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- ur czv Q ' MESS6GETO LAWMAKERS President M’Kinley Addressee Congress on War and Other Problems. fob monetary reform Increase of the Standing Array to 100,000 Men and the Temporary Contlnuaao* of Military Rule Io New Possessions Fnyoped. Washington, Dec. s.—On the convening of congress today, President McKinley transmitted his annual ritessage, which follows: To the Senate and House of Representa tives: Notwithstanding the added burdens rendered necessary by"the war our people rejoice in a very satisfactory and steadily 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 the fields of industry is better rewarded, rev enue legislation passed by the present congress has increased the treasury’s re ceipts to the amount expected by its au thors, the finances of the government have been successfully administered and its credit,advanced to the first-rank, while its currency has been maintained at the 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 betgreen every section of the country. A review of the relations of the United States to other powers, always appropri ate, is this year of primary importance 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 gress. First Steps In the War. In my last annual message very full consideration was given to the question of the duty of the government of the United States towards Spain and ths Cu ban insurrection as being by far the most important problem with which we were then called upon to deal. The considera tions then advanced and the exposition of the views therein expressed disclosed my sense ofjthe extreme gravity of the situa tion. • Setting aside as logically unfotfhded or practically advisable, the recognition of the independence of Cuba, neutral inter vention to end the war by -imposing a ra tional compromise between the contest ants, intervention in favor of one or the pther party, and forcible annexation of the island, I concluded it was honestly due to our friendly relations with Spall) that she should lie given a reasonable chance torealize her expectations of re form to which she had become irrevoca bly committed. The ensuing month brought little sign of real progress toward the pacification of Cuba. No tangible relief was afforded the vast numbers of unhappy reconcen tradop despite the reiterated professions made in that regard and the amount ap propriated by Spain to that end. By the end of December the mortality among them had frightfully increased. Conserv ative estimates from Spanish sources placed the deaths among these distressed people at over 40 per cent from the time General Weyler’s decree of reconcentra tion was enforced. The war continued on the old footing without comprehensive plan, developing only the same spasmodic encounters, bar ren of strategic result, that had marked the course of the earlier ten years’ rebel lion, as well as the present insurrection from its start. No alternative save phys ical exhaustion of either combatant and therewithal the practical ruin of the island lay in sight, but how far distant no one could venture to conjecture. Blowing Up of the Maine. At this juncture, on Feb. 15, last, oc curred the destruction of the battleship Maine, while rightfully lying in the har bor of Havana on a mission of interna tional courtesy and good will—a catastro phe the suspicions nature and horror of which stirred the nation’s heart pro foundly. It is a striking evidence of the poise and sturdy 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 whomsoever wrought. Yet by instinct of justice pa tience prevailed and the nation anxiously awaited the result of the searching inves tigation at once set on foot. The finding pf the naval board of inquiry established that the origin of the explosion was ex ternal by a submarine mine, and only halted through lack of positive testimony to fix the responsibility of its authorship. All these things carried conviction to the most thoughtful, even before the finding of the naval court, that a crisis in our relations with Spain and toward Cuba was at hand. So strong was this belief that it needed but a brief executive suggestion to the congress to receive im mediate answer to the duty of making in stant provision for the possible and per haps speedily probable emergency of war, and the remarkable, almost unique, spectacle was presented of a unanimous vote of both houses on March 9 appropri ating <50,000,000 "for the national defense and for each and every purpose connected therewith, to be expended *t the discre tion of the president” Still animated by the hope of a peaceful solution and obeying the dictates of duty, po 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 and final termination of hostilities between Spain and the people of Cuba. After nine days of earnest deliberation, during which the almost unanimous sen- timent of your body was developed on every point save as to the expediency of coupling the proposed action with a for mal recognition bf the republic of Cuba ths true and lawfill government of that is.ind—a proposition which failed of adop tion—the congress, on April 19, by 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 ami independent, de manding that Spain at once relinquish authority over the island and empowering the president to use the entire land and forces of the United States to that .an«> This resolution was approved by the executive on the next day, April 20. A copy was at once communicated to the Spanish minister at this capital, who forthwith announced that hisoontinnance iq Washington had thereby become im possible, and asked for his passports, which were given him. Simultaneously with its communication to the Spanish minister, General Woodford, the Ameri can minister at Madrid, was telegraphed confirmation of the text of the joint reso lution and directed to communicate it to the government of Spain with the formal demand that it at once relinquish its au 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 21, but 