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! ! | | PresidentCommunicatesWith Congress on Subjects of National Interest. WAR, TRUSTS AND MONEY Revolt Must He Put. Down—R metty For the Monopoly Evil—Gold Stand¬ ard Favored—Partition of Samoa. Hobart’s Death, Etc. ■Washington, Dec. 5.—-The president today transmitted to congress his an¬ nual message, as follows: To the Senate aud House of Represen¬ tatives: At the threshold of your deliberations yon are called to mourn with your coun¬ trymen the death of Vice President Ho¬ bart, who passed from this life on tho morning of ‘November 21st, last. His great soul now rests in eternal peace. His private life was pare and elevated, while his public career was ever distin¬ guished by large capacity, stainless in¬ tegrity and exalted motives. Ho has been removed from the high office which he honored aud dignified, but his lofty character, his devotion to duty, his hon¬ esty of purpose aud noble virtues re¬ main with us as a priceless legacy and oxample 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 aud value. The combined imports and ex¬ ports for the year are the largest ever shown by a single year in all our his¬ tory. Our exports for 1S99 alone ex¬ ceeded by more than $1,000,000,000 our imports and exports combined in 1S70. The imports per capita tiro 20 per cent less than in 1870, while the exports per capita are 58 per cent more than in 1870, showing the enlarged capacity of the United States to satisfy tbe 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 $784,776,143. Of manufactured pro¬ ducts, we exported in value $333,692,- 146, being larger than any previous year. It is a noteworthy fact that the only years in all our history when the products of our manufactories sold abroad exceeded those bought abroad were 1898 and 1899. Government receipts from all sonrees for the fiscal year, ended June 30, 189.4, including $11,798,314.14, part payment Central Pacific railroad indebtedness, aggregated $610,982,004 36. Customs re¬ ceipts were $306,128,461.75 and those from internal revenue $273,437,151.61. 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 and upon the basis of the present ap¬ propriation the expenditures will aggre¬ gate $600,958,112, leaving a surplus of $40,000,000,000. For the fiscal year ended June 30, 1899, the internal revenue receipts were increased about $100,000,000. The strong condition of tbe treasury with respect to cash on hand and the favorable showing made by the reve¬ nues have made it possible for take the sec¬ retary of the treasury to action under the provisions of section 3694, 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, tbe 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 $26,000,000 of the 5 per cent loan of J904, or the 4 per cent funded loan of 1907 at the current market price. The amount offered and purchased during November was $18,408,600. The premium paid by the government on snch purchases was $2,263,521 and the not saving in interest was about $2 885,000. The Bttocess of this operation was sufficient to induce the government to continue the offer to purchase bonds to and including Dec. 23, 1899, unless the remainder of the $25,000,000 called for should be presented in the mean¬ time for redemption. • Money Supply Too Small. 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, cotton, corn and wheat, calls for a larger volume of money supply. This is especially no¬ ticeable 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 bpnd 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. The attention of congress is respect¬ fully invited to this important matter with the view of ascertaining whether or not snch reasonable modifications can be made in the national bank act as will render its service in the partien 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 $25,004. I urgently recommend that to sup¬ port the existing gold standard ami 10 maintain ‘'the parity in value of the coins of the two metals (gold and sil¬ ver), and the equal power of every dol- 1st- at ail times in the market and iu the payment of debts,” the secretary of the treasury be givon additional power and charged with the duty 10 sell United States bonds and to employ such other effective moans ns may be necessary to those auds. Our Merchant. Marltu*. The value of an American merchant marine to tbo extousiou of our commer¬ cial trade and the strengthening of our power upon the sea invites the imme¬ diate action of congress. Our national development will be one sided and un¬ satisfactory, so long as the remarkable growth of our inland industries remains unaccompanied There by progress ou the seas, is uo 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 nations of the earth The past year has recorded excep tioual activity in our shipyards, aud promises of continual prosperity in ship building are abundant. Advanced legis¬ lation for the protection of our seamen has been enacted. Our coast trade, under regulations wisely framed at the beginning of the government aud since, shows results for the past year that are unequalled in our reoorda 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 the ne¬ cessity of securing our share in