PRESIDENT'S
Washington. D. C President Mc
Xinly transmitted bis annual mea
u congress, as follows, in part:
To the Senats and House of Repre
sentatives: At the threshold of your
deliberations you are called to mourn
with your countrymen the death of
Vice President Hobart, who passed
from this life on the morning of No
vember 21. last His great soul now
rests in eternal peace. Hi9 private life
was pure and elevated, while his public
career was ever distinguished by large
capacity, tainless integrity and exalted
motives. He has been removed from
the high office which he honored and
dignified, but his lofty character, his
devotion to duty, his honesty of pur
pose and noble virtues remain with us,
as a priceless legacy and example.
The fifty-sixth congress convenes In
Its first regular session with the coun
try in a condition of unusual prosper
ity, of universal good will among the
people at home and in relations ot
peace and friendship with every gov
ernment nf th world. Our foreign
rnmmrrra has shown ereat Increase in
volume and value.
IMPORTS AND EXPORTS.
The combined imports and exports
for the year are the largest ever shown
hi, inrlat Tear in all our hlstorv. Our
exports for 1899 alone exceeded by more
than a billion dollars our imports auu
exports combined In 1870. The Imports
r.mr A.nUa ra 9n nr ft fit less than In
1870, while tht exports per capita are
i per cent mors man in xsiv, iuuis
the enlarged capacity of the United
States to satisfy the wants of Its own
tnrrsinr Donulatlon. as well as to
contribute to those of the peoples of
other nations.
Exports of agricultural products
-were $784,776,142. Of manufactured
products we exported in value $339,
692,146, larger than any previous year.
It Is a noteworthy fact that the only
years in all our history when the prod
ucts of our manufactories sold abroad
exceeded those .bought abroad were 1898
and 1899.
Goernment receipts from all sources
for the fiscal year ended June 30, 1899,
Including $11,798,314.14, part payment of
the Central Pacific railroad Indebted
ness, aggregated $610,982,004.35. Customs
receipts were $206,127,4X1.75, and those
from internal reenue $273,437,161.51.
DEFICIT OF $89,111,559.67.
For the fiscal year the expenditures
were $700,093,564.02, leaving a deficit of
$W, 111, 569. 67.
The secretary of the treasury esti
mates that the receipts for the current
fiscal year will aggregate $640,968,112,
and upon the basis of present appro
priations the expenditures will aggre
gate $600,958,112, leaving- a surplus of
$40,000,000.
For the fiscal year ended June 30,
1S9S, the internal revenue receipts were
Increased about $100,000,000.
The present gratifying strength of the
treasury Is shown by the fact that on
December 1, 1899, the available cash
balance was $278,004,837.72, of which
$239,744,905.36 was in fold coin and bul
lion. The condition of confidence which
frevalls throughout the county has
rought fold into more general use and
customs receipts are now almost en
tirely paid In that coin.
THE PURCHASE OF BONDS.
The strong condition of the treasury
with respect to cash on hand and the
favorable showing made by the rev
enues have made it possible for the sec
retary of the treasury to take action
under the provisions of section 3694, re
vised statutes, relating to the sinking
fund. Receipts exceeded expenditures
for the first five months of the current
fiscal year by $13,413,398.91, and. ae
mentioned above, the secretary of the
treasury estimates that there will be
a surplus of approximately $10,000,000
at the end of the year. Under such
conditions It was deemed advisable and
proper to resume compliance with the
provisions of the sinking fund law,
which for eight years has not been done
because of deficiencies in the revenues.
The treasury department therefore
ffered to purchase during November
$25,000,000 of the 5 per cent loan of
l04, or the 4 per cent funded loan of
1097, at the current market price. The
amount offered and purchased during
November was $18,408,600. The premium
paid by the government on such pur
chases was $2,263,521, and the net sav
ing in interest was about $2,885,000. The
success of this operation was sufficient
to induce the government' to continue
the offer to purchase bonds to and in
cluding the 23d day of December, Inst.,
unless the remainder of the $25,000,900
called for should be presented in the
meantime for redemption.
LARGER VOLUME OF MONET.
Increased activity In Industry, with
hs welcome attendant a larger em
ployment for labor at higher wages
gives to the body of the people a
larger power to absorb the circulating
medium. It is further true that year
by year, with larger areas of land un
der cultivation, the Increasing volume
of agricultural products, cotton, corn
and wheat, calls for a larger volume of
money supply. This is especially
noticeable at the crop-harvesting and
crop-moving period.
