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. : THE PRESIDENT'S MESSRGE.
- CLEVELAND'S ANNUAL DOCU
- MENT TO CONGRESS.
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THE NATIOS AFFAIRS REVIEWED.
Amendment , to the New TarlfI Bill fire
- - Strongly Urged by Which Coal and
Iron May Be Placed on the Jtrce
LIst-Secretary Car1Ile Pre-
sentB a Now Banking
Scheme to Congress.
WAShINGTON , Dec. 3.-The following
is the president's message to congress :
Messae to the congress of the Untcd
States : The assemblage within the nations
1eis1ntive halls of those charged with the
duty of rnaidn laws for the benefit or a cn
crous and free people impres8LveIy sucgCts
the cactIa ; ob1iation and inexorable re
sponsib.lIty Involved in their task. At the
threshold of such labor no w to be undertaken
ly the congress of the U nited States and In
tile dIshr.c of an oxecutiro duty enjoined
: by the constitution. I submit this comtnuni-
cntlon eontaInIn a brief sttemont or the
condltio of our natloiat affairs and rocem
mending such le 'islation as secxn to be neces
sary nndcxpedent. !
'rhe history of our recent dealincs with
other nations and our peaceful relations with
theft at this time. additionally demon-
str.ttc the advantage of consistently ndherii
to a firm but just foreign po hey. free from
Cnviouc or ambitlous national scheme and
characterized bycotire hnestyanJ sincerity.
Durinr the 1)aSt year , pursuant to a law of
conrcis , commissioners were appointcl to
the Antwcrp industrial oxpositlonthotwh the
participation of American ehibItors fell fur
short of compotely lilu3ttattn ; our national
ingenuity and Industrial achiorcment , yet it
was quite creiltable in view of the brief time
: allowed for preparation.
.
; I have endeavored to impress upon the lll
gian gGV.ramcnt the needlessness and post
tive harmfulness of it rotrtction' upon the
. ImportatIon of certain of our food products
S. and have stranzly urged that the rigid super
4 visioll and inspection under our laws are
aniply sufficient to prevent the deportation
froni thIs country of diseased cattle and Unwholesome -
wholesome meat
The termiuttion : or the civil war in Br.tzll
- has been ioIlowcd by the general prevalence
of peace and orJer It appcarIn at an curly
) sttce of the insurrection that its course woulU
: ' call for unusual watcltfulnes on the part of
_ t this government our naval force In the harbor
of lb do .Janetro wis strcnthoncd. This
lrecautiOa I am satisfiel , tended to restrict
the lsue to a simple trial of strength bet wcen
. the Brazilian government un the insur.cnts.
and to avert complications which at time 3
seemed imminent Our firm attitude of neti
trality was maintatn&1 to the end , the Insurgents -
surgents recivedno cncourtgemcnt of eventual -
ual asylum train our commanders and such
oppOSitSon as they encountered was for the
protection of our commerce and was clearly
justified by public law. A serious tension of
relations havln. arisen at the close of the
I
warbetween Brazil and Portugal by reason
of the escape of the Insurgent Admiral Dc-
gama and his followers The friendly offices
of our representatives to those countries
were exerted for the protection of the subjects -
jects of either within the territory of the othcr
Although the government of Brazil was duly
notified that the commercial arrangements
existing between the Unito1 State ; and that
country , based on the third section of the
tarilI act of I89. was abrogated on Auz. ! 3.
1891 , by the takin effect of the tariff law now in
force , that government subsequently notified
us of its intention to terminate such arrdnze-
meat on the first day of January , 1E95 , in the
exercise of the right reserved in the 'wree
ment between the two countries. I invite a
mention to the correspondence between the
secretary of state and the BrtziIiaii minister
: on this subject
The China-Japan War.
A gratifyinr recognition of the uniform im
partiality of t his country towards all foreign
states was man ifested by the coincident re-
qnest of the Cli these and Japanese governments -
ments that the a-ents of the United States
should within proper limits afford protection
to the subjects of the other during the .sus-
pension of dip lomatic relations due to a state
of var T his delicate office was accepted.
anti a misapprebension which gave ri-c to the
belief that in affording this kindly unofficial
protection our a eats would cxercie
the same authority which the withdrawn -
drawn arents of the belligerents ii (1
exercled. was promptly corrected. Althouh
the war between Chi na and Japan endanger.s
no nolicy of the United States it de5erves our
gravest consideration , by reason of its disturbance -
turbance of our growing commercial interest
in the two countrie and the Incrcaed dangers
which.may result to our citizens domicilci or
sojourninz in the Interior of China Acting
under a stipulation in our treaty with Korea.
( the first concluded with a Western power ;
I felt constrained at the bci nnin : of the
controversy to tender our good offices to
induce an amicable arrangement of the
initial difficulty grosinr out of the Japanese
demands for administrative retorms in
Korea , but the unhappy precipitation of
actualbostilities defeated this kindly purpose
Dep bring the destructive war between the
two most powerful of the Eastern nations
# and anxious that our commercial Interests in
j those countries may be preserved and that
the stfety of our citizens there shall not be
jeopardized. I would not hesitate to heed any
intimation that our frIendly aid for the
honorable termination of hostilitIes would be
acceptable to bDth belligerents.
A convention nas been finally concluded for
the settlement by arbitration of the proton ed
dispute with Ecuador growing out of the pro-
ceedin.s against EmtIio Sintos , a naturalized
citizen of the United States.
Our relations with the republic of France
continue to be such as should ezist between
nations sb long bound toethcr by friendly
sympathy and similarity in their form of gov-
ornment. The recent cruel assa sination of
the president of this sister republic called
forth such universal expressions of sorrow
and condoenco front our people and gorrn-
ment as to leave no doubt of the depth and
sincerity of ourattaehment The re3olutlons
passed by the senate and house of representa-
tires on the occasion have been communicated
to the widow of President Carnot-
,
J he Germany Meat Prohibition.
