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To the Senate and the House of Rep
resentatives :
The relations of the United States
with all foreign governments have con-
tinued upon the normal basis of amity
ind good understanding , and are very
penerally satisfactory.
Pursuant to the provisions of the
peneral treaty of arbitration concluded
between the United States and Great
Britain , April 4 , 1908 , a special agree-
ment was entered into between the two
. countries on January 27 , 1909 , for the
. . jubmlssion of questions relating to the
Qsheries on the North Atlantic coast
to a tribunal to be formed from mem-
bers of the permanent court of arbitra
, , tion at The Hague. In accordance- with
' _ the provisions of tho special agreement
the printed case of each government
' was , on October 4 last , submitted to the
at
other and to the arbitral tribunal
The Hague , and the counter case of
the United States is now in course of
preparation.
. " The American rights under the fish
eries article of the treaty of 1818 have
been n cause of difference between the
r United States and Great Britain for
nearly seventy years. The Interests
Involved are of great importance to
the American fishing industry , and the
flnal settlement of the controversy will
settement a source of constant irritation
and complaint This is the first case
t involving such great international
' - submitted to
questions which has beerfsubmitted
- 'the permanent court of arbitration at
The Hague.
The treaty between the United States
a
und Great Britain concerning the
Canadian international boundary , con-
, eluded April 11 , 1908 , authorizes the
appointment of two commissioners to
define and mark accurately the Inter-
national boundary' line between the
United States and the Dominion of
Canada in the waters of the Passama-
quoddy bay , and provides for the ex-
change of , briefs within the period of
11x months. The briefs were duly pre-
sented within the prescribed period ,
but as the commissioners failed to
agree within six months after the ex-
change of the printed statements , as
required by the treaty , it has now be-
I come necessary to resort to the arbi-
tration provided for in the article
The international fisheries commis-
sion appointed pursuant to and under
the authority of the convention of
April 11 , 1908 , between the United
States and Great Britain , has complet-
ed a system of 'uniform and common
international regulations for the pro-
tection and preservation of the food
fishes In international boundary waters . .
4 of the United States and Canada.
_ The regulations will be duly submit-
ted to Congress with a view to the en-
actment of such legislation as will be
necessary under the convention to put
them into operation.
The convention providing for the
settlement of international differences
between the United States and Cana-
da , including the apportionment be-
tween the two countries of certain of
. the boundary waters and the appoint- I
S ment of commissioners to adjust cer-
tain other questions , signed on the llth
day of January , 1909 , and to the ratifi
cation o which the Senate gave its ad-
vice and consent on March 3 , 1909 , has
not yet been ratified on the part of
Great Britain.
Commissioners have been appointed
on the part of the United States to act
\ Jointly with commissioners on the part
of Canada in examining into the ques-
\ tion of obstructions in the St. John
River between Maine and New Bruns-
. wick , and to make recommendations
/ for the regulation of the uses thereof ,
and are now engaged In this work.
Negotiations for an International
_ conference to consider and reach an
arrangement providing for the preser-
vation and protection of the fur seals
In the North Pacific are in progress
with the governments of Great Britain ,
Japan and Russia. The attitude of the
governments interested leads me to
hope for a satisfactory settlement of
this question as the ultimate outcome
of the negotiations.
His Majesty Mehmed V. , Sultan of
Turkey , recently sent to this country a
special embassy to announce his ac
cession. The quick transition of the
government of the Ottoman empire
from one of retrograde tendencies to a
constitutional government with a Par .
, liament and with progressive modern
policies of reform and public improve-
ments is one of the important phe-
nomena of our times. Constitutional
government seems also to have made
further advance in Persia. These
events have turned the eyes of the
" . world upon the Near East. In that
quarter the prestige of the United
States has spread widely : through the
peaceful influence of American schools ,
universities and missionaries. There
. . Is every reason why we should obtain
. a greater share of the commerce of the
Near East since the conditions are
more favorable now than ever before.
Our Latin American Xt'hhhurs.
\ To-day , more than ever before ,
American capital Is seeking investment
. In foreign countries , and American
products are more and more generally
seeking foreign markets. As a conse
quence , in all countries there are Amer
ican citizens and American interests
' to be protected , on occasion , by their
government These movements of
men , of capital , and of commodities
bring peoples and governments closer
together and so form bonds of peace
and mutual dependency , as they must
also naturally sometimes make passing
points of friction. The Pan-American
policy of this government has long
been fixed in its principles and remains
. unchanged. With the changed circum-
stances of the United States
: and of the
- republics to the south of us most of
which have great natural resources ,
stable government and progressive
ideals , the apprehension which gave
rise to the Monroe doctrine may be
said to. have nearly disappeared , and
. neither the doctrine as It exists nor
any other doctrine of American policy
should be permitted to operate for the
perpetuation of irresponsible govern-
ment , the escape of just obligations , or
: _ the insidious allegation of dominating-
; ambitions on the part of the United
States.
