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PRESIDENTS
MESSAGE.
Many Topics of Interest to the
Country Touched Upon.
Sublects of War, Money and Trusts
Discussed In Extenso—Gold
Standard Favored.
Washington, Dec. 5.— The president
today transmitted to congress his an¬
nual message, as follows:
To the Senate and House of Represen¬
tatives:
At the threshold of your deliberations
you are called to mourn with your coun¬
trymen the death of Vice President Ho¬
bart, who passed from this life on the
morning of November 21 st, last. His
great soul now rests in eternal peace.
His private life was pure and elevated,
while his public career was ever distin¬
guished by large capacity, stainless in¬
tegrity and exalted motives. He has
been removed from tbe high office which
he honored and dignified, but his lofty
character, his devotion to duty, his hon¬
esty of purpose and noble virtues re¬
main with us as a priceless legacy and
example.
The Fifty-sixth congress convenes in
its first regular session with the country
in a condition of unusual prosperity, of
universal good will among the people at
home and in relations of peace and
friendship with every government of
the world. Our foreign commerce has
shown great increase in volume and
value. The combined imports and ex¬
ports for the year are the largest over
shown by a single year in all our his¬
tory. Oar exports for 1899 alone ex¬
ceeded by more than $ 1 , 000 , 000,000 onr
imports and exports combined in 1870.
The imports per capita are 20 per cent
less than iu 1870, while the exports per
capita are 58 per cent more than in 1870,
showing the enlarged capacity of the
United States to satisfy the wants of its
own increasing population, as well as to
contribute to those of the peoples of
other nations.
Exports and Imports.
Exports of agricultural products were
$784,776,142. Of manufactured pro
ducts, we exported in value $838,592,-
146, being larger than auy previous
year. It is a noteworthy fact that the
only years in all onr history when tbe
products abroad exceeded of our those manufactories bought abroad sold J
were 1898 and 1899.
Government receipts from all sources
for the fiscal year, ended June 30, 1899,
including $11,798,314.14, part payment
Geutrai Pacific railroad indebtedness,
aggregated $610,982,004 36. Customs re
ceipts were $206,128,461.75 and those
from internal revenue $273,487,151.61.
For the fi cal year, the expenditures
were $700,093,564.02, leaving a deficit of
$89,111,559.67.
The secretary of the treasury esti
mates that the receipts for the current
fiscal year will aggregate $640,958,112
aud upon the basis of the present ap
propriation tho expenditures will aggre
gate $600,958,112, leaving a surplus of
$40,000,000,000.
For the fiscal year ended June 80,
1899, the internal revenue receipts were
increased about $ 100 , 000 , 000 .
The strong condition of the treasury
with respect to cash on hand and the
favorable showing made by the reve
nues have made it possible for the sec
retary of the treasury to take action
under the provisions of section 8694, re
vised statutes, relating to the sinking
fund. Receipts exceeded expenditures
for the first five months of the current
fiscal year of $13,413,389.91 and, as men¬
tioned above, the secretary of the treas¬
ury estimates that there will be a sur¬
plus of approximately $40,000,000 at the
end of the year.
Under such conditions, it was deemed
advisable and proper to resume compli¬
ance with the provisions of the sinking
fund law, which for 80 years has not
been done because of deficiencies in the
revenues. The treasury department,
therefore, offered to purchase during
November $25,000,000 of the 5 per cent
loan of 1904, or the 4 per cent funded
loan of 1907 at the current market price.
The amount offered and purchased
during November wag $18,408,600. The
premium paid by the government on
snch purchases was $3,263,521 and the
net saving in interest was about $ 2 ,-
885,000. The success of this operation
was sufficient to induce the government
to continue the offer to purchase bonds
to and including Deo. 23, 1899, unless
the remainder of the $25,000,000 called
for should be presented in the mean¬
time for redemption.
Money Supply Too Sinai).
