Newspaper Page Text
President McKinley’s Address
to Conuress.
INTERESTING DOCUMENT
UPON NATIONAL TOPICS
Iftltw of th^ofTrst Stop* of the War
-Whig of the Malna—Rnpt
«f Relations—Hobson’* Valor—
Peace Negotiations—lllg Standlug
Army Recommended — Annexation
of Hawaii, Etc.,* Etc.
Washington, Deo. 5.—On the c onvening
of oongreM today, President McKinley
transmitted his annual nii-HHige, which
follows:
To the Senate and House of Representa
tives:
Notwithstanding the added Durdens
rendered necessary by the war our people
rejoice in a very satisfactory and stendily
Increasing degree of prosperity evidenced
by the greatest volume of business ever
recorded. Manufacture has been pro
ductive, .agricultural pursuits have
yielded abundant returns, labor in Hie
flelda of industry is better rewarded, rev
enue legislation passed by the present
cougress has Increased the treasury's re
ceipts to the amount expected by its au
thors, the flnnnces of the government
have been successfully administered and
Its c/edit advanced to the first rank, while
Its currency has been maintained at tho
world's highest standard.
Military service under a common flag
for a righteous cause has strengthened
the national spirit and served to cement
more closely than ever the fraternal bonds
between every section of the country. A
review of the relations of the U. ited
Htates to other powers, always appropri
ate, is this year of primary im|>ortance in
view of the momentous issues which have
arisen, demanding in one instance the ul
timate determination by arms and involv
ing farreaching consequences which will
require the earnest attention of the con-
11 rasa.
First Steps In tlie War.
In my last annual message very full
eonaideration was given to the question
of the duty of the government of the
United States towards Spain mid the Cu
ban insurrection as being by far the most
Important, problem with which we wero
then called upon to deal The considera
tions then advanced and the exposition of
the views therein expressed disclosed my
sense of the extreme gravity of the situa
tion.
Setting aside as logically unfounded or
practically advisable, the recognition of
the independence of Culm, neutral inter
vention to end the war by Imposing u ra
tional compromise between the contest
ants, intervention in lavor of one or the
other party, and forcible annexation of
the island. I concluded it was honestly
due to our friendly relations with tipiin
that she should be given a reasonable
chance to realize her expectations of re
form to which she bad heroine irrevoca
bly cammitted.
The ensuing mouth brought little sign
of real progress toward tin* pacification
of Culm. No tangible relief was ntTorded
the vast, numbers of unhappy reconcen-
trados despite the reiterated professions
made in that regard and the amount ap
propriated by Spain to tlint en I. By Mm
end of December the mortality among
thorn had frightfully increased. Conserv
ative estimates from Spanish sources
placed the deaths among these distressed
people at over 4b per cent front the time
Cenerul Weylor’a decree of reconceittra
tion was enforced.
The war continued on the old footing
without comprehensive plan, developing
ouly the same spasmodic • nrounters, bar
ren of strategic result. that had marked
the course* of the earlier ten years’ rebel
lion, to* well ms the present insurrection
from its start. No alternative save phys
ical exhaustion of either combatant and
therewithal the practical ruin of tho
island lay in sight, but how far distant no
atm could venture to uonjectttr|.
„ lib wing I p of (lie Maine.
At this juncture, on Fell. 15, last, oc
curred the destruction of tlie battleship
Maine, while rigid fully lying in the har
bor of Havana on a mission of interna
tional courtesy and good will—a catastro
phe the suspicious nature and horror of
which stirred the nation's iieart pro
foundly It is s striking - evidence of the
poise and st\trdy good sense distinguish
ing our national character that, this shock
ing blow, falling upon our generous peo
ple already deeply touched by preceding
events in Cuba, did not move them to an
Instant, desperate resolve to tolerate no
longer the existence of a condition of dan
ger and disorder at our doors that made
possible such a deed by whoitosoev
wrought. Yet by instinct of justice pa
tience prevailed and Hie nation anxiously
awaited the resulkof the searching inves
tigation nt once At on foot. The finding
of the naval board of inquiry established
that the origin of the explosion whs ex
ternal by a submarine mine, and only
halted through lack of positive testimony
to tlx the responsibility of its nuthorship.