In its earlier history the national
banking act seemed to prove a reason
able avenue through which needful
additions to the circulation could from
time to time be made. Changing con
ditions have apparently rendered it
now Inoperative to that end. The high
margin In bond securities required, re-
suiting rrom large yreui.u...
government bonds command in tne
market, or the tax on note Issues, or
both operating together, appear to be
the influences which impair Its public
utility.
The attention of congress Is respect
folly Invited to this Important matter
with the view of ascertaining whether
or not such reasonable modifications
can be made In the national banking
act as will render its service in th
particulars here referred to more re
sponsive to the people s needs I
again urge that national banks be
authorised to organise with a capital
of $26,000.
MAINTAIN THE GOLD STANDARD.
I urgently recommend that to sup
port the existing gold standard and to
maintain "the parity in value of the
SoTn. of the twrmetals (gold and sil
ver) and the equal power of every
dollar at all times In the market and
faith earment of debts." the secretary
5 th. reasurbe given additional
Pwer and c"d with the duty to sell
UnTted States bonds and to employ
such other offsctlve means as may be
Secessery to these ends. This author
it? should include the power to sell
wf.da on long and short time, as con
Xm ma reaul". and should pro
toTrttTof interest lower than
i2tt teed by the act of January 14.
X5r wmii there la now no commer
22?" JSbano?of the sort which with
SSrJeSdttosB tne government, but
Tr2r sn widespread eon-
T2J!?Mtia veteM to ta
I I is Tm- x
,1 $ fj i
MESSAGE TO CONGRESS.
make adequate provision to Insure the
continuance, of the gold standard and
purpose of the government to meet all
its obligations in the money which the
civilized world recognizes as tne Dest.
The financial transactions of the gov
ernment are conducted upon a gold
basis. We receive gold when we sell
United Slates bonds and use gold for
their payment. We are maintaining
the parity of all the money Issued or
coined by authority or the government.
We are doing these things with the
means at hand. Happily at the present
time we are not compelled to resort to
loans to supply gold. It has been done
In the past, however, and may have to
be done in the future. It behooves us
therefore to provide at once the best
means to meet the emergency when It
arises and the best means are those
which are the most certain and eco
nomical. Those now authorized have
the virtue neither of lirectness or
economy. We have already eliminated
one of the causes of our financial plight
and embarrassment during the years
1893, 1894, 1895 and 1896. Our receipts
now equal our expenditures; deficient
revenues no longer create alarm. Let
us remove the only remaining cause by
conferring the full and necessary
power on the secretary of the treasury
and impose upon him the duty to up
hold the present gold standard and
preserve the coins of the two metals
on a parity with each other, which Is
the repeatedly declared policy of the
United States.
In this connection I repeat my former
recommendations that a portion of the
gold holdings shall be placed In a
trust fund, from which greenbacks
shall be redeemed upon presentation.
but when once redeemed shall not
thereafter be paid out except for gold.
AID THE MERCHANT MARINE.
The value of an American merchant
marine to the extension of our com
mercial trade and the strengthening of
our power upon the sea Invites the
immediate action of congress. Our na
tional development will be one-sided
and unsatisfactory so long as the re
markable growth of our Inland indus
tries remains unaccompanied by pro
gress on the seas. There is no lack of
constitutional authority for legislation
which shall give to the country marl
time strength commensurate with its
Industrial achievements and with Its
rank among the nations of the earth.
The last year has recorded excep
tional activity in our ship yards and
the promises of continual prosperity
In shlD building are abundant. Ad
vanced legislation for the protection
of our seamen has been enacted. Our
coast trade, . under regulations wisely
framed at the beginning of the govern
ment and since, shows results for the
last fiscal year, unequaled in our rec
ords or those of any other power. We
shall fall to realize our opportunities,
however. If we complacently regard
only matetrs at home and blind our
selves to the necessity of securing our
share in the valuable carrying trade of
the world.
EVIL AND BENEFICIAL TRUSTS.
Combinations of capital organized
into trusts to control the conditions of
trade among our citizens, to stifle com
petition, limit production and deter
mine the prices of products usea ana
consumed by the people, are justly
provoking public discussion and should
early claim the attention of the con
gress.
The industrial commission, created
by the act of congress of June 18,
1898, has been engaged In extended
hearings upon the disputed questions
involved in the subject of combinations
In restraint of trade and competition.