the valuable carryiug trade of the world. Last year American vosse’s trans¬ ported a smaller share of our exports and imports than during any former year iu all our history, and the meas¬ ure of our dependence upon foreign shipping was painfully manifested to our people. Without any choico of our own, but from necessity, the depart¬ ments of the government charged with military and naval operations in the East aud West Indies had to obtain from foreign flags merchant vessels essential to these operations. The other great nations have not hes¬ itated to adopt the required means to develop their shipping as a factor iu national and defense, speediest and as of one obtaining of (l 10 surest means for their producers a share in foreign markets. Like vigilance and effort ou our part cannot fail to improve our sit- nation, 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 provok¬ con¬ sumed by the people, are justly ing public discussion aud should early claim the attention of the congress. Tha industrial commission created by the act of congress of June 18, 1898, has been engaged in extended hearings upon the disputed questions involved in the subject of combinations in restraint of trade and competition. They have not yet completed their investigations of this subject and the conclusion and rocommeudations at which they may arrive aTe 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 tbo public which may result from large combinations concentrating more or less numerous enterprises and estalisli- wsuts which previously to the forma¬ tion of the combination were carried separately. It is universally conceded that combi¬ nations which engross or control the market of any particular kind of mer¬ chandise or commodity necessary to the general community, by suppressing nat¬ ural and ordinary competition, whereby prices are unduly enhanced to the geu eral consumer, are obnoxious uot only to the common law, but also to the pub¬ lic welfare. There must be a remedy for the evils involved in such organiza¬ tions. If the present iaw 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 subjeot should be promptly ascertained and asserted. It is apparent that uniformity of leg¬ islation upon this subject in tbe several states is much to be desired. It is to be hoped that such uniformity founded in a wise aud just discrimination between what is injurious and what is nseful 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 system of laws throughout the United States adequate to compel a general ob¬ servance of the salutary rules to which I have referred. The whole question is so important aud farraaehing that I am sure uo part of it will be lightiy considered, but every chase of it will have the studied deliberation of congress resulting iu wise and judicious action. The Nicaragua Canal. The Nicaragua canal commission, which bad been engaged upon the work of examination and survey for a route across Nicaragua, haying completed its labors and made its reports, was dis¬ solved on May SI, and on June 10 anew commission, known as the isthmian canal commission, was organized under the terms-of the act approved March 3, 1899, for the purpose of examining the American isthmus with a view to de¬ termining the most practicable and feasible route for a ship canal across that isthmus, with its probable cost and other essential details. This commission, under the presi deuev of Roar Admiral John G. Wal¬ ker, U. S. N., retired, entered promptly upon the work intrusted to it and is now carrying on examinations in Nica¬ ragua along the route of the Panama canal and in Darien from tbe Atlantic, from the neighborhood of the Atralto river to the bay of Panama on the Pa cific side. Good progress has been made, but under the law a comprehen called sive and complete investigation is for, which will require much labor and cousiderable time for its accomplish meut. The work will be prosecuted as expeditiously as possible practicable and a date. report made at the earliest The great importance of this work cannot be too often or too strongly pressed upon the attention of the con gress. In my message off a year ago I expressed my views of the necessity of a canal which would link the two great oceans, to which 1 again invite your con¬ sideration. The reasons then presented for eariy action are even stronger now. Tho farts Exposition* Preparations for the representation nroducts of of tile industries, arts and the United States at the world’s exposi¬ tion, to be heid in Paris next year, con¬ tinue on an elaborate and comprehen¬ sive scale, thanks to the generous ap propriation provided by congress and to the friendly interest the French govern¬ ment has shown iu furthering a typical exhibit of American progress. There has been allotted to the United States a considerable addition of spaco which, while placing our country in the first rank among exhibitors, does not suffice to meet the increasingly ur¬ gent demands of our manufacturers. The efforts of the commissioners gen¬ eral are ably directed towards the secur¬ ing of a display of all that most charao- teristcically marks American achieve¬ ment in the inventive arts and most ad¬ equately shows the excellence