Increased activity in industry, with
its welcome attendant—a larger em¬
ployment for labor at higher wages—
gives to the body of the people a larger
power to absorb the circulating me¬
dium. It is further true that year by
year, with larger areas of land under
cultivation, the increasing volume of
agricultural products, larger cotton, volume corn and of
wheat, calls for a
money supply. This is especially no
tioeable at the crop harvesting and crop
moving period. history, the national
In its earlier
banking act seemed to prove a reason¬
able avenne through which needful ad¬
ditions to the circulation could, from
time to time, be made. Changing con
ditions have apparently rendered it in¬
operative to that end. The high mar¬
gin in bond securities required, result¬
ing from the large premiums which
give the bonds command in the market
or the tax on note issues, or both operat¬
ing together, appear to be the influences
Which impair its public utility.
as will render its service in the particn
lars here referred to more responsive to
the people’s needs. I again urge that
national banks be authorized to organ¬
ize with a capital of $25,000.
I urgently recommend that to sup¬
port the existing gold standard and to
maintain “the parity in value of the
coins of the two metals (gold and sil¬
ver), and the equal power of every dol¬
lar at all times iu the market and in the
payment of debts,” the secretary of the
treasury be given additional power and
charged with the duty to sell United
States bonds and to employ such other
effective means as may be necessary to
these ends.
Our Merchant Marine.
The value of an American merchant
marine to the extension of our commer¬
cial trade and the strengthening of our
power upon the sea invites the imme¬
diate action of congress. Oar national
development will be o»e-sided and un¬
satisfactory, so long as the remarkable
growth of our inland industries remains
unaccompanied by progress on the seas,
There is no lack of constitutional au¬
thority for legislation which shall give
to the country maritime strength com¬
mensurate with its industrial achieve¬
ments and with its rank among the
na QS °* eart “
mu Ihe past year has recorded . , excejv
tional activity in our shipyards, and
promises of continual prosperity in ship
building are abundant Advanced legis
ation for the protection of our seamen
has been enacted. Onr coast trade,
under regulations wisely framed at the
beginning of the government and since,
shows results for the past year that are
uneqpalled in onr records and those of
any other power. We shall fail to
realize our opportunities, however, if
we complacently regard only matters
at home and blind ourselves to tnene
cessity of securing our share in the
valuable carrying trade of the world.
Ihe other great nations have not hes
itated to adopt the required means to
develop their shipping as a factor in
national defense, and as one of the
surest and speediest means of obtaining
for their producers a share in foreign
markets, Dike vigilance and effort on
our part cannot fail to improve our sit¬
uation, which is regarded with humilia¬
tion at home, and with surprise abroad.
Even the seeming sacrifices, which at
the beginning may be involved, will be
offset later by more than equivalent
gains.
Question of Trusts.
Combinations of capital organized
into trusts to control the conditions of
trade among our citizens, to stifle com
petition, limit production and determine
the prices of products used and con
sumed by the people, are justly pro/ok*
ing public discussion and should early
claim the attention of the congress,
The industrial commission created by
the act of congress of June 18, 1898, has
been engaged in extended involved hearings upon
the disputed questions in the
subject of combinations iu restraint of
trade and competition. They have not
yet completed their investigations of
this subject and tbe conclusion and
recommendations at which they may
arrive are undetermined. The subject
is one giving rise to many divergent
views as to the nature and variety or
cause and extent of the injuries to the
public which may result from large
combinations concentrating more or
less numerous enterprises and estalish
meats which previously to the carried forma
tion of the combination were
separately.
It is universally conceded tbat combi
nations which engross or control the
market of auy particular kind of mer
chandise or commodity necessary to the
general community, by suppressing nat
urai and ordinary competition, whereby
prices are undnly enhanced to the gen
eral consumer, are obnoxious not only
to the common law, but also to the pub
lie welfare. There must be a remedy
for the evils involved iu such organiza
tions. If the present law can be ex
tended more certainly to control or
check these monopolies or trusts, it
should be done without delay. What
ever power the congress posesses over
this most important subject should be
promptly ascertained and asserted.
It is apparent that uniformity of leg
islation upon this subject in the several
states is much to be desired. It is to be
hoped tbat such uniformity founded in
a wise and just discrimination between
what is injurious and what is useful
and necessary in business operations
may be obtained and that means may
be found for the congress within the
limitations of its constitutional power
so as to supplement an effective code of
state legislation so to make a complete
svstem of laws throughout the United
States adequate to compel a general ob
servanceof the salutary rules to which
I have referred.