They have not yet completed their in
vestigation of this subject and the
conclusions and recommendations at
which they may arrive are undeter
mined. The subject Is one giving rise to many
divergent views as to the nature and
variety or cause and extent of the In
juries to the public which may result
from large combinations concentrating
more or less numerous enterprises and
establishments, which previously to the
formation of the combination were car
ried on separately.
It Is universally conceded that com
binations which engross or control the
market of any particular kind of mer
chandise or commodity necessary to
the general community, by suppressing
natural and ordinary competition.
whereby prices are unduly enhanced to
the general consumer, are obnoxious
not only to the common law, but also
to the public welfare. There must be
a remedy for the evils Involved in such
organizations. If the present law can
be extended more certainly to control
or check these monopolies or trusts, it
should be done without delay. What
ever power the congress possesses over
this most important subject should De
promptly ascertained and asserted.
QUOTES BENJAMIN HARRISON.
President Harrison, In his annual
message of December 3, 1889, says:
"Earnest attention should be given
by congress to a consideration of the
question how far the restraint of those
combinations of capital commonly call
ed 'trusts' Is matter of federal Jurisdic
tion. When organized, as they are, to
crush out all healthy competition and
to monopolize the production or sale
of an article of commerce and general
necessity they a'c dangerous conspir
acies against the pubUc good and
should be made the subject of prohib
itory and even penal legislation."
THE ACT OF 1890.
An act to protect trade and commerce
aaalnst unlawful restraints and mo
nopolies was passed Dy congress on tne
2d day of July, 1890. The provisions
of this statute are comprehensive and
stringent. It declares every contract or
combination In the form or a trust or
otherwise.or conspiracy In the restraint
of trade or commerce among the sev
eral states or with foreign nations, to
be unlawful. It denominates as a crir
Jnal every person who makes any su .
contract or engages in any sum com
bination or conspiracy and provides a
punishment by. fine or Imprlsonmet. It
Ivests the several circuit courts of ihe
United States with Jurisdiction to pre
vent and restrain such violations. It
further confers upon any person who
sholl be Injured In his business or
property by any other person or cor
poration by reason of anything for
bidden or declared to be unlawful by
the act, the power to sue therefor in
any circuit court of the United States
without respect to the amount In con
troversy, and to recover three-fold the
damages by him sustained and the
costs of the suit, Including reasonable
attorney fees. It will be perceived that
the act Is aimed at every kind of com
bination In the nature of a trust or
monopoly In restraint of Interstate or
international commerce.
The prosecution by the United States
of offenses under the act of 180 has
been frequently reported In the fed
eral courts, notable, efforts In the re
straint of Interstate commerce, such
M the Trans-Mlseosri Freight esso
tigfiea and the Joint Trafflc associa
tion, have been successfully opposed
and suppressed.
WHAT CLEVELAND SAID.
President Cleveland, In his annual
mcssaje of December 7, 1896 more
than six years subsequent to the en
actment of this law after stating tne
evils of these trust combinations.
says:
"Though congress has attempted to
deal with this matter by legislation, the
laws passed for tbat purpose thus far
have proved Ineffective, not because of
any lack of disposition or attempt to
enforce them, but simply because the
laws themselves as interpreted by the
courts do not reach the difficulty. If
the insufficiency of the existing laws
can be remedied by further legislation
It should be done. The fact must be
recognized, however, that all federal
legislation on this subject may ran
short of Its purpose because Inherent
obstacles and also because of the com
plex character of our governmental
system, which, while making the fed
eral authority supreme within its
sphere, has carefully limited that
sphere by metes and bounds which
cannot be transgrasged. The decision
of our highest court on this precise
question renders it quite doubtful as
to whether the evils of trusts and mo
nopolies can be adequately treated
through federal action, unless they seek
directly 'and purposely to include in
their oblects transportation or tnter-
couse between states or the United
States and foreign countries.
"It does not follow, however, that
this is the limit of the remedy that
may be applied. Even though It may
be found that federal authority is not
broad enough to fully reach the case,
there can be no doubt of the power of
the several states to act effectively In
the premises and there should be no
reason to doubt their willingness to ju
diciously exercise such power."
STATE LEGISLATION FAILS.
The state legislation to which Presi
dent Cleveland looked for relief from
the evils of trusts has failed to accom
plish fully that object this Is proba
bly due to 4 great extent to the fact
that different states take different
views as to the proper way to discrimi
nate between evil and Injurious com
binations and those associations
which are beneficial and necessary to
the business prosperity of the coun
try. The great diversity of treatment
In different states arising from this
cause and the Intimate relations of all
parts of the country to each other
without regarding state lines In the
conduct of business have made the
enforcement of state laws difficult.