of our natural productions. build¬ The United States government and ing iB approaching completion no effort will be spared to make it worthy in beauty of architectural plan and in completeness of display to represent our nation. Iloft- British 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¬ mained 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 quarrel would have welcomed any kindly -------„ expression —_------- of __ tho — hope —..... of the American people that war might be averted, good offices would have been gladly tendered. Tbe 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¬ tive declarations of both British and Boer authorities that the personal should and property rights of our citizens be observed. Upon the withdrawal of the Britisli ai'ent from authorizedjupon~the Pretoria the Uuited States I eonsul consul was was authorized, upon the request request : 0 e - tbo British l._______.... government and _ j with - u the * .. ; assout f 0 f ‘ tbe South African and Orange j j re(J g ta (e governments, to exercise the cngtomar y „ 00 q c ffi ces of a neutral for tb0 ear0 n f British interests In the dis- j cha nf tbi8 f nD(!tion j anl happy to gav tbat a h an dant opportunity has been a jj or( i e( j to show tho impartiality of this government toward both the combat- antg ' 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 tha late king, Malietoa Lsupepa, developed a contest as to the validity of the result, which issue by tho terms of the general aot was to be decided by tho chief justice. Upon his rendering a judgment in favor of Ma¬ lietoa Tauu, the rival chief, Mataafa, rook np arms. The active intervention of American and British warships be¬ came an imperative necessity to restore order a6 tbe cost of sanguinary encount- ers In this emergency a joint com¬ mission of representatives of the United States, Germany aud 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. Recommendations unanimously made by tbe commission for a permanent ad¬ justment of the Samoan question wero taken under consideration by the three powers parties to the general act. But the more they were examined the more evident it became that a radical change was necessary in the relations of the powers to Samoa. • A satisfactory arrangement was con- of eluded between the governments Germany and of England, by virtue of which England retired from Samoa in view of compensations in other direc- tions and both powers renounced in favor of the United Stares ail their rights and claims over aud iu respect to that portion of the group lying to the east of the one hundred and seventy- first degree of west longitude, embrac- ing the islands of Tmuilla, (Moo, Oio- sontra and Manna I tron,mil to th. senate, for it. coo- which, besides the provisions above mentioned, also guarantees us the same privileges and conditions in vessels respect ail to commerce and commercial in of tho islands of Samoa as those pos¬ sessed by Germany. Cuban Administration. My annual message of last year was necessarily deyoted in great part to a consideration of the Spanish war and of the results it wrought and the condi¬ tions it imposed for the future. I am gratified to auiiounce that the treaty of peace has restored frieudlv relations be¬ tween the two powers. Effect has been giyen to its important provisions. The evacuation of Porto Rico having Mready been accomplished on Oct. 18, 1898, nothing remained necessary there to continue the provisional military con¬ trol of the island until the con¬ gress should enact a suitable govern¬ ment for the ceded territory. Of the character and scope of the measures to that end I shall treat iu another part of this message. The withdrawal of tho authority of Spain from the island of Cuba was ef¬ fected by Jau. 1, so that the full re es¬ tablishment of peaoe found the relin qnished territory held by ns in trust for the inhabitants, maintaining under the direction of the executive such govern¬ ment and control thereia as should con¬ serve public order, restore tho produc¬ tive conditions of peace so long dis turbed by tho instability and disorder which prevailed for the greater part of the preceding three decades, and bnild up that tranquil development of the do¬ mestic state whereby alone can be real¬ ized tho high purpose 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 iutention toexeroise sovereignty, jurisdiction or control over Cuba, ex¬ cept for the paoification thereof, aud as iertei its determination when that was accomplished to leave the government and control of the island to its people. The pledge contained in this resolo tion is of the highest honorable obliga¬ tion and must bo 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 snpremaoy of law and justice; by placing wherever practicable iu the the machinery of administration hands of the inhabitants; by instituting needed sauitary reforms; by spreading education; by fostering industry and trade; by inculcating public morality, and, iu short, b.v taking every rational step to aid the Cuban people to attain to that plane of self conscious respect and self reliant unity which fits an en- lightened community for self govern¬ ment within its own sphere, whtie