The whole question is so important
and farreaching that I am considered, sure no part
of it will be lightly but
every phase of it will have the studied
deliberation of congress resulting in
wise aud action.
Boer-Brltlsh Conflict.
This government has maintained an
attitude of neutrality in the unfortu
nate contest between Great Britain and
the Boer states of Africa. We have re
mamed faithful to the precept of avoid*
ing entangling alliances as to affairs
not of our direct concern. Had circum
stances suggested that the parties to the
qtmrrel would have welcomed any
kindly expression of the hope of the
American people that war might be
averted, good offices would have been
S ladl y tendered.
The United States’representative at
Pretoria was early instructed to see that
all neutral American interests be re
spected by the combatants. This has
been an easy task in view of the posi
tire declarations of both British and
Boer authorities that the personal and
property rights of our citizens should
be observed.
Upon the withdrawal of the British
agent from Pretoria, the United States
the care of British interests.
charge of this function, I am happy to
say that abundant opportunity has been
afforded to show the impartiality of this
government toward both the combat¬
ants.
Partition of Samoa.
Important events have occurred in the
Samoan islands. The election, accord¬
ing to the laws and customs of Samoa,
of a successor to the late king, Malietoa
Laupepa, developed a contest as to the
validity of the result, which issue by
the terms of the general act was to be
decided by the chief justice. Upon his
rendering a judgment in favor of Ma¬
lietoa Tann, the rival chief, Mataafa,
rook np arms. The active intervention
of American and British warships be¬
came an imperative necessity to restore
order at the cost of sanguinary encount¬
ers. In this emergency a joint United com¬
mission of representatives of the
States, Germany and Great Britain was
sent to Samoa to investigate the situa¬
tion and provide a temporary remedy.
By its active efforts a peaceful solution
was reached for the time being, the
kingship being abolished and a provis¬
ional government established.
Cuban Administration.
My annual message of last year was
necessarily devoted in great part to and a
consideration of the Spanish war
tbe results it wrought and the condi
tiou8 it imposed for tbe future. I am
gratifie( i to announce that the treaty of
peac0 ha9 restored f rien dly relations be
tween t be two p(rW er 8 . Effect has been
given to its important provisions. The
evacuation of Porto Rico having already
been accomplished on Oct 18, there 1898,
no thing remained necessary to
con ti nue the provisional * military con
trol of the sland until tbe con .
g 8bonld enact a 8 uitab i e govern
ment for tbe ceded territ 0 ry. 0 f the
character and scope £ of the measures to
that end i 8haU tr t in ano ther part of
tbia message>
T be withdrawal of the authority of
g pain from the island of Cuba was ef .
fected by £ j an . j so tbat tbe fall re . es .
tablisbn ent of peace fouud tbe relin .
q U i sbed territory held by us in trust for
tbe inhabitants, maintaining under the
direction of the executive such govern¬
ment and control therein as should con¬
serve public order, restore the produc¬
tive conditions of peace so long dis¬
turbed by the instability aud disorder
which prevailed for the greater part of
the preceding three decades, and build
np that tranquil development of the do¬
mestic state whereby alone can be real
i Z8d t be b j gb p ar pose as proclaimed in
the joint resolution adopted by the con¬
gress-on April 19, 1898, by which the
United States disclaimed any disposi
tion or intention to exercise sovereignty,
jurisdiction or control over Cuba, ex
cep t f or the pacification thereof, and ns
serted its determination when that was
accomplished to leave the government
an d control of the island to its people,
The pledge contained iu this resolu
tion is of the highest honorable obUga
tion and must be sacredly kept. I be
lieve that substantial progress has been
made in this direction. All the admin
istrative measures adopted in Cuba have
aimed to fit for a regenerated existence
by enforcing the supremacy of law and
justice; by placing wherever practicable
the machinery of administration in the
hands of the inhabitants; by instituting
needed sanitary reforms; by spreading
education; by fostering industry and
trade; by inculcating public morality, rational
aud) i n short, by taking every
ste p to aid the Cuban people to attain
to that plane of self which conscious fits respect
and self reliant unity an en
lightened community for self goverri
ment within its own sphere, while en
abling it to fulfill all outward obliga
tions.