Sttes.
I ' My meeting with President Diaz and
, the greeting exchanged on both Ameri
, can and Mexican soil served , I hope ,
F to signalize the close and cordial rela-
tions which so well bind together this
, republic and the great republic imme-
. diately to the south , between which
; there Is so vast a network of material
interests.
"
I am happy to say that all but one of
the cases which for so long vexed our
relations with Venezuela have been
settled within the past few months and
i that under the enlightened regime now
directing the government of Venezuela
provisIon T has been made for arbitra
.
I
+ + +
tion of the remaining case before The
Hague tribunal. On July 30 , 1909 , the
government of Panama agreed , after
considerable negotiation , to indemnify
the relatives of the American officers
and sailors who were brutally treated ,
one of them having , Indeed , been killed
'
by the Panaman police this year.
The sanitary improvements and pub-
lic works undertaken in Cuba prior to
the present administration of that gov-
ernment , In the success of which the
United States Is interested under the
treaty , are reported to be making good
progress and since the Congress pro-
vided for the continuance of the recip-
rocal commercial arrangement between
Cuba and the United States assurance
has been received that no negotiations :
Injuriously affecting the situation will
be undertaken without consultation.
The collection of the customs of the
Dominican Republic through the gen-
eral receiver of customs appointed by
the President of the United States In
accordance with the convention of
February 8 , 1907 , has proceeded in an
uneventful and satisfactory manner.
Many years ago diplomatic interven-
tion became necessary to the protec-
tion of the Interest in the American
claim of Alsop and company against
the government of Chile. The govern
ment of Chile had frequently admitted
obligation in the case and had prom-
ised this government to settle it There
had been two abortive attempts to do
so through arbitral commissions , which
failed through lack of jurisdiction.
Now , happily , as the result of the re-
cent diplomatic negotiations , the gov
ernments of the United States and of
Chile , actuated by the sincere desire
to free from any strain those cordial
and friendly relations upon which both
set such store , have agreed by a pro-
tocol to submit the controversy to
-lefinitlve settlement by His Britannic
Majesty , Edward VII. ,
The Xiearagruan Difficulty.
Since the Washington conventions
of 1907 were communicated to the gov-
ernment of the United States as a con-
sulting and advising party , this gov-
ernment has been almost continuous
ly called upon by one or another , and
in turn by all of the five Central Amer-
ican republics , to exert itself for the
maintenance of the conventions. Near
ly every complaint has been against
the Zelaya government of Nicaragua ,
which has kept Central America in
constant tension or turmoil. The re- I
sponses made to the representations of
Central American republics , as due
from the United States on account of
its relation to the Washington conven-
tions , have been at all times conserva-
tive and have avoided , so far as pos-
sible , any semblance of interference ,
although It is very apparent that the
considerations of geographic proximity
to the Canal zone and of the very sub-
stantial American interests in Central
America give to the United States a
special position In the zone of these
republics and the Caribbean Sea.
I need not rehearse here , the patient
efforts of this government to promote
peace and welfare among these repub-
lics , efforts which are fully appreciated
by the majority of them who are loyal
to their true Interests. I would be no
less unnecessary to rehearse here the
sad tale of unspeakable barbarities and
oppression alleged to have been com-
mitted by the Zelaya government. Re-
cently two Americans were put to
death by order of President Zelaya
himself. They were officers in the or-
ganized forces of a revolution which
had continued many weeks and was in
control of about half of the republic ,
and as such , according to the modern
enlightened practice of civilized na
tions , they were entitled to be dealt
with as prisoners of war.
At the date when this message is
printed this government has terminat-
ed diplomatic relations with the Zelaya
government , for reasons made public
the former
in a communication to te
Nicaraguan charge d'affaires , ajid is
intending to take such future steps as
may be found most consistent with its
dignity , its duty to American interests
and its moral obligations to Central
America and to civilization. I may
' this sub-
be necessary for me to bring -
ject to the attention of the Congress
in a special message.
