President Ilconscvolt's nnnual mes
sage to Congress opens with a broad
and confident expression of belief in
the resources of Amoriwi uud : ui ap
peal to the rilizcns to keep their money
in circulation. The message attempts
to reassure the business man/ the
railroad man , the working man , the
farmer and tlic labor leader.
The President is in favor of curren
cy legislation. JTexnl < l Iiave provi
sion made for the ipsuam-e by the
banks of an emergency currency safely
secured by bonds , which should be tax
ed enough to make -it uuprlitable .to
continue its use after the emergency
Iiad passed. '
He would have the Sherman anti
trust law amended , PO as to permit cer
tain proper combinations , necessary to
Industrial progress , and also made to
prevent other combinations that are op
posed to the public interest.
Railroads , for instance , if Ins plans' '
&re carried out , eor.Id combine under
restrictions safeguarded by the Inter-
fitate Commerce Commission , while if
they did it now their officials would
fat * the penitentiary. Railroads , he
says , should be permitted to increase-
their capital stock , but under scrutiny
by the Interstate Commerce Commis
sion or other body , whereas when it is
done now there is a suspicion that
fliere arc improper profits in some se-
< 2ret syndicate. Railroads , he urges ,
should have the right to make rate
agreements among themselves under
the scrutiny of the interstate Com-
znerce Commission , whereas now this
is illegal.
In return for this permission the
President would have Congress devise
ome scheme which would compel rail
roads aud great corporations doing an
Interstate business to get a. federal li-
ceuse or charter. '
While the President commends ctm-
Bideration by the people of : m inherit
ance tax aud an income tax , he does
act suggest their immediate considera
tion. He would have consideration
given to the subject when Congress
comes to revise therevcnue _ laws.
Mr. Roosevelt thinks the tariff should
be revised at proper periods , but not
until after the next Presidential elec
tion. He looks with favor 0:1 IX * pro
posal to remove the tax on print p.iper
and palp. but only c-onclition.Hl on the-
Omadian government pormMting its
pulp wood to outer the Unites ! States
ree of an exportt tax. ,
The President wants the coaulition
of women and children who work in
factories irnprov jjL.H wants moiv
Investigation of the'subject , .o , too.
tlit President warns technical training
extended to the farm. He does not ex
pect Congress will enact any of his rec
ommendations ut this session , except ,
perhaps , currency reform aud railroad
relief. If his present plans Rfu carried
out he will have no figlits on his hands
with Congress.
President Roosevelt is in favor of a
fixed sum being provided for payment
to employes for certain injuries or
death in case of accident , while in the
discharge of their duties. In Jhe end ,
it is held , this would not be a tax on
the manufacturer aud other employer ,
but would be against the cost of the
product and the general public would
pay. The President' also hopes to see
tuat the use of the injunction against
labor unions can be mitigated.
THE BISSSAGE Jr PAIIT.
> oeuaseut Entire Would Sliilcc Over
Twenty Kewsipai > ci' Columns.
President Roosevelt's message to the
Sixtieth Congress 5 * of great length , the
longest ever penned by any President , and
in full contains ov y D.1.000 words. In
pert the President says :
Xo nation has greater resources than
ours , and 1 thiuk it can be truthfully said
that the citizens of ro nation posses
greater energy and industrial ability. In
no nation are the funilanr'ntal business
conditions sounder than iu ours at this
very -moment ; and it is foolish , wiien
eticli is the case , for people to hoard
money instead of keeping it in sound
banks ; for it is suc-Ii hoarding that is the
Immediate occasion of money stringency.
Moreover , as a rule , the business of our
people is conducted with honesty and
probity , and this applies alike to farms
aud factories , to railroads and banks , to
all our legitimate commercial enterprises.
In any large body of men , however ,
there are certain to be some who are dis
honest , and if the conditions are such that
these men prosper or commit their mis
deeds with impunity , their example is a. .
very evil thing for the community. Whore
these men are business men of great sa
gacity aud of temperament both unscrupu
lous and reckless , and where the condi
tions are such that they act without su
pervision or control and at first without
effective check from public opinion , they
delude many innocent people into making
investments or embarking in kinds of
business that are really unsound. When
the misdeeds of these successfully dishon
est men arc discovered , suffering comes
not only upon them , but upon the inno
cent men whom they have misled. It is
a painful awakening , whenever it occurs ;
and. naturally , when it does occur those
who suffer are apt to forget that the loiig-
cr it was deferred the more painful it
would be. In the effort to punish the
guilty it is both wise and proper to en
deavor so far as i os : > iblc to minimize the
distress of those who have been misled by
the guilty. Yet it is not possible to re
frain because of such distress from striv
ing to put an end to the misdeeds that are
the ultimate causes of the suffering , ami ,
as a means to this end. where possible to
punish those responsible for them. There
cnay be honest differences of opinion as to
many governmental policies : but surely
there can ba no f = uch differences as to the
need of unflinching perseverance in the
war against successful dishonesty.
Jnerstiitf Commerce.
