitutional power so to supplement an effective ceiile or state legislation ns to make a complete system or laws throughout the United States ndequnte to compel n general eibse rvanie nf tho snlutaiv rules to which I have te ferrid The whole question Is so Important and rnr icnehlng that 1 am suit tin pnrt or It will be lightly eonsldiied but eveiv phase or It will hnve the Studied dellbeiatiori of the oniigtoHS resulting In wise and Judicious action Itestinlnt upon such combinations nn are Injurious nnd whlih nie within fedetnl Jurlt diction should be promp1 applied by the congress A1IAIHS IN THIS Ill I II IlINICH Our Ioiii SiiriHliilly Cnntrnl tut Orent it Purl ill 111 Inliiiiitn In my Inst annual message 1 dwelt nt some length upon the condition er nr falis In the Phllli pines While seek ing tei Impiss upon yeiu that the giave responsibility of the fulliie govern- ment oT thuso Islands lesls with the congiess ol the United Stales 1 ab staiuud from lecoiiunendlng at that i time a specific and final loim ot gov ernment reir the territory actunlly luM by the United States forces and In which ns long ns insurrection voniin I lies the military arm must iicccsrnill be supreme I stated my puipuse un til the congress shull hnve mnde knowr the formul expression of Its will to use the uuthoilty vested In me by the con stitution nnd the stntutes to uphold the sovereignty of the United States In thoie distant Islands as In all either places where emr flog rightfully float placing to thnt end at the disposal of the army and navy all the means which the iibetnllty or the cougiess and the people have provided No con I trnry expression or the will or the con- gress having been made I have Mcnel rastly pursued the purpose so declared employing the civil aim as well toward the accomplishment of paeillcnt on and the Institution eif local governments i within the li ies or authority nnd law Progress In the hoped Tor illiecilon has been favorable Our forces have I successfully controlled the gieater pert eif the Islands overcoming the eirgnn I lzed rorces or the Insurgents nnd enr I rying order nnd administrative regular j lty to all quartets What opposition remnlns is for the most pnrt scattered obeying no concerted plnn or strategic action operating only by the inethudb common to the traditions or guerrilla the commission appointed to examine Kl bankVto sVuoclrcufinSnou the comparative merits of the various J0 Knw or the Un tort suhcp I0 LiJV A J i trans isthmian ship canal pioects may I1I1I1UB tlClnr icm n - umi HiriCilll 111 wnrrnre wnicn wnue inerieenvc io ni ter the general control now established are still bulllclent to beget Insecurity among the populations thnt hnve fl t the good results or our control nnd thus delny the conferment upon them of the fuller mensurcs of Iocnl self-government or educntlon nnd or Industrial and agrlculturnl development which we stnnd rendy to give them By the sfing or this year the effec tive opposition of the dl iitlsflcd Tn gnls to the authority of the United States was virtually ended thus open ing the door for tits extension of n sta the ndminlstrntton over much of the territory of the archipelago Desiring to bring this about I appointed In March Inst a civil commission com posed of the Hon Wllllnm H Tnrt of Ohio Professor Dean C Worcester of Michigan the Hon Luke E Wright of Tennessee the Hon Henry C Ide o Vermont and Professor Betnnrd Moses of California The alms of their mis sion nnd the scope or their authority are clearly set forth Jh my Instructions of April 7 1100 ndelressed to the sec retory of war to be transmitted to them The president then quotes what he snld in regard to the Philippines and the duties f the commission In Ms mes sage to congress orjlecember 1899 FKOCIAMATION OF AMNFSTV It Win Tnkfii Ailinntagn of by Mnny of tliii I ii urgent Colncldentally with the entrnnce of the commission upon its labors I caused to be Issued by General MucArthur the military governor of the Philip pines on June 21 1900 a proclamation of amnesty In generous terms of which many of the Insurgents took advantage among them a number of important leaders This commission composed of eml net citizens representing the diverse geographical and political Interests of the country and bringing to their task the ripe fruits of long and Intelligent service in educational administrative and Judicial careers made great prog ress from the outset A6 early as Aug 21 1900 It submitted a preliminary re port which will be laid before the con gress nnd from which It appear that already the good effects or returning order are fet that business Interrupt ed by hostilities in improving as peace extends thut u larger area Is under sugar cultivation than ever before that the customs revenues are greater than nt any time during the HpanlBh rule that economy nnd ifllcleney in the military administration have created a surplus fund of 6000000 available for needed public Improvements that a stringent chll service luw Is In prepar ation that railroad communications are expanding opening up rich dlr trlcts