", m . 0 if (BWt- h JrumAv rpn 4 1HUn THE BED CLOUD OHIKF, JfJRlDAYi.DEC. 11, 1896. V fcd BI EH CUBAN QUESTION FORCI BLY DEALT WITH. SPAIN IS THREATENED. Tlie United Ktiitrs Itriuly to Inturfrro In Itl Own Wiiy Unless it 8prrcly Cos- ntlon of Hostilities In Drought Aliont Tim fjuinllou exhaust ively Dlnruix'il In All Its Deplorable Features, The Situation In Turkey Utile Changed, lint I.oform In Loohoil for 'tlio Vcnciic tun Ini'lilriit I'riielleully tinseil Tariff iiml I Inutii lit 1 Views lieltcrnteil OfTcns- lti I'lirtlsimslilp. Wamiin'Mon, Dei. T. Tlio following Is thi' pmsiilpnt'h imssiin;i: to cfiiiirressi To the ( ougirssof I lie United States: As reptesent.Ulvo ill tin n'iiili! Ill tin legisla tive branch of their government you li.ivc asscmhldl at a time when the strength anil exeelli me of our tree Institutions anil the fitness ol our iltli'iis to enjoy popular rule have been again made manliest. A political contest Inwdvlny luotni'iit'iiis roiiscquctu cm, fraught wltli Icverlsh apprehension anil creating ngiessivcurss so Intense us tu ap proach bitterness ami passion, has licen waged ihioiighnul our (ami ami iletrrmlncil by tile dot ree ot free ami Inilopemlent suf frage, without illsttirliame of our Itan qllllltyot tin least sign ot weakness In oui national stiurluie When e cmisliler these InrlilcuW ami ContciupUtu the pe.ieeful olieilleiue ami nisttily submission which have suiiecdcd a heated ilash of political opinion no dls cover aliumlanl evidence of aileierinln.itlon on the part of country men to alilile by every verdict of the popular will anil to br con trolteil at all tlmrsli.r .unhiding faith In the sgeuiies established for the illlfctlon ot the kfTalrHof their gnicrliincut. Thus our peo ple exhibit a patriotic illsposltlon w Iilcti en titles them to ilotiuml of thine who under take to make ami execute their laws such fulthtul ami unseltlsli nervier In their behalf us can only be prompted by a serious appte clatlonof the trust audcoiifldciicc which the acceptance of public ilutv Invites. Inobeilleme to a eoustltutlonal reqtilto Inent, I herein submit to thr Congtcss cer tain Infutin.itlou iiimi ruing national af fairs, with tin siieitlonof such legislation as In my tuiUil'eul is neeesH.it y anil expe dient. To sei lire lnevlty aiul avoid tiresome narration, I Khali omit many details con cernlng matti is within It lor.il eoutiol, Which, though by no means unimportant, tiro more ptn'ltahly discussed In depart mental reports. 1 shall also tin ther cut tall thlsioiiimimicat.iii by omitting a minute lecllal of many minor Incidents eoiinecteil with our loiiigu relations which have here tofore found a. plai e in executive messages, but arc now contained In a leport of the Beciotarv of State, which Is herewith submitted. TI'KKI'V. At the outset of a tcfeicnrc to the more luilsirt.iut matters atfeettiiK our relations with foreign powers. It would atfnnl me at Isfuctluntl Icoulda'suie the Congress that the disturbed condition In Asiatic Tut key had during the past Near as.umcd a less hideous anil blond v asju. t. ami that either an a rnnseiiiicnio of the awakening of the Turkish government to the demands Of humane civilization or as the result of dcilslve action on the jiartofthei;reat nations having the right by treaty to Interlcre tor the protection of those exposed to the rage ot mere bigotry (inn cruel fanaticism, the shockliiK features of the situation had been mitigated. Instead, however, of welcoming a softened disposition or protective Intervention, wc have bceu atnicted by continued and not (in frequent reports of the wanton destruction of home and the bloody butchery of men, women and children, made martyrs to their profession of Chilsliaii faith While none of our litiious In Tui key have thus far been killed or wounded, though often In the midst of dreadful icenes of danger, their safetv In lite future Is by no means assured. Our government at home and our minister .it Constantinople have lelt uothliir. undone to protect our missionaries In Ottoman terri tory, who Constitute nearly all thr Individ- ,11318 rctldlofr there who have a right to ninth) our pYntci lion on the sinre of Auior- tcftucltlrrnshlp. ' Tfur efforts In this direction will not be ie- jltutsdi but the deep feeling and sympathy Unfit nhve be n aroused among our people Vicht not to so far blind their reason ami (Judgment as to lead them lo demand Impos sible things. The outbreak nf blind fury which led to murder and pillage In Turkey ccur suddenly and without notice, and an fctteSBv' -I our part to force such a hostile pU'seuct; there as might Ik effective for pre vention or proteiitlou would not only be re mitted by the Ottoman government, but feould be regarded as an Interruption of lltrlr plans to the gi oat nations who assert thfllr exclusive right to Inter. one In their 'ibn time and method for thusecutlty of life and proprt ty In Turkey fio'eral naval v osels are stationed In the Mediterranean as ,t measuie of caution and to furnish all possible relief and rrinitc In C39C of emernency. We have claims against the Turkish Kovernmenl for the pillage and destruction ot mKslouary property at llar jpool and Marash durliiK uprisings .it those plBCCs. Thus far the validity of these Ue UiRndi has not hern admitted through out' inlliltter. l't'loi to mh 'i out cures and In an tlclpatlon of daiiKer wrdem.ii dedpioteitlon for the pm sons and propel ty ol our mission 'tiry cltlcens In the localities mentioned, tthd tiotwlthstandllip that evuleui e elts of (fctnul complicity of Turkish soldiers In the WOrlc of destruction and robbery The facts ks they now appear do not permit us to doubt thoJURtlce of these claims, and nothltiK wilt bo omitted to lirluc about their prompt set tJoment. A number of Armenian irfuitees navlng arrived at our ports, an 'order has lately been obtained from the Turkish rov erhracnt permlttlnt: the wives and children ofsuth refugees to join them here. It Ik hoed that hereafter no obstacle will be In ttrposed to prevent the escape of all those Who seek to avoid the porlU which threaten then. In Turkish dominions. Our recenllyapioliitedconsulto Kreroum (a at bU post and dlxchargliiK the duties of hit