The founders of the constitution provid
ed that the national 'government should
have complete and sole control of inter
state commerce. There was then prac
tically no interstate business save such as
was conducted by water , and this the na
tional government at once proceeded to
regulate in thoroughgoing and effective
fashion. Conditions have now so wholly
changed that the interstate commerce by
wuu-r is insignificant compared with the
amount-that goes by land , and almost all
big business concerns are now engaged in
interstate commerce. As a result , it can
be but partially aud imperfectly controll
ed or regulated- the uction of any one
of the .several States ; such action inevita-
l/ly tuml.ug to be either too drastic or
else too las , and in either case ineffective
for purpscs of justice. ( July the national
government can in thoroughgoing fashion
exerc.se the needed control. This does not
mean taat th re should be any extension
of feJerai authority , for such authority
already exists under the constitution in
amplest awl most far-reaching form ; but
it does mean that there should be an ex-
ter.s.on of federal activity. The most
vital need is in connection with the rail
roads. As to these , in my judgment there
should now be either a national incorpo-
rat.oii act or a law licensing railway com
panics to engage iji interstate commerce
upon cortan conditions. The railroads
aud all other great corporations will do
well to recognize Unit th.s control muit
come ; the-only question is as to what gov
ernmental body can most wisely exer
cise it.
Slieniiuu Asrtl-Trust Iiirw.
Moreover , in my judgment , there should
be additional legislation looking to the
proper control 0t the great business cxni-
t-eriis engaged in interstate business. triis
control to he exercised for their own bcTte-
lit and prosperity no less than for Uic
protection of investors and of the general
public. As I have repeatedly said ia
messages to the Congress and elsewhere ,
experience has definitely shown not me-e-
ly the unwisdom but the futility of En
deavoring to put a stop to all business
combinations. Modern industrial cotrJi-
t.ons are such that combination is z'-ot.
only necessary but inevitable. It ia so
in the world of business just as it io so
iu th < ; world of labor , and it is as idle to
desire to put an cad to all corporations ,
to all big combinations of capital , as to
desire to put an end to combinations of
labor. Corporation and labor union alfke
have come to stay. Each if properly infm-
asred is a source of good and not e il.
Whenever in either there is evil , it should
b promptly held to account ; but it should
receive hearty encouragement so loii # as
it is properly managed. It is profoundly
immoral to put or keep on the statute
books a law , nominally in the interest of
public morality , that really puts a pre
mium upon public immorality , by under
taking to forbid honest men froai doing
what must be done under modern business
cc diricus , so that the law itself provides
that its own infraction must be the cftu-
tition precedent upon business succoss.
To aim at the accomplishment of lee
: uuch usually means the accomplishment
of coo little , and often the doing of-posi
tive damage.
The anti-trust law should not be repeal
ed ; but It-should be made both more effi
cient and more ia harmony with actual con
ditions. It should be so amended as to
foriiid only the kind of combination which
& , ? ! , h.-ivui to the general public , ' 'such
: in.er.iment to l-e accompanied by , or to be
an incident of. u smut of supervisory pow
er to the government over these big ccm-
tvias * ergagod iu interstate business. This
should be accompanied by provision for the
compulsory publication of accounts and the
subjection of Looks and papers to the in
spection of tlie government oflieials. A be
ginning has already been made for such su
pervision by the establishment of the Bu
reau of Corporations. The design should be
to prevent the abuses incident to the crea
tion of unhealthy and improper combina
tions , instead of waiting until they are in
existence aud then attempting to destroy
them by civil or criminal proceedings. The
law should make its prohibitions aud per
missions as clear and detinite as possible ,
leaving the least possible room for arbi
trary action , or allegation of such action ,
on the part of the executive , or of diver
gent interpretations by the courts. Among
the points to be niired at should be the
prohibition of unhcaltny competition , such
as by rendering service at an actual loss
for the purpose of crushing out competi
tion , Ibe prevention of inllation of capital ,
and the prohibition of a corporation's mak
ing exclusive trade with itself a condition
of having any trade witb itself. Reasona
ble agreements between , or combinations
of. corporations should be permitted , pro
vided they arc first submitted to and. ap
proved by some appropriate government
ody. To confer upon the national govern
ment , hi connection with the amendment I
advocate in the anti-trust law , power of su-
lKi-vison over big business concerns en
gaged in interstate commerce , would bone-
tit them as it 1ms benefited the national
banks : In the recent business crisis it is
noteworthy that thcA institutions which
fulled were institutions which were not
under the supervision and control of the
nationalgovernment. . Those which were
under nation : ; ! control stood the test.
Tiio-se who fear , from any reason , the ex
tension of federal activity will do well to
study the history not only of the national
banking act but of fbe pure food law , and
notably the meat inspection law recently
enacted.
Til re Footl T < nT5- .
Incidentally , in the passage of the pure
food law the action of the various State
food and dairy commissioners showed in
striking fashion how much good for the
\\uole people results from the hearty co
operation of the Kederal and State officials
iu securing a given reform.
Currency.
In my message to the Congress a year
ago I called your attention to the condi
tion of our currency laws. The national
bank act has ably served a great purpose
in aiding the enormous business devclop-
ment of the country , and within ten years
there has boon an increase in circulation
per capita from $21.41 to § 33.08. For
several years evidence has been accumulat
ing that additional legislation is needed.