and that a comprehensive scheme of educntlon Is being organized Later reports from the commission show yet more encouraging advance to ward Insuring the benefits of llbert and good government to the Filipinos In the Intel est of humanity nnd with the aim of building up an enduring self supporting and self ndmlnlsterlng community in those far eahtein sens I would impress upon the congress that whatever legislation may be enaeed In respect to the Philippine Islands should be along these generous lines The1 fort une of war has thrown upon this ra tion an unsought trust whlih should be unselfishly dlsehniKcu and devolved upon this government a moral ns well os material responsibility toward these millions whom we have freed from at oppressive yoke I have upon another eccoplon cnlled the Filipinos the wards of the nation fn T Ilghtlv assumed It muni rot be other wise than honetly full le 1 Mining first of all to bfiitllt those who have feme under our fosterlig onto It ih our dutv so to Itent them that our ling ninv be nn less beloved In the mouii tnlns of Luzon and the fertile rones ef Mliidntiiio nnil Nokios than II In at home that theie an here It thai be the revered symbol of liberty enllghliii nien and pi gloss In evety avenue of development The KlIlplnoH me a raee quirk to learn and to ptollt by knowiedi Ho would be raeh who with the teneiilngs would fix a limit to the degree of cul tuti nnil advancement yei within the leiwh of those people If out duly to t ii til them be falthrully peifoimeil CITIIA AMI IOltTO KltO Mlin t Hie rrrilelfiil Mm CiiiiiTiiilnir Till I mi Ikliiiiiln The civil gmiimuitit or Potto ttlco ptovldcd Toi by the net or the Ioliglcss nppioved April 12 1900 Is In i fill epilation The coin Is have been established The governor nnd bis ns Hot liitci winking Intelligently and har moniously an- meeting with eoiucnilii ble success On the tllh or November n ueuiMiil election wan held In the Isl nnil ror members or the legislature and tho biidv Ilerteil bus heem called to con vene on the III Hi Monday nT lleeemlier 1 recommend that lcglslutHi be en j neiru ny tne eongiess iiiuieiniiK uimn the si critarv nf the Intel lor supervis ion ovir the public lands In Porto ltleo anil that he be dliecteel to ascer tain the location ami quantity of lanils the title to which remained In the crown of Spain at the date of eesilon of Porto ltleo to the United States ami that appioprlatloun noocMinry fer be made and Unit the methods of the disposition of sich lauds be pn serlbed by law On the 5th of Inly 1900 1 dlieeteil that a call bo Issued ror an idee tlon In Cuba ror members of a eonslltulloiiiil convention lo ftaiiii a constitution as n basis ror a stable and Inilepe neb M government In the Island 1 renew the recoinineiidiitloii miiile In my speeial message of lVb 10 1899 as to the necessity for en ble eeiriimunl entlon betwien the United States nnd Iluwnll with extension to Manila Slnee then tlrcuiiintniiccH have strikingly em pbasled his need Surveys have shown the entile fiiislblllty or a chain nl ena bles which at each stopping place shall touch on American territory se that the system shall be under our own control Manila once within riiu h eouneetlon with the sys tems or the Asiatic ceinst wolllel open Increnseel and ptotltable opportunities ror a moie direct cable route rrom our shores tei the Orient than Is now iiT forded by the trans Atlantic contl neiilnl and trans Asian lines I tiri attention to this Important matter NATIONAL IMIFKNNIM Striiigtli of tliii Army Million lor Iorl nnil iiin The present hi length or the army li 100000 men cri000 regulars and uriooo volunteers Under the act or Mareii a 1899 on the 30th or June next the present volunteer rorce will be dii -charged and the tegular nimy will be redueeel tei 2117 eitllcers and 2902K en listed men In 1888 a board or officers convened by Preslelenl Oveland adopted a compre hensive scheme or coast derense roitl llactloriH which Involved the outlay of something over 100000000 This plan tecelveel the approval of the eoiiKiess unel since them regular oppropi lotions hnve been made unci the work of forti fication hns stendlly piogrcbscd More than JC000O000 hnve been Invested In a great number of fortk and guns with all the complicated and sciiiitlflc ma ehlnery nnd electrical appliances neces sary tor their use The pioper elire of this defensive mnuhlnery requires men trained in Its use The number eif men necessary to perforin this duty nione Ih ascertained liy the war depart ment at a minimum allowance tei be 18420 Theie are fifty eight or mtire military posts In the United States oth er than the const defence fort mentions The number or these posts Is being constantly Increased by the congress More than 22000000 hnve been expend ed In building and equipment nnd they can only fie enred for by the regu lar army The posts now In existence nnd others to be built provide- for ac commodations for nnd if fully gar risoned require 20000 troops Many of these posts are along our frontier or at Important strategic points the occupation of which