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Show PRESIDENT IcMlffS MESSAGE. I The Chief Executive Presents His Annual I Budget to Congress. H Reviews tlio War nnd Presents ttie Situation In Cuba Is Miito ReRnrd- B Iur tlio Future Policy In tlio Philippines Favors lucrcaso In tlio StandltiK Army and tlio Mutcrlti Out of Volunteers B Fifteen Now Fighting Ship to bo Hullt Decrease fl In Internal Rovcnuo and General Postal fl Returns Hawaiian Customs. I Ts the Senate and IToase ol Iieprt- I I sentatlves: B Notwithstanding tho ndd burdens B rendered necessary by the war, our B people rejoice In ft very satisfactory B and steadily Increasing degree ot pr.is- B perlty, evidenced by (ho Hrgest vjlurai" B of business ever recoided. Every menu- facturo hag been productive, ngrlcul-B ngrlcul-B ture pursuits have yielded abundant re. turns, labor In the tlelds of Industry ii H better rewarded, revenue li-nlslatlon HI passed by the prent Congress has In-BJI In-BJI creased tho trMsury'n rcclpts to this fll amount estlmattd by Its authorities, the HI finances of the givernmeht haie been HJ successfully administered and its credit M advanced to the first rink, while Its Bj currency has been maintained at tho BJ world's highest standard. Mllltaiy rer-BJ rer-BJ vice under a coniiinn dig and for ft. H righteous cauio has strengthened tho national spirit nd served to cemint M more closely than ever the fraternal H bonds between every section of the BJ country. A re lew of the relation of the H United States to other powers, always BJ appropriate Is this year of primary Im-BJ Im-BJ portance In view of the momentous H Issues which have arisen, demanding In H one Instance the ultima's determination M by arms, and Involving far7reachlng H consequencles which will rcqulra the H earnest attention of the Congress. BJ DUTY TOWAHD SPAIN. fl In my last annual messtge, very full Bi consideration was glvn to the qustlon Bsi of the duty of the government of the Bi United States toward Spain, and the Bsl Cuban Insurrection, as being by fir the Bi most important problem with which we Bsl were called upon to de il. The con- Bsi slderatlons then advanced, and the cx- osltlon of the views therein expressed, Isclosed my sense of the extreme gravel grav-el Ity of the situation. Settlnit aside, as Bsl logically unfounded, or practically Inad-Bi Inad-Bi fnissable, the recognition ot the Cuban Bsl Insurgents as belligerents the recog-Bl recog-Bl nltlon of the Independence of Cuba, neu. Bsl tral Intervention to end the war by Im- ? losing a rational compromise between he contestants, Intervention In favor of M one or the other party and the forcible fll annexation of the Island, I concluded It Bsl was honestly due to our friendly rela- Bsi tlons with Spain that Mhe should be Bsl given n reasonable chance to reallzo her Bsl expectations of reform to which she had BL1 become Irrevocably cdmmlttod within BI a few weeks previous she had an- I. nounced comprchenelve nlin. which It Bi was confidently asserted would be efflca- Bl clous to remedy the evils to deeply af- BL1 fectlng our own country, so Injurious fl to the true Interests of the mother conn- H try. as well as those of Cubi and so m repugnsn' to tho universal sentiment of BJ humanity Bfl The ensuing months brought little Bfl sign of real progress toward the paein- fl oatloh of Cuba The Amonomotu ad- fl ministration set up In -the capital nr.d Bfl gom of the principal clUei appeared H not to gain the favor ot the 'nhibltants Bfl nor to be able to extend their Influence 1 to the large extent of territory held by ttha Insurgents, while tho military arm. fl obviously unable to cope with the Mill aotlve ibelllon continued man'" of the B itnost objectionable nnd offanslv prlleles Bfl (of the government that had preceded It, fl No tangible relief was affo-ded the vast fl numbers of unhappy reconcentrados, fl despite the reiterated professions mado fl tn that regard and the amount appro- -prlatcd by Spain to that nil. Tho prof- fl Ifercd expedient of tarn at cultivation (proved Illusory. Indeed, no less prar- bbbbbI 'ii nnr tnnro .IaIusIva nruirtlses of suo- H cor coiill well have hen tendered o BM ths exhausted nnd dstitjte peonle, B (stripped of all that made 'If and hinio Bfl. idear, and herded In a stiange region H among unsympathetic tnngrs hardly H less necersltous than theinesIvei5. ftTAnVINO ItnCONCUNTItAPOrf. m By the end of December the rnortnll- M ity among them had frightfully In- B creased, Conservative estlmites from H Spanish jources placed the deaths H "among these distressed peop'i at over H I0 per osnt, from the time Clen Wey- BL1 Jer'a decree ot reconoentndoi as cn- 1 forcrd AVlth the acnulesc. n- of Spin- B lh authorities, a scheme was idopted B for relief by charitable contribution. H raised In this country and distributed H Under the direction of the i insiil genei- B 1 and the several consuls by noble and B Htrnest Inillvldual effort Mirough he or- M tanlred agencies ot tho American Tied B Uroii Thousands of Hies were thus rived M but many thousands more were Inac- Iterslble to such form of Hid I The war continued on in old footing BI without comprehensive plan, dwilopln? g nly the same spasmodic encounters, arren of strategic result, fiat had I markeil the course of the eirller ten ! 'ears of rebellion as well as the present nsurreatlon from Its start. Vo alterna. Ive save physical exhamtloi of olth- r combatant and therewl.hil the pr.it- H tlcal ruin of the Island, lay In sight, but how fur distant no one could venture 1 to conjecture B DE5STHUCTION OP THH MAINI3. BJ At this Juncture, on the 15th of fll February last, occurred the fl destruction of 'the battleship Maine, fl 'while rightfully lying In the harbor ot H IliAnna on a mission of lDtermtlon.il M oourttey and good-will, a catsrtrophe ssssl 4tin niinlrlnlla niAtur and huriur cit M which stirred the nation's heart jiro- H foundly It Is a striking evidence of fl (he ptlse and sturdy good keirse dls- H tlngulhlng our nitlnnal clraraoter that fl this thickJng blow, Pilling ujion n gen- H arous people, already deeply toudiwl fl by prentding everia In Cuba, did ifat B mjiie them to desperate resolve to tol. fl ehste no kngr the existence ot a con- fl lilt km of danger and dlcoivler at our H doors that mado possible eunh a deed If by whomsoever wrought Yet the ln- flj rtlntt of Juatloo praiulled and 'the rw- HJ tlon anxiously awaltnl the result of the searching Investigation at ouoe set pn foot The finding of the nntul board I Uf Inquiry established that be origin II - f 'tho explosion was external by n H ubmarlno mine and onlf halted H tirough lack ot positive testimony to x the responsibility of Its authorship. All those 'tlilnsi carried oonvlallon to the most thoughtful, even btfore the finding of the nuval court, that a crisis lr our relations with Spain aril toward Cuba were at hand. So strong n this belief than It needpd hut a brief executive suggestion to the Congress Con-gress to receive Immediate aniwer to the dtHy of making Instant provision for the possible and perhaps speedily probable emirgency of war, and the remarkable, utmost unique spectacle was presented of a urunlnraus vrto of both houses on the 9th of March, appropriating ap-propriating fifty million dollars,"for the national defense and for each and every purpose connected therewith, to be expended at the dtcreMon of ihe President." Pres-ident." NOT rtJDADY FOIt WAIl. That this act of vovlslion came none too soon wus dlsoloied when the application ap-plication ot the fund was undertaken. Our forts were practically undefended. Our rovy needed large provision for Increased ammunition and iuppllesand even numbers, to cope with ny sudd-en attack from the ny of Sruln, 'which comprised modern, itsstTj of the high-est high-est 'type of co-nth1 filial perfection. Our army also required cntarge-ment of men and munitions The details of the hur. rled preparation for the decided contingency contin-gency is told In the reports of the srcretAirles of war and ot the r-avy nrad need not be repeated here It Is sufficient suf-ficient to say that the outbreak of war, when it did come, found our ruitlon not unprepared to meet the conflict. Nor was the apprehension of coming strife confined to our own country. It won felt by the contingent lowers, which on Aplrl 6th. through their ambassadors am-bassadors and envoys, addressed to the executive an expression of hope that humanity arjd moderation m'ght mark tk aa.a nf t.4 mv,mmlnt tirul n0 the course ot tnu government unu people peo-ple land that further negotiations would ltiad to n attempt which, while Becur-lng Becur-lng the maintenance ot peace, would afllrm all necessary guarantees for the re-esbabllshment of order In Cuba. In responding to that presentation I also shared tho hope that the envoys had expressed that peace might be pre- i nerved In a manner to terminate the chronic condition of disturbance In Cuba, ro Injurious and menacing to our Interests nnd tranquility, as well as shocking to our sentiment's of humanity, humani-ty, and while appreciating the humanitarian humani-tarian and disinterested character of the communication they had udopted on behalf of the powers, it had etated tho oonfldenco ot this government on Its pant that equal appreciation would be shown for Its earnest and uraelflsh endtavors to fulfill a duty of humanity humani-ty by ending a situation, the Indefinite prolongation of which had become Insufferable In-sufferable RECOGNITION OP CUP-A. Still animated by tho hope of a peace-ful peace-ful solution and obeying the dictates ol duty, no effort was relaxed to bring about a speedy ending of thn Cuban struggle. Negotiations to this effect continued actively with the government govern-ment of Spain looking to the lmmedlaU conclusion ot a six months' urmlstlcs In Cuba with a view to effect the recog- I nltlon of her people's right to