ortlcc. though for some unaccountable raton his formal esequator from the Sultan nab not been iKsucd, I do not believe that the present koinbcr prospect In Turkey will be long permitted to offend the sUht of Christ endom. It so mars the human and eullcht aucd civilization that belongs to the close ot the nineteenth century that It scums hardly possible that the earnest demand of good people throughout the Christian world for Its corrective treatment will remain un kusweted. CUIIA. The Insurrection in Cuba still continues, trtth all Its perplexities. It Is dlmcult to perceive that any progress has thus far been tuade toward the pacification of the Island or that the situation of affairs as depicted In my last annu.it message has In the least Im proved. If Spain still holds Havana and the seaports and all considerable towns, the In MirRents still roam at will over at least two-thirds of the Inland country. If the de termination of Spain to put down the Insur rection ncrnis but to strengthen with the lapse of time, and ln;evldenced by her un hesitating devotion of largely Ilia eased military and naval lorres to the task, there Is much reason to believe that the Insur gents have gained In point of numbers and chat artcr anil resources, and arc none the less Indexible In their resolve not to succumb without practically securing the great pro Jrris for which thrv took up anus. It Spain has not yet re-established her ailthoiiij neither have the Insurgents yet made gold their title to be regarded as an Independent state. Indeed, as the contest has gone on. the tiretense that civil eovernment exists on the Island, except so far as Spain Is able to maintain it. has been practlcallv abandoned. Spain does keep on loot such a govern ment, uiorc or less Imperfectly. In the l.u go towns and tin Ir Immediate suburbs. Hut, that exception being made, the entile coun try Is either given oier to anarchy or Is subject to the military occup.Mlon of one or the other party. It Is reported. Indeed, on tellable authority that, at the demand of the (ommamler-liiM hlef of the Insurgent army, the putative Cuban government has now given up all attempt to exercise Its functions, leaving that government confes sedly (w hat there Is the best reason for sup- jxisliig It nlwnts to have been In f.atl a gov ernment meii-Iy on paper. Were the Spanish atmtes able to meet their antagonists In the open, or In pitched battle, prompt ami decisive results might be looked lor, ami the tinmen' superloilty of theSpiul'.h fon es In iiumbeis. ilisilpliui! and eiul'iient loubl baldly fall to tell greatly to their advantage Hut they an called upon to fai - a loe that shuns general eiigagi'iuentH. that can i house and does choose Its own ground, th.it fioin then. Utile of the country Is visible or Invisible at pleasure, and that lights only Irom am busi ,ule and when all the advantages ot po sition and numbers are on Its side. In a country where all that Is ludlspeuslble lo life in the way ot food, clothing ami shelter Is so easily obtainable especially by those born .iml bled on the soil, It Is obvious that there Is haidly a limit to the time dining which hostilities of this sort may be pro longed. Meanwhile as In all i ases of pro tracted rlvll strife, the passions of the com batants glow more and mote Inllanied and excesses on both sides ate more frequent and more deplorable. They also are partli Ipalcd In by bauds of marauders wno, now In the name ot one party and now In the name of the other, as i:i jy best suit the occasion harass the coun try at will and plunder Its u etched inhab itants lor their own advantage Such a condition of things would Inevitably entail Immense destruction of properly even II It were the polli of both pat ties to prevent it us far as practicable. Hut while such Hrcmed to be theorlgln.il policy ol the Span ish goierument. It has now appat cutty abandoned It. and is acting upon the same theory as the Insurgents, namely that the exigencies of the contest require the whole sale annihilation of pioperty.that.lt may not prove of use and advantage to the ene my. It Is to the same end that In pursuance of general ordeis, Spanish garrisons are now being withdrawn from plantations and the i ural population i equti eil to concentrate Itself In the towns. The sure t emit would seem to be that the Industrial value ol the Island Is last dimin ishing and that unless theie Is a speedy and radical change In existing conditions, It will soon disappear altogether. That value con sists vet i largely, of course. In Its capacity lo pioduce sugars a cap.ii lly already much ledmed by Interruptions to tillage which have taken place during the last two years. It Is tell ih, asset ted that should these In terruptions iimtlnue during the t urrent year, an 1 pr.ii tlc.illv extend, as Is now Uneaten 'd. to the entire sugar pioduilug tetrlton ot the Island, so mu. h fine and so much luniii'v will be required to restore the landtollsuorm.il piodm tlvcues-, that It Is extiemely doubtful If capllali an be Induced to even ni.ike the attempt. The spe la- It ol the utter ruin of an ad joining lou.itrv bv nature, one of the most feitlle and i harming oh Die globe, would engage tlie serious attention ol the govern ment ,11111 people of the ('tilted Slates under iinv cltium-tai.i es. In , lot or tat t, they have a mm em with It wlili h Is bv no meant of a wholly seutiintiit.il or phtl.iuthioplc character. It His so near to us as to be haidly sepatAted fioin our country. Our actual peciiiilai v Interest in it Is snonil only to that of the people and government ot spam, li is reasou.ioiv cs'.un.ueo ui.-i i at least irom tawuiiii.oiM to i..i ip.ihi oi capital Is Invested In plantations, in tall- load, iiiiniiit; ililil oilier ousnn-ss eiuei- pnsesun the Island. The volume of trade between thr Tinted stales ami Cuba, which III Ihh'J amounted to about f. i.oiHi iMio, lose ill lH'Jll to about MliIl.iuiODiio. and In lh'.lt, the year before present Insurrei Hon broke out. amounted to neatly fir. oon.tloo. He r.ldes this large i"i uiil.uy Interest staked In the fortunes of Cuba, the United States tlnds Itself Inextricably Involved In the present contest lu oilier was both vexatious and costly. Main Cubans reside In this country, and Indlrei tlv ptoinote the InsurrecHou thtough the press by public meetings, by the pur chase ami shipment ot ai ms. bv the raising of funds, and by other means which the rtpliitotout institutions ami the tenor of our laws do not permit to be made the stib 1rct of criminal prosecution Some of them, though Cubans at heal t and lu all iheli tec 1 Ings and Interests, have t ikett out p ipet s as naturalised cltl'ens of the United .