Is necessary We buve In Cuba between t000 and 6 000 troops For the present Our troops In that Islanel cannot be withelrawn or materially diminished and certainly not until the conclusion of the labors or the constitutional convention now in session and n government provided by the new constitution shnll hnve been established and Its stability assured In Porto ltleo we have reduced the garrisons to lG3fl which Include 896 nn tive troops There Is no rensein ror further reduction here We will be re quired to keep n ronsMrnbe force In the Philippine Islands for snme time to come From the best Inormntion obtnlnnble we shall need there for the immediate future from BOOOO to 60 000 men I am sure the number may be re duced as the Insurgents shnll come to ncknnwledge the authority eif the Unit ed Stntes of which there nre assuring lndlcntlons It must b nppnrent that we will re quire nn nrmy or about 60000 nnd that during present conditions In Cuba and the Philippines the president should have authority tei Increase the rorce to the present number or 100000 In cluded In this number authority should be given to raise native troops In the Philippines up to ir000 which the Tifrt commission believe will be more eN fectlve In detecting and suppressing guerrillas asenslnations and ladrones than our own soldiers The full dis cussion or this subject by the secretary of war In his annual report Is called to your earnest attention OKOWTH OF POSTAL SKIIVICK Kxtenalon of It urn I Free Delivery In rrain of lie Navy The continued and rapid growth of postal service is a sure Index of the great and Increuslng busIne Es activity of the country Its most striking new development Is the extension of rural free delivery This has come almost wholly within the Inst yeur At the beginning of the fiscal year 1899 1900 the number of routes In operation wa only 391 and most of these had been run ning less than twelve months On the 16th ot November 1900 the number had increased to 2614 reaching into rorty rour states nnd territories and rervlng a population ot 1801624 The number of applications now pending and await ing action nearly equnls all those granted up to the present time and by the close of the current flseal yenr about 4000 routes will have leen estab ilshed providing ror the dolly delivery it malls at the scattered homes of Ibout 3000 of rural popuution This service ameliorates the isolation of farm lift conduces to good roods and quickens and extends thedlssemlna tlon or general Information Experience thus far hnr tended to nllay the ap prehension that It would be so ex pensive ns to forbid Its general adop tion or make It a Herlous but den Its actual applUatlon has shown that It increasis postal leeeipts nnd can be accompanied by reductions In other branches ot the service so tl at the augmented revenues and the accom plished savings together materially re duce th net cost The evidences wtkh 3 point to these coneliislnnn nre present ed In detnll In the annual report of tho poHlmiiHti r ge in i ill which with Its rec ommendations Is teommeutlcd to llm OiinlilMntlou of the eongress Tho full development of thin rjuclal service howiver lequltes such an outlay of money thnt It should be undet taken only after n iiteful study nnil thor ough titideislnudli g of all that It lti volven Vety eflleicht service has been ren deied by the navy In connei tloit with the Insurrection In Hie Philippines and the reeetil dlsttirhnuet In China A very satlsfaeloty not t lenient hns been made of the lollg petullllg qtienllou nf llie miintifai litre of artiu r plate A leiisoiiabli it lei has been neetlieil nnd the nceisslty for a government nr trior fil ii li I avoided I nppiove or the reeomendntlon of tile rictetnry of Mm navy for new vesseln Mill for ntldltlemal ollliits Mill men which the teqtllrid lntteae of the navy makes nee Iscary 1 eominiiid to tho fiivotabli action of the congress tho inenstiie now peiulltig for the erection of a Hlntiie to llie memory of Mm late Admit nl Uovld D Porter 1 comtneuil also the establishment or a notional na val and or the grade of vice ad miral Provision should bo made nn leeomniitided by the seereiaty fot suit able1 tew in its ror spcilol merit Many ollleets who tendered the most ellntln gutshid seivlee ilurlng the icceiit wnr with Spain have leeelveel In trturu no teiiieultlon rrom llm congress The total area or public lanils ni given bv the secretory or the Interior is approximately 1071881662 acres of which 917 9fi 881 aeies are undisposed of and iri474ri782 nrren hnve been re served for vntleuin pin poses The pub lie Innils disposed or timing the year iiiiiount to ll4r38S790 acres Including 6242309 notes or Indian lni ils an In crease or 4 271474 81 over the pfeeedltlK year The total leceipls rrom the min or public lanils during the fiscal yenr were 1379 7HK 10 an Ineiense or 130 621 71 ovnt the pHcedlng year ilie results obtained from our fotost policy have iletnonstrated Its wisdom nnd Mie neiesiilty In the Intetest of tint public for Ils fiuitltmiiiicc ami tnereaneil nppraplaMoiin by the eongress