Army Statistics.
Since my last annual message and in
°k® die naa ac ts con S r8SS ot April
» nd 26, , 1898,the , remaining volunteer
force enlisted for tne Spanish war, con
sistiug of 34,831 regulars and 110,202
volunteers, with over 5,000 volunteer
officers, have been discharged from the
military service. I recommend that tbe
congress provide a special medal of
honor for the volunteers, regulars, sail
ors and marines on duty in the Philip
pmes who voluntarily remained in the
service after their terms of enlistment
had expired.
By the act of March 22, 1899, congress
gave authority to increase the regular
army to a maximum not exceeding 65,
909 enlisted men and to enlist a force of
1*5,000 volunteers, to be recruited from
^e country at large. By virtue of this
authority the regular army has been in
creased to the number of 61,999 enlisted
men and 2,248 officers, and new
volunteer regiments have been or
gamzed aggregating 33,050 enlisted men
and 1,524 officers. The new troops to
take places of those returning from
the Philippines have been transported
to Manila to the number of 581 officers
and 26,322 enlisted men of the regular
army aud 594 officers aud 15,888 enlisted
men of the new volunteer force, while
504 officers aud 14,189 men of thevoluu
ji« er * orrfe ara 011 the ocean enroute to
Manila.
Tbe force now in Manila consists of
905 officers and 30,578 regulars and 594
officers aud 15,388 of the vplunteers,
making an aggregate of 1,499 officers
a nd 45,966 men. When the troops now
under orders shall reach Manila the
f orce i u the archipelago will comprise
2,051 officers and 63,^83 men.
During the past year we have reduced
onr f orce i n Cuba and Porto Rico. In
Cuba we now have 334 officers and 10 .-
796 enlisted men; in Porto Rico 87 offi
cera and 2355 enlisted men and a bat
talion of 400 men composed of native
p Q rto Ricans, while stationed through
out the United States are 910 officers
aud 17j3l7 m en, and in Hawaii 122
0 ffi cera and 453 mon .
Philippines Problem.
On the 10th of December, 1899 ‘the
treaty of peace between the United
States aud Spain was signed. It pro¬
vided, among other things, that Spain
should cede to the United States the
archipelago known as the Philippine
islands; that the United States should
pay to Spain the sum of twenty millions
of dollars, and that the ciVil rights and
political status of the native inhabitants
of the territories thus ceded to the
United States should be determined by
the congress. The treaty was ratified
by the senate on the 6 th of February,
1899, and by the government of Spain
on the 19th of March following. The
ratifications were exchanged on the 11 th
of April, and the treaty March publicly the pro¬
claimed. On the 2 nd of con¬
gress voted the sum contemplated by
the treaty and the amount was paid the
over to the* Spanish government on
1 st of May.
In this manner the Philippines islands came
to the United States. The were
ceded by the government of Spain,
which had been in undisputed They posses¬
sion of them for centuries. authorized were
accepted, not merely by our direction of
agents in Paris under the
the executive, but by the constitutional
and well considered action of the repre¬
sentatives of the people in both houses
of congress. I had every reason to be¬
lieve, and I still believe, that this trans
fer of sovereignty was in accordance
with the wishes and the aspirations of
the great mass of the Filipino people.
From the earliest moment, no oppor¬
tunity was lost of assuring the people
of the islands of our ardent desire for
their welfare, and of the intention of
this government to do everything pos¬
sible to advance their interests.
Aguinaldo’s Claim.
The claim of the rebel leader that he
was promised independence by any offi¬
cer of the United States in return for
his assistance has no foundation in fact
and is categorically denied by the very
witnesses who were called to prove it.
The most the insurgent leader hoped
for when he came to Manila was the
liberation of the islands from the Span¬
ish control, which they had been labor¬
ing for years without success to throw
off.
The prompt accomplishment of this
work by the American army and navy
gave him other ideas and ambitions,
and insidious suggestions from various
quarters perverted the purposes and in¬
tentions with which he had taken up
arms.