The International Bureau of AmerI-
can Republics . has carried on an im
portant and increasing work during
the last year. In the exercise of its
peculiar functions as an international
agency , maintained by all the Ameri-
can republics for the development of
Pan-American commerce and friend-
ship , it has accomplished a great prac-
tical good which could be done in the
same way by no individual department
or bureau of one government , and is
therefore deserving of your liberal
support. The fact' that it is about to
enter a new building , erected through
the munificence of an American phi-
lanthropist and the contributions of all
the American nations , where both its
efficiency of administration and ex
pense of maintenance will naturally be
much augmented , further entitles it
to special consideration.
Relations in the Far Bast.
In the Far East this government
preserved unchanged its policy of sup-
porting the principle of equality of op-
portunity and scrupulous respect for
the integrity of the Chinese Empire , to
which policy are pledged the interested
powers of both east and west
Our traditional relations with the
Japanese empire continue cordial as
usual. As the representative of Japan ,
his Imperial highness Prince KunI vis-
ited the Hudson-Fulton celebration.
The recent visit of a delegation of
prominent business men as guests of
the chambers of commerce of the Pa-
cific slope , whose representatives had
been so agreeably received in Japan ,
will doubtless contribute to the grow-
ing trade across the Pacific , as well
as to that mutual understanding which
leads to mutual appreciation.
Expenditures and Revennes.
Perhaps the most important question
presented to the administration Is that of
economy in expenditures and sufficiency
of revenue. The deficit of the last fiscal
year , and the certain deficit of the cur-
rent year , prompted Congress to throw
a greater responsibility on the executive
and the secretary of the treasury : than
had heretofore been declared by statute.
This declaration Imposes upon the sec-
retary of the treasury the duty of as-
sembling all the estimates of the execu1 1
tive departments .bureaus , and offices , of
the expenditures necessary in the ensuing
fiscal year , and of making an estimate of
the revenues of the government for the
same period ; and if a probable deficit is
thus shown , it is made the duty of the t
President to recommend the method by
which such deficit can be met 'I
The report o the secretary shows that I
the ordinary expenditures for the current
fiscal year ending -June 30 , 1910 , will ex-
ceed the estimated receipts by $34,075,620. ;
I to this deficit is added the sum to be
,
H $ -
disbursed for the Panama canal , amount-
ing to $38,000,000 , and $1,000,000 to be
paid on the public debt , the deficit of or-
dinary receipts and expenditures will be
Increased to a total deficit of $73,075-
620. This deficit the secretary proposes
to meet by the proceeds of bonds issued
to pay the cost of constructing the Pan-
ama canal. I approve this proposal.
The policy of paying for the construc-
tion of the Panama canal , not out of cur-
rent revenue , but by bond issues , was
adopted In the Spooner act of 1902. and
there seems to be no good reason for
departing from the principle by which a
part at least of the burden of the cost
of the canal , shall fall upon our posterity
who are to ' enjoy i ; and there is all
the more reason for this view because
the actual cost to date o the canal , which
Is now half done and which jwlll . be com-
pleted Jan. 1 , 1915 , shows that the cost
of engineering and construction will be
$297,766,000 instead of $139,705.200. as
originally estimated. In addition to engI-
neering and construction , the other ex
penses Including sanitation and govern-
ment , and the amount paid for the prop-
erties , the franchise , and the privilege of
building the canal , Increase the cost by
$75,435.000 , to a total of 375201000.
The Increase in the -cost of engineering
and construction Is due to a substantial
enlargement of the plan of construction
by widening the canal 100 feet in the
Culebra cut and by increasing the dImen-
sions of the locks , to the underestimate
of the quantity of the work ' to be done
under the original plan. and to an under-
estimate of the cost of labor and mate-
rials , both of which have greatly en-
hanced In price since the original estimate
was made.
In order to avoid a deficit for the en-
suing fiscal year I directed the heads of
departments in the preparation of their
estimates to make them as low as possible
consistent with imperative governmental
necessity. The result has been as I am
advised by the secretary of the treasury
that the estimates for the expenses of
the government for the next fiscal year
ending June 30 , 1911 , are less than the
appropriations for this current fiscal year
by 42818000. So far as the secretary
of the treasury is able to form a judg
ment as to future income and compare 't '
with the expenditures for the next fiscal
year ending June 30 , 1911 , and exclud-
ing payments on account of the Panama
canal which will doubtless be taken up
by bonds , there will be a surplus of $35.-
931,000.
In the present estimates the needs of
the departments and of the government
have been cut to the quick , so to speak ,
and any assumption on the part of Con-
gress , so often made in times past , that
the estimates have been prepared with the
expectation that they may be reduced ,
will result in seriously hampering proper
administration.