-states, a proceeding lusoi ted lo with a view to pos- sllile prole, Hon by this government, ami not unnatural!)' regarded with much Indig nation bv tin louniry of their origin. The Insiirgi ills are utidoiihudly eucoui.iged and supported by the widi spread sympathy ot thr people-oi this lounlrv always instruct ively felt forevcrs struggle lor better and licer govei nmeiil ami whli h In the case of the more adventurous ami restless elements of our population, leads In only too many lustauies to .utlve and personal participa tion 111 the contest. The lesull Is thai this government Is con htantly called upon to piotect American clt lreus, to claim damages for Injuries to per sons and propirtv. now estimated at many millions of iioll.ii s and to asl; explanations and apologies for the acts ot Spanish oill cials whose real for the repression ot rebel lion sentiments blinds them to the Immun ities belonging to the unoffending rlU.ens of a f rlendlv power. It follows irom the same causes that the United States Is compelled to actively police a long line ot sea coast against unlaw fill ex peditious, the escape of vhlih the utmost vlgllame will not always suiilie to ptcicut. These Inevitable entanglements ol the United States with the rebellion In Cuba, the large A inerU an properly Interests al- lectcd and muslderatioiis of philanthropy and humanity lu general, have led to a ve hement demand lu vailous quaitcrs for some sort of positive intervention on the part ot the United States It was at llrst proposed that belligerent lights should be accorded to the Insurgents, a piopositlou no longer urged because untimely and In prac tical operation clearly perilous and Injurious to out own Intel ests. It has since been and Is now sometimes contended that the Inde pendence of the Insurgents should be recog nlied. but imperfect or restricted as the Spanish (si eminent of the island may be, no other exist there, unless the will of the military olllrer lu temporary command of a particular district can be dlgnltled as a species of government, It Is now also sug gested that the United States should buy the Island, a suggestion possibly worthy of con sideration It there were any evidence of a desire or willingness on the part of Spain to entertain such a pinposal. It Is urged, finally, that all other methods falling, the existing Interneclnotrlfc In Cuba should be terminated by our Intervention, even at the cost of a war between the Untied Stales and Spain- a war which Its advocates confidently prophecy could be neither large In Its pro portions nor doubtful In Its Issue. The cor rectness of this forecast need be neither affirmed nor denied. The United States has nevertheless a character to maintain as a nation, which plainly dictates that right and might should be the rule of Its conduct. Further, though the United States is not a nation to which peace Is a necessity, It Is, in truth, the most paclllc of powers and desires nothing so much as to live at amity with all tne worm, us own ample and diversified domains satisfy all tiosslblo longings for ter ritory, preclude all dreams of eonques and prevent the casting of any covetous e)cs utxin neighboring regions, however attract ive, That our conduct towards Spain ami her dominions has constituted no exieptlon to this national dlsiosltlon Is made manifest by the course of our government, not only thus far during the present Insurrection, but fi'Tjv tin teji years that followed the rl dug at Vara In Ihtl). No other great poner. .t may safely be said, under circumstances of similar perplexity, would have manifested the same restraint and the same patient en durance. It may also be Raid that this jierslstent at titude of the ('lilted States towards Spain In connection with Cuba wilt unquestionably evince no slight respect and regard lor Spain on the part of the American people. They In truth do not forget her connection with the dlsrovery of the Western hemis phere, nor do they underestimate the great qualities of the Spanish people, nor tall to fully recognl.c their splendid patriotism ami their chivalrous devotion to the national honor. They view with wonder and admira tion the cheerful tosolutlon with which vast bodies of men are sent across thou mils of tulles of ocean and a n enormous debt ai cum ulated, that the eiistlv position of the gem of i oi the Antilles m.iv still hold its place In the ' Spanish crown And yet neither the govern ment nor the people of the Cnlted States have shut tbeli even to the course of event! In Cuba or have failed lo teall.e the exist cmctif conrcdeil grievances which have led to the present i evolt from the authority of Spain, grievances tecognled by the Queen Regent and by the Coites. voiced by the most patllotle and enlightened of Spanish statesmen, w Ithotit reg.it d to p.u ty, remon strated by reforms pioposcd by the execu tive and approved bv the legislative branch of the Spanish government. It is In the assumed temper and dlspo-l- Hon of the Spanish government to teniedv i these grlrvani es, fortified by Itnlli atlolis of Influential publli opinion In Spain that this government has hoped to discover the most promising ami effective means of i tun posing the present strife, with honor and advan tage to Spain and with the achievement of all the reasonable objects of the Insurrec tion It would seem that If Spain would offer to Cuba genuine autonomy, a measute of home rule which, while preserving the sover elrnity of Spain, would satlslv all rational requirements of her Spanish subjects, there should be no Just teason why the pacifica tion of the Island might not lie effected on that basis. Such a result would appear to lie In the true Interest ol all concerned. It