Acting upon the reported discovery of Texas
fever in cargoes of American cattle the German -
man prohibition against importations of live
stock and fresh moat4 from this country has
been revived. It l ; hoped that Germany will
soon become convincoI that the inhi iltion Is
as needless as it Is harmful to mutual interests -
terests-
The German govarnment has protested
against that provision of the customs tariff
act which imposes a dtscrImInatIn duty of
one-tenth of one cent a pound on suars coin-
ins from countries paying an expert bounty
thereon. clalminz that the exaction of such
duty is In contravention of artIcs five and
nine of the treaty of t83 w.tit Prusta. In the
. interests of the commrJ3 of both countries
andtoavoid even the acus.itIou oE treaty
violation. I recommend the repeal of so much
-of the statute as impose ; tijit duty and I in-
vile attention to tbeaccompanyin. report of
-the secretary of state containn : a discussion
-of the question ; raised b ; the German pro-
jests-
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Behrln ; Son Arbitration.
Early in the present year an agreement was
reiched with Great Britain concernln.t in-
structiOni to be given the nsr it commanders
of the two poverninent f in Behrlng sea and
the conti .uou ; North P.icltlc ocean for
their guidance in the exeution of the
awtrd ofthe Paris tribunal of arbitration and
the cfcrccment of the rotilatLona therein
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prescribed for the protection of seal lit In
the waters mentioned. An iind"rtandinc has
also been reached for the payment by the
United States of t42SOO In full sati'factionof
all claims which may be made by Great Brit-
am for damavos rrowlnz out of the controversy -
sy as to fur seals in Bchrin sei. or the sclz-
nrc of British voseli ona e 1 In takiur a
seal in those waters. The award and findings
of the Paris tribunal to ai trcat extent deter-
rain d the facts and prtncip1o upon which
these claim3 should be : tIjustoI and they
have teca subjected b : both goveimcnt to
thorough examination upon t'ic p-lnciples as
well as the fact ; whian they involve. I am
convinced that a sctt1e.n'nt upon the terms
mentioned would h3 an equitable and edwin-
tageous one and I recommen1 that provision
be made for the prompt pyment f the stated
sum. Thus far only France arni Portugal
have slcnltled their vI1lIngnes to adhere to
the rc.tuiations established under the award
of the Paris tribunal of arbitration ,
The Hasvallau Incident.
Since communtcatIn the voluminous cor-
reaponrience in renrd to Hawaii and the action -
tion taken by the senate and house of reprc-
sedatives on certaIn questions submitted to
the judgment anti wider discretion of congress
the organization of a government In piaco of
the provisional arran : ement which followed
the depoitlon of the quen ha ; been announced -
nouncod with evIdeno of Its effective opera-
lion. The recognition usual in such cases
has been accorded the new government.
Itelations With Mexico.
Good will fostered by miny interests In
Cot mon has marccd our r.ilations with our
neare3t southern neighbor.
Peace bein reitored along her 'horthern
frontier. Mexico has asicod the punishment of
the late disturb3rs of her tranquility. There
ouht to be a new treaty of commerce and
navigation with that country to take the
place of the one which terminated thirteen
years a-to. The friondiine3s of the intercourse -
course between the two couritrlc4 Is attcted
by the fact durln.t this lent perIod The corn-
merce of e.ih has steadily Increased under
the rule of mutual considera tion , being neither
stimulated ly conventional arrangements nor
retarded by jealous rlvalrie or seltlsh desire ; .
An indemnity tol1dercd br Mexico as a
gracious act for the murder in i27 of Leon
l3aldwIn. an American citizen. by a baud of
marauders In Duraug. , ha5 been accepted and
is hem : paid In inst tilaunts.
The problem of the stor.t o and use of the
waters of the Ilio Granite for irri ration
should be solved by appropriate concurrent
action of the tw interastea countrie4. Rio-
in in 1110 Colorido hCLlit3 the stream flov3
intermittin'ly. yleldiit : little w.tet' dunn
the dry months to the irriatir.- channels
aireadly construrted along its course. This
scarcity is often severaly felt in the rcions
where the river forms a common bound-
ary. Moreover the frequent chan cc
in its course through level sand often raic
embarassin : quastions of trritoria1 jurisdic-
lion.
lfluelicld ; Affiir.
Prominent amen : the questions of ter
ritorini juridietion of the year was the Blue
fields incident-in WIUt is known as the
Mosquito Indian strip. b rdcrinr on the Atlantic -
lantic ocean and within tlio juridiciion of
NIraruua. By the treaty of 133J bctvcea
Great Britain and Nlearazua. the former
government expressly rcconizel the soy-
crehnty of the latter over th strip anl a
limited form of self government wa
guarantcc.I to the Mosquito Indiais to b3
exercised accorlin to their cutorn ; for
theniselves and their dwellers within lt
limits The so-called native government
whieh grew to be larzcly made up of
aliens for mny years disputed the sow-
croiglity of Nicaratun over the strip and
claimed the riht to maint un therein a prat-
cally independent municipal government
Early in the past ye ir cff3rts of Nicara ; ua to
maintain sovcrinty over the Mosquito territory -
ritory lel to serious dosturbances culminatin
in the suppression of the native government
andthenttomntelsibstitution of an impracticable -
icable c ) inpat administrttion in which Nicar
a ut and alien residents were to participat.
Failure was followed br an insurrection which
for a time subverted Nicaraguan rule , expeil-
inr her offlcrs and restorin ; the
old or.anization. This in turn gave
way to the existin : local government
established and upheld by Niearawua.