All these things carried conviction to
the most thoughtful, even lie fore the
finding of the naval court, t hat a crisis in
our relations with Spain and toward
Culm was at hand. So strong was Hi is
belief that it needed but a brief executive
suggest iqu to the congress to receive im
mediate answer to the duty of making Di
stant provision for the possible and per
baps speedily probable emergency of war,
and the remarkable, almost unique,
spectacle was presented of a unanimous
vote of both houses ou March 9 appropri
ating $50,000,000 “for the national defense
and for each and every purpose connected
therewith, to be expended at the discre
tion qf the president."
Still animated by the hope of a peaceful
solution aid obeying the dictates of duty,
fie effort was spared to bring a speedy
ending of the Cuban struggle.
Grieved and disappointed at the barren
outcome of my sincere endeavors to reach
a practicable solution, I felt it my duty to
remit the whole question to congress.
The congress was asked to authorize and
empower the president to' take measures
to secure a full aud final termination of
hostilities between Spain and the people
of Cuba.
After uine days of earnest deliberation,
duriug which the almost unanimous sen
timent of your body wan developed on
•very polut save as to the expediency of
coupling the proposed action with a for
mal recognition of the republic of Cuba
the true and lawful government of /•that
Island—a proposition which failed of adop
tion—the congress, on April 19, hy a vote
of 42 to 85 in the senate and 311 to 6 in the
house of representatives, passed the mem
orable joint resolution declaring the peo
ple of Cuba free and independent, de
manding that Spain at onco relinquish
authority over the island and empowering
the president to uso the entire land mid
sea forces of the United States to that
end.
This resolution was approved by the
pxecutive on tho next day, April 20. A
copy was at once communicated to the
Spanish minister at this capital, who
forthwith announced that bis continuance
in Washington had thereby become im
possible, and aaked for bis passports
ivhieli were given him. Simultaneously
with its communication to the Spanish
minister, General Woodford, the •Ameri
can minister at Madrid, was telegraphed
pon flaunt ion of the text of the joint reso
lution and directed to communicate it to
I he government of Spain with the formal
demand that it at once relinquish its nu
thority and government in the Island of
Cuba and withdraw its forces therefrom.
Rupture of Relations.
That demand, although, as above
shown, officially made known to the Span
ish envoy here, was not delivered at Mad
rid. After the instructions reached Gen
eral Woodford on the morning of April
hut before he could present it, the
Spanish minister of state notified him that
upon the president’s approval of the joint
resolution, the Madrid government re
garding the act as "equivalent to an evi
dent declaration of war," had ordered its
fniiilster in Washington tov. withdraw,
thereby breaking off diplomatic relations
between the two countries. General Wood
ford’ thereupon demanded bis passports
snd quitted Madrid the same day.
Spain having thus denied the demand
of the United States And Initiated that
complete form of ( rupture of relations
which attends a state of war, the execu
tive powers authorized hy the resolution
were at once used hy me to meet the en-
of state. Cushman K. Davis, William P
Frye and George Gray, senators of the
United States, and Wliitclaw Held to la*
the pence commissioners on the part of
the United States. Proceeding in due
time to Paris, they thrift* met on Oct. 1
five commissioners similarly appointed on
the part of Spain. The negotiations have
made hopeful progress so that I trust
soon to be able to lay a definite treaty of
peace before the senate with a view of the
steps leading to its signature.
I do not dki'UM at this tfme the govern
ment or the future of the new possessions
which will come to us as the result of tin*
war with Spain. Such discussion will be
appropriate after the treaty of peace shall
*>e ratified. In the meantime, and until
the congress has legislated otherwise, it
will he my duty to coutinue the military
governments which have existed since our
occupation and give to the people security
In life and property and j-ncowragetncut
under a just and Iwneflcient rule.