Independence. Indepen-dence. Besides this, the Instant revocation revo-cation of the order of reooncerrtratlon was asked, so that the sufferers returning return-ing to their home and aided by united unit-ed American and Spanish effort, might be put in a way to support themselvci and by orderly resumption of the well-nigh well-nigh destroyed productive energies ol tho lflland. con'rlbute to the reitoratlor of Its tranquility and well-being Nego. tlatlorvs continued for ome little t!m at Midid, resultt-.vf In offers by th Spanish goverrmert which could nol but be regirded as In-adequate It wai prored to confld he prepiratlcn ol ppaeo to the Iniular pirlliment, yet to Tie conienou unuer ino nuionnoui decrees of November, 1837 but " houl Impairment In onv wise of the conM-tutlnnal conM-tutlnnal powers of the Madrid golem-men', golem-men', which to that end would grant an armistice. If sollnlted by the Insur-rents, Insur-rents, for such time is thi g-nenl in chief might e fit to fix TIow und with what soope of dlcretlomry powers the Insular narllwient w i cxpented to wt about the "prepiratlon" of peace, dW not apepir. If It was to be by negotiation ne-gotiation mUth the Irnureente ''he lsn seemted to ret on the side wHh a Uidy cho-wn by thit faotlon of the electors In the districts under Spanish control and vn the other w th the Insurgent population holding the Interior country, coun-try, unrepresented In the so. called parliament, par-liament, nnd defiant nt the suggestion of suing for peace SPAIN '8 CALIXJUSNnsq Grieved and disappointed at this barren outcome of my sincere endeavors endeav-ors to Teach n practicable solution I felt It my duty to remit the whole question to tho Congress. In the message mes-sage of April 11, 1608, I annouced that with this last overture In the direction of Immediate peace In Cuba und Its disappointing reception by Ppaln, tho ctrort of the oxecutlve was brought to an end I again reviewed the alternative alterna-tive course of action which I had prepared, pre-pared, concluding that Ihe only consonant conso-nant wth International policy and compatible com-patible with our firm-sot historical tra-oMtJonfl tra-oMtJonfl was Intervention a a neutral to stop tho wnr and check the hbpoless saoTnllce of life, even though that resort Involved "hostllo. constraint upon bath the parties to the contest, as well tn en-forco en-forco it truce as to guide the eventual settlement " iNTnnnsTS or humanity The grounds Justifying that tep were t.lo Intoieet of humnnMy, the duty to protect life and property of our citizens citi-zens In Cuba; tho right to check Injuiy to our oommerco amd people through the devastation of the Island, and. most Important, the need of removing at ooee nnd forever the constant memrt and the burdens entailed upon our gov ernmervt by the uncertainties und perils of the situation caused by the unendur able disturbance In Cuba, I iwld "The long trial has proved tha1' tho objert tor which Spailn has waged the war cannot ba attained. The fire of Irwur rectlon may flame or may smoulder with varying seasons, but It has not been and it Is plain that It cannot 1m extinguished by present methods The only hope of relief nnd reposo from a condition which can no longer bo on-duied on-duied Is tho enforced pacification of Cu? ba. In the rame of humanity, In thi mime of clviritatlon, In bthilf of endan gered American lntcrets, which give ui the right and duty to speak and to act the war to Cuba must stop." In view of all this the Congress waf asked to authorize and empower thl I'rtsldcnt to take measures to securf a full and final termination of hostlll-tlc hostlll-tlc between Spain and the pc-jple ol Cuba, and to pecure In the Island the cstabllnqnie-tit of a stable government capable of maintaining order and Ob eervln Its International obligations Vijsurkng peace and 'tranquility and tht secmlty ol Its citizens as well as our own, and for the accomplishment of thoce ends to use the military and naval na-val forces of the United States- as nrlght be necessary with added authority author-ity to continue gemrous relief to the starving people of Cuba VUIIDICT OP CONOlllJSS Th-s response of the Congress, after nine days of earnest deliberation, during dur-ing which the almost unanimous sentiment sen-timent of your body was developed en every point save as to tho expediency of coupling the proposed au'.lc-n with n formal recognition of the republic of Cuba as the true nrd lawful government govern-ment of that Island a propw.lon which failed of adoption -the congress, after conference, on the llth of April, by a vote of forty-twro to thirty-four in the Striate and 311 to six In. the House of Itepreserj.a lives, passed the memorable memor-able Joint resolution declaring: "First, tht the people of the Island oi Cuba are nrd by right ought to be free and Indcpendert. "Seciud. that It Is the dL-'y of the Urn ted States arjd the government ot the UrA.cd Mutes hereby demands that the government of Spain nt once relinquish re-linquish Its authority In the Islind of Cuba and "Withdraw Its land und naval forces from Cuba and Cuban waters. "Third, that Uie President of the United Stutto be and Is hereby directed and empowered to use the entire land nnd raval forces of the Unted 8ts es the mllltla of the several etateo, to such cxtemt s may bv necweary to carry these resolutions into effect. 'Tourth, that the Un.ted States hereby here-by disclaims any dUiAjsKlon or Intention Inten-tion to exercise sovereignty, Jurisdiction Jurisdic-tion or control over said Island, except ex-cept for the pacification thereof, and assarts Us determination when that Is accomplished to leave the government ' and control of the Island to Ha people." MINIBTE11S WITHDItAW. This resolution was approved by the executive or, the next day, April 20. A copy was at once communlcc.ed to the Spanish tnlnln.ar at this capital, who forthwith announced his contlnuarce i In Washington had thereby become 1m-i 1m-i possible aui aked for his pasapom, I which were given him. He thereupon ! withdrew ftcm Washington, leaving 1 tho protection of Spaunh lrj.ercts hi the United States to the French ambassador am-bassador and the Auu.ro-IIungarlan minister. Simultaneously with Us communication to toe Spacish minister General Woodford, the American minister min-ister at Madrid, was telegraphed confirmation con-firmation of the text of the Joint resolution reso-lution and directed to communlcite It to the govennmen of fcpiln with the formal demand that It at ones relinquish relin-quish Its authority and government in the Island of Cuba and -withdraw It forces therefrc-.il, coupUng this demand with announcements of the IritcnitUwia of this government as to th future of tho Island, In conformity with the fourth clause of the resilutioa and giving giv-ing Spain until croon ot April 21 to reply. re-ply. The demand, although, as above shown, ottlcltlly made ki.o.Mi to tha Spanish envoy here.was not de.vered ait Madrid Aftor tha lnf u.itl.mj t,uhj General Woodford, on the msrnln'g of April 21 but buf)re he couid present ft, the Spanish minister of state nctlllsd him that upon the Pres'dent'M upproval of the Joint resolution, the Mtulrll pov-. crnmeovt, regarding ths act as equivalent equiva-lent to an evident declantlon f war," had ordered Its minister In Washington to withdraw, thsreo breaking oft diplomatic dip-lomatic relatlouj bt'tween tho two countries, and c astig ail olllcial communications com-munications bettve.-nt their respoetlvo countries. acnxral Woodford thereupon de-minded de-minded his passports and quitted Mad-Wd Mad-Wd the same day, iti.Micw or Tin: waii. Synopsis of the I'ruiiilueut l'cutnrcs of Amrrlia'i lr!uuiili at Arms. Spain, baling thus denied the de-miuid de-miuid of thn United States and Initiated tfjit complete form of rupture of relations re-lations which attends a state of war, tho cxccutlio powers authorized by the the resolutions were used by me to meet the enlarged contingency of actual act-ual ii ur between Spain and the United States. On April 22, I proclaimed a blockuda of tho northern coawt ut Cuba, Cu-ba, Including ports on saild coast between be-tween Cardenas and liatua Honda ana tne port or Clenruegos on the south coaet of Cuba, and on the 23rd I culled for volunteers to execute tht purpose of the resolution Ity my mes-tuge mes-tuge of April 26, the Congress wus Informed In-formed of the situation and I reccom-mended reccom-mended formal declaration ot the exist-ence exist-ence of a etato of war between the United States and Spain. Tho Congress accordingly voted on the same day the aot approved April 15, 1893, declaring the existence ot such war from and including in-cluding the 21st day of April nnd re-enacted re-enacted the provision of the resolution ot April 20, directing the Presldont to use ull the armed forces of the nation to carry that aot Into effect. Due notification noti-fication ot the exlsv.nce of war as uforesald was glien April 25 by telegraph tele-graph to all the governments with which tho United Statei maintained relations, in order that their neutrality might be assured during the war. The varlouo governments tesponded with proclamations ot neutrality, ea.h after its own methods. It 1s not among the least gratifying Incidents of the struggle strug-gle that the obligations of neutrality were Impartially disc Barged by all, often of-ten under delicate and dlfilcult . clrcum rjtances. In further fulflllment-of International duty, I Issued April 20, a proclamation announcing tho treatment proposed M be accorded to vessels jund their cargoes as to blockade, contraband, the exercise exer-cise ot tho right ot aubjeats and thr Immunity ot neutral flag end neutral goods under the enemy's flag Aslmllai proclamation was made by the 8pan Ish government In the conduct of hos Hlltlcs the rules ot the declaration ol Paris, Including abstention from resort of privateering, have accordingly been ibseried by both belligerents, although neither was a party to that declaration. CAX.fi TO ATtMS. Our country thus, after an Interval ot half a century ot peaco with all nations, na-tions, found Itself engaged In deadly conflict -with a foreign enemy Uvory nerve was strained to meet the emergency. emer-gency. The response to the initial call for 125,000 volunteers was Instant and complete, ni was also the result of the second call of May S for 75,000 additional volunteers. The ranks a the regular army were Increased U the limits provided by the act of Apr! 23. The enllwted force ot the navy, or the 15th of August, when it reached ttt maximum, numbered 2i 123 men and apprentices. Or hundred and threi vessels were added to Ihe navy by purchase, pur-chase, one was presented to the government, govern-ment, one leased and the four vesseli of the International Navigation, com pany, the St. Paul 8t I,nuls New York nnd Paris, were bartered In ad ltWm to these th.