THE REMEDT.
It Is apparent that uniformity of leg
islation upon this subject In the sev
eral states Is much to be desired. It
is to be hoped that such uniformity,
founded In a wise and Just discrimina
tion between what Is Injurious and
what Is useful and necessary In busi
ness operations may be obtained, and
that means may be obtained and that
means may be found for the congress
within the limitations of Its constitu
tional power so to supplant 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 saiutary
rules to which I have referred.
The whote 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
deliberation of the congress, resulting
In wise and judicious action.
THE NICARAGUAN CANAL.
The contract of the Maritime Canai
company of Nii-arague was declared
forfeited by the Nicaraguan govern
ment on the 10th of October, on the
ground of non-fulfillment within the
ten-year term stipulated In the con
tract. The Maritime Canal company
has lodged a protest against this action,
alleging rights in the premises which
appear worthy of consideration. This
government expects that Nicaragua
will afford the protectants a full and
fair hearing upon the merits of the
case.
The Nicaragua canal commission,
w hich had been engaged upon the work
of examination and survey for a ship
canal route across Nicaragua, having
completed its labors and made Its
report, was dlssohed on May 31, and
on June 10 a new commisslon.known as
the Isthmian canal commission, was
organized under the terms of the act
approved March 3, 1899, for the pur
pose of examining the American isth
mus, with a view to determining the
most practicable and feasible route for
a ship canal across that isthmus, with'
Its probable cost, and other essential
details.
THE ISTHMIAN COMMISSION.
This commission, under the presiden
cy of Rear Admiral John G. Walker,
United States navy (retired), entered
promptly upon the work Intrusted to
it, and Is now carrying on examinations
In Nicaragua along the route of the
Panama canal and in Darien from the
Atlantic, In the neighborhood of the
Atrato river, to the bay of Panama, on
the Pacific side. Good progress has
been made, but under the law a com
prehensive and complete Investigation
Is called for, which will require much
labor and considerable time for Its ac
complishment. The work will be prose
cuted as expeditiously as possible and
a report made at the earliest practica
ble date.
The great Importance of this work
cannot be too often or too strongly
pressed upon the attention of the con
gress. In my message of a year ago I
expressed my views of the necessity of
a canal which would link the two great
oceans, to which I again Invite your
consideration. The reasons then pre
sented for early action are even strong
er now.
OUR INTERESTS IN CHINA.
In view of disturbances in the popu
lous provinces of Northern China,
where are many of our citizens, and
of the imminence of disorder near the
capital and toward the seaboard, a
guard of marines was landed from the
Boston and stationed during last winter
In the legation compound at Peking.
With the restoratlo of order this pro
tection was withdrawn.
The Interests of our citizens In that
vast empire have not been neglected
during the past year. Adequate pro
tection has been secured for our mis
sionaries and some injuries to their
property have been redressed.
American capital has sought and
found various opportunities of compet
ing to carry out the Internal improve
ment which the Imperial government
is wisely encouraging, and to develop
the natural resources of the empire.
Our trade with China ha continued to
grow and our commercial rights under
existing treaties have been everywhere
maintained durin the past year, as
they will le In the future.
The extension of the area open to
International foreign settlement at
Shanghai and the opening of tn ports
of Naklng. Tslng-Tso (Klao Chao)
ad La-Lien -Wan to foreign trade en J
iettlement will doubtless afford Amer
ican enterprise additional facilities and
rew fields, of which It will not be slow
to take advantage.
GERMAN RELATIONS CORDIAL.
Our relations with Germany continue
to De most coraisi. ine increasing in
timacy of direct association has been
marked during the year by the grant
ing permission in April for the landing
on our shores of a cable from Borkum
Kmden, on the North sea, by way of
the Azores, and al30 by the conclusion
cn September 2 of a parcels post con
vention with the German empire. In
all that promises closer relations of in
tercourse and harmony and a better
understanding between two races hav
ing so many traits In common, Ger-
mtinv ran lie aRRllred nf the most Cor
dial co-operation of this government
and people, we may De rivals in many
material paths, but our rivalry should
I .ex cAnftMita and nnen even flfminir to
ward the attainment of larger results
and the mutually beneficial advance
ment of each In the line of Its espe
cial adaptability.