The recurrence of each crop season empha
sizes the defects of the present laws. There
imibt soon be a revision of them , because
to leave tlicin as they arc means to incur
liability of business disaster. There is
need of u change. Unfortunately , however ,
many of the proposed changes must be
ruled from consideration because they are
complicated , are not easy of comprehen
sion , and tend to disturb existing rights
and interests. I do not press any especial
plan , but I again urge on the Congress the
need of immediate attention to this mat
ter. We need a greater' elasticity in our
currency ; provided , 'of course , that we rec
ognize the even greater need of a safe and
secure currency. There must always be
the most rigid examination by the nat'onal
authorities. Provision should be made for
an emergency currency. The emergency is
sue should , of course , be made with an ef
fective guaranty , aud upon conditions care
fully prescribed by the government. Such
emergency issue must be based on adequate
securities approved by the government , and
must be issued under a heavy lax. This
would * permit currency being issued when .
the demand for It was urgent , while secur
ing its retirement as the demand fell off.
We must also remember tliat\even the wis
est legislation on the subject can only ac
complish -ertain simount. No le- Illation
can by nay possibility guarantee the busi
ness community against the results of spec
ulative folly : iuy more than it can guar
antee an individual against the results of
hin estravagny.ee. When an individual mort
gages his house to buy an automobile he
invites disaster ; and when wcslthy men ,
or men who pose as such , or arc unscrupu
lously or foolishly eager to oecorcesuch , in
dulge in reckless speculation especially if
it is accompanied 'by dishonesty they
jeopardize not only their own future but
the future of all their Innocent fellow-citi
zens , for they expose the whole business
community to panic and distress.
Revenue.
The income account of the nation is In a
most satisfactory condition. For the six
fiscal years ending with the 1st of July last ,
the total expenditures and revenues of the
national government , exclusive of the postal
revenues and expenditures , were , in round
numbers , revenues , 3,4Go,000,000 , and ex
penditures , ? 3li7oOOU,000. The net excess
of income over expenditures , including in
the latter the fifty millioas expended for
the Panama canal , was one hundred and
ninety million dollars for the six jears , an
average of about thirty-one millions a year.
This represents an approximation between
income and outgo which it would be bard
to improve. The satisfactory working of
the present tariff law has been chielly re
sponsible for this excellent showing. Nev
ertheless , there is an evident and constant
ly growing feeling among our people that
the time is rapidly approaching when our
system of revenue legislation must be re
vised.
The Tariff.
This country is definitely committed to
the protective system and any effort to up
root it could not but cause widespread in
dustrial disaster. In other words , the prin
ciple of the present tariff law could not
with wisdom be changed. But in a coun
try of such phenomena/ growth as ours it
is probably well that every dozen years erse
so the tariff laws should be carefully scru
tinized * so as to sec that no excessive or
improper benefits are conferred thereby ,
that proper revenue is provided , and that
our foreign trade is encouraged. There
must always be as a minimum a tariff
which will not only allow for the collection
01 an ample revenue but which will at least
make good the difference in cost of produc
tion here and abroad ; that is , the dilt < jr-
cnce in the labor cost Here and abroad , for
the well-beiu of the wags-worker must
ever he a cardinal point of American pol
icy. The question should be approached
purely from u business standpoint ; both
the time and the manner of the change be
ing such as to arouse the minimum of egi-
tation and disturbance in the business
world , and to give the least phiy for selfish
and factional motives. The sole considera
tion should be to see that the sum total of
changes represents the public good. This
means that the subject cannot with wis-
dim be dealt with in the year preceding a
presidential election , because as a matter
of fact experience has conclusively shown
that at such a time it is impossible to get
men to treat it from the standpoint of the
public good. In my judgment the wise
time to deal with the matter is immediate
ly after such election.
Income Tux unit Inlicrlianee Taz.
When our tax laws are revised the ques
tion of an income tax aud an inheritance
tax should receive the careful attention of
our legislators. In my judgment both of
thefce taxes should' be part of our system of
federal taxation. 1 speak diffidently about
the income tax because one scheme for an
income tax was declared unconstitutional by
the supreme court ; wliiie iu addition it is
a dilhcult tax to administer in Us practi
cal \\orkiug , and gre.it care would have to
be exercised to see that it was not evaded
by the very men v/hom it was most desira
ble to have taxed , for if t > o evaded it would ,
of course , be worse than no tax at all ; as
the le.ibt desirable ofill taxes is the tax
which bears heavily upon the honest as
compared with the dishonest man. Nev
ertheless , a graduated income tax of the
proper type would be a desirable feature of
federal taxation , and it is to be hoped that
one may be devised which the supreme
court will declare constitutional. The in
heritance lax , however , is both a far bet
ter method of taxation , and far mure im
portant for the purpose of bavins the for
tunes of the country bear in proportion to
their increase in size a corresponding ii-
civdse and burden of taxation. The gov
ernment has the absolute right to decide
as to the terms upon which a man shall re
ceive .1 li quest or devise from another ,
and this point in the devolution of proper
ty is especially appropriate for the imposi
tion of a tax.
Kiit'oi-ceniunt of the IJUIT.
A few years ago there was loud com
plaint that the law cuud not 'be invoked
agaiust wealthy offenders. 'here is no
buch'complaint now. Ihe course of the de
partment of justice during the last few
> e.u-s has been such as to make it evident
that no man stands above the law , that
no corporation Is so vrealthy that it cau
nut ue tieiu to account. Tiie two great evils
in the execution of our criminal laws to
day are , sentimentality and technicality.