for Mm carrying on eif the work On June 30 1900 then- were thirty seven forest re serves eieiled by nresldeut lal pun Initi ations under section 21 of thn net of March 3 891 cmbruiihg an nivn oC 4n4iiriri29 acres Dining the posl year the niymplor reserve In llm state- nf Wiishlngon wns reduced 2611110 aeies leaving ltd pruniit aiea nt 1 921810 iiitiS Tho Present reserve In Arizona wns In creased rioni 10 210 iiitiS to 123680 ae res nnd the Illg Horn reserve In Wjntnlng was Ineretiseil fleiin 1127 690 acres to 11KI800 nens A new reserve the Fnntn Ynez In California emliiao tng an area nf MnflOO acre s was creat ed during this year On Oct 10 1ino the Ciow Cteek feirest reserve In Wy oming was ereated with an area of r6320 acres tiii iInhion tttiii Nimitier nl Nntiinn Ailitnil Ilurlng tlin Flu ent Viiir IVm 43M I At the end f the fiscal yenr thero were on the pension roll 993 221 nnineti a net Increnso or 2010 over the flscnl yenr 1M9 The number aeleleel to l her rolls elutlng the year was 16344 The amount dlslnusud ror nimy penslorH during the yi nr was ti im 11721 anil for navy pensions 3761 Mil II a total or 138462120 65 leaving an luiexpcnel eil bnliinri or iM2708 2S to be coveted Into the ticimiuy which shows an in crens over the prevlots yenis expen dltilte or 107077 70 There weie 6SI names added to the rolls elutlng tin year by special acts passed at the Unit session or the Ixlh congress The net or May 1900 nmong other things provides ror nn extension or In come to widows pensioned under snid net to 20 per annum The secretary or the Intel lor believes that by the op erations or this net the number of per sons pensioned under It will Ineionso nnd the lucre used annual payment for pensions will be between 30CO000 and 400000 The director i the cersns si it on thnt the work In connection with the twelfth census Is progiesslng ftivnrably Thin nntlonnl undertaking ordued by thu congress each decaile has finally re sulted In the eollictlon or nn aggrega tion or statistical rncts to determine the Industrial growth or the country Its mnnuractiiiing nnd inechaulcnl re sources Its richness In mires nnd for ests the number of Its agriculturists their farms and products Its educn tleinnl and religious opoi trnltles as nn weil as questions pertaining to so ciological conditions lllllAIITHKNf OF AtlKICIIITIIKIC Arret Drill of Miutc During til IliKt Yenr The department of agriculture hn been extending Its work during the past year reaching farther ror new varieties or nedH and plants co operating more fully with the states and territories in resen nil nlemg useful lines making prugicbH In ineteorollglcul work relat ing to lines of wireless telegraphy and rorce usts for ocean going vessels con tinuing inquiry us to nnlmnl disease looking Intei the extent nnd character of food oelulterntlon outlining plana for the en re preservation anil Intelli gent harvesting of our wood lands studying soils that producers may cul tivate with Istter knowiedue of condi tions nnd helping to clothe divert plnces with grosses suitable to our arid regions Our Island possessions nre be ing considered that their peoples may be helped to produce the tropical prod ucts now so extensively brought Into the United Stntes Inquiry Into meth ods of Improving our roads has been active during the year help has been given to many locnlltles nnd scientific investgntlon of material In the statesi nnd territories hns been Inauguarted Irlgatlon problems in our semi aria re gions nre receiving careful and In creased considerations The civil service commission Is great ly embarrassed In Its work for want of nn adequate permanent force for clerical and other assistance Its needs nre fully set forth In Its repoH I In vite attention to the report land es peclnly urge upon the congress that this Important bureau or the public service which passes upon the qualifications nnd character of so lnrge a number or the officers nnd employes of the gov ernment should be supported by all needed npproprlutlons to secure prompt ness nnd efficiency The prebldent recommends the build ing of n hall of records In Washington nnd concludes his messnge as follows In our great prosperity we must guard against the danger It Invites of ex travagance In government expenditures and appropriations and the chosen representatives of the people will I doubt not furnish an example In their legislation of that wise economy which In a season of plenty husbands for the future In this era of great bus- ness activity and opportunity caution Is not untimely It will not abate but strengthen confidence It will not retard but promote legitimate Indus trial and commercial expansion Our growing power brings with It tempta tions nnd perils requiring constant vigi lance to avoid It must not be usefl to invite conflicts nor for oppression but for the more effective maintenance of those principles of equality and jus tire upon which our instltulons and happiness depend Let us keep always in mind that the foundations of our government is liberty Its superstruct ure peace i WILLIAM MKIXLET J