would at once stop the conflict, w hich Is now consuming the resources of the Island and making It worthless lor whichever party may ultlmatrly prevail. It would keep In tact the possessions of Spain without touch ing her honor, which will be consulted rather than Impugned by the adequate re dress of admitted grievances. It would put the prosperity of the Island and the fortunes ot Its Inhabitants within their own control, without sevetlng the natural and aiuicn ties which bind them to the mother country, and would vet enable them to test their ca pacity lor self government under the most tavoruble conditions. It has been objei ted on the one side that Spain should not promise autonomy until her Insurgent subjects lay down their arms. On the other side, that piomlsed autonomy, however liberal, Is Insullhieiit be. a use without assurance of the promise bit.g ful filled. Hut the reasonableness of a requirement bv Spain, ol unconditional surrender on the part of the insurgent Cubans betore their autonomy Is conceded Is not altogether np paieut. It ignores important features of the situation the stalnlltv two vc.irs' dura tion has given to the lusurrcitloii; the feas ibility of Its prolongation In the nature of things, and as shown by past experience the utter and Imminent nilnot the Island, iimess the present strife Is speedily composed; above all, the rank abusas which all parties In Spain, all brandies rf her government and all her leading public men lonccdc to exist ami profess a desire to remove. Cuing such circumstances to withold the proffer of needed reforms until the partli s demand ing them put themselves at mercy by throw ing down their arms has the appearance of neglecting the gravest of perils ami inviting suspli ton as to the sincerity of any pro fessed willingness to grant reforms. The oblertlon on behalf of the Insurgents that ,,r,,mU,.,l i elorm e.mnl be relied in ion mast , ,.,mrst. ,, ronitu,.r,.(. though we have no ll(,)lt to .,.,,.. . teason for assiun- lug, that anything Spain undertakes to do for the relief ot Cuba vill not be done ac cording to both the spit it ami the letter of the undertaking. Nevertheless, realizing th.it suspicions and precautions nit the part of the weaker of two combatants are always natural and not alwavs unjustifiable, being sincerely de sltous In the Intrrest of both as well as on Its own account, that the Cuban problrm should be solved with the least possible de lav It was Intimated by this government to the government ot Spain some mouths ago that If a sitlsf.ictui t measuie ot home rule were tendeied the Cuban Insurgents, and would bo ,u ceptrd bv them upon a guaranty of Its exei utlon, the United states would en deavor to tlml a w.iv not objectionable to Spain of fin titshlng such guaranty. While no definite rcspon ,e lo this Intimation has yet In en received u out the Spanish govern ment. It Is believed to be not altogether un well ome, while, as .il-eadv suggested, no reason Is perceived wlw It should not be ap proved by thr Insurgents, tit Hher party can tail to see the importance of e.llly action and both must leallre that to prolong the present state of things tot s-ven a short period will add cii"t inrush to the time and labor and expenditure u'i essarv lo bring about the Industrial rci.upci.it km of the. Island. It Is, thetefore, fervently hoped on all grounds tii.it earnest efforts lor in ail ing the bleach between Spain and the In stil gent Cubans, upon the lines above Indi cated, may be at once Inaugurated and pushed to an immediate succcsstul sue. The friendly or.tces ol the United states, either lu the manner above outlined or in any other way consistent with our constitu tion and laws wilt always be at the disjusal ot either party. Whatever cln umst.tnces may arise, our policy and our Interests would constrain us toobtect to the acquisition of the island or an Interference wiin itsconttolby any other. It should be added tn.it it cannot be reason ably assumed that the hitherto expectant attitude ot the United States will be lndcll nltely maintained Wlille we aie anxiou. to ai cord all due re spei I to the sovereignty of Spain, wr cannot view the pending ontlii t in all its features and properly appn heini our Inevitable rela tions to It and Its possible results without considering that by the roursv of events we may be draw n Into s.o h an unusual ami un precedented condition as will fix a limit to our p.itknt walling for Spain to end the conflict, either alone and In her own way, or with our friendly co-operation. When tlie Inability of Spilu to deal suc cessfully with the Insurrection has become manliest, and It Is demonstrated that her sovereignty Iscxiluct in Cuba for all pur poses of its tight ul existence, and when a hopeless strugg for Its re-establishment lias degenerated ttto a strife which means nothing more than the useless sacrltlce of human life and then utter destruction of the very subject matter ot the conflict, a situa tion will lie presented in which our onuga tlons lo the sovereignty of Spain will be superseded by higher obligations which we ran hardly hesitate to recognize and dis charge. Deferring the choice of ways and methods until the time for action arrives, wo should make them dejiend upon the pre cise conditions then exlsitiig, and they should not be determined uihui without giving care ful heed to every consideration involving our honor and Interest or the international duty we owe to Spain. Until we face the contingencies suggested or the situation Is by other incidents Imperatively changed we should continue In the line of conduct here tofore pursued, thus lu all circumstances ex- blotting our obedience to the requirements courts and thr division of 'nel- ro'iirio'i of public law and our record for the duty land. In severalty, and aiding In tin sett. r enjoliicd upon us by thr position we occupy mrnt of the troubleiotne qti. stio-i of tribal In the family of nations. I membership The le. .