As soon as we are in possession of Cuba
and have pneified the island it will be
necens try to give aid and decision its
people to form a government of them
selves. It should bq undertaken at the
earliest moment consistent with safety
and assured success. It is important thnt
our relations with these people shall tie of
the most friendly character and our com
mercial relations close And reciprocal. It
should be our duty to assist in every
proper way to build up tbe waste places
of the island, encourage tbe 4adustr)r.of
the people and assist them to form a gov
ernment which shall be free and inda-
pendent, thus realizing tbe best aspira
tions of tbe Cuban people. Spanish rule
must he replaced by a just, benevolent,
and humane government, created by the
people of Cuba, capable of performing all
international obligations, and which shall
encourage thrift, industry and prosperity
and promote peace and good*will among
all of the inhabitants, whatever may have
been their relations in the past. Neither
revetig • nor passion should have a place
in the new government. Until there is
complete tranquility in the island and a
stable government Inaugurated military
occupation will be continued.
With the exception of the rupture with
SpAin the Intercourse of the United States
with the great family of nations has been
Im-KHil contingency of actual war between > Inur | t ,a with cordiality and the cloee of
sovereign states. By my message of April
25 the congress was in formed of the situa
tion and I recommended formal declara
tion of the existence of a state of war be
tween the United States and Spain. The
congress accordingly voted on the same
day the act approved April 25, 189ft. de
claring the existence of such war from
and including April 21 and re-enacted tiie
provision of the resolution of April 20 di
recting the president to use all the armed
forces of the nation to carry that act into
effect.
It is not within the province of this mes
sage to narrate the history of the extraor
dinary war that followed the Spanish
declaration of April 21. but a brief, recital
f its more salient features Is apropos.
The first encounter of the war in point of
late took place April 27. when a detach
ment of the blockading squadron made a
reconnoisance in force at Matanzss,
shelled the harbor forts and demolished
several tie works in construction.
The next engagement was destined to
mark a memorable epoch in maritime
warfare. The^Piicitic fleet under Commo
dore George Dewey had lain for some
weeks at Kong-Kong. Upon the colonial
proclamation of neutrality being issued
and the customary 24 hours notice being
given, it. repaired to Mira hay near Hoag-
Kong whence it proceeded to the Philip
pine islands under telegraphic orders to
apture or destroy the formidable Spanish
fleet then assembled at Manila. At day.
break on the morning of May 1 the Amer
ican force entered Manila bay and after a
Few hours engagement effected the total
lestruction of the Spanish fleet, consist
ing of ten warships and a transport, In
sides rapturing the naval station and fort a
at Cavite, thus annihilating the Spanish
naval power in the Pacific ocean and com
pletely controlling the hay of Manila with
the ability to take tbe city at- will.
Following the comprehensive scheme of
general attack powerful forces were As
sembled at various pointa on our coast t,o
invade Culm and Porto Rico. Meanwhile
naval demonstrations were adopted at
several exposed points.
Young llobAim’s Brave Deed.
The next acts of the war thrilled not
only the hearts of nur couiitrymen.bin
tho world by its heroism. On the night of
June 3 Lieutenant Holmon, Aided hy
en devoted volunteers, blocked the nar*
v outlet at Santiago harbor, by sinking
the collier Merr.iniAc in the channel undos
a fierce fire from the shore batteries, es-
aping with their lives as by a miracle,
but falling into the hands of the Span
iards. .They were subsequently exchanged.
On June 22, ths advance of the invading
army under Major General Shafter landed
nt Daiquiri, about 15 miles east of Santi
ago. On July 1 ajMvere battle took pIhco,
our forces gaining the outworks at Santi
ago. Ou the second El Caney and San
Juan were taken after a desperate charge
and the investment of the city completed.
On the day following the brilliant
achievement of our laud force, July 8, oc
curred tho decisive battle of the war. Tho
Spanish fleet,' Attempting to leave tho
harbor, was met by the American squad
run under command of Commodore Samp
son. In less than three hours all the
Spanish ships were destroyed, the two
torpedo l>oats being sunk and the Maria
Teresa, Almirante Oquendo, Viscaya and
Cristobal Colon driven ashore. The Span
ish admiral And over 1,800 men were takeu
prisoners, while the enemy’s loss of life
was deplorably large, some 000 perishing.
On our side but one man was killed and
one seriously wounded.
With the catastrophe of Santiago
Spain’s power on the ocean virtually
ceased. The capitulation of Santiago
followed.