No sooner had our army captured Ma¬
nila than the Filipino forces began to
assume an attitude of suspicion and
hostility which the utmost efforts of
our officers aud troops were unable to
disarm or modify. Their kindness and
focbearance were taken as a proof of
The aggressions of the Fili¬
pinos continually increased until finally,
just before the time set by the senate of
the United States for a vote upon the
treaty, an attack, evidently prepared iu
advance, was made all along the Amer¬
ican lines, which resulted in a terribly
destructive and sanguinary repulse of
the rebels.
With a devotion and gallantry worthy
of its most brilliant history, the army,
ably and loyally assisted by the navy,
has carried on this unwelcome but most
righteous campaign with richly de¬
served success. Although their opera
tionB Kavo Vxjen interrupted,
and checked bv a rainy season of unu¬
sual violence and duration, they have
gained steadily in every direction and
now look forward confidently to a speedy
completion of their task.
Treaty With Stilus.
The authorities of the Sulu islands
have accepted the succession of the
United States to the rights of Spain,
and our flag floats over that territory.
On Aug. 10 , 1899, Brigadier General J.
C. Bates, U. S. V., negotiated an agree¬
ment with the sultan and hi3 principal
chiefs, which I transmit herewith. By
article 1 , the sovereignty of the United
States over the whole archipelago of
Jolo aud its dependencies is declared
and acknowledged.
The United States flag will be used in
the archipelago and its depencies oa
land and sea. Piracy is to be suppressed
and the sultan agrees to co-operate
heartily with the United States authori¬
ties to that end and to make every pos¬
sible effort to arrest and bring to justice
all persons engaged in piracy. All trade
in domestic products of the archipelago
of Jolo, when carried on with any mart
of the Philippine islands and under the
American flag, shall be free, unlimited
and undutiable.
Cannot Be Abandoned.
The future government of the Philip¬
pines rests with the congress of the
United States. Fewer graver responsi¬
bilities have ever been confided to us.
If we accept them in a spirit worthy of
our race and our traditions a great op¬
portunity The islands comes lie with them.
under the shelter of
our flag. They are ours by every title
of law and equity. They cannot be
abandoned. If we desert them, we
leave them at once to anarchy and
finally to barbarism. We fling them, a
golden apple of discord, among the rival
powers, no oue of which could permit
another to seize them unquestioned.
Their rich plains and valleys would be
the scene of endless strife and blood¬
shed.
The advent of Dewey’s fleet in Ma¬
nila bay instead of being, as we hope,
the dawn of a new day of freedom and
progress, will have been the beginning
of an era of misery and violence worse
than any which has darkened their un¬
happy past.
The suggestion has been made that
we could renounce our authority over
the islands and giving them indepen¬
dence conld retain a protectorate over
them. This proposition will not be
found, I am sure, worthy of your seri¬
ous attention. Such an arrangement
would invoive at the outset a cruel
breach of faith. It would place the
peaceable and loyal majority, who ask
for nothing better than to accept our
authority, at the mercy of the minority
armed insurgents.
It would make us responsible for the
acts of the insurgent leaders and give
ns no power to control them. It would
charge ua with the task of protecting
them against each other and defending
them against auy foreign power with
which they chose to quarrel. In short,
it would take from the congress of the
United States the power ot declaring
war and vest that tremendous prerog a .
tivo in the Tagal leader of the hou r
It does recommend not seem desirable this time that i .
should at a sp^.
cific and final form of government f or
these islands. When peace shall be re.
stored it will be tha duty of congress to
construct a plan of government which
shall establish and maintain Philippines. freedom
and order and peace in the
The insurrection is still existing and
when it terminates further actual information
will be requited as to the condi.
tion of affairs before inaugurating a
permanent scheme of civil government.
Until congress shall have made known
the formal expression of its will, I Bhall
use the authority vested in me by the
constitution and the statutes to^ uphold
the sovereignty of the United States in
those distant islands, as in all other
places where our flag rightfully floats.
Our flag has never waived over any
community but in blessing. I believe
the Filipinos will soon recognize the
fact that it has not lost its gift of bene
diction in this worldwide journey to
their shores.