en¬ abling it to fulfill all outward obliga¬ tion*. Claims Against Turkey. The United States minister to Tur¬ key continues under instructions to press for a money payment in satisfac¬ tion of the just claims for injuries suf¬ fered by American ci.izens in the dis¬ orders Of several years past, and for wrongs done to them by the Ottoman authorittes. Some of these claims are of many years standing. This govern¬ ment is hopeful of a general agreement in this regard. Iu the Turkish empire the situation of our oitizens remains unsatisfactory. Our efforts during nearly forty years to bring about a convention of naturali¬ zation, seems on the brink of national failure through the announced policy of the Ottoman porte to refuse recognition cf the alien statutes of native Turkish subjects naturalized abroad since 1867. The arbitrary treatment, iu some in¬ stances, of American productions in Turkey has attracted atteution of late, notably in regard to our flour. In these, as in all instances, wherever oc¬ curring, when American products may be subjected in a foreign discrimination country, upon specious pretexts, to of another compared to tbe like products country, this government will use its earnest efforts to secure fair and equal treatment for its citizens and their goods. Failing this, it will not hesitate to apply whatever corrective may be provided by the statutes. Recent Conference. : of his In response to the invitation majesty, the emperor of Russia, dele¬ gates from 26 countries were assembled at The Hague on May 18 as members of a conference in the interest of peace. The occasion seemed to be opportune j for the serious consideration of a plan ! for the pacific adjustment of interna- | ! ' tional tional tha the American AiriArioan difficulties; difficulties; people runnin a a subject subject have htiVfl liftsn been in in dftPmlV deeply which which interested for many years, and a defi- i nito project for a permanent interna- j tional tribunal was delegates included of the in United the in- structions to the j Stares. The final act of the conference in- i ! eludes tion conventions the laws aud upon the of ameliora- of customs war on ; laud, the adaptation to maritime war- I fare of the principles of the Geneva | convention of 1864 and the extension of ] judicial methods to international settle- cases, The convention for tbe pacific meat of international conflicts embodies the leading features of the American plan with such modifications as were rendered necessary by the great diver- sity of views and interests represented by the delegates. The four titles of the convention pro- vide for tho maintenance of the general peace; the exercise of good offices aud mediation; tho formation of eornmis- sions of inquiry aud international arbi- tration- Army Statistics. Since my last annual message and in obedience to acts of congress of April 22 aud 26, 1898, the remaining volunteer force enlisted for the Spanish war, con¬ sisting of 34,83i regulars and 110,202 volunteers, with over 5,000 volunteer officers, have been discharged from the military service I recommend that the congress provide a special medal of honor for the volunteers, regulars, sail¬ ors and marines on duty in the Philip¬ pines who voluntarily retnaiued iu the service after their terms of enlistment | expirea. . j By the act of March 23, 1899, congress authority to increase the regular »? a “ aIimnra not exceeding 6o,- OOO enHsted men and to enlist a force of ^.000 volunteers, to be recruited from the country at large. By virtue of this authority the regular army has been m- creased to the number of 61,999 enlisted a,!d »■*« ° ffic ? rs - ne J volunteer regiments have been or- gamzed agg^gatmg 33,050 enlisted men aud - 4 offl cers,• -Tbe ne ro take the places of those returning from 'be Philippines have been transported to Manila to the number of 581 officers «* *“ JV& "EJ5 504 officers aud 14,189 men of the voluu- teer force are on the ocean enronte to Manila. The force now in Manila consists of 905 officers and 30,578 regulars and 594 officers aud 16,388 of the volunteers, making an aggregate of 1,499 officers aud 45,-966 men. When the troops now under orders shall reach Manila the force in the archipelago will comprise 2,061 officers aud 63,483 men. Daring the past year we have reduced our force in Cuba and Porto Rica In Cuba we now have 334 officers and 10,- 796 enlisted men; iu Porto Rico 87 offi¬ cers and 2,855 enlisted men and a bat¬ talion of 400 men composed of native Porto Ricans, while stationed through¬ out the United States are 910 officers and 17,317 men, and in Hawaii 122 officers and 453 men. l’liilippliies Problem. On the 10th of December, 1899 ‘th" treaty of peace between tbe United States and 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, aud 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 6th of February, 1899, and by the government of Spain on the 19th of March following. Tho ratifications were exchanged on the 11th of April, and the treaty publicly pro¬ claimed. On the 2nd of March the con¬ gress voted the sum contemplated by the treaty and the amount was paid over to the Spanish government on the 1st of May. , In this manner the