THE ALASKAN BOUNDARY.
If the failure of an agreement as to
the menntnir of article 3 and 4 Of the
treaty of 18-5 between Russia and Great
Britain, which defined the nounaary
between Alaska and Canada, the Amer
ican rTimmiftulonerfi nrnnosed that the
subject of the boundary be laid aside
and that the remaining questions w
difference be proceeded with, some of
tt-hir-h were m fnr advanced as to as
sure the probability of a settlement.
This being declined Dy tne isruixn
fnmmtaairtnerx an adiournment was
taken until the boundary should be
adjusted by the two governments. The
subject has been receiving the careful
otrr.Hn A-Mrh its Imnortance de-
mana n-!th the result that a mod
dus
Vivendi for provisional demarkatlon
ns
in the reeinn about the head ot J-inn
canal has been agreed upon; and It Is
hoped that the negotiations now in
progress between the two governments
will end In an agreement for the estab
lishment and delimitation of a perma
nent boundary-
Apart from these questions, growing
nt nf mil- reiatinniihln with our north
ern neighbor, the most friendly dispo
sition and ready agreement have
iho riituMiualiin nf numerous
piatters arising out of the vast and inti
mate intercourse of the United States
with Great Britain.
THE WAR IN SOUTH AFRICA.
Thi rnvornment has maintained an
dttltude of neutrality in the unfortunate
contest between Great Britain ana tne
Boer states of Africa. We have remain
ed faithful to the precept of avoid
ing entangling alliances as to anairs
not of our direct concern. Had cir
cumstances suggested that the parties
to the quarrel would have welcomed
any kindly expression of the hope of
the American people that war migni u
averted .rood offices would have been
gladly tendered. The United States'
representative at Pretoria was early ln
structe dto see that all neutral Ameri
can Interests be respected by the com
batants. This has been an easy task
in view of the positive declarations 01
both British and Boer authorities that
iha lunnnal pnd nrnoertv rights of our
citizens should be observed.
Upon the withdrawal of the British
agent from Pretoria the United States
Mi,a.i n-n authorized unon the re
quest of the British government and
with the assent of the feoutn Arrican
and Orange Free State governments, to
exercise the customary good offices of
t neutral for the care ot liruisn inier
sts. In the discharge of this function
r hannv in Rnv that abundant op
portunity has been afforded to show
he Impartiality or this government
oward both the combatants.
THE SAMOA N ISLANDS.
Important events have occurred in
(h.. Samoaii Islands. The election, ac
cording to the laws and customs of
Samoa, of a successor to the late King
Malletoa Laupepa, developed a contest
as to the validity of the result, wnicn
issue, by the terms of the general act,
in Ka rieo tried hv the chief iustice.
Upon his rendering a judgment In fa
vor of Malletoa Tanu, tne rival cniei,
Mataafa took up arms. The active 'n
tervention of American and British war
ships became Imperative to restore or
der, at the cost of sanguinary encoun
ters. A Joint commission of representatives
of the United States, Germany and
Great Britain was sent to Samoa to
investigate the situation and provide a
temporary remedy. By Its active ef
forts a peacerui solution was rem-ucu
for the time being, the kingship being
abolished and a provisional government
established. Recommendations unani
mously made by the commission lor
a permanent adjustment of the
Samoan question were taken under
consideration by the three powers
parties to the general act. But tne
more they were examined the more
evident it became that a radical change
was necessary in the relations of the
powers to Samoa,
Tha inconveniences and possible perils
of the tripartite scheme of supervision
and control in tne isamoan giuu u
powers having little Interest In common
In that quarter beyond commercial
rivalry, has been once more empha
sized by the recent events. The sug
gested remedy of the Joint commission,
like the scheme It aimed to replace,
amounted to what has been styled a
trlodomlnlum, being the exercise of the
functions of sovereignty by an unani
mous agreement of three powers. The
situation had become far more Intri
cate and embarrassing from every point
of view than It was when my prede
cessor In 1894 summed up Its perplexi
ties and condemned the participation In
it of the United States.
THE TRIPARTITE AGREEMENT,
The arrangement under which Samoa
was administered had proved impracti
cable and unacceptable to all the pow
ers concerned. To withdraw from the
agreement and abandon the Islands to
Germany and Great Britain would not
be compatible with our interests in
the archipelago. To relinquish our
rights in the harbor of Pago Pago, the
bes tanchorage in the Pacific, the oc
cupancy of which had been leased to
the United States in 1878 by the first
foreign treaty ever concluded by Sa
moa, was not to be thought of
either as regards the needs of our navy
or the interests of our growing com
merce with the east. We could not
have considered any proposition for the
abrogation of the tripartite control
which did not confirm us In all our
rights and safeguard all our national
Interests In the Islands.