- rienu cutters and llehthouFO tenders were turned over t) the navy depvrtme.it and became temporarily tem-porarily n part of ihe auxiliary navy The maximum effictlve fighting force of the navy during the wnr, separated iri-o classes, was as MHws Four lautUhli of the first class, one btt'tleshlp of the seennd-ctaM two armored ar-mored cruisers: six erupt defense monitors! moni-tors! one armored ram twelve protected protect-ed cruisers! three uvprotreted cruisers; eighteen gunbmt on ditrimlte crul. iter; eleven torpedo Ui-ais, fourteen old veelB of the old navy Including menl-tors. menl-tors. Auxiliary rny Auxiliary crullers, twenty-eight ronvepted yachtsj twenty-seven converted tugsj nineteen converted colliers, four revenue cutters; cut-ters; four light-house tenders and nineteen nine-teen miscellaneous lessrts COAST DHFCNSng. Much alarm was felt along Ihe entire Atlantic seaboard lest un a. tack might be made b) the enemy Kvery precaution pre-caution was taken to prevent posslbTe Injury to our grtt cities lying along the count. Temporary garrisons were provided, drawn fron th stmte mlllt.a; Inftintcv MinA ll-ht ln.ttr1fa wrn ilrflwn Infantry and light lvtterifs were drawn from the volunteer roce About 12,-000 12,-000 troops were thus employed The coast signal service was establlehed for observing the appnach of an enemy's ship to the coast of the United States, nnd the light fiouse sen ice co-opented, which enabled the naiy department to have all portions of the Atlantic coast, from Maine to Texas, under observation. observa-tion. The nuxlHary navy was created under the authority of Congress and was officered of-ficered and manned by the naial militia mili-tia of the several elates This organization organi-zation patroHed the oat and performed per-formed the duty of a second arm of ds. fense. iiAitnons MINKD Under the direction of the cchlef engineer, en-gineer, submarine mines were placed at the mont exposed points ltefore tho war, permanent mining casemates and cable galleries had been constructed construct-ed at all important harbors Most ot the torpedo material was not to be found In the market and had to be specially manufactured Under date ot April 19, district ofilcers were directed di-rected to take all preliminary measures, short ot the uctual u fuelling uf the loaded mines to the cables and on April 22, teTegraphlo orders were Issued to place the loaded mines In position The aggregate number of mines C laced wus 1,355 nt the prlncJtial harms har-ms from Maine to California Preparations Prep-arations were also made for the planting plant-ing of mines at ceitaln other harbors, but owing to the early destruction of the Spanish fleet, these mines were not placed. The signal corps was promptly organized and performed service of the most difficult and Important character. Its opemtlons during thr war covered the electrical connection of nil coast fortifications, the etabl1shment of telephonic tele-phonic nrvl telegraphic facilities for the camps at Manila, Santiago and In Par. I to Hlco. TCiere were constructed 300 miles of line at ten great camps, thus facilitating military movements from I those points In a manner heretofore unknown In military administration, rield telegraph lints were established and maintained under the enemy's fire at Manila and later Manila-Hongkong cable was reopened CABLES itnriTTnD. In Porto Woo cable communication was opened over a discontinued route, and on land the headquarters of the command officer was kept In telegraph- Jo nnd teerhinl- oommllnlcattan 1th tho division cenrmanders on four different dif-ferent lines of operations. There was placed In Cuban waters a completely outfitted cable ship with ,war rubles and cable gear suitable bobh for the destruction bf" communications belonglng-to the enemy and the establishment estab-lishment of our own. Two ocean cables were destroyed under un-der tha enemy's batteries nt Santiago, The day previous to the landing ot General Shatter's corps at Calmanera, within twenty miles of the landing place, cable communication was established es-tablished and a cable station opened, trlvlng direct communloa'tlon with the government at Washlngtonrhls servlco wus Invaluable to (The executive In directing di-recting the operations of the army and navy With a total force of over 1,300, the loss by the disease In camp ami field, olllccra and men Included, was only five, waii nnvKNUc act. The national defense, under tho $f0,-000,000 $f0,-000,000 fund, was expended l.i larg; part by the army and navy, and the objects for which It was UBed are fully shown In the reports of the several secretaries. It was a most timely appropriation, enabling en-abling the government to strengthen Its defense and to make preparations creatly needed In case of war. This fund being Inadequate to the requirements require-ments of equipment and for the ronduct ot tho war, the patriotism of the Congress Con-gress provided tho means In the war revenue act ot June 13th by authorizing authoriz-ing a 3 per cent popular loan no to exceed ex-ceed four hundred million dollars, and by levj lng additional Impot ts and tnxus Of the authorized loan, 1200,000,000 were offered nnd promptly taken from the subscriptions ho tar exceeding the call as to cover It many times over, while preference being rf'ven tn the smaller bids, no single allotmn. exceeded exceed-ed five thousand dollars. This was a most encouraging and significant result, re-sult, showing the vast iesjttre.es of the nation and the determination of the people peo-ple to uphold their country's honor. It Is not within the province of this message to narrate the history of tha extraordinary war that tolliwed tho Spanish declaration ot April 21st, but a Drift recital of Its more salient features Is aproprlate. The first mcountor of the war. In point of date, tok place April 27th, when a detachment of tho blockading block-ading squadron made a reconnaissance In force at Matanzas, shelled the harbor har-bor fortifications, and demolished several new works In construction, MANILA'S MAY DAY. The next engagement was destined to mark a memorable epoch in maritime warfare. The Pacific fleet, under Commodore Com-modore George Dowey, had laid for some weeks at Hongkong. Upon the colonial proclamation of neutrality bo-lng bo-lng Issued and the customary twenty-four twenty-four hours' notice being jlven. It repaired re-paired to Mlrs Day, near Hongkong, whenco it proceeded to the Philippine islands under tele-graphic orders to capture or destroy the formidable Spanish Span-ish fleet then assembled at Manila. At daybreak on the 1st of May, the American Ameri-can force entered Manila biy, and, af- ter a few hours' engagement, effected tho total destruction of the Spanish fleet, consisting of ten warsnlns and a transport, besides capturing the naval station nnd forts at Cavltc, thus annihilating annihi-lating the Bpanlrh naval power In the I'acldo ocean and completely controlling tha bay of Manila, with the ability to tako tho city at will. Not a life was lost on our ships, the wounded only numbering seven, ivhllo not a vessel was materially Injured For 'his gallant gal-lant achievement the Congnss, upon I my recommendation, fitly bestow id upon up-on the actors, preferment and substantial sub-stantial teward, TONIC FOIl THE NATION. The effect of this remarkable victory upon tho spirit of our people, nnd upon the fortunes of the war, was Instant. A prestige of invincibility thuripy M taehed to our arms which fonllnueT . throughout the struggle H nforce-Clients nforce-Clients were hurried to Manila, under the -ommand of Malcr General Merrltt, und firmly established within ilht of tha capital, which lay helpless before our ztine. On the 7th day of May the gov. ernment was advised ofllelally ot the victory at Manila, and at oil's Inqulicd of commander of our fleet what troops were required The Information was ic-eelied ic-eelied on the 15th day ot May. and the first army expedition sailed May 28th, and arriied at Manila June 30th Other expeditions soon followed, the tot tl Torce consisting of 611 ofilcers and 15,-05S 15,-05S men Only reluctance to cause needless loss of life nod property prevented th- rarly ttortnlrg and capture of the clt: , nnd there" vlth the nbtoluti military occupancy of the while group. The In-surgents In-surgents meanwh.le hd rtsumed the actlie hostilities eufpended by the uncompleted un-completed truce of December. 