Both of these evils must be removed or
public discontent with the criminal law
will continue.
Injunctions.
Instances of abuse in the granting of in-
jnnctious iu labor disputes continue to oc
cur , and the resentment in the minus-of
those who feel that their rights are being
invaded and their liberty of action and of
speech unwarrantably restrained continues
likewise to grow. Much of the attack "on
the use of the process of injunction is whol
ly without warrant : but 1 am constrained
to express the belief that for some of it
there is warrant. This question is becoming
more and more one of prime importance ,
and unless the courts will themselves deal
with it in effective manner , it is certain
ultimately to demand some form of legis
lative action. I refrain from discussion of
this question as 1 am informed that it will
boon receive the consideration of the su
preme court.
Employers * Liability.
The national government should be a
model employer. It should demand the
highest quality of service from each of its
employes and it should care for all of them
properly in returu. Congress should adopt
legislation providing limited but definite
compensation for accidents to all workmen
within the scope of the federal power , in
cluding employes of navy yards and ar
senals. In other words , a model employ
ers' liability act , far-reaching and thor
oughgoing , should be enacted which should
apply to all positions , public and private ,
over which the national government has
jurisdiction.
IndiiNtritil Disputes.
Strikes and lockouts , with their attend
ant loss and suffering , continue to increase.
For the five years ending December 31 ,
1'JOo , the number of strikes was greater
than those in any previous ten years and
was double the number in the preceding
live years. These figures indicate the in
creasing need of providing &ome machinery
to deal with this class of disturbances in
the interest alike of the employer , the em
ploye , and the general public. I renew my
previous recommendation that the Con
gress favorably consider the matter of cre
ating the machinery for compulsory inves
tigation of such industrial controversies as
are of sufficient magnitude and of sulficient
concern to the people of the country as a
whole to warrant the federal government
in taking action.
Cti > ititl and Labor.
It is certain that for some time to come
there will be a constant increase absolutely ,
and perhaps relatively , of those among our
citizens who dwell in cities or towns of
some size and who work for wages. This
means that there will be an ever-increasing
need to consider the problems inseparable
from a great industrial civilization. Where
an immense and complex business , especial
ly in those branches relating to manufac
ture and transportation , is transacted by a
large number of capitalists who employ a
very much larger number of wage earners ,
the former tend more and more to com
bine into corporations and the latter into
unions. The relations of the capitalist and
\\age-worker to one another , and of each to
the general public , arc- not always easy to
adjust ; and to put them and keep them on
a satisfactory basis is one of the most im
portant and one of the most delicate tasks
before our whole civilization. It is idle to
hold that without good laws evils such us
child labor , as the over-working of women ,
.ns the failure to protect employes from lost ,
"of life or limb , can be effectively reached ,
any more than the evils of rebates and
stock watering can be reached without good
laws. To fail to stop these practices by
legislation means to force honest men into
them , because otherwise the dishonest who
surely will take advantage of them will
have everything their own way. If the
States will "correct these evils , well and
good ; but the uation must stand ready to
aid them.
No question growing out of our rapid and
complex industrial development is more Im
portant than that of the employment of
women and children. The presence of wom
en in Industry reacts with extreme direct
ness upon the character of the home and
upon family life , and the conditions sur
rounding the employment of children bear
a vital relation to our future citizenship.
Farmers * and V/ngrc Workers.
The two citizens whose welfare is in the
aggregate most vital to tne welfare of the
nation , and therefore to the welfare of all
other , citizens , are the wage-worker who
does manual labor and the tiller of the soil ,
the farmer. The calling of the skilled
tiller of the soil , the calling of the skilled
mechanic , should alike be recognized as nro-
fesslons , just as emphatically as the call
ings of lawyer , doctor , merchant , or clerk.
The schools should recognize this fact and
it should equally be recognized in popular
opinion. It should be one of our prime
objects to put both the farmer and the me
chanic on a higher plane of elliciency and
reward , so as to Increase their effectiveness
in the economic world , and therefore the
dignity , the remnueration , and the power
of their positions in the social world.
No growth of cities , no growth of wealth ,
can make up for any loss in cither the
number or the character of the farming
population. We of the United States should
realize this above almost all other peoples.
We began our existence as a nation of
farmers , and in every great crisis of the
past a peculiar dependence has had to be
placed upon the farming population ; and
this dependence has hitherto been justified.
But it can not be justified in the future if
agriculture is permitted to sink in the- scale
as compared with other employments. We
can not afford to lose that pre-eminently
typical American , the farmer who owns his
own medium-sized farm. To have his place
taken by either a class of small peasant
proprietors , or by a class of great land
lords with tenant-farmed estates would be
a veritable calamity. The srowth of our
cities is a good thing but only in so far
as it does not mean a growth at the ex
pense of the country farmer. We must
welcome the rise of physical sciences in
their application to agricultural practices ,
and we must do all we can to render coun
try conditions more easy andpleasant. .