Our views commended themselves to
the other powers. A satisfactory ar
rangement was concluded between the
government of Germany and of Great
Britain by which we retired from Sa
moa in view of compensations In other
directions, uml both powers renounced
In favor of Hie United States all their
rights and claims over and In respect
to that portion of that gToup lying to
the east of the 171st degree of west
longitude, embracing the Islands of
Tutullu, Ofoo, Olosenga and Manua. 1
(rensmll to the senate, for Its constitu
tion action thereon, a convention
...a. V..l..a thaa IlTOVlslon SDOV
W nl n, a,. -,'' r
.i,.nel also suarantees us the
same privileges snd conditions In re
spect to commerce snd commercial vss
sell (n all of the Islands of Samoa as
those poesed by Germany.
Claims have been preferred by white
residents of Samoa on account of in
juries alleged to have been suffered
through the acta of the treaty govern
ments in putting down the late dis
turbances.
A convention has been made between
the three powers for the Investigation
and settlement of these claims by a
nutral arbitrator, to which the at
tention of the senate will be invited.
THE INDEPENDENCE OF CUBA.
My annual message of last year was
necessarily devoted In great part to a
consideration of the Spanish war and of
the results It wrought and the condi
Hons It Imposed for the future. I am
gratified to announce that the treaty
of peace has restored friendly rela
Hons belweea the two powers. Effect
has been glwn to Its most Important
provisions. The evacuation of Porto
Rico having be"ii already accomplished
on the 18th of October. 1898, nothing
remained necessary there but to con
tinue the provisional military control
of the Island until the congress should
enact a suitable government for the
ceded territory. Of the character ana
scope of the measures to that end I
shall treat In another part of this
message.
The withdrawal of the authority of
Spain from the island of Cuba was
effected by the 1st of Janjary, so mat
the full establishment of peace
found the relinquished territory held
bv us In trust for the inhabitants,
maintaining, under the direction of the
executive, such government and con
trol therein as should conserve public
order, restore the productive conditions
of peace so long disturbed by tne in
stability and disorder which prevailed
for the greater part of the preceding
three decades, and build up that tran
quil development of the domestic state
whereby alone can be realized the high
purpose, as proclaimed Dy tne joint
resolution adopted by the congress on
the 19lh of April. 1898, by which the
United States disclaimed any disposi
tion or intention to exercise sover
eignty. Jurisdiction or control over
Cuba. except for the pacification
thereof, and declared " Its Intention
when that was accomplished to leave
the government and control of the
Island to Its people. The pledge con
tained In this resolution Is of the high
est honorable obligation and must be
sacredly kept.
FIT THEM FOR INDEPENDENCE.
I believe that substantial progress
has been made In this direction. All
the administrative measures adopted
In Cuba have aimed to fit It for a re
generated existence by enforcing the
supremacy of law and justice; by plac
lng wherever practicable the ma
chinery of administration In the hands
of the Inhabitants; by Instituting
needed sanitary reforms; by spreading
education; by fostering Industry and
trade; by Inculcating public morality,
and. In short, by taking every rational
step to aid the Cuban people to attain
to that plane of self-conscious respect
and self-reliant unity which fits an en
lightened community for self-government
within Its own sphere, while en
abling It to fulfill all outward obliga
tions. This nation has assumed before the
world a erave responsibility for the
future good government of Cuba. We
have accepted a trust the ruiniiment
of which calls for the sternest integ
rity of purpose and the exercise ot tne
highest wisdom.
CUBA BOUND TO US.
The new Cuba yet to arise from the
ashes of the past must needs be bound
to us by ties of singular Intimacy and
strength If Its enduring welfare Is to
be assured. Whether those ties shall
be organic or conventional, the desti
nies of Cuba are In Mine rightful form
and manner irrevocably linked with
our, but how and how far Is for the
future to determine in the rljieness of
events. Whatever be the outcome, we
must see to it that free Cuba !e a
reality, not a, name; a perfect entltly.
not a hastity experiment bearing with
in itself the elements of failure.
MUST RESTORE! PROSPERITY.