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 minister in Washington to withdraw, thereby breaking off diplomatic relations between the two countries. General Wood ford thereupon demanded his passports and 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 by the resolution were at once used by me to meet the en larged contingency of actual war between sovereign states. By my message of April 25 the congress was informed 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, 1898, de claring the existence of such war from and including April 21 and re-enacted the provision of the resolution of April 20 di recting the president to use all the armed forces of the nhtion to carry that act into effect. It is notwithin 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 of its more salient features is apropos. The first encounter of the war in point of date took place April 27, when a detach ment of the blockading squadron made a reconnoisance in force at Matanzas, shelled th3 harbor forts and demolished several ne ' works in construction. The next engagement was destined to mark a memorable epoch in maritime warfare. The Pacific fleet uuder Commo dore George Deyey 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 Mirs bay near Hong- Kong whence it proceeded to the Philip pine islands under telegraphic orders to capture 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 destruction of the Spanish fleet, consist ing of ten warships and a transport, be sides capturing the naval station and forts at Cavite, thus annihilating the Spanish naval power in the Pacific ocean and com pletely controlling the bay of Manila with the ability to take the city at will. Following the comprehensive scheme of general attack powerful forces were as sembled at various points on our coast to invade Cuba and Porto Rico. Meanwhile naval demonstrations were adopted at several exposed points. Y ung Hobson’s Brave Deed. The next acts of the war thrilled not only the hearts of our countrymen, but the world by its heroism. On the night of June 3 Lieutenant Hobson, aided by seven devoted volunteers, blocked the nar row outlet at Santiago harbor, by sinking the collier Merrimac in the channel under a fi"rce fire from the shore batteries, es caping with their lives as by a miracle, but falling into the hands of the Span iards. They were subsequently exchanged. On June 22, the advance of the invading army under Major General Shafter landed at Daiquiri, about 15 miles east of Santi ago. On Julylaseverc battle took place, our forces gaining the outworks at Santi ago. On thO Juan were takeuafter a desperate charge and the investment of the city completed. On the day following the brilliant achievement of our land force, July 3, oc curred the decisive battle of the war. The Spanish fleet, attempting to leave the harbor, was met by the American squad ron under command of Commodore Samp son. In less than three hours all the Spanish ships were destroyed, the two torpedo boats being sunk and the Maria Teresa, Almirante Oquendo, Viscaya and Cristobal Colon driven ashore. The Span ish admiral and over 1,300 men were taken prisoners, while the enemy’s loss of life was deplorably large, some 600 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 the next stragejlfl-^ieeesaitx^..-Generkk Miles had previously been assigned to or ganize an expedition for that purpose <*n July 27 he entered Ponce, one of the most important ports in the island, for which he 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 the 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, On Aug. 12. M. Cambon, as the plenipo entiary of Spain and the secretary of state as the plenipotentiary of the United States, signed a peace protocol and I ap pointed WilTiam R. Day, lately secretary of stale. Cushman K. Divls, William P. Frye and George Gray, senators of the United States, and Whitelaw Held to bo the peace commissioners on the part of 'the United Btatas. Proceeding in duo time to Paris, they there met on Oct. 1 five commissioners similarly appointed on. the part of Spain. The negotiations have' marie hopeful progress so that I trust soon to be able to lay a definite treaty of peace before the senata with a view of the steps leading to its signature. I do not discuss at this time the govern ment or the future of the uew possessions which will come to us as the result of the war with Spain. Such discussion will bo appropriate after the treaty of peaee shall lie ratified. In the meantime, and until the congress has legislated otherwise, it will be my duty to continue the military governments which have existed sinoeour occupation and give to the people security in life and property and encouragement under a just and beneficient rule. As soon as we are in possession of Cuba and .have pacified the island it will be necessary to give aid and decision to its people to form a government of them selves. It should be undertaken at the earliest moment consistent with safety and assured success. It is important that our relations with these people shall be 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 the waste places of thp island, encourage the industry of the people and assist them to form a gov ernment which shall be free and inde pendent, thus realizing the best aspira tions of the Cuban people. Spanish rule must be 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 reveng > nor passion should have a place in the new government. Until there is complete tranqujlity 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 marked with cordiality and the close of the event finds most of the 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 Lattimer Tragedy. On Sept. 10, 1897, a conflict took place at Lattimer, 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 kiliafl 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 the federal executive took appro priate steps 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 and ac quitted after protracted proceedings and the