There are forces which now tend to bring
about both these results , but they are , as
yet , in their infancy. The national gov
ernment through the department of agri
culture should do all it can by joining with
the State governments and with independ-
Mit associations of farmers to encourage
the growth in the open farming country of
such institutional and social movements as
will meet the demand of the best type of
farmers , both for the improvement of their
farms and for the betterment of the life it
self.
self.The
The grain producing industry of the coun
try , one of the most important in the
United States , deserves special consideration
at the hands of the Congress. I suggest to
the Congress the advisability of a national
system of inspection and grading of grain
entering into interstate and foreign com
merce as a remedy for the present evils.
Inlanil V/atet"5rvy .
For the last few years , through several
agencies , the government has been endeav
oring to get our people to look ahead and
to substitute a planned and orderly devel
opment of our resources in place of a hap
hazard striving for immediate profit. Our
gre'it river systems should be developed as
national water highways ; the Mississippi ,
with its tributaries , standing first in import
ance , and tiie Columbia second , although
there are many others of importance on the
Pacific , the Atlantic and the Gulf s pes.
The national government should undertake
this work , and I hope a beginning will be
made in the present Congress ; and the
greatest of all our rivers , the Mississippi ,
shonld receive special attention. From the
Great Lakes to the mouth of the Mississippi
there should be a deep waterway , with
deep Avaterways loading from it to th ? ca.-'t
and west. Such a waterway would prac
tically mean the extension of our coast
line into the very heart of our country. It
would be of incalculable benefit to our pee
ple. If begun at once it can be carried
through iu time appreciably to relieve the
congestion of our great freight-carrying
lines of railroads. I have appointed an in
land waterways commission to study and
outline a comprehensive scheme of develop
ment along all the lines indicated. Later I
shall lay its report before the Congres.
Reclamation AVorls.
Irrigation should bo far more extensively
developed than at present , not only in the
States of the great plains , and the Kocky
Mountains , but in many others , ns. for in
stance , in large portions of the south Atlan
tic and Gulf. States , where it should go
hand in hand with the reclamation of
swamp land. The Federal Government
should seriously devote itself to this task ,
realizing that utilization of waterways and
water power , forestry , irrigation , and the
reclamation of lands threatened with over
flow , are all interdependent parts of the
same problem. The work of the reclamation
service in developing the larger opportuni
ties of the western half of our country for
irrigation is more important than almost
any other movement.
Public Laiul.s.
The effort of the Government to deal witb
the public land has been based upon the
same principle as that ofthe. . reclamation
service. The land law system which was
designed to meet the needs of the fertile
aud well-watered regions of the middle
west has largely broken down when ap
plied to the drier regions of the great
plains , the mountains , and much of the
Pacific slope , where a farm of 1GO acres
is inadequate for self-support. In these re
gions the system lent itself to fraud. Three
vears ago "a public lands commission was
appointed to scrutinize the law , and de
fects , and recommend a remedy. Their ex
amination specifically showed the existence
of great fraud upon the public domain , and
their recommendations for changes in the
law were made with the design of conserv
ing the natural resources of every part of
the public lands by putting it to its Vest
use. The recommendations of the public
lands commission arc sound ; for they are
especially in the interest of the actual
'
ho'me-maker ; and where the small homemaker -
maker cannot at present utilize the land
they provide that the Government shall
keep control of it so that it may not be
monopolized by a few men. Some such
legislation as that proposed is essential
in order to preserve the great stretches or
public "grazing land which nro unfit for cul
tivation under present methods and are
valuable only for the forage which they
supply.
Preservjioii of Forests.
Optimism is a good characteristic , but if
carried to an excess it becomes foolishness.
We are prone to speak of the resources of
this country as inexhaustible : this is not
so. The mineral wealth of the country , the
coal , iron , oil. gas. and 'the like , dons not re
produce itself , and therefore is certain to be
exhausted uutimately : and wastefulness ir.
dealing with it to-day moans that our de
scendants will feel the exhaustion a gener
ation or two before they otherwise would.
But there are certain other forms of waste
which could be entirely stopped the waste
of soil by washing , for instance , which N
among the most dangerous of all wastes
'
now 'in progress in the United States , is
easily preventable , so that this present
enormous' loss of fertility is entirely un
necessary. The preservation or replacement
of the' forests is one of the most important
means of preventing this loss. We have
made a beginning in forest preservation ,
but It is only a beginning. At present
lumbering is the fourth greatest industry
in the United States : and yet , so rapid has
been the rate of exhaustion of timber in
the United Stales in the past , and so rap
idly Is the remainder being exhausted , that
the country is unquestionably on the verse
of a timber famine which will bp felt in
every household 'in the land. There has
already been a rise in the price of lumbor.
but there is certain to be a more rapid
and heavier rise in the future. The present
annual consumption of lumber is certiiiulv
three times as great as the annual growth" ;
and if the consumption and growth continue
unchanged , practically all our lumber will
lc ; exhausted in another generation , ivhi'r '
long before the limit to complete cxhau.--
tion is reached the growing scarcity will
make itself felt in many blighting wa.\s
upon our national welfare. Forests can be
lumbered so as to give to the public the
full use of their mercantile timber without
the slightest detriment to the forest , any
more than it is a detriment to a farm to
furnish a lira-vest. But rorosts , if used as
all our forests have boon used In the past
and as most of thorn are still used , will be
either wholly destroyed , or so damaged that
many decades have to pass before effective
can be made of them a.-rtl * . . * ; tlicsf-
ar so oovioiis that It li orrraordlnary
that it shoiild i > e necessary to lejc-at tuoui.