The occupation of Porto Rico became
tiie next stragetic necessity. General
Miles had previously been assigned to or
ganize an expedition for that purpose. On
July 27 lie entered Ponce, one of the most
important ports In the island,, for which
ho thereafter directed operations for the
capture of the island. The campaign was
prosecuted with great vigor and by Aug.
12 much of the island was in our posses
sion and tho acquisition of the remainder
was only a matter of a short time.
Negotiations For Peace.
The annihilation of Admiral Cervera’s
fleet, followed by the capitulation of San
tiago. having brought to the Spanish gov
ernment a realizing sense of the hopeless
ness of continuing a struggle now becom
ing wholly unequal, it made overtures of
peace through the French ambassador,
Ou Aug. 12, M. Gambon, aa the plenipo
tentiary of Spain and the secretary of
state as the plenipotentiary of the United
States, signed a peace protocol and I ap
pointed William R. Day, lately secretary
the event finds must of tbs issues that
necessarily arise In the complex relations
of sovereign states adjusted or presenting
no serious obstacle to a Just and honor
able solution by amicable agreement.
The Lattliner Tragedy.
On Sept. 10, 1897, a conflict took place at
Lattiraer. Pa., between a body of striking
miners and the sheriff of Luzerne county
and his deputies, in which 22 miners were
killed and 44 wounded, of which ten of
the killed and 12 of the wounded were
Austrian and Hungarian subjects. This
deplorable event naturally aroused the
solicitude of the Austro-Hungarian gov
ernment, which on the presumption that
the killing and wounding involved the un
justifiable misuse of authority, claimed
reparation for the sufferers. Apart from
the searching investigation and peremp
tory action of the authorities of Pennsyl
vania tiie federal executive took appro
priate stops to learn the merits of the
case in order to be in a position to meet
the urgent complaint of a friendly power.
The sheriff and his deputies, having been
indicted for murder, were tried aud ac
quitted after protracted proceedings aud
tiie hearing of hundreds of witnesses on
the ground that the killing was in the
line of their official duty to uphold law
and preserve public order in the state. A
representative of the department of jus
tice attended the trinl and reported its
course fully. With a}! the facts in its po-
session, this government expects to reach
a harmonious dnderstanding on the sub
ject with that of Austro-Hungary, not
withstanding the renewed claim of the
latter after learning tho result of the
trial, for indemnity for its injured sub
jects.
Nicaragua Canal Project.
The Nicaraugua canal commtssslon. un
der the chairmanship of Rear Admiral
John G. Walker, appointed July 24, 1897,
under the authority of a provision In the
sundry civil act of June 4 of that year,
has nearly completed its labors, and the
results of its exhaustive inquiry into the
proper route, the feasibility and the cost
of construction of an interOceanic canal
by a Nicaraguan route will be laid before
you.
As the scope of recent inquiry embraced
the whole subject with the aim of making
plans anc^surveys for a canal by the most
convenient route, it necessarily included a
review of the results of previous surveys
and plans and in particular those adopted
by the Maritime Canal company under its
existing concessions from Nicaragua and)
Costa Rico, so that to this extent those
grants necessarily held an essential part
iu the deliberations and conolusions of the
canal commission as they have held and
must needs hold in the discussion of the
matter before congress. Under these cir
cumstances and in view of overtures made
to the governments of Nicaragua and
Costa Rica by other parties for a new ca
nal concession predicated ou the aasumad
approaching lupse of the contracts of the
Maritime Canal company with those
states I have not hesitated to express my
conviction that considerations of expedi
ency and international policy as between
the several governments interested in the
construction and control of an inter-
oceanic canal by this route require the
maiutaiuance of the status quo until the
canal commission shall have reported and
the United StAtes congress shall have had
an opportunity to pass dually upon the
whole matter, without prejudice by rea
son of any change in the existing condi
tions.