hearing of hundreds of witnesses on the ground that the killing was in the line of their duty to uphold law and preserve* public order in the state. A representative of the department of jus tice attended the trial and reported its course fully. With all the facts in its po session, this government expects to reach a harmonious understanding on the sub ject with that of Austro-Hungary, not withstanding the renewed claim of the latter after learning the result of the trial, for indemnity for its injured sub jects. Nicaragua Canal Project. The Nicaraugua canal commisssion, 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 Os 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 and 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, sq that to this extent those grants necessarily held all essential part in the deliberations and conclusions 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 on the assumed approaching lapse 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 maintainance of the status quo until the canal commission shall have reported and the United States congress shall have had an opportunity to pass finally upon the whole matter, without prejudice by tea 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 the 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 intercommunica tion between our eastern and western sea boards demanded by the 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 ever ca'ls for its control by this government, are propo sitions which I doubt not the congress will duly appreciate and wisely act upon. The Partition of China. The United States has not been an in different spectator of the extraordinary events transpiring in the Chinese empire, whereby portions of its maritime pro vinces are passing under the control of various European powers, but the pros pect that the vast commerce which the energy of our citizens and the necessity of our st.n le production for Chinese uses has built up in those regions may not be prejudiced through any exclusive treat* ment by the new oecu »ants has obviated the need of our country coming an actor in the soon*. position among nations having a large Pacific coast, and a constantly ex panding direct irsde with the farther Orient, gives us the equitable claim to consideration and friendly treatment in this regard and it will be my aim to sub serve our large interests in that quarter by all means appropriate to the constant policy of our government. The territories of Kiao Chow, of Wei Hal-Wei and of Port Arthur and Talie iw.-.n. lensed 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 alienboccupation, and if no discriminating treatment of Ameri can citizens and their trade bo found to exist or be hereafter developed, the desire of this government would appear to bo realized. Meanwhile there may be Juel 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 case of the attacks upon our citizens in Szechuan and at Kulien in 1895, the Unite 1 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 case of lawless in jury to person or property, instant repara tion appropriate to the case. Warships have been 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 •vpresentatives of other nationshave been constrained 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, under 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. 6,1897, 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 and complete the unfinished work, and on Jan. 11 last Mr. Thomas W. Cridler, 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 $650,000 was allotted for the organization of a com mission to care for the proper preparation and installation of American exhibits and for the display of suitable exhibits by the several executive departments, particu larly 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, I appointed Mr. Ferdinand W. Peck of Chicago commis sioner general, with an assistant commis sioner general and secretary. Mr. Peck at once proceeded to Paris, where his suc cess in enlarging the scope and variety of the United States exhibit has been most' gratifying. Notwithstanding the com paratively-limited area of the exposition site—lesh than one half that of the World’s Fair at Chicago—the space assigned to the United States has been increased from the absolute allotment Os 157,403 square feet reported by Mr. Handy to some 202,- 000 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 $1,000,009 in all, so that not only may ths assigned space be fully taken up by the best possible exhibits in every class, but the preparation and installment be on so perfect a scale as to rank among the first in 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 than our own. ii Annexation of Hawaii. Pending consideration by the senate of the treaty signed June 16, 1897, by ths plenipotentiaries of the United States and of the republic of Hawaii, providing for the 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 was adopted by the congress and approved July 7, 1898. I thereupon directed the United States steamer Philadelphia to convey Rear Admiral Miller to Honolulu and entrusted to his hands this important legislative act to be delivered to the presi dent 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 Anr. 