The secretary of the treasury points out
what should be carefully noted In respect II
to this reduction in governmental ex- I
penses for the next fiscal year , that the
economies are two kinds - first , there is a
saving in the permanent administration of
the departments , bureaus , and offices of
the government ; and , second , there is a
present reduction in expenses by a post-
ponement of projects and improvements
that ultimately will have to be carried
out , but which are now delayed with the
hope that additional revenue in the future
will permit their execution without pro-
ducing , a deficit.
I am aware that there Is a strong feel-
ing in both houses of Congress , and pos-
sibly In tho country : , against the estab-
lishment o civil pensions , and that this !
has naturally grown out of the heavy
burden of military pensions , which it has
always been the policy of our government
to assume ; but I am strongly convinced
that no other practical solution of the
difficulties presented by the superannua-
tion of civil servants can be found than
that of a system of civil pensions.
The business and expenditures of the
government have expanded enormously
since the Spanish war , but as the rev-
enues have increased in nearly the same
proportion as the expenditures until re-
cently , the attention of the public , and
of those responsible for the government
has not been fastened upon the question
of reducing the cost of administration.
We cannot , in view of the advancing prices
of living , hope to save money by a re-
duction In the standard of salaries paid.
Indeed , if any change is made /in / that
regard , an increase rather tha a de
crease will be necessary ; and the only
means of economy will be In reducing
the number of employes and In obtaining
a greater average of efficiency from those
retained in the service.
Frauds in jLUe Customs Service.
n.c
I regret to refer to the fact of the dis
covery of extensive frauds in the collec
tion of the customs revenue at New York
City , in which a number of the subordi-
nate employes In. the weighing and other
departments were directly : concerned , and
In which the beneficiaries were the Amer-
ican Sugar Refining Company and others.
The frauds consisted In the payment of
duty o'n underweights of sugar. The gov-
ernment has recovered from the American
Sugar Refining Company all that i is
shown to have been defrauded of. The
sum was received In full of the amount
due , which might have been recovered by
civil suit against the beneficiary of fraud ,
but there was an express reservation In
the contract of settlement by which the
settlement should not Interfere with or
prevent the criminal prosecution of every-
one who was found to be subject to the
same.
Criminal prosecutions now-proceed
prosecutons are now"Iroceed-
ing against a number of the government
officers , I would seem to me that an
investigation of the frauds by Congress
at present , pending the probing by the
treasury department and the department
of justice , as proposed , might by giving
Immunity and otherwise prove an em-
barrassment In securing conviction of the
guilty parties.
The New Tariff Latr.
Two features of the new tariff act call
for special reference. By virtue of the
clause known as the "Maximum and Min
imum" clause , it is the duty of the exec-
utive to consider the laws and practices
of other countries with reference to the Im-
portation into those countries of the prod-
ucts and merchandise of the United
States , and I the excutlve finds such laws
and practices not to be
practces unduly discrim-
inatory against the United States , the
minimum duties provided in the bill are
to go into Iorce . Unless the President
makes such a finding , then the maximum
duties provided In the bill , that Is . an In-
crease of 25 per cent ad valorem over the
minimum duties , are to be in force. Fear
ha been expressed that this power con-
ferred and duly imposed on the executive
Is likely to lead to a tariff war. I beg to
express the hope and belief that no such
result need be anticipated.
The discretion granted to the Executive
by the terms "unduly discriminatory" is
wide. In order that the maximum duty
shall be charged against the imports from
a country , it Is necessary that he shall
find on the part of that country not only
discriminations in its laws or the practice
practce
under them against the trade of the Unit
ed States , but that the discriminations
found shall be undue ; that is , without
good and fair reason. I conceive that this
power was reposed In the President with
the hope that the maximum duties might
never be applied in any case , but that
the power to apply them would enable the
President and the state department
through friendly negotiation to secure the
elimination from the laws and the prac-
tice under them of any foreign country
of that which Is unduly discriminatory.
No one is seeking a tariff war or a con-
dition in which the spirit of retaliation
shall be aroused.
The new tariff law enables me to ap
point a tariff board to assist me In con-
nection with the department of state In
the administration of the minimum and
maximum clause of the act and also to
assist officers of the government In the
te
administration , - a the entire law. An * x-
. . _
M # M ! -
amination of the law and an understand-
ing of the nature of the facts which
should be considered in discharging the
functions imposed upon the executive show
that I have the power to direct the tariff
board to make a comprehensive glossary
and encyclopedia of the terms used and
articles embraced in the tariff law , and
to secure information as to the cost of
production of such goods In this country
and the cost of their production in foreign
countries. I have therefore appointed a
tariff board consisting of three members
and have directed them to perform all the
duties above described.