Althouh the alien interacts arraed aainst
Nicaraui in the3e tran3actions have been
largely A-ncricnn and the commerce of that
reion for some time h is len and still is controlled -
trolled by our citizens we cainot br thit
reason ciialiezie the rilitni soreraLgity of
Nictragua over tliI important part of her
domain Forsome months on ant durin part
of the term. two o ( our nav1 ships have bc.in
stationed at l3iuelields foi- the protection of
all le.itimite intcrast of our citizens. In
September lt't : the govarnment at Managua
expelled from it ; territerv twelve
or more foreiner ; inc1udin two
Americans for alleged narticipation in the
seditious or revolutionary movements iaiat
the r.publL. .tt l3luolields aire id men-
tioncti Throult the cirnest remon.tritioa of
this orcrninent the two Americans have neen
permitted to return to the peaceful minae-
ment of thoirbusine3.s. Our naval commanders
at t1i scene of this disturb.tnee by their con-
slant exhi'ition of llrnnes and uool jud-
ment contributol lure1v t. the preveation of
more scriou coiieqUeiCs and to the restora
lion of quiet and order
I re ret that III the midst of these occurrences -
rences there opened up a mostgrave irritating
failure of Nizuratian justice All American
citizen narneJ Wilson. rssidin at llama. in
the mosquito tcrcltoy wa murderel by mm
Arguclio thi acting governor of th ton-n
After some dcl iy the murJerer was arreatci.
but so Insecurely cotiInca or guardd th it he
escapel. and nt.vitititilin : our r.p.ato.t
demands it is claimed that his rJcanture h.i
been impos-iblo by reaon 01 his ulIht beyond
Nicara gu an juri3dicten.
The Nicaraguan authorities havin : given
notice of forfeiture of their concessiOn to
the canal company on groun is purely
telmical and not cmbracd in the
contract receded from tail pos tim.
Peru. I rereL to S13 , shews symtoms of
domestic disturbae. du probibly t the
sIownss of her recuperation from the war of
1831Vsaened ! in resources. her ditlicultie ;
in facins lntrnatloiat obliations invite our
kindly sympathy and justify our f.rbearaneu
In pressing lone 1)nthn claims I have felt
constrained to testify this sympathy in con-
neetton with certain demanIs urgoatly pre-
ferrml by other powers
The recent death of the czar of Russia c 1led
forth appropriate expre ; sions of sorrow and
sympathy on the pirt of our government witn
his bereaved family ani the Itusin people
As a further demonstratian of resne.t and
frlendthiP our minister at St. Petersburg was
directed to represent our government at the
funeral ceremonies.
UnnSt Fines by Spain on Our SliIp4.
Unreasonable and uajust fines impoed by
Spain on the vessels and commerce of the
United States have demanded from time to
time during the last twenty years earnest vu-
monstraflee upon the part of our government.
In the immediate past exhorbitant penalties
have been imposed upon ourvesseLs and goods
by customS authorities of Cuba and Porte
Rico for clerical errors of the most trivial
character In the manifests or bills of ladlni.
In some cases tines amounting to thousands of
dollars have been levied upon cargoes or the
carrying vessels when the goods in question
were entitled to free entry. Fines have been
exacted even when the error has been
detected and the Spanish authorities notttled
before the arrival of the goods in port. This
conduct Is In strange contrast with the considerate -
siderate and libcrd treatment extended to
Spanish vessels and cargoes in our ports In
like cases. No satisfactory settlement of
these vexatious questions has yet been
reached. The More. case referred to in my
last annual message remains unsettled. From
the diplomatic correspondence on this subject -
ject , which has been laid before the senate , it
will be seen that this government has offered
to conclude a convention with Spain for disposal -
posal by arbitratiqn of outstanding claims
between the two countries except the Mora
claim. which. having been long ago adjustod.
now only awaits payment as stlpulated.and of
course it could not be included in the proposed -
posed convention. It was hoped that this
offer would remove parliamentary obstacles
encountered by the Spanish g overnment in
prov1din payment of the Mom indemnity.
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I regret to say that no definite repi' : to til s
; offer has yet been made and all offcrts to 'e-
cure payment of this settled claim have
been unavaIlin.
In my lat annual message I adverted to
the claim on the part of Turkey of the rhht to
expel as persons undesirable and dangerous.
Armenians naturalized In the United States
and returnin r to Turkish jurisdictIon.
mercus questions In this relation have arisezi.
While this s.overnmentacqulescos in the a.
sorted riht of expulsion it will not concent
that Armenians may be imprisoned or other-
v1se punished for no other reason than hay-
Inz acquired. without imperial consent , Amer
can citizenship. Three of the assailants of
liliss TMeiton an American teacher at Mosul.
have been convicted by the Ottoman courts.
and I am advised that an appeal against the
acquittal of tee remainlng five has been taken
by the Turkish urosecuting officers.
The Samoan Troubles.
In m last annual message I reterrel briefly
to the unsatisfactory state of affairs Inumoa
under the operation of the Berlin treaty. as
sInally lilustratlnt the policy of entan 1inr
alliances with foreign powers and on May P.
1891. in resnonse to a res olutton of the senate
I sent a special messaro and documents to
that bodj on the same subject whloh empin-
sized my previously expressed opinionK
Later occurrences , the correspondence In ye-
gard to which will be laid. before con : ross.