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 troops of the republic there upon took the oath of allegiance to ths United States, thus providing for the un interrupted continuances of all the admin istrative and municipal functions of the annexed 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 as commission ers to confer and recommend to congress such legislation concerning the Hawaiian Islands as they should deem necessary or The commissioners having fulfilled the mission confided to them their work will bo laid before you ait an early day. It is beiirrod that their recommendations will have the earnest consideration due to the magnitude of the responsibility resting upon you to give such shape to the rela tionship of those midpaciflc lands to out home Union as will benefit both In the highest degree, realizing the aspiration* of-thc community that has cast Its lot wita us and elected to share our political heritage while at the same time justify ing the foresight of those who for thtee quarters of a century have looked to the assimilation of Hawaii aa a natural and inevitable consummation in harmony with our needs and in fulfillment of out cherished traditions. Under the provisions of the Joint resolu tions the existing customs relations of the Hawaiian Islands with the United States and with other countries remain unchanged until legislation shall other wise provide. The consuls of Hawaii, here and in foreign countries, continue to fulfill their commercial agencies, while the United States consulate at Honolulu is maintained for all proper services per taining to trade and revenue. It would be desirable that all foreign consuls In the Hawaiian Islands should receive new ex equaters from this government. Czar’* Dlsannament Plan. T: s proposal of the Russian czar for a general reduction of the vast military es tablishments that weigh so heavily upon many peoples in time of peace was re cently communicated to this government with an earnest invitation to be repre sented in the conference which it is con templated to assemble with a view to dis cussing the means of accomplishing so de sirable a result. His majesty was at one* informed of the cordial sympathy of th I* government with the principle involved in his exalted proposal and of the readiness of the United States to take part iu the conference. The active military force of the United States as measured by our population, territorial area and taxable wealth, to and under any conceivable prospective condi tions must continue to be In time of peace so conspicuously less than that of ths 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 the condition of the modern peoples and the cultivation of peace and good will among them, but in this view it behooves us as a nation to lend countenance and aid to the benefi cent project. The Currency Question. The secretary of the treasury report* that the receipts of the government from all sources during the fiscal year ended June 30, 1898, including $84,751,223 re ceived from sale of Pacific railroads, amounted to $405,321,338 and its expendi tures to $443,368 582. There was collected from customs $149,575,062 and from in ternal revenue $170,900,041. Our dutiable imports amounted to $324,735,479, a de crease of $58,156,690 over the preceding year, and importations free of duty amounted to $291,414,175. a decrease from the preceding year of $90,524,068, Internal revenue receipts exceeded those of the preceding year by $24,212,068. The total tax colle.ted on distilled spirits was $92,546,999, on manufactured tobacco $36,280,522 and on fermented liquors $39,515,421. We exported mer chandise during the year amounting to $1,231,482,330, an increase of $180,488,774 from the preceding year. It to estimated upon the basis of present revenue laws that the receipts from th* government for the year ending June 80, 1899, will be $577,874,607 and its expendi tures $680,874,647, resulting in a deficiency of. $112,000,000. On Dec. 1, 1898, there wa* held in the treasury gold coin amounting to $138,441,547, gold bullion amounting to $130,502,545, silver bullion amounting to $93,359,250 and other forms of money amounting to $151,963,981. On the same date the amount of money of all kinds iu circulation or not included in treasury holdings was $1,866,879,509, An increase for the year of $165,794;966. Esti mating our population at 75,194,000 at the time mentioned the per capita circulation was $25.09. On the same date there was in the treas ury gold bullion amounting to $138,502/ 545. The provisions made for strengthening the resources of the treasury in connec tion with the war has 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 to found in the inflow of gold to the treas ury. Its net gold holdings on Nov. 1, 1898, were $239,885,160 as compared with $153,878,147 on Nov. 1, 1897, and an in crease of net cash of $237,786,100 Nov. 1, 1897, to $300,238,275 Nov. 1,1898. The pres ent ratio of net treasury gold outstanding government liabilities including United States notes, treasury notea of 1896, silver certificates, standard silver dollars and fractional silver coin Nov. 4, 1898, wa* 25.85 per cent os compared with 16.96 per cent Nov. 1, 1897. Redemption of Note*. I renew so much of my recommendation of December, 1897, as follow*. “That when any of the United State* notes are presented for redemption in gold and are redeemed in gold such note* shall be kept and set apart and only paid out in exchange for gold. This is an obvious duty. If the holder of the United States liote prefers the gold and gets it from the government, he should not receive beck from the government a United States note without paying gold in exchange for it. The reason for this to made all the more apparent when the government iaeues an interest bearing debt to provide gold for the redemption of United Seates notes—a noninterest bearing debt. Surely it should not pay them out again except on 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 to re deem a noninterest bearing debt.” This recommendation was made in the belief that such provisions of law would incur* a greater degree the safety of the present standard and better protect onr currency from the dangers to which it is subjected from a disturbance in the gen eral business conditions of the country. In my Judgment the present condition of the treasury amply justifies ths 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 ehould not there after be paid out except for gold. It to not to be inferred that other legis lation relating to our currency is not re- qiilr. .1;on ths contrary, there tote*** vious demand for it. o which will insure to onr future • XBMMf standard, related as ovr money siaali—W now is to that of our commercial rivals, to generally