War and Xuvy Departments.
In the Interest of immediate economy
and because of the prospect of a deficit , I
have required a reduction In the estimates
of the war department for the coming fis
cal year , which brings the total esti
mates down to an amount $45.000,000 less
than the corresponding estimates for last
year. The secretary of war calls atten
tion to a number of needed changes in the
army , in all of which I concur. The coast
defenses of the United States proper are
generally all that could be desired , and
in some respects they are rather more
elaborate than u/ider present conditions
are needed to stop an enemy's fleet from
entering the haroors . de nded . The mili
tary and naval joint board have unanI-
mously agreed that It would be unwise
to make the largeJexpendiures which at
one time were contemplated in the estab-
lishment of a naval base and station in
the Philippine Islands , and have expressed
their judgment , in which I fully concur ,
In favor of making an extensive naval
base at Pearl harbor , near Honolulu , and
not in the Philippines.
This does not dispense with the neces-
sity for the comparatively small appro-
priations required to finish the proper .
coast defenses in the Philippines now un-
der construction on the island of Correg-
idor and elsewhere or to complete a suit
able repair station and coaling supply sta-
tion at Olongapo where Is the floating
dock "Dewey. " I hope that this recom-
mendation of the joint board will end the
discussion as to the comparative merits of
Manila bay and Olongapo as naval sta-
tions , and will lead to prompt measures
for the proper equipment and defense of
Pearl harbor.
The return of the battleship fleet from
its voyage around the world In more effi
cient condition than when I started , was
a noteworthy event of Interest alike to
our citizens and the naval authorities of
the world. Besides the beneficial and far-
reaching effect on our personal and diplo-
matic relations in the countries which the
fleet visited , the marked success of the
ships in steaming around the world in all
weathers on schedule time has Increased
tme
respect for our navy and has added to
our national prestige. Our enlisted per
sonnel recruited from all sections of the
country Is young and energetic and rep-
resentative of the national spirit. Owing
to the necessity for economy in expendi-
tures , I have directed the curtailment of
recommendations for naval appropriations
FO that they are thirty-eight millions less
than the corresponding estimates of last
year , and the request for new naval con-
struction is limited to two first-class bat-
tle ships and one repair vessel.
The use of a navy is for military pur-
poses , and there has been found need in
the department of a military branch deal-
ing directly with the military use of the
fleet. The secretary o the navy has also
felt the lack of responsible advisors to aid
him In reaching conclusions and deciding
important matters between co-ordinate
branches of the department. To secure
these results lie has inaugurated a tenta-
tive plan Involving certain changes in the
organization of the navy department , In-
cluding the navy yards , all O which have
been found by the attorney general to be
In accordance with law. 1 have approved
the execution of the plan proposed because
of the greater efficiency and economy it
promises.
The Department of Justice.
The deplorable delays in the adminis-
tration of civil and criminal law have
received the attention of committees of
the American Bar Association and of
many state bar Associations , as well as
the considered thought of judges and
jurists. In my judgment , a change in
judicial procedure , with a view to re-
ducing its expense to private litigants In
civil cases and facilitating the dispatch
of business and final decision in both civil
and criminal cases , constitutes the great-
est need in our American institutions. I
do not doubt for one moment that much
of the lawless violence and cruelty ex
hibited in lynchings is directly due to the
uncertainties and injustice growing out
of the delays in trials , judgments , and
the executions thereof by our courts. Of
course these remarks apply quite as well
to the administration of justice In state
courts as to that in federal counts , and
without making invidious distinction it Is
perhaps not too much to say that , speak
ing generally , the defects are less in the
federal courts than in the state courts.
court.
But they are very great in the federal
courts. The expedition with which busI-
ness Is disposed of both on the civil and
the criminal side of English courts under
modern rules of procedure makes the de
lays in our courts seem archaic and bar-
barous. The procedure in the federal
courts should furnish an example for the
state courts.
\ I presume I is Impossible , without an
amendment to the constitution , to unite
under one form of action the proceedings
at common law and proceedings in equity
In the federal courts , but It is certainly
not impossible by a statute to simplify
and make short and direct the procedure
both at law and in equity In those courts.
I is not Impossible to cut down still
more than it is cut down , the" jurisdiction
of the supreme court so as to confine i
almost wholly to statutory and constitu
tional questions. Under the present stat-
utes the equity and admiralty procedure
In the federal courts Is under the control
of the supreme court , but in the pressure
of business to which that court is sub-
jected It is impossible to hope that a
radical and proper reform of the federal
equity procedure can be brought about.