The oniy trouble with the musoinent for
the preservation of our forest" , i. ; t .at It
has not gone nearly fir enough , and was
not begun son enough. It is a mo > t for
tunate thing , however , that \e began it
\ vhn we did. We should acquire in the
Appalachian and White Mountain regions
all the forest lands that it is possible to ac
quire for the use of the nation. The o
lands , because they form a national asset ,
are as emphatically national as the rivers
which they feed , and which flow through
so many States before they reach the ocean.
Tariir on Woort Ptilp.
There should be no tariff on any forest
product grown in this country : and , in
especial , there should be no tariff on wood
pulp ; due notice of the change Iwlng of
course given to thee engaged in the fiusi-
ness so as to enable them to adjust them
selves to the ne\v conditions. The repeal
of the duty on wood pulp sbo'uld if possible
be accompanied by an agroomnt with Can
ada that there shall be no export duty on
Canadian pulp wood.
In my judiment the Government should
have the right to kei-p the fee of the coal ,
oil and gas fields in its own possession
and to lease the rights to develop them
under proper regulations : or else , if the
Congress will not adopt this method , the
coal deposits should be sold under limita
tions , to conserve- them a public utilities ,
the right to mine coal being separated from
the title to the soil. '
The J'iUi5ua Canal.
Work on the Panama Canal is proceeding
in a highly satisfactory manner. Uist winter -
tor bids were requested and received for
doing the work of canal construction by
contract. Xonc of them was found to b l
satisfactory and all were rejected. It is
the unanimous opinion of the present com
mission that the work can bo done better ,
more cheaply , and more quickly by the Gov
ernment tr.an by private contractors. Fully
SO per con of the entire p'ant ' needed for
construction has been purchased or con
tracted for : machine shops have been erect
ed and equipped for making all needed re
pairs to the plant ; many thousands of em
ployes have been secure-I : an effective or
ganization has hern perfected ; a recruiting
system i.s in operation which is capable of
furnishing more labor than can Tie usv ! .vl-
vantageousily : employes are r.-el ! sheltered
and well fed ; salaries paid arc satisfactory
and the work is not only going forwarl
smoothly , but It is producing results far in
advance of the most sanguine anticipa
tions. Under those favorable conditions. .1
change In the method prosecuting tl :
work would be unvie and unjustifiable , for
it would inevitably disorganize existing con
ditions , chock progress , and Increase the-
cost and lengthen the tinle of completing
the canal.
'The chief engineer and nil his profes.
sional associates are firmly convinced that
the 85-foot level lock canal which tboy sirs
constructing in the best that could be de
sired. Some of them had doubts on if.is
point when they wept to the Isthmus. As
the plans have developed unJor thpir din--- :
ton ! their doubts have been di.speHe.l. V "aile
they may decide upon changes in detail ns
construction advances , they arc * n heorty
accord in approving tlie general plan. They
believe tr-at it provi.les a canal not onlv
adequate to all demands that will he made
upon if. bat superior in every way to a &ea
level canal. I concur in this belief.
Postal Affairs.
I commend to the favorable fonsi-l Tation
of the Congress a postal savings tank sys
tem , ns rfrommen ; ] ? ; ! by the PosiEinster
General. The primary object Is to encour
age among our p-Mnrfp economy aad thrift
and by the use of postal savings banks to
give them an opportunity to husband their
resources , particular'v ' tLose who have not
the facilities at hnn'd far depositing their
money in savings banks. Viewed , however.
from the experience of the past fe.v.veek = ,
it is cvMent that the advantages of such
an institution are still more far-reaching.
Timid depositors have withdrawn liieir sav
ings fjthe time - being from national
banks , trust companies and savings hanks ;
individuals have hoarded thetr cah : and the
workingmen their earnings ; all of which
money ha * ijcen withheld and kept in bid
ing or in the safe deposit box to tb > detri
ment of prosperity. Tfaroagh tLe agency of
the postal sivings banks such money would
be restored to the channels of tmde , to the
mutual benefit of capital an-1 labor. I fur
ther commend to the Congress the consid
eration of the PostraK. rer General's res-oni-
mondatiou for an extension of the parcel
post , especially on the rural routes.
Pre.4i < leniiul Campaign EspcJiacs.
It is well to provide that cori'.oi-atitans '
shall not contribute to presi > atial or na
tional campaign . The need for collecting
large campaign funds would vanish if Con
gress provide. ! an appropriation for tlio
proper and legitimate cxwn es of each of
the srrcat national parties , aa appropriation
ample enough to meet the necessity for thor
ough organization and machinery , which re
quires a large exenditure of money.
' Ocean 3Iail Service.
I call your especial attention to the un
satisfactory condition of our foreign mail
service , which , because of the lack of A-ner-
icau steamship lines , is now largely done
through foreign lines , and which , particu
larly so far as South aud Central Arr.eri'-a
are concerned , is done in a manner which
constitutes a serious barrier to the tx > n-
sion of our commerce. The time has come ,
in my judgment , to set to work seriously to
make our ocea i mail service correspond
more closely \\ith our recent commercial
and political development. The only serious
question is whether at this time we can
afford to improve our ocean mail service
as it should b * improve. ! . All doubt on
this subject is removed by the reports of
the PostoSiec Department. The Govern
ment of the United States , having assumed
a monopoly of carrying tue mails for tlie
people , is makinc a profit of over $3JOOOuo (
by rendering a cheap and inefficient service.