-ptlou of their llrst A contemplation of emergencies that may ! proffers of neco'.lous was not encour.iKliici atle should plainly lead us to avoid their I creation, cither through a careless disregard ol present duty or even an undue stimula tion and Ill-timed expression of feeling, Ilct I have deemed not amiss to remind the congress that a time may arrive when a correct policy and a care for our Interests as well ,ts a regard for the Interests of other nations and their citizens, Joined by consid erations of humanity ami a desire to see a rich and fertile country Intimately related to us, spared from complete devastation, wljl constrain our government lo such action as will subserve the Interests thus llWulsid and at the same time promise to Cuba and Its Inhabitants an opportunity to enjoy the blessings of peace. VI'NI'.tT.I.A. The Venezuelan boundary question has ceased to be a matter of difference between (Jreat Hrltaln and the Culled States, their respective governments having agreid upon the substantial provisions of a treaty be tween (Ireat Hrltaln and Venezuela submit ting the whole controversy to arbitration The provisions of the tteaty arc so emi nently Just and fair that the cotisentof Ven ezuela thereto may coiiildeutly be antici pated. Negotiations for a treaty of general arbi tration for all differences between (Ireat Hrltaln and the Culled States are far .id . , , ... , . ., . . ;. . l;"'1"'.:" ' .,T."".,,S- "' ."' . V il s"l"-ls,'U' consummation at an early dati TIll'ANt'KV I'KI'Altr.MI'NT. The secretary ol the treasury reports that luring the IIhi.iI year ended ,iune 110. 18'Ji'., the receipts of the government from all sources amounted to too. 175 -hh.th. Dur ing the same period Its expenditures were S4:i4,t)"H.i5!.-lrt. The ei ess ol expenditures over tecelpls thus amounted to J.Ti.'jo:!, 13.''7(1. The ordinary expenditures during the year were M, 01 5.8V.. 'J I less than dur ing the proi edlng flsc.il year. Of the re ceipts mentioned there was derived from customs the sum of $irii,i)J1.7rl.ti7, and from Internal revenue 81 (l,n:i(,i)iri.CiO. The receipts irom customs show an Increase of 7,hii:),i:i.o'j over those Irom the same murce for the llsr.il j ear ended June 30, lHD.'i, and the receipts from Internal tevenue an Increase of ?a.fis l.f37.ni. The value of our Imported dutiable mer chandise dm lug the last iise.il year was MC9.7fi7.470. and the value of free goods Imported llo'i.'U'J. 170, bring an Increase of tu.tYJ.I (V75 In the value of dutiable goods, andl'Jl.'Jal.Oal In the value of free goods over the preceding v ear. Our exports of merchandise, foreign and domestic, amounted In value to'ihS'J.OOii.oili. being an Increase fiver the preceding vear of 175,0(18,773. The average ad valorem duty paid on dutiable goods Imported dur ing the vear was 3!J.J4 per cent, and on free and dutiable goods taken together, 10.05 per cent. The cost of collecting our Internal revenue wasl! 7H per cent as against 'J.ai percent for the fiscal year ending June 30. 1803. The total production of distilled spirits, ex clusive of fruit bi andles. was Hftis.?!):! taxable gallons, being an increase of H.tiUO. 103 gallons over the preceding vear. There was also an Increase ot 1 . 143.070 gallons of spirits, produced from Irult as compared with the preceding year. The number of barrels of beer produced was 'tt.b.VJ.'Jijo as against 33,580.784 produced In the preced ing llsral year, being an liu re.ise of 'J.UOO, 4l3li barrels. nTiir.u nc.i'AKTVic.vrs. The rejiortot thesecretaryof w.ir exhibit satisfactory conditions in the several branches ot the public sen ice intrusted to his charge. 'I he various recommendations of the secretarv are indorsed. The attorney genrral presents a detailed ami Interesting talemeut of the Important work done under his supervision durlrg the last list ai year. The ownership and man agement by the government ot jH-iiltcn-tlarles for tin i n.flnement of the rowMert In Cnlted Sfites courts of viol Clous of federal law s, w hlch lor tn.inv years has been a subject of i ictitie recommendation, has at last to a lUht exit t been reallred by the utilization ol the abandoned military prison at Kort I.eavouwoith as a United states penitential). I'eilenil I'eilllelltl.itv. This Is certainly a movement lii the right direction, but It ought to be at once .tipple- menien ny tne reminding or extensive en largement of tills Improvised prison and the construction ol at least one more, to be located In the southern states. The i ap.uity fir tne i.eavenwotiii poniieiiuarv is so lim ited that the expense of It', maintenance, calculated at . i per i aplta tale upon the number of prisonrrs It i an accommodate, does not make as economical anexhlblt aslt would If It were larger and better adapted to prison purposes, but I am thoroughly convinced that economy, humanity and a proper sense ot responsibility .mil duty to wards those whom we punish lor violations ol federal law dictate that the federal gov ernment should have the entire control and management of the penitentiaries whore convicted violators are confined. It appears that since the transfer ol the Foil Leaven worth military prison to Its new uses the work previously done by prisoners confined there, and for whli h expensive machinery has been provided, ha been discontinued. This work consisted of the manufacture of articles for at my use, now done elsewhere. On all grounds It is ci eedlngty desirable that the convicts confined In tills peniten tiary be allowed to resume work of this de scription. Our postoftlce department I In good condi tion and the exhibit made of Its operations during the rlscal year ended dune 30, 1B!M, If allowance Is made tor imperfections In the laws applicable to it. Is very satisfac tory. The total receipts during the year were fs.',400.i;os.4O. The total expenditures were tao.tl'JO.'JOO.St, exclusive of $1,550, HU.s.117 which wasc.irneil by Hie 1'aclllc rail roads for transportation and credited on their debt to the governnunt. There was an increase of receipts over the previous year of f5,5lii,0S0'Jl, or 7.1 percent, and an Increase of expenditures of 31sno,ll'4. ()'. or 4.43 per cent. The dellcit vas tl,ti70.O5(i. 10 less than that of the pi feeding year. The chief expenditures of the postal service are regulated by law and arc not tu the control of the postmaster general. The deficit for the last year, although much less than that of