I therefore recommend legislation pro-
viding for the appointment by the PresI-
dent of a commission with authority to
examine the law and equity procedure of
the federal courts o first instance , he-
law of appeals from those courts to the
courts of appeals and to the supreme/
court , and the costs imposed in such pro-
cedure upon the private litigants and upon
the public treasury and make recommen-
dation with a view to simplifying and
expediting the procedure as far as possible
and making i as inexpensive as may be
to the litigant of little means.
"Snap" Injunctions.
The platform of the successful party In
the last election contained the following :
"Tho Republican party will uphold at
all times the authority and integrity of
the courts , state and federal , and will
ever insist that their powers to enforce
their process and to protect life , liberty ,
and property shall be preserved inviolate.
We believe , however , that the rules of
procedare in the federal courts with re-
spect to the issuance of the writ of In-
junction should be more accurately de
fined by statute , and that no Injunction
or temporary restraining order should be
issued without notice. , except where irre-
parable injury would result from delay ,
In which case a speedy hearing thereafter
should be granted. "
I recommend that In compliance with
the promise thus made , appropriate legIs-
lation be adopted. The ends of justice
will best be met and the chief cause of
complaint against ill-considered Injunc-
tions without notice will be removed by
the enactmant of a statute forbidding
hereaftor the issuing of any Injunction
or restraining erder , whether temporary or
permanent , by any federal court , without
previous notice and reasonable *
notce a oppor-
tunlty to be heard on behalf of the par-
ties to be enjoined ; unless It shall appear
to the satisfaction of the court that the
delay necessary to give such notice and
hearing , would result In irreparable Injury
t the complainant.
+ \ < * ! -
Unless also the court shall from the
evidence make a written finding , which
shall be spread upon the court minutes ,
that immediate and irreparable injury Is
I likely to ensue to the complainant , and
shall define the injury , state why It Is ir-
reparable and shall also endorse on the
order Issued the date and the hour of the
Issuance of the order. Moreover , every
such injunction or restraining order Issued
without previous notice and opportunity
by the defendant to be heard should by
force of the statute expire and be of no
effect after seven days from the Issuance
thereof or within any time less than that
period which the court may fix , unless
within such seven days or such less peri-
od , the injunction or order Is extended or
renewed after previous notice and oppor-
tunity to be heard.
My judgment is that the -passage of
such an act which really embodies the
best practice in equity and is very like
the rule now In force In some courts , will
prevent the issuing 0 Ill-advised orders
of Injunction without notice and will ren-
der such orders when issued much less
I
objectionable by the short time in which
they may remain effective.
Interstate Commerce Law :
The jurisdiction of the general govern
ment over interstate commerce has led to
the passage of the so-called "Sherman
Antitrust Law" and the "Interstate Com-
merce Law" and its amendments. The
developments in the operation of those
laws , as shown b : Indictments , trials , ju-
dicial decisions , and other sources of In-
formation , call for a discussion and some
suggestions as to amendments.
The PostoHice Department.
The deficit every year in the postofilce
department is largely caused by the low
rate of postage of 1 cent a pound harged
on second-class mail matter , whlch In-
cludes not only newspapers but maga-
zines and miscellaneous periodicals. The
actual loss growing out o the transmis-
sion of this second-class mall matter at
1 cent a pound amounts to about $03.000-
000 a year. The average cost of the
transportation of this matter is more
than 9 cents a . pound.
A great saving might be made ,
amounting to much more than half of the
loss , by imposing upon magazines and
periodicals a higher rate of postage. They
are much heavier than newspapers , and
contain a much higher proportion of ad-
vertising to reading matter , and the a \ ' -
erage distance of their transportation is
three and a half times as great.
The total , .deficit for the last fiscal year
in the post office department amounted to
17500000. The branches of its business
which it did at a loss were the second
class mail service , In which the loss as
already said was $63,000.000. and the free
rural delivery , in which the loss was $2S.-
000,000. Those losses were in part offset
by the profits of the letter postage and
other sources of Income. I would se m
wise to reduce the loss upon second class
mall matter , at least to the extent of pre-
venting a deficit in the total operations of
the post office department.