1897. Their forces Invested Manila from he northern ami eastern side, but were constrained by Admiral Dewey and Gen. MerrKt from nttcmptng an as-saut. as-saut. it was fitting that whatever was to be dorjj In the way of deaslve operations op-erations In that quarter ihould be nc- nnmrillaho.l liv .th irtrrtnii; arm Of the compllshed by the strong arm oi tne United States alone. Obelngthe stern precept of war, which enjoins the overcoming over-coming of the adversary and the extinction ex-tinction of his power wherever assailable assail-able j the speedy and sure meaos to win a pesce, dlildcd victory was twt permissible, for no partition of the rights nnt responsibilities attending the ynforcemant of a Just and advantageous advan-tageous peace could be thought of. rolk-A'lng the cmilmg of the compre-htille compre-htille scheme of general attack powerful forces were assembled at various var-ious ixbtnts on our coast to Invade Cuba and INirta Illco, FlllST FATALITIES. Meanwhile, naval demonstration were made at several exposed points. On May 11 the cruiser Wilmington ami torpedo boat Wlnslow were unsuccessful unsuccess-ful In an attempt to ellence th Matti-r- les at Cardenas, against Matanzas, Worth llagley and four seaman falling These grrlious fatalities were strangely strange-ly enough among the very few which occuned during our naval operations In this extraordinary conflict Meanwhile, the Spanish nuval prep-o prep-o rat lor a had been pushed with greit vigor. A powerful squadron under Admiral Ad-miral Cervern, which had assembled at the Cape Verde Islands before the outbreak out-break of hostilities, had crossed the i ocean nnd by Its erratic movemrnt In the Caribbean sea, delayed our military oireratlons while baflllng the pursuit of our fleets Por n time fears nvera felt lest the Oregon nnd Marietta, then rearing home after their long voyage from Ban Francisco of over 15,000 miles, might be surprised by Admiral Cer-vera's Cer-vera's fleet, but their fortunate arrival dispelled tha apprehensions and lent much needed reinforcements Not ur.ll Admiral e,-ervera tooK refuge In the harbor of Sartlago de Cuba, about May 0, was It practicable to plan systematic sys-tematic military attack upon Antlllean jKusesaroru of Spain. Several demonsrtratlors occurred on the coast of Cuba nnd Porto Itico In preparation for the larger event. On May 13, the North Atlantic squadron shelled Snm Juan de Porto Illco. On May 80, Commodore Schley's squadron bombarded the forts gunrdlng t-he mouth of Santiago harbor. Neither attack had any mntcrlal result It was evident that well-ordered land operations op-erations were lndlepeneable to achieve a decided advantage. HOUSON'S TEAT. The next act In the war thrilled not alono tho hearts of our countrymen, but the world by Its exceptional hero-Ism. hero-Ism. On the night of June 3, Llcu llobeon, aided by seien devoted volunteers, volun-teers, blocked tine narrow outlet from Santiago harbor by sinking the collUr Merrlmao In the channel, under a fierce lire fre-ii the shore batteries, escaping es-caping with their lives as by a mlncle, l but falling Into the hands of the Span-. Span-. Inrds. It Is a moot gratifying incident of the war that the brairr of this little band of heroes was illy appreciated ap-preciated by the Spaniards, who sent a flag of truoe to notify Admiral Sampson Samp-son of their safely and to compliment them upon their daring net. They wero subsequently exchanged July 7, Jly June 7, tin- cutting of the last Cuban cable, Isolated the island. Thorc-nfter Thorc-nfter the Ipvajjon was vigorously pros, ccuted On June 10, under a heavy protecting fire, a landing force of COO marines from the Oregon, Marbluhead nnd Yankee, was effected on Guanta-namo Guanta-namo Hay, where it had been doter-mined doter-mined to establish a naval station. This Important and essential port was taken from the enemy after severo fighting by the marines who were tho flrst organized force of tha United States to land In Cuba. The position so won was held, desnlte the desperate attempts to dlslodgo our forces Hy Juno 10 additional forces wero landed and strongly Intrenched. On June 22 the advance of the invading army under Major General Shatter landed at Ilulqulrl, about 15 miles east of Santiago This was accomplished accom-plished under great difficulties, but with marvelous dispatch. MILITAUY ENGAGDMDNT. On June 23rd the movement against Santiago was begum On the 2th ths first serious engagement took place, n which the First and Tenth cavalry and the First volunteer cavalry Gen. Young's brignde of General Wheeler's division, participated, .Vising heavily. Hy nightfall, howevor, ground within five miles of Santiago was won. The nd-vantage nd-vantage was steadily increased. On July 1, a severe battle took place, our forces gaining the outer works of Santiago and HI Caney and San Juan wero taken nfter n desperate chnrge, nnd the investment in-vestment of the city was completed. The navy co-operated by shelling the town amd tho coast torts NAVY TRIUMPHS. On tho day following this brilliant achievement of our land forces, July 3, occurred the decisive naval convbit of the war. The Spanish fleet, attempting to leavs th harbor, was met by tho American squadron under command of Commodore Simpson. In less than three hours all the Spanish ships wero destroyed, the two torpedo baits sunk, and tho Maria Teresa, Almlrante Oquendo, Vlzcaya and Cristobal Colon driven ashore. Tha Spanish admiral and over 1.J00 men -were taken prisoners, prison-ers, while the enomy's loss of life was deplorably large, some six hundred perishing, per-ishing, or our side but cmo man wns lH11il -Anil nne man serlouslv wnundAd Killed ana one min pikjuijt wuunqeu Although our sliliw were repnaterdly struck, not one was seriously tnjuisd Where all so conspicuously distinguished distingu-ished themselves, from the commanders command-ers to the gunners, and the unnamed heroes in the boiler rooms, each and all contributing toward the achievement ot this astounding victory, for which, neither undent nor modern history affords a parallel In the completeness ot the evont, and the marvcUus dls- i I proportion of casualties, it would ba Invidious to single out any for special honor. Descried promotion has rewarded the more acmtplcuous aotom the rwt1nv's profoundest gratitude Is due to nil of those brave men, who by their skill and devotion In a few short hours crushed tho sea-power of Spain and wrought a triumph whost decisive-pets decisive-pets and far-reaching effects can ecarce- , ly be measured Nor can tot be unmlnd- H ful ot the achievements of our builders, H mechanics and artisans tor their skill H In thn construction of our war ships. H With h catastrophe nf Santiago, HHI Spain's effort upon the oeean virtually H censed A spurmndic effort toward tho H end Of June to send her Mediterranean fleet under Admiral Cimiirn to relieve H Mnnlli W4 abandoned, the expedition H lie'jig recalled after It had passed H through the Scuz canal The capitals H lion of Santiago followed The city wns H cloecly bcseJged by land, while the cr-'rancc of our ships Mto tha harbor cut off all relief mv that side. After a HHj ttuce to allow of the removal nf the rxm-comlKitanK protracted negotla- Vtonei continued from July 3 until July 16, when, under menace of Immediate oisrnult. the pre'imnarirs ot surrender were agreed upon SANTIAGO OCCUPIim HHH On the lTth, General Shatter occupied HHH the city The capitulation embraced the enure cistern end ot Cuba. The number ot Srunlsh soldiers surrendered was 22,000. ull of whom were subse- 1 quently norveyed to Stain at the charge H of the United States The Htpry of this successful campaign Is told In the B rerjort of the H-pr.tnrv nt wr. w hlfth bbbbbbbbbbI report of the secretary of war, which will be atd before you The Individual H ivilor of officers and soldiers was never B more strikingly shown than In the sev. H cral engagement leading to the sur- B render ot Santiago, while the prompt B movements and successive ilatorles 1 won Instant and unhersal applause, BBBJ To those who gained this complete trl- BBBJ umpli which -stsbllsh-d the asoendancy BBBJ of the United States upon land us the H fight ofT San.tago had fixed our su- BBBJ premucy on the t u ths earnest and BBBJ Meting gxulltude of the nation Is un- BBBJ sparingly due Nor should wo nlonn H renumber tho gallantry of the living; H the dead claim our tears, und our losses BBBJ ly be- tie and disease must cloud any H exuiikhonut the result and teach us to H weigh the awful cost of wnr, tiowever H rightful the cause or signal of victory H ADVANCH ON POllTO HI CO. B With the fall of Santiago the occu- H p&'tlon of Porto Illco became the next H strui'eglc necessity. 1 General Miles had previously been ru H signed to organize an expedition for H that purixMc, fortunately he was at. H ready at Santiago, where he hid nr- H rived on the 11th of July with rein- H forcements for General Shutter's army. H Wl.h these troopn, corulvtlng of 3,415 BBBJ Infantry and artillery, two companies BBBJ l of engineers and one company ot tho BBBJ I slgru! corps. Gen Miles left Guantana- BBBJ tra on July 21, having nine tiun-iwrts BBBJ convojed by the Meet under Captain BBBJ lilgglnson, with the Massachusetts BBBJ (agshlp), Dixie, Gloucester, Columblx BBBJ aud Yale the two Utter carrying BBBJ troops The exped tlon landed at Oua. BBBJ nlc.t July 25, which port was entered BBBJ nl'Ji little opposition. Here the fleet H was Joined by the AnnupolK nnd Wasp, H while the Puritan and AmphltrKe went flfl Ui fin Juan und Joined the New Or- H leans, which was engaged In blockading H that port The mujnr general com- SB mandlng was subsequently reinforced H by Gerial Schwann's brigade ot tht H Third army corps, by Gen Wilson, with, flHJ a pnU of his division, and also by Get H eral llrooke, with a part of his corps. H numbering In all 16,1173 ofilcers atrd H CAPITULATION OF PONCH. BH On July 27 he entered Ponce, one of HHJ the most Important ports In the IsVand, from which he thereafter directed, operations ot the capture ot the Island, BBJ With the exception ot encounters with BBJ the enemy at Gunyama, Hcrmlguerez, BBJ Coamo nnd Yauco, and an attack on BBJ a firco tuml-d at Cape San Juan, there BBJ was no serious resistance. The cam- BBJ tulgn wus prosecuted with great vlgcr, 1---BBJ and by