All these circumstances suggest the ur
gency of some definite action by the con
gress at this session if its labors of tbo
past are to be utilized and the linking of
the Atlantic and Pacific oceans by a prac
tical waterway is to be realized. That the
construction of such a maritime highway
is now more than ever indispensable to
that intimate and ready intercommunion
tion between our eastern aud western sea
boards demanded by tho annexation of
•the Hawaiian Islands and the prospective
expansion of our influence and commerce
in the Pacific and that our national policy
now more imperatively than erar calls for
ita control by this government, are propo
sitions whicb I doubt not the congress
will duly appreciate and wisely act upon.
The Partition of China.
The United StAtes bAs not been an in
different spectator of the extraordinary
events transpiring in tbe Chinese empire,
whereby portions of its maritime pro
vinces are passing under tbe control of
various European powers, but the pros
pect that the vast commerce which the
energy of our citizens and tbe necessity of
our staple production for Chinese uses
has built up iu those regions may not be
prejudiced through any exclusive treat
ment by the new occupants has obviated
the need of our country becoming an actor
In the scene.
Our position among nations having a
large Pacific coast, and a constantly ex
panding direct rrade with tho farther
Orient, gives us the equitable claim to
consideration and friendly treatment iu
this regard and it will lie my aim to sub
serve our large interests in that quarter
by ali means appropriate to the constant
policy of our government. The territories
of Kiao Chow, of Wei-Hai-Wei and of Port
Arthur and Talienwnn. leased to Ger
many, Great Britain and Russia respect
ively for terms of years, will, it is an
nounced. be open to international com
merce during such alien occupation, and
if no discriminating treatment of Ameri
can citizens and their trade be found to
exist or be bereafter developed, the desire
of this government would appear to he
realized. Meanwhile there may be just
ground for disquietude in view of the un
rest and revival of the old sentiment of
opposition and prejudice to alien people
which pervades certain of the Chinese
provinces. As in the caso of the attacks
upon our citizens in Szechuan and at
Kulien in 1895, the United States minister
has been instructed to secure the fullest
measure of protection, both local and im
perial, for any menaced American inter
ests and to demand, in casb of lawless in
jury to person or property, instant repara
tion appropriate to the case. Warships
have l>een stationed at Tien-Tsin for more
ready observation of the disorders which
have invaded the Chinese capital, so as to
be in a position to act should need arise,
while a guard of marines has been sent to
Peking to afford the minister the same
measure of authoritative protection as the
representatives of other nations hare been
onstrained to employ.
The French Exposition.
There is now every prospect that the
participation of the United States in the
universal exposition to be held in Paris in
1900 will be on a scale commensurate with
the advanced position*held by our pro
ducts and industries in the world’s chief
markets. The preliminary report of Moses
p. Handy, who, undsr the act Approved
July 19, 1897, was appointed special com
missioner with a view to securing all at
tainable information necessary to a full
and complete understanding by congress
in regard to the participation of this gov
ernment in the Paris exposition, was laid
before you by my message of Dec 6. 18Q7,
and showed the large opportunities to
make known our national progress in
manufactures, as well as the urgent need
of immediate and adequate provision to
enable due advantage thereof to be taken.
Mr. Handy’s death soon afterward ren
dered it necessary for another to take up
snd complete the unfinished work, and on
Jan. 11 last Mr. Thomas W. Crldler, third
assistant secretary of state, was desig
nated to fulfill that task. By a provision
in the sundry civil appropriation act of
July 1, 1998. a sum not to exceed $050,000
Was allotted for the organization of a com
mission to care for the proper preparation
aud installation of American exhibits And
for the display of suitable exhibits by the
leveral executive departments, particu-
urly by the department of agriculture,
the fish commission and the Smithsonian
institution, in representation of the gov
ernment of the United States. Pursu
ant to that enactment, J appointed Mr.