the last and preced ing years, emphasizes the necessity lor leg islation to correct me growing anuse ot second-class rates, to which the deficit Is mainly attributable. The transmission at the rate of onecent a pound of serial libra ries, advertising sheets, "house organs" (periodicals advertising some particular "house" or institution), sample topics anu the like, ought certainly be discontinued. This subject Is discussed at considerable length and reforms urgently recommended. Nnvy. The work of the navy department and Its present conditions arc fully exhibited In the report of the secretary. The construc tion ot vessels for our new navy has been energetically prosecuted by the present ad ministration upon the general lines pre viously adopted, the department having seen no necessity for radical changes In prior methods under which the work was found to be piogresslng In a manner highly satisfactory. It has been decided, however, to provide In every ship building contract that the builder should pay all tilal ex ileuses, and It has also been determined to pay no speed premiums lu future contracts. civi: civil i.i:n thiiiks. The condition of affulis among the dve civilized tribes who occupy large tracts of land In the Indian Territory, and who have governments of their own, has assumed such an asspect as to render It almost Indlsprus Ible that there should be an entire change ,n the relations of these Indians to the gen eral government. This seems to be neces sary In furtherance of their own Interests as well as for the protection of non-Indian residents in their territory. A commission organized and empowered under several recent laws Is now negotiating with these Indians for the relinquishment of their but through patience and such conduct o:l their part as demonstrated that their Inten tions were friendly and In the Interest of tlie best, prospect of success has become more promising. The efforts should be to save the Indians from the consequences of their own mistakes and Improvidence, and to secure to the teal Indian bis lights as against Intruders and professed friends who profit by his retrogression. A change Is also needed to protect lite and property through the operations of courts conducted according to strict Justice and .sti.m- ciiouc'j JLo c'C'iree their mandates. Vs a sincere friend of the Indian I am ex ceedingly anxious that these reform should be accomplished with the consent ami aid of the tribes and that no necessity may be pre sented for radical or drastic legislation. I hope, therefore, that the commission now conducting negotiations will soon bo able to leport that progress has been made toward a Irlendly adluslmcut of existing dlfllcul tics. t I'ACUiC HAIMtOAIH. On January 11. 1807, with the amount already matured, more than JUl.ooo.ooo of the principal of the subsldary lmnd Issued by the United States In aid of the construc tion of the Union l'aeltlo railway, including Its Kansas line, and moic than (0.000.000 of like bonds, issued lu aid ot the Central I'.i rifle railroad, including those Issued to the Western Hallway company will have fallen due and been paid or must on that day be paid by the government. Without any ref erence to the application of the sinking fund now lu the treasury this wilt create such a default on on the part of the companies to the government as will g've it the right to at once institute proceedings to forei lose Its mortgage lieu. In addition to this Indebted ness which will be due .laiuiat y 1. 1807 there will mature between that date and January 1. 180') thr lematiniig prim lp.il of such subsidy bonds which must also br met by the government. Those amount to more than fJiMiQD.OOO on ,u count of the Villon I'.ielllc lines ami ex -ceils siM.OO'l.oOO on ac count of the Cetitt.il 1'aclllc Hues. In the case of the Union T.uitlc company, the situation has become especially urgent. Proceedings have been Instituted to lore close a lit st moitgageupou those aided parts ot the main Hues upon which the (iovern itieitt holds a second ami subordinate mort gage Hen. lu consequence of these proceed ings and nareaslii',' complications, added to the default occutiing on the llrst dav of January, ls')7, a condition will be presented at that date, so far as this company Is con cerned that must emphasize the mandate of the act of 1887 ami give to executive duty under Its provisions a more Imperative aspect. Cnlcss Congress shall otherwise direct fir shall have previously determined upon a different solution of the problem there will hardly appear to exist any reason for delay ing beyond the date of the default .ibow mentioned such rxecuilve action as will promise to sttbscr.e li.c public inteirsts and save the government irom the loss threat ened bv further Inaction. orri'N.sivi: 1'aktisansiiip, The progress made in civil service rctorm furnishes a cause for the utmost congratu lation. It has survived the doubts of Its friends as well as Ihe rancor of Its enemies; ami has gained a permanent place among the agencies destined to cleanse our politics and Improve, economize and elevate the public service. There are now lit the com petitive clasilllM service upwards of S4.000 places. More than half of these have been Included from tune to lime slut- March 4, 180,), A most radical and sweep. ng exten sion was made by executive order dated the Cth day ot May. 1.8l(i. And It fourth class postuiastriships are not Included lu the statement It may be said that practlcallv all positions contemplated by the civil ser vlte law are now classified. Abundant rea sons exist tor Including these postmaster ships, based upon economy, improved ser viie and the peace and quiet of neighbor hoods. It, however, obstacles pi event such ai lion at present I earnestly hope that con gress will, without Increasing postoftlce ap propriations, so ad lust them as to iwrmlt in proper i ases a consolidation of tlie (Misto bees lo the end that thi ough this pro i es,s tlio result desired may to a limited ex Unt hi accomplished The civil service rules as am"nded ilttrlui; tlio last year provides lor a sensible and uniform method ot promotion, basing ellg Utility to better positions upon demon stratiil