Porto Rican Affairs.
I recommend that legislation be had
with reference to the government of
Porto Rico. The tjrne is ripe for the
adoption of a temporary form of gov¬
ernment for this island.
It is desirable that the government of
the island, under the law of belligerent
right, now maintained through the ex¬
ecutive department, should be super¬
seded by an administration entirely
civil in its nature. For the present pur¬
pose I recommend that congress pass a
law for the organization of a temporary
government which shall provide for the
appointment by the president, subject
to confirmation by the senate, of a gov¬
ernor and such other officers as the gen¬
eral administration of the island may
require and for legislative purposes, on
subjects of a local nature not partaking
of a federal character. —
A legislative council, composed partly
of Porto Ricans and partly of citizens
of the United States, shall be nominated
and by the president.
Lynch Law Condemned.
The love of law and the sense of obe¬
dience and submission to the lawfully
constituted the judicial tribunals, are em¬
bedded iu hearts of our people, and
any violation of thes9 sentiments and
disregard of their obligations, justly
arouses public condemnation, The
guarantees of life, liberty, and of civil
rights, should be faithfully upheld, the
right of trial by,jury respected and de¬
fended.
Those who, in disregard of law and
the public peace, unwilling to await
the judgment of court and jury, consti¬
tute themselves judges and executioners
should not escape the severest penalties
for their crimes.
What I said in my inaugural address
of March 4, 1897, I now repeat:
“The constitutional authorities should
be cheerfully upheld. Lynchings should
not be tolerated in a great and civilized
country like th 9 United States; courts,
not mobs, must execute the penalties of
the laws. The preservation of public
order, the rial-* the in teg
ricy or mrorts, and the onxeitj .iminw-__
tration of justice, must continue forever
the rock ot safety upon which our gov¬
ernment securely rests. ”
National Celebration.
In accordance with the act of con¬
gress providing for an the appropriate na¬
tional celebration iu year 1900 of
the establishment of the seat of govern¬
ment in the District of Columbia, I
have appointed a committee consisting
of the governors of all the states and
territories of the United States, who
have been invited to assemble in the
city of Washington on Dec. 21 , 1899,
which, with the committee of congre38
and the District of Columbia, are
charged with the proper conduct of the
celebration.
Civil Service Changes.
The executive order of May 6 , 1896,
extending the limits of the classified ser¬
vice, brought within the operation of
the civil service law and rules nearly all
of the executive civil service not previ¬
ously classified.
Some of the inclusions were found
wholly illogical and unsuited to the
work of the several departments. The
application of the rules to many of the
places so included were fouud to result
in friction and embarrassment. After
long and careful consideration it became
evident to the heads of the departments
responsible for their efficiency that in
order to remove these difficulties and
promote an efficient and harmonious ad¬
ministration certain amendments were
necessary. These amendments were
promulgated by me in executive order
dated May 29, 1899.
The principal purpose of the order
was to except from competitive ex¬
amination certain places involving fidu¬
ciary responsibilities or duties of a
strictly confidential, scientifical or ex¬
ecutive character. These places were
comparatively few in number. The or¬
der provides for the filling of a much
larger number of places, mainly in the
outside service of the war department,
by what is known as the registration
system, under regulation to be approved
by the president, similar to those which
have produced such admirable results
in the navyyard service.
Great Opportunities.
Presented to this congress are great
opportunities; with them come great
responsibilities. The power confided to
us increases the weight of our obliga¬
tions to the people, aud we must be pro¬
foundly sensitive of them as we contem¬
plate the new and grave problems which
confront lic good, us. Aiming only at tho pub¬
we cauuot err. A right inter¬
pretation of the people’s will, and of
duty, cannot fail to insure wise meas¬
ures for the welfare of the islands which
have come under the authority of tho
United States, and to inure to the oom*
mon interest and lasting honor of onr
country. Never has this nation had
more abundant cause than during the
past year for thankfulness to God for
manifold blessings and meroies, for
which we make reverent acknowledg¬
ment. William McKinley.
Executive Mansion, Dec. 5, 1899.