the 12th of August much ot ths BBBBJ Island was In our possession u.vl tho HHHI untulslilon of the remainder was only flHflJ a mutter of a shot t time. Ait mnit of '" KHBfl tho pair .s In the Island our troops "H were omhuslastlaally welcomed. Pro. BBJ tey.atlons of lonlty to the flag and BBJ gratitude for delivery from Spanish rule BBJ met our commanders nt every stage. BBJ As a potent Influence toward peace, ths BBJ outcome of the IVirM Mean expedition BBJ was of great consequence, and generous H ooirnmentliitlon Is due to those who par H tlcipated In It. H CLOINQ CHAFTEIt OF WAlt. H The last scene of the war wus en- M acted at Manila, ha starting place. On H August 15 after a brief assault upon H the works by the land forces, In which H the squadron assisted, the capital sur- BBJ rendered unconditionally. The casual- BBJ ties were comparntliely few. By this, BBJ conquest of the Philippine Islands, vtr- H tunlly accomplished when the Spanish BBJ capicltv for reel stance wus destroyed BJ by Admiral Dewey's vlMor of the first of May, was formally sealed. To Gen BBJ eral Merrltt, h1 officers and men, for BBJ the uncomplaining ami devoted servioes, BBJ for their gallantry In action, the nation fljfl 13 sincerely gtateiui Tiieir fang voy. HHJ age waa made with singular success BBJ and the soldlirly conduct of the men, BBJ of whom many were without previous BBJ experience In the mlDlary service, de- BBJ serves unmeasured prals. BBJ Ttie total casiultles In killed and BH wounded In ths arm) during the war BBJ was ns follows Ofilcers kilted 23; en- Bfl llti'ed men killed 267. total 230, ofilcers BBJ wounded 113; enlisted men wounded 1,- BBJ 1GI' total 1,677. of the navy, killed 17; BB wounded C7; died as result of wounds fll 1; Invalided from service R. total 91. fl It will he observed that while our H navy wan engaged In two great bat- fl ties and In numerous perlloui undor- B taking In the blockade nnd bombard- Bfl menu, and more titan 60 000 of our IB ttoaps were tiansported to distant Bfl lands, and engsgr-d In assault and selga Bfl and battle, urd many skirmishes In un. Bfl familiar terr ory, we lost In luth urms of the service n total of 1 60S killed and Bfl wounded, and In the entire campaign by land and sea we did not lose u gun BJJ or a flag or a transport or a ship, and Bfl with the exception ot the orew ot the BJI Merrimac, not a soldier or sailor vvS H oaken prlmner. J flj On August 7th, forty-six days froi the date of landing of Gcneril Shatter's flj army In Cuba, and twenty-ono days Bfl from the surrender ot Santiago, ths BJ U, S, troops commenced embarkx- ll tlon tor home, and our entire forco was Bfl returned to the United States us ar!y BI as August 21th They were absent H from the United States only two H months B It Is fitting that I should bear test!- H mony to the patriotism nnd devotion of BJ that large portion of our army which, BJ although eager to be ordered to ths BJ post of greater exposure, fortunately M was not required outside ot the United BJ States. Jfl ni.. .Il'l llu.),. whnli flltev nnd IIIta SBBBBBl They did tneir wnoie uuiy, unu, iikb ssssj their comrades at the front, have earned the gratitude of the nutlon In like mm- flJB tier, the officers and men of the irmy BJH ami of ths naiy who remained In their gfljflj departments and stations of the nuvy, H performing most Important duties can- neoted with the war and wh'jsa re- quests for smlfiniK-n' in the Meld and H at sea It was cum, H 1 to refuse be. cause their services wire indispensable BJ lisre. are entltKd to Uk nifheit com. BJ liquidation. It Is my regm that t tiers BJ seems to l no prov hi hi for their suit- BJ able rscojrnejjon TltlBOTK TO URD CltOSc). In this connection It Is u pleasure to H me to montlon in isnns ot cordial np-J J Hi probation, the tlmtly and useful world c&flfl ot the Amsrloan National lted Crossn BB both In rellaf measures preparatory to BB the oamyaljrnj), In sanitary asijsajvcj j,A ' BBJbBBBBBBBBBBBBBBBBBBBBBBBbI BBBBBBBBBBSBBB s BaBaBJ BBsss! i-- - - H -jre-versl of the oampi of assemblage, BBBJ Hvd Jater, under the able and xprt- BBBI enoad leadership of tht prssldtnt ( thl BBBI society, Mlis Clara Barton, on the fields BBBI of battle and In the hospitals at h BBBI front In Cuba. Working In conjunction BBBJ with the government authorities, and BBBI under their sanction and approval, and BBBI with the enthusiastic co-operatlon of BBBI many patriotic women and soclstles In BBBJ the various states, the Hert Cron has BBBJ fully maintained lis already hlh repu- BBBJ tatlon for lntnee earneatnees and abll- BBBJ Ity to exercise the noble purposs of Its BBBJ organization, thus Justifying the confl- BBBJ dence and support whlen It has received BBBJ at the hands of the American people. BBBJ To the members and nttlcers of this to- BBBJ clety and all who nldtd them In their BBBJ philanthropic work, the sincere and last- BBBJ ing gratitude of the soldiers nml -ho BBBJ Tiubllo is due and Is freely accorded. BBBJ In tracing these events we BBBJ are constantly reminded of uir nb- BBBJ ligations to -the Divine Master for Ula BBBJ watchful care over us and His site BBBJ jruldance, for which the nation makes BBBJ reverent acknowledgment and offert BBBJ humble prayer for the continuant. of BBBI Ills m overtures or peach. H The annihilation of Admiral Cervern's BBBJ fleet, followed by the capitulation of BBBJ Hanllago.havlng brought to the Spanish BBBJ government a realising sense of the hope BBBJ lessnrss of continuing n, struggle nov BBBJ becoming wholly unequal, It made over- BBBI itures for peace through the French am- BBBJ bossvlnr who, with the assent of his BBBJ govei-iment, hnd acted as the friendly BBBJ repretentntlve of Spain's Interests dur- BBBJ ,tng the war. On the 26th day of July, BBBJ 21 Cambon presented a communication, BBBJ ivlgntd by the Duke of Almodovar. thl BBBJ Spanish minister of state. Inviting the BBBJ United States to state the terms upon BBBJ whuh It would be willing to make BBBJ jveaoe. On July 30th, by a communlea- BBBJ tlon addressed to the Duke of Almodo- BBBJ var. and handed by M. Cambon, tho BBBJ terms of this government were an- BBBJ nounced substantially In the protocol, BBBJ afterwards signed. On August 10th the BBBJ npanlsh reply, dated August 7th, was BBBJ handed by M. Cambon to the secretary BBBJ i of state. It accecpted unconditionally BBBJ the terms Imposed ast to Cuba, Porto BBBJ 'Itlco and an Island of the Ladroue BBBJ 'group, but appeared to seek to Intro- BBBJ 'duce In ndmlrslble reservations In re- BBBJ gsrd to our demand as to the Philip- BBBJ pines, Conceiving that discussion in BBBJ 'this point could neither be practlc- BBBJ 'able nor prolltable, I ell BBBJ reoted that In order to BBBJ i avoid misunderstanding the matter BBBJ lehould be forthwith closed by proposing BBBJ .the embodiment In a formal protocol BBBJ f.-of the terms In which the negotiations BBBJ (for peace were to be undertaken. The BBBJ i vague and Inexplicit suggestions of the BBBJ I Spanish note could not be accepted, ths BBBJ only reply be ig to present as a virtual BBBJ 'ultimatum a draft of the protocol, em- BBJ bodying the precise terms tendered to BBBJ ,Bpaln In our note of July 30th, with BBBJ. 'added stipulations of detail us to the BBBJ .appointment of commissioners to ar- BBBJ range for the evacuation of the Spanish BBBJ M SIGNING OF PROTOCOL. H On August 12th it. Cambon an- BBB nounced his receipt of full powers w BBBJ lrn the protocol as submitted. Ac- BBBJ ooTdlngly, on tho afternoon of August BBBJ i:th, At. Cambon, as the plenlpoten- H tlary or Spain, and the secretary of BBBJ atate as the plenipotentiary of the BBB Untied atntcs, Mgiied the protocol pro- BBBj riding: H I "ATtlcle 1 Spain will relinquish all H iclatoi of sovereignty over und title to M Cuba. H ' "Article 2 Spain will etile to the bVbVL . lUntted Suites the Island of Porto IUno B V and othsr Islands now under Spanish H laoverotgnty n the West Indies an.l also B Ian Island hi the Lndrones to bo selected sL. I by the United States. K- "Arttole J The United States will H icooupy awl hold the olty, bay and nar- H Ibor of Manila pending the conoluwlon 1 at treaty of peace which shall deter- rrtlrv the runtrol, dlnpotttlon nd gov- eminent of the rhlllpptnes." BBBJ The fourth article provided for tho H appointment of joint commissions on H ' th part of the United States and Spain H I to meet In ItUvtwi and Stn Juan, re- H epectlvely, for the purpose of arrang- itig nnd currying out the details of the B" tfUpuVattd evacuat.on of Cuta, Porto H Itlco ami other Spanish Islands In the BBBB TVest Indies. V The fifth nrtlole provided for the ap- 1 pojntment of not more than Ave com- H mlnlonera an each side, to meet at H Paris not later than Oct. 1 ami to ptxv- H eed to the negotiations and conclusions H of treaty of peace, subject to rntlfl- f abm aopordlng to the respsctrve ron- H MJtuUanal forms of the two countries. B The rtxth ind lt nrtlole provides M -that upon the signature of the proto- H Col, ht1lrt1es between the two couti- H tries should be suspended and that no- H Woe to that effect should bo g1vn as M aoon aa possible by each government H lio tho commanders of Us military and M mavl forces. H i oiosTiLTnns sitspendkd. H Immediately upon the conclusion ot H (he protocol, I Issued n proclamation of H August 12, (suspending hostilities on B th puLrt of ehe Untted Stutes. The H Ttaseesary orders to that end were at H 'root given by telegraph. The blockads H of the ports of Cuba ami ban Juan de H )Porto Itlco was In like manner raised. m Oh August 18, the muster out of 100,- BBB ppi volunteers, or as nrar that number m A was found to be practloable, was H prdered. m I On December 1, 101, 655 oRlcera and m irnen had been mustered out and dls- H uihirged from the service; 9,002 more B mill be mustertd out by the tenth of B Rhe month. Alto a corresponding num- BBB fner of