That profit I believe should be devoted to
strengthening our maritime power in those
directioas where it will best promote our
prestige. I strongly recommend , therefore ,
a simple amendment to the ocean mail act
of 1801 which shall authorize the Postrn. s-
tcr General in his discretion to eater inro
contracts for the transportation of mails
to the republics of South America , to Asia.
the Philippines , and Australia at a rat .
not to exceed $1 a mile for steamships of
10 knots speed or upwards , subject to the
restrictions and obligations of the act of
isyi.
TI ; Aritiy.
Not only there is not now. but there
never has been , any other nation in tha
world bo wholly free froia the evils of ini-
itarism as is ours. Never at any time of
our history has the regular army been of
a size which caused the slightest apprecia
ble tax upon the tax-paying citizens of th -
nation. As a nation we have a I1ajs been
shortsighted in providing for the efficiency
of the army in time/of pe.ace. I think it is
only lack of foresizht that troubles us , not
any hostility t. > the army. There are. of
course , foolish people who denounce any care
of the army or navy as "militarism , " but i
do not think that those-people arc numer
ous. We are glad to help in any moveinem
for international peace , but this Is beva-ise
we sincerely believe that it is our duty t
help all such movements provide 1 they aie
sane and rational , and not because there i- ,
any tendency toward militarism on our part
which needs to be cured. The evils w ?
have to' light are those in connection with
industrialism , not militarism. Industry is
always necessary , just as v.ar is sometimes
necessary- Each has its price , and industry
in the United States now exacts , and his
rhvays exicted , a far heavier toll of death
'
than'all our wars put together.
We should maintain in peace a fairly
complete skeleton of a largo army. A great
and 'long continued war would have to be
fought by volunteers. Cut months \von ! i
pass-before any larze body of efficient vol
unteers could be put in the field , and ou.-
regular army should t > e large enough t >
meet any immediate need. In particular it
is esentinl that we should possess a nom-
bcr of extra officers tr.iined in peace to rx-r
f. rm < 01.-i"ntly the duties urgeatlv reqnim ?
upou the breaking out of war. The rate of
pay for the otncci's should be sieatly in-
civased ; there is n.i hfchet * typp of citizen
than the American regular officer , and he
should have a fair reward for his admir
able work. There should be a relatively
even greater increase in the pay for the
enlisted men. The rate'of desertion In our
nrmy now in time of peace is alarming.
The deserter should be treated by public
opinion as a man guilty of the greatest
crime ; while on the other hand tiie man \
' who atvi rtridn > 10 the army should *
treated as what he In , that Is , as preeminently
nently one of the best citizens of this r -
public.
The IVuvy.
It was hoped The Hague Conference
might deal with the question of the limita
tion of armaments. liut even before it had
assembled informal inquiries had developed
that as regards naval armaments , the only
ones in which tills country hud any Inter
est. it was hopeless to try to devise any
plan for which there was the slightest pos
sibility of securing the assent of the na
tions gathered at The Hague. It Is evi
dent , therefore , that it Is folly for this
nation to ba.se any hope of securing peaca
on any international agreement as to the
limitation of armaments. Such being the
fact it would be most unwise for us to
stop th3 upbuilding of our navy. To build
one battleshio of the best " < ! most ad
vanced type a year would barely keep our
fleet up to its present force. This is not
enough. In my judgment , we should thW
year provide for four battleships. Dut It
is Idle to build battleships unless in addi
tion to providing the men. and the means
for tharough training , we provide the aux
iliaries for them , unless we provide docks ,
the coaling stations , the colliers and suppler
ships that they need. We are extremely
deficient in coaling stations and docks on
the Pacific and this deficifocy should not
logger bo permitted to exist. Plenty of tor
pedo boats aud destroyers should be built.
"
Koth on the Atlantic" and Pacific coasts ,
fortifications of the best type should be pro
vided for all our greatest harbors.
We need always to remember that In ,
time of war the navy Is not to be used to
defend harbors aud seacoast cities : vro
should perfect our system of coast fortifica-
tious. The only efficient use for the navy
is for offense. The only way in which It
can efficiently protect our own coast s g.iinst
the possible action of a foreign navy is by
destroying that foreign navy. For deft'usa
against a hostile lieet which actually attacks
them , the coast cities must depend upon
their forts , mines , torpedoes , submarines
ami torpedo l oats and destroyers.
Until our battle fleet Is much larger than
at present it should never be split into de-
t.ichmpnts so far apart that they could not
in event of emergency be speedily united.
Oar coast line la on the Pacific just as
much as on the Atlantic. The interests of
California. Oregon and Washington arc as
emphatically the interests of the whole
Union as those of Maine and Now York , of
liO-iisiana and Texas. The battle fleet
should now and then be moved to the Pa
cific. just as at other times it should bo
kept iu the Atlantic.
