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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.