Our mission to accomplish which we
took up the wages of battle, Is not to
be fulfilled by turning adnjft any
loosely framed commonwealth to race
the vicissitudes which too often attend
weaker states whose natural wealth
and abundant resources are offset by
the Incongruities of their political or
ganization and the recurring occasions
for international rivalries to sap tneir
strength and dissipate their energies.
The greatest blessing which can come
to Cuba is the restoration or ncr agri
cultural and Industrial prosperity.
which will give employment to idle
men and re-establish the pursuits ot
peace. This Is her chief and Immediate
need.
On the 19th of August last an order
was made for the taking of the census
of the Island, to be completed on the
3Hh of November. By the treaty of
peace the Spanish people on the Island
have until . April 11, 1900, to eljctj
whether they will remain citizens of
Spain or become citizens of Cuba. Un
til then It cannot be definitely ascer
tained who shall be entitled to par
tlclpate In the formation of the gov
ernment of Cuba. By that time the re
sults of the census will have been tabu
lated and we shall proceed to provide
for elections which will commit the
municipal governments of the Island
to the officers elected by the people.
HOW WE WILL GRANT FREEDOM.
The experience thus acquired will
prove of great value In the formation
of a representative convention of the
people to draft a constitution and es
tablish a general system of Independ
ent government for the island. In the
meantime, and so long as we exercise
control over the Island, the products
of Cuba should have a market In the
United States on as good terms and
with as favorable rates of duty as are
given to the West India Islands under
treaties of reciprocity which shall be
made.
For the relief of the distressed In the
island of Cuba the war department has
Issued supplies to destitute person
through the officers of the army, which
have amounted to 5,493,000 rations, at
a cost of $1,417,554.97.
To procure the disarmament of the
Cuban volunteer army and In the In
terest of public peace and the welfare
ot the people the sum of $75 was paid
to each Cuban soldier borne upon the
authenticated rolls, on conditions that
he should deposit his arms with the
authorities designated by the United
States. The sum thus disbursed ag
gregated $2,547,750, which was paid
from the emergency fund provided by
the act of January 8, 18'.), for that
purpose.
Out of the Cuban Island revenues
during the six months ending June 30,
1899, $1,712,014.20 was expended for san
itation, $293,881.70 for charities and hos
pitals and $88,944.03 for and to the des
titute. RELATIONS WITH SPAIN.
Following th exchange of ratifica
tions of tbs treaty of peace the two
governments accredited ministers to
each other, Spain sending to Washing
ton the Duke of Arcos, an eminent
diplomatist, previously stationed In
Mexico, while the United States trans
ferred to Madrid Hon. Bellamy Itortr,
Its minister at Brussels. This was fsl
lowed by the respective appotnUnss
of consuls, thereby fully resuming Us
relations interrupted by the war. 0
ddltlen to Its consular representatloi
In the United States, the Spanish gon
ernment has appointed consuls foi
Cuba, who have been provisionally reo
ognlzed during the military adminis
tration of the affairs of that island.
Judicial Intercourse between th
courts of Cuba and Porto Rico and et
Spain has been established as provided
by the treaty of peace. The Cuban
political prisoners In Spanish penal sta
tions have been and are being released
and being returned to their homes, in
accordace with article 6 of the treaty.
Negotiations are about to be had for
defining the conventional relations be
tween the two countries, which fell Into
abeyance by reason of the war. I trust
that those will Include a favorable
arrangement for commercial reciprocity
under the terms of sections 3 and 4 of
the current tariff act In these, as In
all matters of International concern, no
effort will be spared to respond to the
good disposition of Spain and to culti
vate in all practicable ways the In
timacy which should prevail between
the two nations, whose past history has
so often and in so many ways been
marked by sincere friendship and by
community of interests. I would rec
ommend appropriate legislation In or
der to carry Into execution article 7 of
the treaty of peace with Spain, by
which the United States assured th
payment of certain claims for Indem
nity ot its citizens against Spain.
REGULAR AND VOLUNTEER ARMT
Since my last annual message, and In
obedience to the acts of the congress
of April 22 and 26. 1898, the remaining
volunteer force enlisted for the Span
ish war, consisting of 34,834 regulars
and 110.202 volunteers, with over 6.000
olunteer officers, has been discharged
from the military service. Of the vol
unteers, 667 officers and 14.831 men were
serving In the Philippines and 1,650 of
the regulars, who were entitled to be
mustered out after the ratification ot
the treaty of peace. They voluntarily
remained at the fiont until their places
could be filled by new troops. They
were returned home In the order In
which they w?nt to Manila. and now all
of them are out of the service and In the
ranks of citizenship. I recommend that
congress provide a special medal of
honor for the volunteers, regulars, sail
ors and marines on duty In the Philip
pines who voluntarily remained In th
service ater their terms of enlistment
had expired.