It must be remembered that everything
done in the navy to fit It to do well In
time of war must be done in time of peace.
Ji'urolKii Affair * .
In foreign affairs this country's steady
policy is t < > b-have toward other nations
as a strong aud self-respecting man should
behave toward the other men with whom
he is brought into contact. In other words ,
nr . aim Is disinterestwlly to help otiier
nations where such help can be wisely
given wit iont the appearance of meddling
with what dues not concern us ; to be care
ful 10 act as a sx i neighbor : and at the
same time , in ici il-natnrr.l fashion , to make
it evident that we do not intend to be im
posed upon.
The FenceConference. .
The second internntiona ! peace conference
was convened at Tue Hague on the l.'th
of .Jnuf h'.si and rtiaaiai-d in session uutil
the istii of October. For the lirst time
the representatives of practically all the
civiizd ! countries of the world united in a
teMpciute and kindly ' nisciission of the
meti oJ.s by which thir cnuses of war might
be nsu-rowed and its injurious effects re-
duct-d.
Although * be agreements reached Inthe
eom"ex".ee dirt not in any direction go to
the length hoped for by thqt mor.- sanguine ,
yet ia mandirtvtioc ; * important steps
were taken , and upon every subject on the
program there was such .full aad consider
ate discussion : : s to justify the belief that
substantial prorpss ; has been n : ulo toward
further agreements in the future. Tha
delegates of the I'nitod States worthily
r.'fjre.sentcd the spirit of the American people
ple and maintained witb fidelity and abil
ity the policy ' our government upon all
the great questions discussed in the con
ference. .
A year ago fn consequence of a revolu
tionary movement in Cuba which threat
ened the immediate rettirn to chio5 of the
island , the Luited States intervened , send
ing ilowa aa army aad establishing a pro-
vl-ionul government underv. . Magoon.
Absolute quiet and prosperity have re-
taruod to the islanu because of tbissictlon.
We are now takin * steps to provide for
ejections in the . -island and our expecta
tion is within tiie conun.-j year to be able to
turn the island over again to a - government
ment cbosea by the people thereof. Cuba
Is at our doors , i
German.
The adoption of a new tariff by Ger
many , accompanied by conventions for re
ciprocal tariff concessions between that
country and n'-st of the other countries
of continental Kuro e , led the < ; ennaii gov
ernment to give ne notice necessary to
terminate the reciprocal commercial agree
ment with this country proclaimed July l.'I ,
1UOO. The notice was to take effect ou the
1st of Marc'o. P.HKJ. Under a special agree
ment made between the two governments
in February. I'JUC. the German government
postponed "the oj ration of their notice
until the 30th of June. 1907. In the mean-
tima I sent to Berlin a commission com
posed of competent experts in the opera
tion and administration of tbe customs
tariff , from the departments of the "treas
ury and commerce and labor. This corn-
misKjon was eagage.1 for several months in
conference witb a similar commission ap
pointed by the ( lerman Government , under
instructions , s > far as practicable , to reach
a common understanding as to all the facts
regarding the tariffs of the United States
and Germany material and relevant to ths
trade relations between the two countries.
The cooimisIon reported , and upon tbe basis
of the report , a further temporary commer
cial agreement was entered into by the
two countries. This agreement is to remain
in 'fom ; uutil the Suth of June. KKW , and
until six months after notice by either party
to terminate it.
OfHer-
There &hoald be a national gallery of art
established in the capital city of this coun
try.
try.I
I again recommend that tbe rights of eitl-
zeusMp be conferred upon the people oi
Porto Kico.
The Secretary of War has gone to the
Philippines. On his return I shall submit
his report on the islands.
I strongly recommend to the Congress to
provide funds for tee-pinjy up the Hermit
age , the home of An l/ew Jackson.
I rriterate my recommendations of last
year as regards Alaska. Sonic form oi
local self-government .should be provided , aa
simple and inexpensive as posible.
The biological survey is quietly working
for the good of our agricultural interests ,
and is an excellent example of a govern
ment bureau which conducts original scien
tific research the findings of which are ol
much practical utility.
The Congress should consider tbe exten
sion of tbe eight-hour law. Ihe general in
troduction of the eight-hour day should be
the goal Coward which we should steadily
fnd. and tbe government should set tbe
example in this respect.
Unless the Congress is prepared by posi
tive encouragement to secure proper facili
ties in the way of shipping between Hawaii
and the mainland , then the coastwise ship
ping laws should be so far relaxed as to
prevent Hawaii suffering as" it is now suf-
lering.
A bureau of mines should be created un
der the control sin'l direction of the Secre
tary of the Interior : the bureau to have
power to' collect statistics and make inves
tigations In ail matters pertaining to mining
and particularly to the accidents and dan
gers of the industry.
Oklahoma has hceotne a State , standing
01 a full oquajity with her elder sisters ,
and her future is assured by her great nat
ural resources. Tiie duty of the national
government to guard the personal and prop
erty rights of the Indians within her bor
ders remains of course unchanged.
I ask for authority to re-form the agree
ment with China nailer which the Indemni
ty of- 10OOwas fixed by remtt ! ig and can
celling the obligation of China for the pay
ment of al ! that part of the stipulated in
demnity which i in excess of the sum ol
$11,053,4 5.60 , and interest at 4 per