ellliiencv and l.iltlituluess. The ahser.ee of Used rules on this subject has been an lutlrmilv In the system tnorr and more apparent. lt.s other beneiits have been better upprci lated. The advantage of civil service methods in thru- business aspects are too well understood lo require argu ment. Their application has become a ne cessity to Uie executive work of the govern ment Hut those who gain through the operation of these methods should be made to understand that the non-partisan scheme through which thev leceivo their appoint ments demands fiom them by way ot re ciprocity, non-partisan and faithful per formance of duty under every administra tion, and cheerful ildellty to every chief. While they should In encouraged to de cently exert Ise their lights ot citizenship and to support through tlietr suffrages the political beliefs they honestly protess the mils), persistent and partisan employe, who loves political turmoil and contention, or who renders lax and grudging service to an administration not representing hlspolltleal views, should be promptly and te.irles.dy dealt with lu such a way as to furnish a warning toothers who may bo likewise dis posed. Till: TAItll'T LAW. I desire to remr to the statements else where made concerning the government's receipts and expenditures lor the purpose ot venturing upon some suggestions touch ing our present tarltf law and its opcr.itioa. This statute took effect on the Until day of August. InO I. Whatever may be Its short comings as a complete measure of tarl'f reform, It must be conceded that it has opened the way to a freer and greater ex change ol commodities between us and other countries, and thus furnished a wider mar ket tor our products and mauulactures Tlie only entire year during which this law has been In tnrcc ended on tlie 30th day of June, IhOd. In that year our Imports in creased over those of the previous year more than Jfi.fioo OOO, w lille the value of the domestic products we cx'sirled and which toiind markels abroad was nearly 170.000, 000 more than during the preceding year. Those who Insist that the cost to our peo pic of articles coming to them from abioad for their ricedtul use should omy be In creased through tariff changes to an extent necessary to meet the expenses ol the gov ernment, as well as those who claim that tariff charges may be laid iiism such articles beyond the necessities of government revenue, and with the additional purpose of so Increasing their price In our markets as to give American manufacturers and pro ducers better and more profitable opportu nities, must agrrr that our tariff laws are only primarily justltled as sources of revenue to enable the government to meet the naces Hary expenses of Its maintenance. Consid ered as to Its sufficiency In this aspert thu present law can by no means fall under Just condemnation. During the only complete fiscal year of Its operation It has yielded only t.noo.OdO more revenue than was re reived from tarllf duties In the preceding year. There was, nevertheless, a deficit be tween our receipts and expenses of a little more than J5,ooo,ooo. This, however, was lint unexpected, 'Pill. lI til I I J, ,".u Ltlrth nn Taaa...I,kh I t seven mouths brfore the close of the fiscal year, mat tne secretary of the treasury foretold a deflilency of JI7.00O,000. The creat and increasing aimrehcnslon and timidity In b-islness circles and the depres sion in all activities lnterveiilutc since that time, resulting tram causes nerfectlv well understood and entirely disconnected; with our larui uiviir operation seriously enecicea the Imports we would have otherwise re. celvcd and readily account for the differ ence ucineeii mis esiiiuaic ui me secretary and the actual deficiency as well as for a cont nued. dellrlt. inuceii. it must ne confessed mat we could hardly hr.ve had a more unfavorable period than (he .ast tw o years for the collection ot tann revenue. We cannot re.tsonaoiy nopi that our recuperation from the business de pression will be sudden, but it has alreadv hot in with a promise of acceleration anil . continuance. I believe our present tariff law. II allowed a f.tlropportunlty. will In tSTj near future yield a revenue which, with reasonably economical expenditure, 'will overcome all tkileieniies. In the meantime no dellcit that has oc curred or may occur need excite or disturb us. To meet any such deficit we have In the feasv.rv. In addition to the gold renerve of $100.01)6,000. . i surplus of more than 112,. 000.0(H) applicable to payment of the ex penses of the government, and which must, unless expended for that purpose, remain a uselcsi hoard, or. If not extravagantly wasted, tnunt in any event be perverted from the purpose (,f itsixa --....it frcra our-pea. pie, the payment, therctore, of any defi ciency lu the revenue from this fund Is nothing more than Its proper and legitimate use. It Is Immeasurably better to appropri ate our surplus to the payment of Justifiable expenses than to allow it to become an Invi tation to reckless appropriations and ex travagant expenditures. 1 suppose It will not be dented that under the present law our people obtain the neces saries ot a comfortable existence at a rhcaper rate than formerly. This is a mat ter of supreme Importance', slnre It Is the palpable duty of every Just government to make the burdens of taxation as light as possible The people should not be required to relinquish this privilege of cheaper living except under the stress of their govern ment s tiiiesslty made plainly manifest. FINANCIAL. This reference to the condition and pros pects of our revenues naturally suggests an allusion to the weakness and vices of our financial methods. They have been fre quently pressed upon the attention of tho Congress in previous executive communica tions and the Inevitable danger of their con tinued toleration pointed out Without now repeating these details, I cannot refrain from again earnestly presenting the neces sity of the prompt reform of a system op posed to every rule oi sound finance and shown by experience to be fraught with the gravest peril and perplexity The terrible ) civil war which shook the foundations of our government, more than