By the act of March L 1899, con
gress has authority to Increase tne
regular army to a maximum not ex
ceeding 65.000 enlisted men. and to en
list a force of 35.000 volunteers, to be
recruited from the country at large.
By virtue of this authority the regu
lar army has been increased to th
number of 61.999 enlisted men and 2,248
officers and new volunteer regiments
have been organized, aggregating 33.060
enlisted men and 1.524 officers. Two ot
these volunteer regiments are made up
of colored men, with colored line offi
cers. The new troops to take the places
of those returning from the Philippines
have been transported to Manila to th
number of 581 officers and 26.322 enlisted
men of the regular army and 694 am
eers and 15.358 enlisted men of th new
volunteer force, while 504 officers and
14,119 men of the volunteer force are on
the ocean en route to Manila.
TROOPS IN THE PHILIPPINES.
The force now In Manila consists of
905 officers and 30.578 regulars, and 694
officers and 15,388 of the volunteers,,
making an aggregate of 1.499 offlcerjf
and 45,966 men. When the troops now
tinder orders shall reach Manila, the
force In the archipelago will comprise
2.0.",l officers and 63.4S3 enlisted men.
The muster out of the great volunteer
army organized for the Spanish war
and the crsatlon of a new army, the
transportation from Manila to San
Francisco of those entitled to discharge
and the transportation of the new
troops to take their places have been a
work of great magnitude, well and ably
done, for which too much credit can
not be given the war department.
During the oast year we have reduced
our force in Cuba and Porto Rico. In
Cuba we now have 334 officers and 10,
796 enlisted men; In Porto Rico, eighty
seven officers and 2.855 enlisted men,
and a battalion of 400 men composed of
native Porto Rlcans; while stationed
throughout the United States are 910
officers and 17.317 men. and In Hawaii
twelve officers and 453 enlisted men.
COMMENDS OFFICERS AND MEN.
The operations of the army are fully
presented in the reiort of the secretary
of war. I cann )t withhold from officers
and men the highest commendation for
their soldierly conduct In trying situa
tions, their willing sacrifices for their
country and the Interest and ability
with which they have performed un
UBual and difficult duties in our Island
possessions.
In the organization of the volunteer
regiments authorized by the act of
March 2, 1899, it was found that no
provision had been made for chaplains.
The omission was doubtless from Inad
vertence. I recommend the early au
thorization for the appointment of one
chaplain for each of said regiments.
These regiments are now In the Philip
pines, and It is Important that Imme
diate action be had.
THE AMERICAN NAVY.
The navy has maintained the spirit
and high efficiency which have always
characterized that subject, and has lost
5
none of the eallantry In heroic action
which has signalized lis brilliant and
glorious post. The nation has equal
pride In Its early and later achieve
ments. Its habitual readiness for every
emergency has won the confidence and
admiration of the country. The people
are Interested !n the continued prepara
tion and prestige of the navy and will
approve liberal impropriations for Its
maintenance and Improvement Th
officers have shown peculiar adaptation
for the performance of new and deli
cate duties which our recent war has
Imposed.
It cannot be doubted that congress
will at once make necessary provision
for the armor plates for the vessels
now unde contract and building. Its
attention Is respectfully called to th
report of the secretary of the navy. In
which the subject Is fully presented. I
unite In his recommendation that th
congress enact such special legislation
as may be necessary to enable the de
partment to make contracts early In
the coming year for armor of the best
quality that can be obtained In this
country for the Maine, Ohio and Mis
souri, and that the provision of th act
of March 3. 1899, limiting the price of
armor to $300 per ton be removed.
In the matter of naval construction,
Italy and Japan of the great powers,
laid down less tonnage In the year 1890
than this country and Italy alone
has less tonnage under construction. 1
heartily concur In the recommendations
for Increasing the navy, as suggested
by th secretary of the navy.
THE) PENSION BILL.
June $0, 18M, ' th pension roll ot
th United States numbered tl,11$.
These Include tht pensioners of (d
army and navy In all our wars. 1
number added to th roll during
year was 4,M1. Tht number dronnit
by reason of death, minora by tsgtl
sr . .LtuVil"
. hi;