Ferdinand W. Peek of Chicago commis
sioner general, with an Assistant commis
sioner general and secretary. Mr. Peck
at once proceeded to Paris, where his sue-
sens in enlarging the scope and variety of
;he United States exhibit has been most
{ratifying. Notwithstanding the com
paratively limited area of the exposition
lite—less than one half that of the World’a
Fair At Chicago—the space assigned to the
United States has been increased from
the absolute allotment of 157,403 square
feet reported by Mr. Handy to some 202.-
XX) square feet, with corresponding aug
mentation of the field for a truly charac
teristic representation of the various im
portant branches of our country’s devel
opment. Mr. Peck’s report will be laid
before you. In my judgment its recom
mendations will call for your early con
sideration, especially as regards an in
crease of the appropriation to At least
U,(XX),000 in all, so that not only may the
issigned space be fully taken up by the
post possible exhibits in every class, but
:he preparation and installment be on so
perfect a scale ns to rank among the first
m that unparalleled competition of artis
tic and inventive production and thus
counterbalance the disadvantages with
which we stArt as compared with other
countries whose appropriations are on a
more generous scale and whose prepara
tions are in a state of much greater for
wardness thau our own.
Annexation of Hatoail.
Pending consideration by the senate of
tbe treaty signed June 16, 1897. by the
plenipotentiaries of the United States and
of the republic of Hawaii, providing for
t he annexation of the islands, a joint reso
lution to Accomplish the same purpose by
accepting the offered cession and incorpo
rating the ceded territory into the Union
wns adopted by the congress and approved
luly 7, 1898. I thereupon directed the
United States stenmer Philadelphia to
convey Rear Admiral Miller to Honolulu
and entrusted to his hands this important
legislative act to be delivered to the presi
ilent of the republic of Hawaii, with whom
the admiral and the United States minis
ter were authorized to make appropriate
arrangements for transferring the islands
to the United States. This was simply
but impressively accomplished on Au .
12 by the delivery of a certified copy of
the resolution to President Dole, who
thereupon yielded up to the representa
tives of the government of the United
States the sovereignty and the public
property of the Hawaiian Islands.
Pursuant to the terms of the joint reso
lution and in exercise of the authority
thereby conferred upon me. I directed
that the civil, judicial and military pow
ers theretofore exercised by the officers of
the government of the republic of Hawaii
should continue to be exercised by those
officers until congress shall provide a gov
ernment for the incorporated territory,
subject to my power to remove such offi
cers and to fill vacancies. The president,
officers and trooptrof the republic there
upon took the oath of allegiance to tbe
United States, thus providing for the un
interrupted continuances of all the admin
istrative and municipal functions of the
nunexed territory until congress shall
otherwise enact.
Following the further provision of the
joint resolution I appointed the Hons.
Shelby M. Cullom of Illinois, John T.
Morgan of Alabama, Robert R. Hitt of
Illinois. Sanford B. Dole of Hawaii and
Walter F. Frear of Hawaii ns commission
ers to confer and recommend to c/agress
such legislation concerning the Hawaiian
islands as they should deem necessary or
proper.
The commissioners having fulfl]
mission confided to them their
be laid before you at an early da|
believed that their recommendati
have the earnest consideration-d
magnitude of the responsibility
upon you to give such shape to.
tionship of those midpaciflc land
home Union as will benefit bot
highest degree, realizing theas[
of the community that has cast
with ns and elected to share our
heritage while at the same time
ing the foresight of those who f
quarters of a century have look<
assimilation of Hawaii as n nat
inevitable consummation in
with our needs and in fulflllmet
cherished traditions.
Under tbe provisions of the join;
Hons the existing customs relaf
the Hawaiian Islands with the
States and with, other countries
unchanged until legislation shall
wise provide. The consuls of
here snd in foreign countries coo
fulfill their commercial fcgetrci<
the United States consulate at H
is maintained forVll proper servii
talning to trade and revenue. It
be desirable that all foreign consu
Hawaiian Islands shonld receive
equuters from this government.
Csaa’ii Disarm a me nt 1*1
The proposal of the Russian
general reduction of the vast mill'
tablishments that weigh sb heavil
many peoples in time of peace
cently communicated to this gove:
with an earnest invitation to be
sented in the conference which it
tern plated to assemble with a view
cussing the means of accomplishing
sirahle a result. His majesty was
informed of the coadial sympathy
government with the principle involved in
his exalted proposal aud of tbo readiness
of the United States to take part in tbe
conference. *
The active military force of the United
States as measured by onr population,
territorial area and taxable wealth, is and
Under any oonceivable prospective condi
tions must continue to be in time of peace
so conspicuously less than that of the
armed powers to whom the czar’s appeal
Is especially addressed that the question
can have for us no practical importance
save as marking An auspicious step to
ward the betterment of tbe condition of
the modern peoples and tbe cultivation of
peace and good will among them, but in
this view it behooves us ns a nation to
lend countenance and aid to tbe benefi
cent project.