further demonstratei that the government
which was deved by the three powers ant
forced upon the Samoans against their Izivet-
crate hostility can be maintainmi only by the
continued preseuo of foreign military farces
and at no small sacrifim of life and trets i re
The suppression of the Matasfa Insurrection
by the powers. and the subsequent banishment -
ment of the leader and eleven other chiefs , a
recited-In my last messae did not bring last -
Inipotce to te Islands. Formilable upris-
legs continued and finally a rebellion broke
out In the capital island. Upoiu. headed in
Anna. the Western district. by the youn 'or
Tamasese , and in Atun. the Eastern district ,
by other le.ders The insurgent ; rava ed
the country and fought the government
troops up to the very doors of Apia
The ktn aain appealed to the powers
for help unt the combined British md
German naval forces reduced the Atuans to
apparent subjection not however without con-
siderabic loss to the natives. A few days
later Tarnascse nndhts adherents fearin ; the
ships and marines professed submission. Reports -
ports received from our agents at : pia
do not jusitfy the belief that the
peace thus brought about will be of long duration -
tion It Is their conviction that the natives
are at heart hostile to the present i overn-
mont that such ofthem as protes loyalty to it
do so from fear of the powers and that ! t o'sht
I spedilv go to pieies if the war ships were
I wltlitlrawn In reportin to his government
I on tso unsatisfactory situation since the
suppression o the late revolt by foreign tumed
forces the German consul at Apia stated that
that peace viil b ) lasting is hardly to be pre-
I sumed. The Ic ; son given by firm : on Atun
I was not sufficiently sharp and incisive to
leave a lasting Impression on the forgottul
Samoan temperament. In fact conditions
are existing which show that peace wilt not
last and is fltlt seriously intenled. Mauicton
the king and his chiefs arc convinced that the
departure of the war ships will be a signal
for a renewal of war The circumstances
that the representatives of the viilaes
of all the districts which wet-c opposed
to the governmnt have already withdrawn -
drawn to Atua to hold meeting and
that both Atu-i and Anna have forbidden inhabitants -
habitants of those districts which foutht on
the side of the government to return to their
vlllazes and have already partly burned down
theIatter , 1ndlates that a real conciliation of
the parties is still far off. And in a note of
the 10th nIt inclosing a copy of that report
for the information of the government the
German ambassador said : "The contents of
the reports awakened the Imperial govern-
monte anprehension that under existing circumstances -
cumstances the peace concluded with the
rebels will afford no assurance of the histin ;
retoratiOn of tranquility in the i-1aiiUs
The Iresent overnment utterly failed to
correct , if indeed it has not a gravatcd. the
very evils it was intended to prevent. It has
not stimuiatei oar commerce with the
islands Our participation in its c3tnbhihi-
mont a ainat the w.shes ofthe r.atives was in
plain defiance of the conservative teachings
and warnings of the wise and patriotic men
who lail the foundation of our free iiistitu-
tions. and I invit and oxpresion of the
judment of congress on the propriety of
steps bein taken by this t'overnnlent lookin
to the withir.iwal from its cncazornents with
the other nowers on some reasonable terms
not prejudiciil to any of our exitiug rights
Treasury Department.
The secretary of the treasury reports that
the receipts of the government from all
sources of reven ue dunn the llscal year endIng -
Ing Juno : io. is. amounted to .72Sri,489)
and it , expenditures to 14O37.iS.87 , leaving
a deficit of .6J.8Jl2dt5 'rhicre was a (10-
crea-C oftl5,9.dT1 ( idin theordmary expenses
of the Loverumont as coinparel with the
fical year tbPJ
. There w.ts collected from customs IIS1S. -
5O6. and from internal i-evnie Si17J6-
4t.L8& l'he balance of the income br the
year nmoutitin.t to $9J.Sh5.aI , wa derived
from the sale4 of lands and other sources.
The v.lie ; of our tot.ii dutiable imports
amounted toi2i5.l'J.MSi. bein. : I1d.65T.tii less
than dunn the preceding year anti the un-
portations Iran of duty amounted to .JJ.7J-
.O. heia . [ 74357 less than dui-n ; the Iwe-
ceding year. The rocciots front customs
were lI.3.5ti.4Sa Il loss and from internal rev-
enno IJ.SitJ.339 PT less than in iss :
The total tax colleted from distilled
spirits was t55 2i'J,2i 2 on manufactured
tobamo 8 l3hi,8)t i ant 0:1 fermented
liquors j11.-III,78S 01.
Our exports of mer.hsndise. domestic and
ford n , amounte 1 dur.n ' the year to J2 , I I
572 , bein t an increase over the preceding year
of 4-11,195.378
The total amount of gold exported during
the fiscal year was BT6 8)8,091. as against i 105.-
6S9-lliilurin.i the fiscal year 1893. The amount
imported was 419,119 as agaliist f'l74.8I ;
dunn ' the previous year The imports of
silver were $ i3,85,52 and the exports were
50,45l 265
The total bounty paid upon the production
ofsu.arln the United tites for the fiscal
year wa iIiht,2)S.8 , bein. an increase of
22.S,07M1. ; over the payments made during
the prec-edin year. The amount of bounty
paid from July 1. 1391. to August 1 , 18)1.
the time when further paymnts ceased by
operation of law. was Jitl5S 81. The total
expenses incurred in the payment of the
bounty upon .siuar durin the fiscal year was
$ l30.14 ( ) 83. It is estimated that upon the basis -
sis of the present revenue laws the receipts
oftho government during the current fiscal
yearending June 3) , 18)3 , will be 4i1,47 ,
7-1&41 , and Its expenditures $414427. 748 .14 , re
suiting In a deficit of i2D.O)0,0J0.
Th first day of November. l81 , the total
stock of money of all kinds in the country
was 2,240,7T3,8S3 , as against S2fl,65t-
00) on the first day of November ,
1893 , and the money of all kinds in
circulation or not included in the treasury'
holdings was lh,672.OJ-12.i or I2&.27 per capita
upon an estimated population of tiS8T,0) . ) .
A. the samedate there was held In the treasury -
ury gold bullion amountinv to 4&6l5,3O755
and silver bullion which was purchased at a
cost of12Z7id,93& The purchase of silver
bullion under the act of July 14 , l9) . ceased
on the first day of November. 18l , and up to
that time there had been purchased during
the final year li.OiZ6587d fine ounces at a
Cost of 8,7i5,52L32 an average cost of t17313
per fine ounce. The total amount of silver
purchased from the time that law
took effect until the repeal of Its
purchasing clauseon the date last mentioned
was 168,614.682.53 fine ounces. which cost I55- ,
931,002 25 , the average price per fine ounce be-
lug $ 9214 The total a ount of standard sli-
verdollars coined at the mints Qf the United
States since the passaze of the act of Febru
ary28 , l88 , is iffi.736.438 , of which 378l66,793
under the provisions of that act. * 38,53l,14
were coined under the provisions of the act of
July 14. 1890. and .5U7&478 under the act pro.
viding for the coinage or the trade dollar bul-
lIon. The total coinage of all metals at our
mints during thelast fiscal year consisted of
63,484,22 ; ) pieCeS. valued at 1106,216.7J0.06. of
which there was 9,474,91t 50 in gold coined.