generals and general staff ofll- BBB Hers navo been honorably discharged BBB (from the service. B ' ,Tho mlllt'ary committees to superln- BBB H?3 'nt evacuation of Cuba, Porto BBBJ ntlro, and the adjxeent Islands were Bj Kforthwlth appointed: BBBJ For Cuba Major Oenr-ral James F, BBBJ y.'ade, Ileo.r Admiral Win, T. Sampson, BBBJ Ats Jor Oeneral Matthew C. Dirtier For BBBJ irto lUro Major Oeneral John C. BBBJ illrooke, Itesr Admiral WlnHeld S. BBBJ pchley, II rig. Qen W. Gordon, who eoon BBBJ -afterwards met the Spanish oommls- BBBJ jsloners ut llavanu and San Juan, ro. BBBJ pecttvely. The Porto Rlcan Joint com- BBBJ mission speedily accomplished Its task BBBJ and by October IS the evacuation of th BBBJ 4 eland was completed. The United BBBJ states flag was raised over the Island BBBJ t noon thit day. BBBJ The Administration of Us affairs has BBBJ. Ibeen provisionally Instrusted to u mlll- BBBJ tary governor until the Congress shall BBjB otherwise prnvMe The Cuban jol-nt BBBB, i1gh commission lias not yet termln- BBBBJ. ted Its labors. Onlng to the dlfllcultles BBBBk, In the nviy of removing the large num-BBBB num-BBBB bers of Spanish troops still In Cuba, BBBj the evacuation cannot be completed be- BBBJ fore the first of January next. H COXIMIBSIONTmS APPOINTED. H Pursuant to the fifth article of the BBBJ protocol, I nppohvted Wm. It. rjy, late- BBBJ ly xecretary of state; Cusbinan 1C. BBBJ T'.v s, Wm. P I'rye and Oeorg Oruy, BBBJ frr.tors of the United States, and B Wh'teMw Held, to o the peace oom- BBBJ mts'.'Jnert on the fart of the United BBBJ Btatcs. Proceeding In due stou to BBBJ Paris, they there met on the first ot BBB C tuber, live eommilMlO'iMrs nlmlltarly BBB appointed on the part of Br-iln. The BBB tiegotlatinns have nMKle hopeful prog-BBB prog-BBB r-n. no that I ti t aoun to 'be 1)le to BBB il-Onlt of pear before H the Senate, wl ' - vlw r the steps BBBJ Jeid'rg i w- . 'm, I BBBJ I do not din n9 at this -Mm the gov- BBBfeBHBBBBBBBBBIBBBBBBHBB ww'M,t'' hiiwmiwi BBBBBBBBBBBBBBBflBBBBBBBi BBBaBMBBBMBfeflBBBBBU. ernmewt or the future of the new pos-Marmvs pos-Marmvs which -will come to us as the mult of the war with Spain. Such a dlseuMlon will be Appropriate after the tre-aty of peaoe rhall be ratldid. In the mnntlme, and until Congress has legislated otherwise, It will be my duty to continue the military government which hss exlst'd since our occupation and give its people secur'v In life and property and encouragement under a just and beneflcer.'. TUle. CITUAN POMCT. As oor as we are In rseaslon of Cuba a Ml hate psilfled the Island, It will be ntet esiry to give aid and direction direc-tion to this people to form n government govern-ment Air themselves. This should be undertaken at the earliest moment consistent with safety emd assured (Ulceus. (Ulc-eus. It 1s Important that our relations with these people shad be of the most friendly character nd our commercial relations close ami reciprocal. It should be our duty to assist In every proper way to build up the waste plares of the Islard encourage the Industry In-dustry of the pec le and sslf th'm M form n government which shall bo free and Independent, thus realizing the bent aspirations of the Cuban people. peo-ple. Spanish rule must be replaced by a Jut, ber.vvolent and humane govern-meK, govern-meK, created by the people of Cuba, capable -if performing all Irternatlonnl obligations nnd which shall eincourage thrift, Industry and prosperity and promote peace ami good will among all of t'w Inhabitants, whatever may have been thi-lr relatione 1n the rst. Neither Neith-er revenge nor passion should haw -t place In the mew government. Until thete Is ocinpli-te tranquility on the Island and a viable government Inaugurated, Inaug-urated, military occupation will be continued. con-tinued. WKh the exception of the rupture nl'i'i apaln. the Intercourse of the United Unit-ed SM'-js with th great family of na-tl.nx na-tl.nx has been nnrltr.1 with cordiality and the clcme of the ever-,fiil year fl is mart of the Issues that necessarily arise In the complex reU' oni uf sov-eirlgn sov-eirlgn tates adjusted or presenting no rerluus obstacles to n Ju: and honorable honor-able solution by amicable ngreement. Aitui:MiNi:A.M ciiii.i:. IMipntn llftlvrrn (lis Itrpuhllrs Hfiftrred In IliiUi.l sullen MlnUIrr fur Arlillr. tlnn. A long unsettled dispute ns to the extended boundary between the Argentine Argen-tine Republic and Chile, stretching along the Andean crests to the souUi-em souUi-em birder of the Atacama desert, the Magellan straits, nearly a third of the length of the South American continent, contin-ent, assumed an acute triage 1n the early part of the year acid afforded this government oocislon to express the hope that the resort to arbitration, already al-ready coiHemplated by ex'eitlrg i inventions in-ventions Detwccn the parties, might prevail, despite the grave dlltlcU'Ies arising In Its application. I am happy to say that nrrungemerts to this end have beern perfected, the qucctlonn of fact upon which the respective commissioners com-missioners wen- unable to agree belns in course of reference to her Urltannlc Majesty for delemilnutlon. A residual difference, touching the north-em boundary line ncrc-ra the Atacami des-i-rl, for which exlsttng treatlea provided provid-ed no adequate adjusitmer.-:, bids fair to be swied In like manner by Joint commission, upon which tho United Stutes minister at lluencs Ayres has been invited to serve an umpire In the last resort. I have found occasion to nnvrouch the Argentine government with n view to removing differences of rate charges Imposed Uon the cables of on American Ameri-can corporation In the transmission between be-tween Iluenos Ayres and the cities of Uruguay, and Brazil of through messages mes-sages passing from and to the United States. Although the matter 1a complicated compli-cated by exclusive ccincrssloms by Uru-guay Uru-guay and Hrazll to foreign wn.ianres, here Is a strong hope th.. - gooi un-ders un-ders andlnjr will be reached and that the Important channels of cwnmsrclal communication between the United Stales and the Atlantlo cities of South A"1r'a may be freed from an almost prohibitory discrimination. C'UltllENT TOriCS. Attention of Cong-ren I. Called to Various InoliUuU aud Cont.mpl.t.,1 LeeltU-tlans. LeeltU-tlans. In this relation, I may be permitted to express my sense of the ntneM of an nternMonal agreement whereby the nteronvuigs of messages over connecting connect-ing cables may be regurated on a fair basis of uniformity. The world has seen the postal system dsveloped from a Congeries of Independent and exclusive serytco Into a well ordered union, of which all countries found tho manifold benefits. It would be strange were ths nations not in time brought to realize that modern civilization which owes so muoh of its progress to the annihilation annihila-tion of space by the eleotrlo force, demands de-mands that thts all-important means of communication, a heritage of all peo-pies, peo-pies, to be administered and regulated in their common behalf. A step in thts direction was taken the International convention of 1881, for the protection of submarine cables was signed, and the day fa, I trust, not far distant when this , medium for the transmission of thought from land to land may be brought within the domain of Interna' tlocial concert as completely as In the material oarrlage ot commerce and correspondence cor-respondence upon the face of ths waters wat-ers that divide them. The claim of Thomas Jefferson Page against Argentina, which has been pending many years, has been adjusted. Ths sum awarded by ths congress of Argentina was 11,211.35. The sympathy of the Amerloan people has Justly been offered to the ruler nd the people of Austrla-IIurgary by reason rea-son of tho amiction that has lately befallen be-fallen them In the assassination of the empress-queen of that hlstorlo realm. 6TrtIKE RIOT. On the 10th of September, 1897, a conflict took place at Latimer, Perm., between a body of striking miners and the sheriff of Luzerne county and his deputies, in which twenty-two miner were killed and forty-four wounded, of which ton of the killed and twelve of tho wounded were Austrian and Hungarian subjects. This deplorable event naturally arounsrd the solicitude of the Austro-Hungarlan government, which, on the assumption thit the kill-ing kill-ing and wounding involved the unjustifiable unjusti-fiable misuso of authority claimed re-puratlon re-puratlon for the sufferers. Apart from the searching Investigation, nnd tho peremptory action of the authorities of Pennsylvania tho Federal executive took ai'proprtate ateps to learn the merits of the case. In order to be in a position to meet the urgent complaint ot a friendly power. The sheriff and his deputies, having been Indicted for murder, mur-der, were tried nnd acquitted ifter pro. rrsrted proceedings and the nenrln t hundreds of witnesses on the gt nt that ths kilMng was In the line of then otllctol duty to ui hold Hws anil preservo publlo order In the state. A represen-tifve represen-tifve of the department of Justice attended at-tended ths trials and reported Its oourst fully. With all the fams in ths piss-etan, piss-etan, this government expects to reach a harmonious undr'.andlng on the suoject with that of Austro-IIungviry. uotvrtthstandlnK the renewed olailrn of the latter after learning the ietn;it of the trial for IndemW.y for in Injure-1 I subjeota, ipuspssi -.itiu csrtiuuai iaeu,eaMSMSMi ";,'t , "" 9"-9n '( BRUSSELS EXPOSITION, Deaplts the brief meJ:Jlotted for preparation, the exhibits of this country coun-try at ths Unlvorsal Exposition at Drusssls in 197 enjoyed ,th singular dlstlneUon of larger proportion of awards, hvlig regard to the number and claries of articles entered than those of other countries. The worth of such a resut In making Known our national na-tional oapaclty