recognized. The com panto* proposition that our domestic paper cur rency .hall be kept safe and yet be so re toted to the needs of our industries and Internal commerce aa to be adequate and responsive to such needs to a proposition scarcely leas important. The euojeet, ta all its parte, to commended tn the win* consideration of the congress. For a Big Ataadtag Army. Under the act of congress approved April 28, 1898 authorizing ths jjrwidaaf, in hto discretion, “upon a declaration « war by congress, or a daclaratum by con gress that war exists,” directed the In crease of th* regular army to th* maxi mum of 82,000, authorised in said act. There are now tn the regular army W,- 862 officers and men. In said set it was provided “that at the end of any war in which the United States may become in* volved the army shall be reduced to a peace baeto by the transfer of the earns arm of the service Oe absorption by pro motion or honorable diecharge under such regulations as tbs secretary of war may establish of supernumerary commissioned officers and the honorable discharge or th* transfer of supernumerary enlisted man, and nothing contained in this aa* shall be construed as authoring th* permanent In crease of the commissioned or enlisted force of the regular army beyond that w>w provided by the law in force peter to the passage of this act, exospt a* to ths increase of 25 majors provided for lasso tion I hereof.” The Importance of legislation for the permanent increase of the army to the** fore manifest and the recommendation of the secretary of war for that purpose ha* my unqualified approval. There can b* no question that at this time and probably for some time in the future luO.OOO men will be non* too many to meet th* ceoesel* ties of the situation. Al all events, whether that number shall be required permanently or not, the power should be given to the president to enlist tha* forte if in hto discretion it should be MOpMary, and the 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 are charged. It is my purpose to muster out the en tire volunteer army as soon aa th* con gress shall provide for the Increase of the regular establishment. This will be only an act of Justice and will bo 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 the centen nial anniversary of the founding of th* city of Washington for the permanent capita] of the government of the United States by authority of an act of congress approved July 16, 1790. In May 1800 the 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 th* first time and as sumed exclusive control of the federal dis trict and city. This Interesting event as sumes all the more significance when we recall the circumstances attending the choosing of the site, tbs naming of the capital in honor pf the father of his coun try and the interest taken by him tn the adoption of plans for its future develop ment on a magnificent scale. A movement lately inaugurated by the citizens to have th* anniversary cele brated with f tting ceremonies including perhaps the establishment of a handsome permanent memorial to mart so historical an occasion and to give it mor* than local recognition has met with general favor os the part of the public. I reoommead ta the congress the granting of an appropria tion for this purpose and Um appointment of a committee from its respeceive bodies. y It might also be advisable to authorise the president to appoint a committee from the country at large, which, acting with the congressional and District of Colum bia conniii: e:-e. c n compietethe plan* fo* au appropriate national celebration. Pension Statistic*. There wrfe on ths pension rolls on Juno 80, 1898, 993,714 names, an increase of nearly 18*000 over*the number of ths rolls for the same day of the preceding year. The amount appropriated by ths act of Dec. 22. 1896, for the payment of pension* for the fiscal year 1898 was $140,000,000, By the act of March 31,1898, 98,0T0,879.46 was appropriated to cover deficiencies in army pension* and repayments ta ths sum of $12,020.35. making a total of 9148,- 082,892.79 available for ths payment of pensions during the fiscal year 1898. The amount disbursed from tha* earn was $144,651,879.80, leaving a balance of 98,481/ 012.99 unexpended on June 80, 1898, which was covered into the treasury. There were 389 men added to the rolls during the year by special acts a* the sec ond session of the Fifty-fifth congress, making a total of 6,486 pensioners by con gressional enactments since 186 L Supreme Courtroom. I deem it my duty to call to the atten tion of congress the condition of the pres ent building occupied by the department of justice, A proper regard for the safety, comfort and convenience of th* officers and employes would justify th* expendi ture of a liberal sum of money ta th* erection of a new building. The Twelfth Census. I earnestly urge upon congress the im portance of early legislation providing for the taking of the twelfth census. This to necessary in view of the large amotta* of Work which must be perforate! ta th* preparations of schedules preparatory to the enumeration of the population. Admiral and Vio* Admiral. I join with the secretary of the navy ta recommending that the grades of admiral and vice admiral be temporarily revived, to be filled by officers who have specially distinguished themselves in the war with Spain. Alien Contract Law. The alien contract law-to shoten by ex- - perience to need some amendment; a measure providing better protection for seamen is proposed; the rightful applica tion of the 8-bour law for the benefit of labor and of the principle of arbitration are suggested for consideration and I com mend these subjects to the careful atten tion of the congress. The several departmental reports will be laid before you. They give ta great detail the conduct of the affairs of th* government during the year paet and dte cue tnafiir questions upon which the con gress mad be called upon to act. WffTrtw MtfTn*wuw Executive Mansion Dee. &. IMS. -.