* 758 In standard silver dollars. 6.O1I U 10 In
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subsidary silvercoin anti 7iOOiL26 In minor
coin.
coin.During
During the calendar year of ISDL the production
duction or precious metals us the United
States was estimated at I.TJ:2i : fineounces of
gold of the commercial nfl-I coinage value of
$35O5OX1 and 6O.O,00t ) fine ounces of silver of
the bullion or market value of t4,8)3,00O ) and
of the coinage value of 7i76 J.)1. It Is estimated -
ated that on the first thy of July l94. the
stock of metallic mone' in the United States ,
consisting of coin and bullion , amounted to
i.251,6IO,958 , of which ti.r92 ,2.)1 ) was gold.
64,3I7,75S was silver
Fifty national bsnls were organized during
the year ending Oatober 3 ! . 1891. with a capital
of 5,2 5,000 and sevcnty-ninorIth a capital of
lO.47.00J went into voluntary liquidation
Twenty-one banks with a capit.tl of S770.O0
were placed in the hands of receivers. The
total number of national banks in existence
on the 31st day of October last was 5'T5' , be-
int forty less than on the 31st day of October ,
l893 _ The capital stock paid in was $67.,67i-
3 , , being i9.67,4)I less than at the same time
In the previous year and the surplus and un
divided profits. less expenses and tases paid.
amounted to 344 , I2I.0I2. It ) which was i6Os9.-
7S0 less than on October 31 , 1891.
The circulation has Increased $ l,711,5Gl.
The obligations of the banks to each other
were increased 1t17.t6),311. ) and the individual
deposits were 127.2J1,4i9. less than at the
correspondln date In the previous years
Loans and discounti were iI6l6,923 more
than at the same time the previous year and
checks and other cash Items were i93,31D,961
more. The total resources of the banks at
the date mentioned amounted to * 3 , 43 922O5
as aainst 3l09,563 281.36 in 13l3.
War Department.
The message reviews and comments on the
report of the secretary of war. The president
does not believe there is any necessity for in-
creasin the army to 30,0JJ men. as recommended -
mended by Secretary Lament He advises
arainst the creation of new military posts
The secretary's phi i of the adoption of the
batallion ystem is recommended The strike
troubles of last summer arc briefly referred to
and the action of the military cornmeudeJ
In recognition of the ion r and distinguished
military services and faithful discharge of
delicate and responsible civil duties by Major
General John IL Shofie1d. now the general
commandlii thoarmy , it is suggested to congress -
gress that the temporary revival of the yrade
of lieutenant general In his behalf would be a
just and gracious act.
Department of Justice.
The report of the attorney generaf notes the
gratifyin.r progress made by the supreme
court in overcoming the arrears of its bus I-
ness and in reachin a condition in which it
will be able to dispose of cases as they arise
without any unreasonable delay. This i-esuit
Is of course very lar.ely duo to -successful
workinu of the plan inaugurating circuit
courts of appeals. In respect to these tribun
nb the suggestion is made in quarters entitled
to the hFhest consideratiOa that an additional -
tional C rcuit jad .e for each circuit would
greatly strengthen these courts and the
confidence reposed in their adjid icatious
and that such an addition would not create a
n.reatcr force of judges than the increasing
business of such courts requires. I commend
thiesug.estionto the careful considcratirx of
the consress. Other important topics are
adverted to the report accompanied by recoin-
mendatiosis. many' of which have been treated
at lare in previous messages , and at this
time they neei only be named , I refet to the
abolition of the fee system as a measure of
compensation to ledoral officers. The en.
larement of the power ; of United State3
commissioners in the territories the allowance
of writs of error in criminal cases on behalf
of the United States and the establishment of
degrees in tine crime of murder A topic dealt
with by the attorn cy general of much importance -
anco is the condition of the administration of
justice in the Indian Tearitory. The permanent -
nent solution of vhat is called the Indian
problem is probably not to be expested at
once , but meanwhile such ameliorations of
present conditions of the existing system will
admit ought not to be neglected. I am satis-
fled there should be a federal court established -
lished for the territory with sufficient judges
and that this court should sit within the territory -
ritory and have the same jurisdiction as to
territorial affairs as now vested in the federal
courts sittiI1 in Arkansas and 'fexas. .
- In annual ' .1
Eight years a-to my messa'o
urged upon the congress astrongly as I could
the locatIon and construction of two prisons
for the confinerne.nt of United States prison-
era A similar recommendation has been
made from time to time sine and a few years
ago : i law was passed providing for the selection -
tion of sites for three such institutions. No
appropriation has , however. been made to
carry the act into effect and the old and dis-
creditible COiditiflstill exists
It is not my rmrpose at this time to repeat I
the con-ideratiOns which mike an impre -
nable case iii favor of the ownership and man-
aement by the government of tine penal in-
Institutions in which federal prisoners are
confined I simply desirtr to a'ain urge
former recommendations on the subject and
to particularly call the attention of the con
gress to that part of the report of the secretary -
tary Of war. in which he states that the mit-
itary prison at Fort Leavenworth. Kansas.
can be turned over to to the government as a
prison for federal convicts without tIne lens
difficulty and with an actual saving of money
from every point of view
Pendin a more complete reform , I hope
that b the aloption of the suggestion of the
secretary of war this easy step may be taken
in the direction of the proper care of its convicts -
victs by Inc government of the United States
l'ostnl and Navy Icpartments.
' The message next thes up the report of the
postmaster ceneral and stronIy urges the
reconnmeniations of that official looking to
the correction of the abuses of the second-
class mail matter privilege by publishers of
adwertisin r matter , who send tons of papers
through the m nil and defraud the government
out of millions of dollars postae annually.