to supply the worlds markets 1s obvious. Exhibition of this lnternatll character char-acter are becoming mors frequent ns the exchange of commerokil on n tries grow more Intimate nnd varied Hardly a year passes that tht-s tfuvernmmt It not Invited to national partlelpUlon at some important foreign center, but often of-ten on too short notice to permit of recourse re-course to Congress for the power and means to do so. My predecessors have suggested the advisability of providing by a genral enactment a stnndlng ppr"pTiatein for accepting such Invitations ind for representation of this country by a commission. This plan has my cordial approval, I trust the Delglin restriction fj the Importations of cattle from h United States orlglnnlly adopted ns a sanitary prersirtlor will t an early date, be mortified as to their prerent and future of nsrdshlp and dlecrlmtnnt'-rn. so as to admit live cattle under due regulation regula-tion of their slaughter after Mndlng. I am hopeful, too, of a favorable condition con-dition In the Kelglan treatmei'' of our preserved nrd salted meit The growth of direct trade between the two countries not Alone for Helglin consumption con-sumption and Ilelglan products but by way of transit from and -h-T ron-tlrntal ron-tlrntal rtates. has been t"th encouraging encour-aging and beneficial. No effort will be spared to enlarge Its adMtvtigiS by seeking the removal of relle Impediment Im-pediment and by nrrangemi'nti f r Increased In-creased commercial changes. CENTItAJi AMERICAN ItUPTt'nE. The year's events in Central America Ameri-ca deserve more than passing mention. A menacing rupture between Costa rtlca and Nicaragua was happily composed com-posed by the signature of a convention between the parties, with th- concurrence concur-rence of the Guatemalan representative representa-tive os n mediator, the act belr.g ngo-tlated ngo-tlated and signed on board th" I'n-ed State-! stenmer Alert, then lying In Central American waters, It Is believed be-lieved that the good offices of our envoy en-voy and the commander of that vessel contributed to that gratifying outci w. In my last message the sltuatlor was presented with respect to the d'plo-matlo d'plo-matlo representation of this gorn-ment gorn-ment in Central America, cre-itnl by the seioclatlon of Nicaragua Honduras Hon-duras and Salvador under thr tl'le of the Greater Republic of Certrnl America Amer-ica and the delegation of thlr lm er-ratlonal er-ratlonal funotns to the dle-t thereof. While the representative character of the diet was recognized by my predecessor prede-cessor and has been confirmed during my administration by receiving Ks accredited ac-credited envoy and grauted exquators to consuls canilrg under Its authority, Lhat recognition was qualified by the distinct understanding that the responsibility re-sponsibility of each of the comiwnent sovereign republics toward the United States are made wholly unaffected. This proviso was needful. Inasmuch as the compact of the three republics was at the outset an association whereby where-by certain representative functions were delegated to a trlparte commission, commis-sion, rather than a federation possessing possess-ing oentrwlWed row" f sovernmetvt and the administration. In this view of this the relation of the United States to the stveral republics, n chan-ge In the representation of this country In Central America was neither neith-er recommended by the executive or Initiated by Congress, thus leaving one of our envoys accredited as heretofore separately to two states of the Greater Republlo Nicaragua and Salvador, and to a third state, Costa Illca, which was not party to the compact, while our other envoy was similarly accredited to the union stated as Honduras and a non-union stated as Guatemala. Ths result has been that the one has presented pre-sented credentials only to the president of Costa Rica, the other having been ll 1.UMH 1MVH HID VI1ICI IMV,HK UCCU received only by the government of Guatemala. UNTTED STATES JUNIOR. Subsequently, the three associated re. publics entered Into negotiations for making the nteps forecast in the origin, al oompodt. A convention of thelc dele. gates framed for them a federal constitution consti-tution under the name of the United States ot Central America and providing provid-ing for a Central Federal government and legislature. Upon ratification by eonnlMutclt states, ths first ot November Novem-ber lst, was fixed for the new system to ro Into operation. Within a. few weeks thereafter, the plan was severe. ly tested by revolutionary movements arising, with a consequent demand for unity ot action on the part of the military mili-tary power of the federal states to sup. press them. Under this strain thl union seems to have been weakened through the withdrawal of Its mors lm. poreant members. This government was not officially advised of the Installation Instal-lation ot the federation and tutu maintained main-tained an attitude of friendly expectancy, expectan-cy, while in no wise rellnqultOitng ths position held from the outset that the responsibilities of the stvesal states toward us remained unaltered by their tentative relations among themselves. CANAL COMMISSION. The Nicaragua, canal commission, under un-der trie championship ot Rear Admiral John G. Walker, appointed July 21, lfr7, under the authority ot a provision In the sundry civil aot of Juns 4, of tfhat year, has nearly completed Its la. bors and 'the results of Us exhaustive inquiry Into tho proper route, the feasl-bitty feasl-bitty and tht coat of construction ot nn Inter-ooeonlc oonal by n Nlcuraguan route, will be laid before you. In the performance of Its work the commission commis-sion received all possible courtesy and assistance from the governments ot Nicaragua and Costa. RIou, which thus testified their appreciation of the Importunes Im-portunes of giving a speedy and practical prac-tical outcome to the pr -Ject ttoat has for so many years engrossed the attention atten-tion exf h respective countries, At the scops ot recent Inquiry em-braced em-braced the whole subject with the aim of making plans and surveys for a cuna.1 by the most convenient route, It necessarily Included a review of the. results of previous survtss and plans, and in particular those adopted by the Maritime Cnnal company under Its existing ex-isting concessions from Nicaragua und Costa, Rica, so that to tli's extent these grants necessarily held an essential part In the deliberations vcd conclusions conclu-sions ot tine canal commission as they havi held and must needs hold In the dliKusslon ot the matter ly Congress. Under these olrcumstaeices, and In vlaw of overture mode to the vernmenta of Nicaragua and Costa U n by other parties for a ntw canal om rsslon pred. Icated on ths assumed npprouchlng Vapse ot the pontraota uf the Maritime Canal company with ii g, states, I have not hesitated to expn-ss my con vlotlon.t that' considerations ot expediency expedi-ency and InHern-Homil pol. . as between be-tween the several governments Inttreat ed in me uttnstriuniv . u I .-ontrol ol an Irtter-oceanlc oanal by this route, require the maintenance nt the status quo, until the oarwl commission shall have riorted und the linked Ssatei Congress ltoall have hkd the opportunity opportuni-ty to pass finally upon the whole mat. ter during the present session without i ""'''5 wsiT7JflK'ioti iSMiwisRS; pTeJudlcs by reason of any change in the existing oocdltlons. Nevertheless, It appears that the gov-eminent gov-eminent of Nicaragua, as one ot Ks last sovereign acts before merging Its powers In these of the newly formed United Slates of Central America, has granted sn optional concession to another an-other association to become effective en the expiration of the present grant. It does rrat appe'tr what surveys have been made or what route Is proposed under this contingent granted to that nv. examination of the feasibility of Ms plans Is neceseurlly net embraced In the report of the canal commission. All ".'hese circumstances suggest the urgency ur-gency of some definite action by the Ccngrcss at this session if the labors ot Ihe past are to be utilized and the linking of the Atlantic and Pacific oceans by a practical water way is to be realized. WATERWAY INDISPENSIDLE. Thru tho construction of such a maritime mari-time highway Is now more than ever Iiidlepe1ble to tbilt Intimate and ready Inter-communlcatlon between our east, crn and western seaboards demanded by the annexation of the Hawaiian H'unili and the prospective expansion of our Influence and commerce to the Pacific, and -'hat our national policy row more Imperatively than ever calls for Its control by this government, ore picposttlons which I daubt net the Con-gress Con-gress will duly appreciate and wisely act upon. A convention ptovldlng for tho revival re-vival of the late United States and Chilian claims commission and the consideration con-sideration of claims which were duly presented to the late commission but not considered because of the expiration of the time limited for the duration of th commission, was signed May 21th, 1S97, nnd has remained unacted upon by the Senate, The terms th eln fixed for effecting ef-fecting the exchinge ot ratifications having elapsed, the convention falls, unless un-less the time be extended bv amendment, amend-ment, which I am endeavoring to bring about, with the friendly concurrence of the Chilean government. in tiiu rn i:aht. Amerlr litis Not Hern an Indifferent PpretMtor nf I tin Ktienpeun KrrMtiihlr, The United States has not been nn Indifferent spectator of the extraordinary extraordin-ary event transpiring in th Chinese empire, whereby portions of Its marl-time marl-time provinces are pasilng under the control of various European powers; but the prospect that th vspl commerce which the energy of our citizens nnd the necessity of our staple productions