The Currency Question.
The secretary of the treasury reports
that the receipts of the government from
nil sources during the fiscal year ended
June 80, 1898, including $84,751,223 re
ceived from sale of Pacific railroads,
amounted to $405..'<21,335 and its expendi
tures to $443,368 582. There was collected
from custom* siio ava.062 aud from in
ternal revenue $170,900,641. Our dutiable
Imports amounted to $324,735,479. a de
crease Of $58,156,690 over tbe preceding
year, and importations free of duty
amounted to $291,414,175. a decrease from
the preceding year of $90,524,008.
Internal revenue receipts exceeded those
of the preceding year by $24,212,068.
The total tax collected on distilled
spirits was $92,546,9s19. on manufactured
tobacco $30 230,522 and on fermented
liquors $39,515,431. We exported mer
chandise during the year amounting to
$1,231,482,330, an increuse of $180,488,774
from the preceding year.
It is estimated upon the basis of present
revenue laws that the receipts from tho
government for tbe year ending June 30.
1899, will l>e $577,874,607 and its expendi
tures $680 874 IW7, resulting in a deficiency
of $112,000 000. On Dec. 1, 1898,. there was
held in the treasury gold coin amounting
to $138,441,547, gold bullion amounting to
$130,502,545, silver bullion amounting to
$03 .830,830 anil other forme of money
umountiuic to $431,003,031.
On the Mine date tbe amount of money
ef all kinds in circulation or not included
Id treasury holdings was $1,866,879,500, an
Increase for the year of $165,794:066. ICsti-
inntlng our population at 75,104,000 at the
time mentioned tbe per capita circulation
was $33.00.
On the same date there was in the treas
ury gold bullion amounting to $133,503,-
345.
The provisions made for strengthening
the resources of the treasury in connec
tion with the war lias given increased
confidence in the purpose and the power
of the government to maintain the present
standard both established more firmly
than ever the national credit at home and
abroad. A marked evidence of this is
found in the inflow of gold to the treas
ury. Its net gold holdings on Nov. 1,
1698, were $339,8S5,1(!0 as compared with
$163,673,147 ou Nov. 1. 1897, and an in
crease of net cash of $317,736,1(0 Nov. 1,
1897, to $900,338,375 Nov. 1,1898. The pres
ent ratio of net treasury gold outstanding
government liabilities including United
States notes, treasury notes of 1896, silver
certificates, standard silver dollars and
fractional silver coin Nov. 4, 1898, was
33.35 psr cent as compared with 16.96 per
cent Nov. 1, 1897.
Redemption of Notes.
I renew so much of ray recommendation
of December. 1897, as follows.
“That when any of tbe United States
notes nre presented for redemption in gold
and nre redeemed in gold suoh notes shall
be kept and set apart and only paid out in
exchange for gold. This is nn obvious
duty. If tho holder of tbe United States
note prefers the gold and gets it from the
government, ho should not receive buck
from the government a United States note
without paying gold in exchange for it.
The reason for this is made all the more
apparent when the government issues an
Interest bearing debt to provide gold for
the redemption of United -Seatrs notes—n
noninterest bearing deht. Surely it should
not pay them out again except oil de
mand and for gold. If they are put in any
other way they may return again, to be
followed by another bond issue to redeem,
them—another interest bearing debt tors-
deem a nonintereBt bearing debt.” ’
Ths recommendation was made in the
belief that such provisions of law would
insure a greater degree the safety of tht)
present standard and better protect our
currency from the dangers to which it is
subjected from a disturbance iu the gen
eral business conditions of the country.
In my judgment the present condition
of the treasury amply justifies the imme
diate enactment of the legislation recom
mended one year ago, under which a por
tion of the gold holdings should be placed
in a trust fund, from which greenbacks
should be redeemed upon presentation,
but when once redeemed-shouldnot there
after be paid out except for gold.