The free carriage of seeds of grain throu Ii
tIne mails is also condemned If these abuses
were rectified the department would he self-
sustaininn. The report of the postmaster-
general. which has already been published , is
reviewed at lenatlL
Attention is called to the report of the see-
retary of the navy which shows very gratify-
jng pro.res ; in tlieconstruction of ships for
our new navy'-
IreCOmmen(1 that provision bemado forthe
construction of addi tion at battleships and
torpedo boats The secretary recommends
the manufacture not only of a reerve supply
of ordnance and ordnance material for ships
of the navy. but also a supply for the auxiliary -
iary fleet. Guns ncd their apurtelutnees
sliouldbc provided and kept on hand for both
thosopurposes We have not to-day a single
gun that could be put upon the ships Paris or
New York of the International Naviation
company or any other ship of our reserve
navy. The manufacture of guns at the
Washington navy yard is proceedia satisfactorily -
factorily , an d none of our new ships will bo
required to wait for their uus or'ordnanc&
equipment.
Interior Department.
The report of the secret try of the interior
exhibits the situ ition of the uumrous and in
teresting branches of the public service connected -
nected with his department I recommend
this report and the valuable recommenda-
tionsof thesecretary to the careful attention
of congress
I fully indorse the recommendation of the
secretary that adequate protection be provided -
vided for our forestreserves and that a corn-
prehensive forestry system be Inaunu rated
The recommendations of the secretary in
regard todeahing with the Indian question is
concurred in and has already been published.
rensions.
The barefaced and extensive pension frauds
exposed under the courageous and icnerous
veteran soldier now at the head of the bureau
leaves no room for the claim that no purgation
of our pension roll was needed or that continued -
tinued villance and prompt action are not
necessary to the same end. The accusation
that an effort to detect pension frauds is cvi-
deuce of unfriendliness towards our
worthy veterans and a denial of their
claims to the generosity of the coy-
eminent , suggests an unfortunate indifference -
once to the cornissions of any offense which
has for its motive the securing of a pension
andindicates a willingness to be blind to the
existence of mean and treachercus crimes
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, which play upon demagogic fears ans rnt'tc
sport of the patriotic people. -
Agricultural Departinclit.
The secretary of agriculture In his rp'r
reviews the operations of his dopartnien for
the last fiscal year and makes reeomn3eu'l I-
tions for the further extension of Its usefulness -
ness The recommendations of the senit3 :
are concurred In. The prohibition of free dit-
tribution of seed by the department Is a ; t1n
ureed.
The work done by the department of a ri-
culture isery superficially dcat with In thi
cornrnuncation ! and I commend the report of
the secretary and tine s-cry important miter-
eats with which it deals to the careful attoni-
tion of the congress
Anexcecdinllv Important recommendation
of the secretary relates to the ninuner iii
which contests and litigated cases crowlii
out of efforts to obtain government land are
dotermined. The entire testimony' upii
which these controversies depend In all their
stages is taken before the local registers
-and receivers and yet them officers have no
lower to subpoena witnesses or to enforce
their attentlince to testify. These case.
numbering three or four thousand annually
are sent by the officers to the commissioner
of the general land 0111cc for his action. The
execeneles of his other duties obhiae him to
act upon decisions of the registers and receivers -
ceivers without an opportucity of thorough
personal examination. Nearly 2.0) ) of these I
case ; are appealed annually from the commis-
sonier to ttne secretary of the InterIor Burden-
0:1 with other importantadminlstratlve duties ,
hits determination of these appeals must be
almost perfunctionary andbascd upon the cx-
amiiiation of others. Through this deterinina-
tion of the secretary operates as final adjudica-
lion upcn riehts of very Importance. 1 concur
In the opinion that the commissioner of tine
general land office should be relieved from
this duty of tle.iding litigated land cases that
a zion-partisan court should be entreated to
pass on such cases and that the decisions of
this court should be final. at least so far as
the deeis.ons of the department are final.
Civil Service lteform.
'Pine arivantages to the public service of an
adherence to the principles of civil service
reform are constantly more apparent and
nothing is so encouraging to those in official
life wino hoziestiy ( leire good government as
the inereasin.r appreciation by our people of
these : idvaintages A v.ist majority of the
voters of tine lnnd are ready to insist
that the time and the attention of
those they select to perform for
them important public duties , should not be
distributed by' doling out minor offices and
they urn growing to be unanimous in regarding -
ing party or anizations as something that
should be USCl In e tablisliing pat ty principles
instead of dictating thu distribution of public
places as rewards of partisan activity.
Numerous arijitional ofilees and p1aces have
been broiihit vithin civil service rules and
regulations and some others will probably
50011 be included. The report of the commissioners -
sioners will be submitted to tIne congress and
Iluvite careful attention to the reomnnen-
dations it contains.
National Board of Health. C
I urn eatrely convinced that we ought not
to be longer without a national board of
health or inational health officer charred with
no other duties than such as pertain to the
proteetlon of our country from the invasion
of pestilence and disease. I earnestly recommend -
mend that the inauguration of a national
board of health or similar national instrumentality -
mentality believing the sanie to be a needed
precaution nainst contagious diseases and in
the iinteraist of safety and hen th of poor
people.
Strike Commission.
By virtue of a statute of the United States
passed in 188' . I appointed in July last Hon.
J _ D Keen of the state of New York anl
Hon. Nicholas E Worthinton. of the state
of Illinois , to form with Hon. Carroll D.
Wrizht. commissioner of labor. who was designated -
ignated by said statute a commissioner for the
purpose of iniking : careful inquiry into the
causes of the controversies between certain
railroads and their cinployes which had i-a-
suited in an extensive and destructive
strike , accompanied by much violence and
dangerous disturbance with considerable ios
of life and mrcat destruction of property. The
report of the commisioners has been submitted -
mitted to me and will be transmitted to congress -
gress with the evidence taken upon their In-
ye-ti 'ation. Their work has been well done ,
and their standing and intellirence give as.
suraince that the reprt and sug1estions they
make are worthy of careful consideration.