Philippines came to the United States. The islands were ceded by the government of Spain, which had been in undisputed posses¬ sion of them for oenturies. They wero accepted, not merely- by onr authorized agents in Paris under the direction of the executive, bat by the constitutional and well considered action of the repre¬ sentatives of the people in both houses if congress. I had every reason to be- ieve, 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 peoplo. From the earliest moment, no oppor¬ people tunity was lost of a-suring the of the islands of our ardent desire for their welfare, aud of the iutention Of this government to do everything pos¬ sible to advance their interests. Aguieuldu’s Claim* The claim of the rebel leader that he was promised independence by any offi¬ cer of the Uuited Stares in return for bis assistance has no foundation iu fact and in categorically denied by the very witnesses who wore called to prove ir. Tlio most the insurgent leader hoped for when he came to Maui Id 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 ambitious, and insidious suggestions from various quarters perverted the purposes aud in¬ tentions with which he had taken up arms. No sooner had our army captured Ma¬ nila than the Filipino forces began and to assume an attitude of suspicion hostility which the utmost efforts of our officers and troops were unable to disarm or modify. Their kindness and forbearance were taken as a proof of cowardice. 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 in advance, was made ail 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 bistory, 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¬ tions have been somewhat interrupted and checked b a raiuy season of unu¬ sual violence and duration, they have gamed steadily m every direction and now look forward confidently to a speedy completion of their task. Treaty With Stilus. The authorities of the Suln islands have accepted the . of the succession United TT„it»u States to the *h» rights of ” f ««*<»- Spain, and our flag floats over that territory, Ou Aug. 10, lSi)9, Brigadier General J. C. Bates, U. S. V., negotiated an agree- ment with the sultan aud bis principal cuiefs, which 1 transmit herewith. By article 1, the sovereignty of the United States over the whole archipelago of Joio and its dependencies is declared aud acknowledged. The United States flag will be used in the archipelago and its depeucies on 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 aud 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 tbe American flag, shall bo free, unlimited aud undutiable. The United States will give full pro- toeflon to the sultan in case any foreign nation should attempt to impose upon him. The United States will not sell the island of Jolo or any other island of the Jolo archipelago to any foreign na- tion without the consent of the sultan, Salaries for the sultan aud his associates in the administration of the islands have been agreed upon to the amount of $700 monthly. Article 10 provides that any slave in the archipelago of Jolo shall have the right to purchase freedom market by paying value, to tho master the usual The agreement by General Bates was made subject to confirmation by the president and to future modifications by the consent of the parties iu interest. I have coufirtned said agreement, subject to the action of the congress and with ttle reservation which I have directed shall be communicated to the sultan of Jolo, that this agreement is not to be deemed in any way to use or give the consont of the Uuited States to the ex- istence of slavery iu the Su'.u archipel- ago. I communicate these facts to the congress for its information aud action, Everything indicates that with the speedy suppression of the Tagalo rebel- lion, life in the archipelago will soon resume its ordinary course; under the protection of Our sovereignty and the people of those favored islands will en¬ joy a prosperity aud a freedom which they have never before known. Cannot 14« 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 comes with them. The islands He 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, uo one of which could permit another to seize them unquestioned. Their rich plains aud 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 tnau any which has darkened their na- banpy past. made that The suggestion has been we could renounce our authority over the islands and giving them indepen¬ dence could retain a protectorate over them. This proposition will not be found, I am sure, worthy of your seri¬ ous attention. Such an arrangement would involve at the outset a cruel broach of faith. It would place the peaceable aud loyal majority, who ask tor nothing better than to accept onr authority, at the mercy of the minority armed insurgents. It would make us responsible for the acts of the insurgent leaders aud It give us no power to control them. would charge us with the task of protecting them against each other and defending them against any foreign power with which they chose to quarrel. In short, it would take from tke congress of the United States the power of declaring war and vest that tremendous preroga¬ tive in the Tagal leader of the hour. It does not seem desirable that I should recommend at this time a spe ciflc and final form of government for these islands. When peace shall be re¬ stored it will be the duty of congress to construct a plan of government which shall establish and maintain freedom an d order and peace in the Philippine*. The insurrection i» Hill exiting and wlien it terminates further information will be roquiied as to the actual 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 shall use the authority vested in mo by the constitution and the statutes to uphold Ihe sovereignly of the United States iu those distant islands, as in all other places where our flag rightfully floats Our flag has never waived over any community out in blessing. 