It is not to be inferred that other legls
,ation relatipg to our currency is dot re
quired: on the contrary, there is an oo-
secretary of w*ar tor that 'purpose has
my unqualified approval. There can be
ho question that at this time uud prolmbly
for some time in tbe future 100,009 men
will be none too many to meet the necessi
ties of the situation. At all events,
whether that numlier shall be required
permanently or not, tbe power should be
given to tbe president to enlist that force
If in his discretion it should be necessary,
aud tl^e further discretion should be given
him to recruit for the army within the
above limit from the inhabitants of the
islands with the government of which we
nre charged.
It in my purpose to muster out the en
tile volunteer army ns soon ns tho con
gress shall provide for the increase of the
regular establishment. This will be only
an act of justice and will be much appre
ciated by the brave men who left their
homes and employment to help the coun
try in its emergency.
Washington’s Centennial.
In the year 1900 will occur tho centen
nial anniversary of the founding of the
city of Washington for tho permanent
capital of the government of the United
States by authority of an act of congress
approved July 10, 1790. In May 1800 tbe
archives and general offices of the fed
eral government was removed to this
place. On Nov. 17, 1800, the national con
gress met here for the first time and ns-
Bumed exclusive control of the federal dis
trict and cjty. This interesting event as
sumes all the more significance when we
recall the circumstances attending the
choosing of the site, the naming at ths
capital in honor of the father of his coun
try and the interest taken by him ill ths
adoption of plans for its future develop
ment on a magnificent, scale.
A movement lately inaugurated by the
citizens to have the anniversary cele
brated with I tting ceremonies including
perhaps the establishment of a handsome
permanent memorial to mark so historical
an occasion anil to give it more than loeal
recognition has met with general fuvaron
the part of the public. 1 recommend to
tbe congress the granting of an appropria
tion for this purpose and the appointment
of a committee from its respecelve bodies.
It might also be advisable to authorise
the president to appoint a committee front
tho country at large, which, acting with
the congressional and District of Colum
bia committees, can complete the plans for
nn appropriate national celebration.
Pension Statistics.
There were on the pension rolls on J$
39, 1898, 993,714 names, nn Incrcaa
nearly 18,090 over the number of th]
for the same day of the precediij
The amount appropriated by
Dec. 33, 1896, for the payment ,
for the fiscal year 1898 was $14$,^
By the act of March 31,181/6,1
was appropriated to cover deficit
army pensions and repayment)
sum of $13,030.35, making a total'
083,893.79 available for the payd
pensions during the fiscal year lj
amount disbursed from that <
$144,631,879.80, leaving a balance i
013.99 unexpended on June 30, 189$
was covered luto the treasury.
There were 389 mea added to til
during the year by special set* at thl
ond session of tbe Fifty-fifth congn
making a total of 6,486 pensioners by cl
gressloual enactments since 1861.
Supreme Courtroom.
I deem it my duty to call to the
tion of congress the condition of th
ent building occupied by tho depa
of justice. A proper regard for th
comfort and convenience of tn
end employes would justify th£
ture of a liberal sum of mo|
erection of a new building.
The Twelfth Census
I earnestly urge upon cong
portance of early legislation prd
the taking of the twelfth censuq
necessary in view of the large i
work which must be perforn
preparations of schedules prefi
the enumeration of the populntidi
Admiral and Vice Admlr|
I join with the secretary of the
recommending that tho grades of al
and vice admiral be temporarily rel
to be filled by officers who have spcc^
distinguished themselves in the war i
Spain.
Alton Contract liaw.
. The alien contract law is shown by ex-]
perience to need some amendment:
measure providing better protection for'
seamen is proposed: the rightful applica
tion it the 8-liour law for the benefit of
labor and of the principle of arbitration
are suggested for consideration and I com
mend theso subjects to the careful atten
tion of the congress.
The several departmental reports will
lie laid before you'. They give in great
detail the conduct of the affairs of the
government during the ycur past and dis
cuss many questions'upon which the’con
gress may be called upon to act.
(Signed.) William McKinlbt.
Executive Mansion, Dec. 5, 1898. .