Tariff Aiiienfiuniit Urged.
rho tariff act passed at thne'ls.st session of
congress needs irncortant amendments if it is
executed effectively and with certainty in addition -
dition to such necessary amendments nn. will
not chaneratos of duty. I : nm.tilI very decidedly -
cidedly in favor of'puttin ; coal and iron on the
freelist So far as the suzar schedule Is con-
cerneti. I would be glad under the existin-r ag-
grntvatiOns to see every particle of deferential
duty in favor of refined su zar stricken out of
our tartlY law If with all the favor accorded
the sugar reilnin : interest in our tariff laws It
still lautuishes to the extent of closed refineries -
fineries and thousands of ( Ii-churcd workmen -
men it would scent to present a hopeless cese
for reasonable ieislative aid -
Vhatevcr else is done oromitted I esrnesUy
repent here the recommendation 1 have made
in another portion of this communication that
the additional duty of one tenth of a cent per
pound laid upon su7ar imported from countries -
tries paying a bounty on 3t5 export be abro-
gated. It ecms to me that e'ceedingIy im-
portnnt considerations point to the propriety
of this amendment With the advent of a new
tariff policy not- only contemplated to relieve
the consumers of our latin in the cost of their
daily life , but to invite a better development
of American thrift and create for us closer
and more profitable comniercial relations
with the rest of tine world it lotions as a logi.
cal and imperative necessity that we should
at onice remove the chief if not only obstacle
which has so ion prevented onr participa-
Von in the foreizn carrying trade of the sea.
A tariff built upon. the theory that it is swell to
check imports and that ahorne market should
bound the industry and effort of American
producers , was fitly supplemented by a re-
tinsel to allow American registry vessels
iuilt abroad thotah owned and navigated by
our people. thus exhibiting a willingness to
abandon all coatest for the advantages of
American trans oceanic carriac. Our new
tariff policy bili naomi the theory that it is
swell to encomage such importations as
our people need anti that our pro..lucts and
manufactures should find market inn every
part of tine habitable globe is consistently
supplemente 1 by the * rcatest possible liberty
to our citizens in the ownership and. nariga-
tion of ships in which our proluts and manufactures -
ufactures may be' transported Thern millions
now paid to toretners forc-arrying American
passengers and produats across the sea
should be turne'i into Americaft hands. Shipbuilding -
building , which has tee-n prctected to
stranulation. should be revived hi the pros-
pact of profltabhemptoyment torships when.
built. and the _ merican sailot would be resur-
reeted and again take his place , a sturdy and
industrious citizen. in time of peace. and a pat-
rlotic and safe defender of American interests
in the day ( if conflict. The ancient provision
Of our law denying Arnericami i-tn 'istry to ships
built nbroat and owne.l by Americans. nip-
rears , in the hi.rht of present conditions , not
only to be a failure for o'xl at. every points
but to be nearer a relic of barbarism than any-
thinu that exit' under permis.iioa of statute
of the United St-ales I carnetly recommend
its prompt repeal
The Gold teservo.
During the last month the god reserves in
the treasury for the purpaso of re.ieeo3in : the
motes of the government circulating as money
in the hands of the people became so reduced
and Its further aepletmon in the near future
seemed si certain that in the exercise of
proper care for the public welfare it became
necessary to rep1cnihn this reserve : mnd thus
maintain popular faith in the ability and
determination of the government to meet as
agreed. its peauniary obllations. It would
have been welt if in this omer eney authority
had existed to issue tile bonds of th govern.
meet bearla a low rate of 1terest
and maturing within a spciat period ,
but the congress haviaf failed to confer such
authority' resort was neceearily had to the
resumption at of 1875 , and pursuant to its
provision. bonds were issued drawia : interest
at the rate of live per cent ncr annum and.
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I maturing ten yOnir fe'n" thiofr fsstzing , that
I belng the shnrl0s tnim authorized by thoaCt- U
the sale of J
] am glad to sniy hewer that on .
these bonds the premium nvelved operatpd to
reduac the rate of Interest to be paid by the , .
less than three per cent-
trvernmeflt to
Nothing could be worse or further removed I
frcm enslble finance than the relationS OX' {
Isting between the currency the government - . , I . I
has issued. the cold held for its - I - I
redemption and the means which
must be resorted to for the purpose of replen . J
fund when Impaired. .
lshlnz stick redemption
this fund were con- . I
Even if the claims noon
fined to the obliatIon4 originally intended j vP J
and If the redemption of these obligations
meant their cancellation the fund would be
obllatlOnS when re i
very small. But these
I I celved and redeemed in gold are not cancelled . ' I
and do duty many times
I but are re-Issued may
from the treasurY-
I by way of drawint gold
I Thus we have an endless chain in operation
I constantly depleting the treasury's gold and I
I never near a final rest. As If this was not :
I bad enough we have a statutory declaration . '
I that it is the polIcy of the government
to maintatu the parity between gold and sil - ,
ver aided the force and momentum of the cx-
baustlmnz process and added 1areiy to the cur
rency obligations claiming this peculiar gold
redemption. Oursintligold reserve is thu3 1.
subject to draw from every side The do-
inands that increase our Jan ten- also Increase
the necessIty of protectin this reserve
aralnst depletion and it Is most unsatisfactory ;
to know that the protection afforded Is only a
temporary palliation. It is perfectly and pal-
patly plain that the only way under present
conditions by which this reserve when
dangerously depleted , can be replen-
ishcd. Is throuh the issue and
sale of the bonds of the gov-
crnmcnt for gold and yet congress ban
not only thus far declined to authorize the
issue of bonds best suited tosuch a purpocO.
but there seems a disposition In some quarters -
ters to deny both the necessity and power for
the issue of bonds at alL I cannot for a
moment behlovo that any of our citizens arc
deliberately willinr that their government
should d'efault in its pecuniary obhiratlons , or
that its financial operations should be reduced -
duced to a silver basis At any rate I
should not feel that my duty was
done if I omitted any effort I could
make to avert such a calamity. As long
therefore as no provision is made for the
final redemption or the putting aside of the
currency obhiration now used to repeatedly
andconstantlydraw fromthogovermirneni 'ts
gold and as long as no better authority for
bond issuesis allowed than at present exists
such authority will be utilized whenever and I
as often as It becomes necessnr.v to maintain
asufficicntgold reserve and in abundant time
I to save the credit of our country and make
good the financial declaration ; of our covern-
ment Questions relatin : to our banks and
currency are closely connected with the subject -
ject just referred to and they also present I
some unsatisfactory features
Now Thinking System Advocated.