The second subject worthy of mention
in the postollice department is the real
necessity and entire practicability of es
tablishing postal savings banks. The suc-
cessful party at the last election declared
in favor of postal savings banks , and al-
though the proposition finds opponents in
many parts of the country , I am con-
vinced that the people desire such banks ,
and am sure that when the banks are
furnished they will be productive of the
utmost good. I believe them to be neces-
sary In order to offer a proper Induce-
ment to thrift and saving to a great many
people of small means who do not now
have banking facilities * , and to whom
such a system would offer an opportunity
for the accumulation of capital. They
will furnish a satisfactory substitute ,
based on sound principle and actual suc-
cessful trial in nearly all the countries
of the world for the system of govern
ment guarantee of deposits now being
adopted in several western states which
with deference to those who advocate i
seems to me to have in it the seeds of
demoralization to conservative banking
and certain financial disaster.
The question of how the money depos-
ited In postal savings banks shall be in-
vested is not free from difficulty , but I
believe that a satisfactory provision for
this purpose was inserted as an amend-
ment to the bill considered by the Senate
at its last session. I has been proposed
to delay the
consideration of legislation
establishing a postal savings bank until
after the report of the monetary commis-
sion. This report Is likely to be delayed
and properly so , because of the necessity
for careful deliberation and close investi
gation. I do not see why the one should
be tied up with the other. I is under-
stood that the monetary commission have
looked into the systems of banking which
now prevail abroad , and have found that
by a control there exercised in respect to
reserves and the rates of exchange by
some central authority panics are avoid-
ed. I is not apparent that a system of
postal savings banks would In any way
interfere with a change to such a system
here. Certainly in most of the countries
in Europe where control Is thus exercised
by a central authority , postal savings
banks exist and are not thought to be in-
consistent with a proper financial and
banking system.
Recommend Ship Subsidy.
Following the course of my distin
guished predecessor , I earnestly recom-
mend to Congress the consideration and
passage of a ship subsidy bill , looking to
the establishment of lines between our
Atlantic seaboard and the eastern coast
of South America , as well as lines from
the west coast of the United States to
South America , China , Japan and the
Philippines.
Interior Department.
The successful party In the last elec-
tion in its national platform declared In
favor of the admission as separate states
of New Mexico and Arizona , and I rec-
ommend that' legislation appropriate to
this end be adopted.
. A Governor for Alaska. .
With respect to the territory of Alas-
ka , I recommend legislation which shall
provide for the appointment by the Pres-
ident of a governor and also an executive
o executv
council , the members of which shall dur-
ing their term of office reside in the ter-
ritory , and which shall have legislative
powers sufficient to enable I to give to
the territory local laws adapted to its
present growth.
Conservation . of National Resource ,
In several departments there Is pre-
sented the necessity for legislation look-
ing to the , further conservation of our
national resources , and the subject is one
of such importance as to require a more
detailed and extended discussion than can
be entered upon In this communication.
For that reason I shall take an early
opportunity to .send . a special message to
Congress on the-subject of the improve
ment of our waterways , upon the recla-
mation and irrigation of arid semi-arid
and swamp lands ; upon the preservation
of our forests and the reforesting of suIt-
able areas ; upon the reclassificatlon of
the public domain with a view of sep
seI-
arating from agricultural settlement min-
eral , coal and phosphate lands and sites
belonging to the go.ermet bordering
on streams suitable for the utilization of
water power.
Department of Agriculture.
I commend to your careful considera-
tion the report o the secretary of agri
culture a showing the immense sphere
of usefulness which that department now
fills and the wonderful addition to the
wealth of the nation made by the farmers
o this country In the crops of the cur-
rent year.
Tho lighthouse board now discharges
its duties under the department of com-
merce a"hd labor. I recommend the trans-
fer of control over the lighthouses to a
suitable civilian bureau.
Consolidation of Bureaus.
I rquet Cllnrw-L..t . . oltwlb .
. - ' * + .
. " Hkt
' '
"r- . + v 'oF J - 9" . : . .
enable the secretary of commerce and
labor to unite the bureaus ot manufac
tures and statistics. -
sttstcq.
The "White Slave" Trade.
I greatly regret to have to say that
the investigations made In the bureau
of Immigration and other sources of in-
formation lead to the view that there Is
urgent necessity for additional legislation
and greater executive activity to sup-
press.
Bureau of Health.
The opportunities offered for useful re
search and the spread o useful Infor-
mation in regard to the cultivation ot
the soil and the breeding of stock and the
solution of many of the intricate prob-
lems In progressive agriculture have dem
onstrated the wisdom of establishing ! that
department. Similar reasons , of equal
force , can be given for the establishment
of a bureau of health that shall not only
exercise the police jurisdiction of the fed-
eral government respecting quarantine ,
I but which shall also afford an opportuni-
ty for investigation and research by com
petent experts into questions of health
affecting the whole country or Import-
ant sections thereof. questions whlcli. In ,
the absence of federal governmental work ,
are not likely to be promptly solved.