1 believe the Filipinos will soon recognize the fact that it has not lost its gift of beuo diction iu this worldwide journey to their shores. Porto Rican Affairs. I recommend that legislation be had with reference to the government of Porto Rico. The time is ripe for the adoption of a temporary form of gov¬ ernment for ibis 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 aud for legislative purposes, on subjects of a local nature not partaking of a federal character. A legislative council, composed of partly of Porto Ricans aud partly citizens of the United States, shall be nominated and appointed by the president. Lynch luw Condemned. The love of iftw and the sense of obe¬ dience and submission to the lawfully constituted judical tribunals, are em¬ bedded iu the hearts of our people, and any violation of these 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 aud de¬ fended. Those who, in disregard of law and the public peace, unwilling to await the judgment of judges court, and aud jury, consti¬ tute themselves executioners should not escape tho severest penalties for their crimes. What I said in my inaugural address of March 4, 1897, I now repeat: “Theconstitutional authorities should be cheerfully upheld. Lyuchings should uot be tolerated in a great and civilized country like tha United States; courts, uot mobs, must execute the penalties public of the laws. Tbe preservation of order( the right of discussion, the integ¬ rity of courts, aud the orderly adminis¬ tration of justice, must continue forever the rock ol sntef.y upon which our gov- ernmeut securely rests.” National Celebration. In accordance with the act of con- gress providing for an appropriate ua- tional celebration in the year 1900 of the establishment of the seat of govern- Iaant in the District of Columbia, I have appointed a committee consisting {l f governors of all the states ana territories of the Uuited States, who have been invited to assemble in the city 0 f Washington on Dec. 21, 1899, which, with the committee of congress an( i the District of Columbia, are charged with the proper conduct of the celebration. Congress, at its last session, appropri- ated $5 000 "toenable tbe chief engineer of the army to continue the examina- tion of the subject and to make estimates or se- (U re designs, calculations and f or a memorial bridge from the most convenient point of the naval observa- t ory ' grounds or adjacent thereto, across t q, 0 Potomac river to the most conve- u ient point of ths Arlington estate property.” with the provisions of j u accordance this act the chief of engineers has se¬ lectad four eminent bridge engineers to submit competitive designs for a bridge combining the elements of strength and durability aud such architectural em- bellishment and ornamentation as will apply to the dedication, “a merno- r j a ; 0 [ American patriotism.” The de¬ signs are now being prepared and at S oou as completed will be submitted to tfi e congress by the secretary of war. 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 iiiogical and unstated to the work of tbe several departments^ The application of the rules to many of the place* so included were found 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, scientificnl or ex¬ ecutive character. These places were comparatively few in number. The or¬ der provides for the Ailing of a much larger number of places, mainly in the outside servlee of the war department, by what is known n% the registration system, under regulation to be approved by the president, similar to those which Pave produced such admirable results in tlm navyyard service. Great Opportunities. Presented to this congress are great opportunities; with them come great responsibilities. The potyer confided to us increases the weight of our obliga¬ tions to the people, and we must be pro¬ foundly sensitive of them as we contem¬ plate the new and grave problems which confront us. Aiming only at the pub¬ lic good, we cannot 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 the United Statos, and to iuure to the com¬ mon interest and lasting honor of our country. Never has this nation bvd more abundant cause than during the past year for thankfulness to God tor manifold blessings and mercies, lor which we make reverent acknowledg- ment. William McKinley. Executive Mansion, Dec. 5, 1899. If you wish to keep up with all the happenings of the day, at home »ad abroad, subscribe for this paper.