Prominent among them are tine lack of elasticity -
ticity in our currency circulation and its fre-
queat concentration in financial centres when
it is most needed in otherpartsof tine country.
Tile absolute divorcement of the government
from the business of banlthng is the ideal rein-
tionship of the government to the circulation
of the currency of the country. This condi-
tioii cannot be inimediately reached but as a
step in that direction and as a moans of securing -
ing a more elastic currency and obviating
other objections to toe present arrangement -
ment of bank circulation the secretary
of the treasury presents in his report a
scheme modifying present bankin laws and
providing for the issue of circulating notes by
state banks free from taxation under centain
limitations The secretari cxplnins his plan
so plainly and Its advantages are developed' by
him with such remarkable clearness that any
effort on my part to presen t arguments In Its
supports would be surpufious. I shall therefore -
fore content myself with an unqualified iii-
dorsement of the secretary' proposed
chanres in tIne law and a brief and imperfect
statement of their prominent features
It is proposed to repeal all lairs providing
for the ( lepOsit of United States bonds as se
curity for circulation- permit national
banks to issue circulating notes not exceeding
in amount 13 per cent of their paid up and tin-
impairel caitltt , provided they deposit nith
the government as a guarantee fund in United
States legal tender notes includin treasury
motes of ini0. a sum equal in amourt to 31
per cent of the notes they desire to issue. this
( loposit to he maitniaed at all times but
whenever any bank " -tires any part of its circulation -
culation a ropordJnal part of its guarantee -
antee fund shall be returned to it to
permit the seretary of the treasury
to prepare and keep on tiiad ready for isuo
in case an inrease in circulation Is desired
blank national bank noteS for eaei ban ; tiny-
ins circulation and to repeal the provisiolns
of the preent law imposin. limitations anti i-c-
strictions upon btnks desiring to redace ciin -
creasetheircirculution. thins permitnin ; such
ncreaso or reduation within the limit of
iseventy-flve per cent of capital to he quickly
made a's emer4e.-icy arise In addition to tine
guarantee fund required it is nroposed to provide -
vide a safety fund tar the immediate roticino-
tion of the circuatint ! notes of failed banks
by irnposin a small annual tax say one halt
of one per cent upon the aver.ne eli-cu nution
ofeach bank until the fund amounts to 1iv
per cent of the total circulation omntsunndint : .
Whena bunk fail ; it ; gnnan-antee fua.1 is to be
paid into this safety funds an'I its notes are
to be redeemed in the first instance from such
safety fnnd thus an menteL- amy impairmumnt
ofsuch fund caused thereby' to be made good
from the immediatel available cash assets of
said bank , and i ; theseshould binsufll.int ,
auch impairment to be made god by pro-
i-ala asessment among tine other banks. theE r
contributions con-tituting a first hit'n upon
the as * fls of tine failed bank lit favor ot the
contr bunny banks.
As a further security it Is contemplated
that the existin proposition fixin the mdi-
vidual liability of stockholders is to be re
tamed and tine banks indebtedness on account -
count of it ; cireulatma notes is to be male a
flrt lien on all its-assets. For the purpose of
mectin ; the expense of priatm. notes. otfl.
cials. supervision. cancellation and other like
cbarics. there haU. be imposed a tax of say.
one-half of one-per cent ier annum upon the
average amount of notes In circulatjon. is
further provided that theri shalt be
no national bank notes issuci era
a less denominntioa tanin tea dollars :
thateaeh mntion'ti bank , except In case 01 ii
failed bank shall reJeern or retire Its notes in
the first instance at its own office or at
agencies to ho deiznatei by it. that no fixed
reserve used beinnintailied on account of deposit -
posit
Another very important feature 0 : ths plan
is the e'remption of state banks from taxa-
tionby the UnltedStntznsja caies where it is
shown to the satisfaction of the searetar of
the treasury atul of I
comptroller the curency ,
by banks claimIn such exemption. that they
have not hid outstaidia. their circulatinv
notes exceeJin. seventy-five per coat of
their paid up and unimpaired capital
that. theirstocichoiders are individually liable
fOr the i-ede.nption of their eireuiatjn notes
to the full extent of the ownership of stock :
that the liability of such banks upon
their circulating notes constitutes
under their st te law a fin-st lien upon
their assets that such banks have
kept and maintained a guarantee
fund in United State ; legal Zaniar notes in-
cludin : tre.tur no.e ; of 1sO equal to thirty
per cent of ticir outstan'Jin cireu1atln.
motes , arid that -uctnh.ivc promptly rejeemed ' -
their cIruIatinr note.s whun presented at
theirpriucipal or branah office
It is quite likely that
tiLs scheme mty' be
usefully amendeti in sonic of its details , but I
amsatisiled it furnishe ; a basis for a vnry
great Improvernarni in our present bankin
and currency sy'tem. : I
I conclude this communication fully apro. S
Ciatin that the r.spnslbllity leis1atjon
affecting the people of the United States rests '
upon thir representatives In conre , arid I
assuring them that wit ntC-tr accordance with S
recommencations I hive made or not I sh'ilt
be glad to co-oct--ate : rtperfectjnany le.nis
alien -
lion that tends to tao pro.perjty and welt-nra
of onr people.
( Signej ) Gnownn CnVEIAD.
Executive Minilon , December
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Mother-The doctor
says you muse
eat meat and fruit Sick 1ioy.-\Yeu
give me some mince pie. I I
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