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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. .