thirty years ago, brought lu its train the destruction of property, the wasting of our country's sub stance, and the estrangement of brethren. These are now past and forgotten, liven the distressing loss of life the conflict en tailed Is but a sacred meinorv. which fos ters patriotic sentiment and keeps alive a tcndei regard for those who nobly died. And yet there lemalns with us to-day, In full strength and activity as an Incident of that tremendous struggle, a feature of Its financial necessity not only iinsuited to our present circumstances, but manifestly a disturbing menace to business security and an ever present agent of monetary distress. Hecauso we may be enjoying a temporary relief from Its depressing Influence this should not lull us Into a false security or lead Us to forget the suddenness of past visi tation. I am more convinced than ever that wc can have not assured ilnaucl.il peace and safety until the government currency obli gations upon which gold may be demanded Irom the treasury are withdrawn from cir culation and cancelled. Tills might br done as has been recommended, by their exchange for long term bonds bearing a low rate of Interest, or by their redemption with tho proceeds of such bonds, liven If only United States notes known as greenbacks were thus retired It Is probable that the treasury notes Issued In payment of silver purchases under the act ot July II, 1800. now paid In gold when demanded, would not create much disturbances, as they might from time to time, when received In the treasury by redemption of gold or other wise, be gradually and prudently replaced by sliver coin. This plan of Issuing bonds for the purpose of redemption certainly ap pears to be the most effective and direct path to the needed reform. In default of this, however. It would be as step In the right direction If currency obli gations redeemable In gold whenever so redeemed should be cancelled Instead of be ing reissued. This operation would be a slow remedy, but It would Improve present conditions. National banks shoitld redeem their own notes. They should be allowed to Issue cir culation to the par value of bonds deposited as security for Us redemption and the tax on their circulation should bo reduced to one-fourth of 1 per cent The entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our government abandons the banking business and the ac cumulation ot funds, and confines Its mone tary opciatlons to the receipts of money contributed by the people for Its support, and to the expenditure of such money for the people's bene tit. Our business Interests and all good citizens long for rest from fev erish agitation, and the Inauguration by tho government of a reformed financial policy which will encourage enterprise and make certain the rewards of labor arid industry TIll'STS. Another topic In which our people right fully take a deep Interest may be here briefly considered. I refer to the expanse of trusts and other huge aggregations of capi tal, the object of which is to secure the mo- nopoiy oi some particular nrancli of trade, Industry or commerce, and to stlile whole some competition. When these are defended It Is usually on the ground that though they Increase protlts, they also reduce prices and thus may benefit the public. It must be ie niembercd, however, that a reduction of prices to the people Is not one of the real objects of, these organizations, nor Is their tendency necessarily tu that direction. If it occurs In a particular case It Is only because It accords with the pur poses or Inlet ests of those managing their scheme. Such occasional results fall shorti ot composing thu palpable oils charged tc the account of trusts and monopolies. Thcli tendency is to crush out individual lttdc pendencu and to hinder and to prevent tho Iree use of human faculties and the full de velopment of human character. Though Cong! ess has attempted to deal with this matter by legislation, the laws passed tor that purpose thus far have pt oved ineffectlv e. not because of any lack of disposition or attempt to enforce them but simply because the laws themselves as In turpretcd by the courts do not reach the dlftlculty. If the iiistifllclencles of exUtinit laws can be remedied by further legislation, It should be done. The fact must lie recog Hired, however, that all federal legislation on this subject may fall short of Its purpose because of Inherent obstacles, and also because of the complex character of our governmental system, which, wlille making the federal authority m rrmo within Its there, has carefully limited that sphere by metes and bounds watch cannot be trans. grossed. The decision of 6ur highest, court on this precise question lenders It quite doubtful whether the evils of trusts and mo nopolies can be adequately treated through federal action unless they seek directly and purposely to Include In tuelr objects trans JHirtatlou or Intercourse between states or between the United States and foreign countries. It dors not follow, however, that this Is the limit of the remedy that may be applied. I.vrn though It may be found that federal uuiuuiiiy n iiui moan rnoitgn to lully reacn the case, there can be no doubt ot the power of tlie several states to act effectlvely.ln the premises and there should be no reason to .iiui uicir wiaiuguess ro judiciously excr "'-'- ...' " concluding mi coi munlcatlou Its last words shall be an pp in iiiu congress ror this most rig ecouoiiiy in uie expenditure at j ie money n Holds fn trust for the people, i he way to perplexing e.xtrava- S'oniV'' ''W ,,ut. ' rcluni to frugality ? tvm.cu.1, Wncn. however. It Is considered that those who bear the burdens of taxation have no guaranty of honest rare save In the tlilellty of their reliable servants, tho duty ot all jKisslblc retrenchment Is plainly man ifest. When our differences arc forgotten and our contests of political opinion are no longer remembered, nnthlnr. i ho ertro- "i"," i ur puuue service win on as fore ". v".n.com'or,,nK as the recollection i of a constant devotion to the Inisvrcsts of oiuciaiuuiy weiiperiormeuand thememc confiding fellow countrymen, Uiiovisii Ci.tcvBf.ANiv Executive Mansion, December 7, 1890. v 1