The CJvil Service CornzirI sInn.
The work of the United States civil
service commission has been performed
to the general satisfaction of the execu-
tive officers with whom the commission
has been brought into official communI-
cation.
caton.
Recommendations have been made by
my predecessors that Congress appropri-
ate a sufficient sum to pay the balance-
about 38 per cent-of the amounts due-
depositors in the Freedman's Savings and
Trust Company. Irenew , this recommen-
dation.
Emancipation Seml-Centennial.
The year 1913 will mark the fiftieth
anniversary of the Issuance of the Eman-
cipation Proclamation granting freedom
to the negroes. I seems fitting that this
event should be properly celebrated. Al-
ready a movement has been started bY ;
prominent negroes , encouraged by prom-
inent white people and the press.
In Conclusion.
I have thus , in a message compressed
as much as the subjects will permit , re-
ferred to many o the legislative needs
of the country , with the exceptions al-
ready noted. Speaking generally , the
country is in a high state of prosperity.
There is every reason to believe that we
are on tho eve of a substantial business
expansion , and we have just garnered a
harvest unexampled in the market value-
of our agricultural products. Tho high ,
prices which Mien products bring mean
great prosperity for the farming com-
munity , but on the other hand they mean
a very considerably increased burden upon
those classes in the community whose
yearly compensation does not expand
with the improvement in busine. : and the
general prosperity. Various reasons are
given for the high prices The propor-
tionate Increase in the output of gold ,
which to-day is the chief medium of " :
change and is In some respects a mpas o
of value , furnishes a substantial explana
tion of at least part of the increase In :
prices. The increase in popul-ition and'
the more expensive mode of living : of the ,
people , which have not been accompanied
by a proportionate increase in acreage
production , may furnish a further rea
son. It is well to note that the increuse-
in the cost of living is not confined to this
country , but prevails the worl.l over , and
that those who would charge increases In
prices to tho existing protective tariftt
must meet the fact that the rise in prices-
has taken place almost wholly fn those-
products of the factory and furni in re-
spect to which there has been either no-
increase In the tariff or in many instance
a very considerable reduction.
WM. IT. TAFT.
. Mult Henson on the ItacJc.
Matthew Henson , the colored com
panion of Commander Peary on hia
trip to the north pole , began his career
as a lecturer before a large audienct-
in the New York Hippodrome , speakY
Ing from notes and using a number of"
photographs which he took on the way.
But the interesting part ot tho sho
was the quiz at the end. Plenty 04
Cook adherents were there to as
questions. These brought out the
statement from Hensonthat the Peary ,
party had suspected that Cook would'
claim the discovery of the pole , even-
before they started on their trip north
ward. Henson said he could have'
taken observations while with Peary
at the pole , but that he was not asked-
to do so by Peary , and hence did not.
do it.
World Shipping Federation.
Word comes from London that a gi -
gantic international combine of ship
owners was formed there last weelo
Delegates from the shipowning feder
ations of England , Germany , Holland *
Belgium , Denmark and Sweden , repre
senting more than 16,000,000 tons of
shipping , had registered in accordance
with the British law. It is intended
ultimately to embrace all federations
of shipping interests in the world. i
France and Norway already have sig- I
nified their willingness to join. ( Tha
objects are said to be purely defensive
against the "unreasonable attack
which may be made by trade unions
and others upon the shipowners' free
dom of contract In the employment oi
labor. " Headquarters will be In Lon
don.
Teat Cases in SpoUane.
The contest for the right of free
speech and peaceable assembly which
the Industrial Workers of the World
have been waging at Spokane reached
the test-case stage during the week ,
Two of the 275 men arrested were -
picked out to serve this purpose , ona
charged with vagrancy and the other
with disorderly conduct. The local
Central Labor Union and the socialist
have come to the assistance of the I.
W. W. men , and these cases will be
carried to the higher courts if neces
sary. All of the women arrested wera
released by the police justice on thelj
promise not to take an active part un
til the test cases have been disposed
of.
Another Football Victim.
Archer Christian , son of a Richmond
banker , was injured fatally while play
ing as half back on the University ol
Virginia team in its match with
Georgetown University at Washington ,
Owing to this fatality Georgetown hsu
canceled all games for the season.
Xot to Be Taken SerIou ily. _
We are told that Mrs. Pankhurs&
says that American women are not- I
serious enough. Probably she " has-
heard some of .them say they haven't
a thing to wear. - Cleveland Plai
Dealer.
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