for Chinese usis has built up In these regions, re-gions, may not be prrjudlced by any exclusive ex-clusive treatment by the new occupants, has obviated the need of our country becoming an actor In the scene. Our portion among r-'lons having a large pacific coast, and u constantly expanding ex-panding direct trade with farther Orient, Ori-ent, gives us the eaultable claim to con-side con-side ration and friendly treatment in this regard, and It will be my aim to subserve our large Interests In thit quarter by ull means appropriate to the constant policy at our government. The territories of the Klao-Chou, of Wil-Hal-Wel, and ot Port Arthur nnd Ta Lien Wan, leased to Germany .Great Ilrltaln and Russia respectively, for terms of years, will. It Is annuueed, add to International comerce during such occupation, oc-cupation, and If no discriminating treatment treat-ment of the American citizens and their trade be found to exist, or be hereafter developed, the desire of this govern-nunt govern-nunt would anepsr tn be realized. In this relation, as showing the volume and value of our exchanges with China, and the peculiarly favorable conditions that exist for their expansion In ths normal course of trade, I refer to the communication addressed to the speaker speak-er of the House of Representatives by the socretary of the treasury on the 14ih ot last June, with Its accompanying letter let-ter of the secretary of state, recommending recom-mending an aproprlatlon for a commission commis-sion to study the comerclal and Industrial Indus-trial conditions of the Chlneses empire and toieport as to the opportunities for, and obstacles to the enlargement of markets In China for the raw products and manufactures of ths Unltsd States, Action was not taken thereon during VUIIUII TsB IIW isinsit (,.- usn the late session. I cordially urge that the recommendation receive at your hands the consideration which Its Importance Im-portance and timeliness merit. PROTECTION FOR AMERICANS. Meanwhile, there may be Just ground for disquietude, in view of the unrest and revival ot the old sentiment of opposition op-position und prejudice to alien people which pervades certain of the Chinese provinces. As In ths case of the attacks upon our citizens In Scechuon and at KutUn In 13)0 the Unltsd States mln-IKor mln-IKor has been Instrusted to secure the fullest measure ot protection, both local and imperial, for any menaced Amerl-o,n Amerl-o,n Interests and -ro demand in oaso of lawless Injury o persona or property. Instant reparation appropriate to the case. Warships have been stationed at Tien Tsin for mors ready observation ot ths disorders which have Invaded even the Chinese capital, so as to be In a position to act, should need arise while a guard ot marines has been sent to Peking to afford the minister the same measure of authoritative pro-tectlon pro-tectlon as the representatives of other nations have been constrained to employ. em-ploy. CERRTJTI ARBITRATION. Following olose upon the rendition of the award of my predecessor as arbitrator arbi-trator of ths olalm of the Italian subject sub-ject Csrruti. against the Republlo of Colombia, differences arose between the parties to ths arbitration in regard to ths scops and extension ot the award, of which osrUiu literal fulfillment. Ths award having been made by the 'resident ot the United States s an act of friendly consideration and with the sols view to an impartial composition composi-tion of the matter in dispute, I oould not hut feel concern at such a miscarriage mis-carriage and, while unable to accept the Colombian theory that I, In my offl-clal offl-clal capacity, possessed, continuing function as arbitrator with power to interpret in-terpret or revise tho terms of the award, my best efforts w.cTe lent to bringing the parties to a harmonious agreement as to tho executive ot Its provisions. A naval demonstration by Italy r suited In t engagement to pay the lla-utolrlttes lla-utolrlttes claimed upv then- ascertainment, ascer-tainment, 'but this apparent disposition disposi-tion of the controversy was followed by a rupture of diplomatic Intercourse between Colombia awl Italy, which still continues, ulthough fortunately without acute symptoms having super-vened. super-vened. Notwithstanding this, efTorts are reported to bo continuing for the ascertainment of ColonVbla's contingent llabllit on account ot Cerrutl's debts, under the fifth article of the award. A ekilm of an American citizen against the Domtngan Repifbllc for n. publlo bridge over the Oznma river, which has been In diplomatic controlled contro-lled by export arbitration and an award tied by exjert arbitration nnd an award In favor of the claimant amounting to about $90,000 It, howevnr. remains unpaid, un-paid, despite urgent demands for Its settlement according to tho terms ot the compact. cnMMnnniAi, hattkhs. I'nrU VspoHltlntt Increased Apiirnprls-tlons Apiirnprls-tlons for tlm Kililbltlon of (lur Indus, tries. There is now every prospe.ot jhut ths participation of the United flutes in the universal exposition to be held in Paris In 1300 will be a scale commensurate commen-surate with tho advanoed position held by our products and Industries in tns world's chief marts. The preliminary report of Mobss P. Handy, who, under the act approved July It, 1897, was appointed special commissioner with a view of securing nil attainable Information necessary to a full and complete understanding br Congress In regard to the participation of this government in the Paris exposition, ex-position, was laid before you by my message of December 6, 1897, and showed the large opportunities to mak known our national progress In art. science and manufactures, as well as the urgent need of Immediate nnd adequate ade-quate provisions to enable due advantage advan-tage thereof to be taken. Mr. Handy'a death soon afterwards rendered 1t necessary for another to tike up and complete his unfinished work, and on January 11, last, Mr. Thomas W. Crld-ler, Crld-ler, third assistant secretary of state, was designated to fulfill that task. His report was laid before you by my message of June 14, 1898, with the gratifying grat-ifying result ot awakening renewed Interest In-terest In the projected display, liy a provision In the sundry civil appropriation appropria-tion act of July 1, 1S93, a sum not to exceed $650,000 was allotted for the organization or-ganization of a commission to care for the proper preparation end Installation if American exhibits, and for the display dis-play of suitable exhibits by the several executive departments, particularly by the department of agriculture the fish oommleslon and the Smithsonian Institution, Insti-tution, In Wie representation of the government gov-ernment of the United States. Pursuant Pursu-ant to that enactment. I appointed Mr. Ferdlniial W. Peck of Chicago mm-mlsalomiT mm-mlsalomiT general, with nn asilstant commissioner general and secretary. Mr. Peck at once proceeded to Purls, where his success In enlarging the scope and variety of the United States exhibit has been most gratifying. Notwithstanding Not-withstanding the comparatively llm't-ed llm't-ed area of the exposition Rite less than oae-half that of tne world's fair at Chicago the space assigned to the United States has been Increased from the absolute 'allotment of 1.17.101 square feet, reported by Mr. Handy, to some 202,000 square feet, with corresponding augmentation of the field for a truly characteristic representation of tho various Important branches of our country's development. Mr. Peck's report re-port will be laid before you. INCREASED APPROPRIATIONS. In my Judgment. Its recommendations recommenda-tions will call for your early considerations consider-ations erpcclally as regards an Increased In-creased appropriation to at Jenst one million dollar's In nil, so that not only may the assigned space be fully taken up by the best possible exhibit In every class, but tOie preparation and Installation Installa-tion be on so perfect a scale as to rank among the first In that unparalleled oompttltlon of artistic and Inven'tlve production, and thus counterbalance the disadvantage with which we start as compared with other countries whose appropriations are on a more generous scale und whose preparations re In a state of much greater fop.vard-ness fop.vard-ness than our own. Where our artisans have the admitted admit-ted capacity to excel, where our Inventive Invent-ive genius has Initiated many of the grandest discoveries of the later day's of the century, and where the native resources of our land are as limitless ss they are valuable to supply the world's needs it la our province, as it should be our eariwet care, to lead In the march ot human progress and not rest content with any secondary place. Moreover, if this be due to ourselves. It Is no less due to the great French na-tlon, na-tlon, whose guests we become, and which has In so many ways testified Its wishes and hope lhat cur participation shall befit the place the two- peoples have won In the field of universal development. de-velopment. INCRDASED COMMERCIAL OUTLOOK. OUT-LOOK. The commercial arrangement made Tlth France on May 28, 1898, under the provisions of section 3, of the tariff act of 1897, went Into effect on June 1st, following. It has relieved a portion oj our export trade from serious embarrassment. embar-rassment. Further negotiations are now pending under section 4, of the same act, with a view to the Increase of trade between the .two countries to their mu. tual advantage. Negotiations with other oth-er governments, In part Interrupted by the war with Spain, nre In progress under un-der both sections of the tariff act. I hope to be able to announce some of the results, of these negotiations during the present session of Congress. Negotiations to the same end with Germany have been set on foot. Meanwhile, Mean-while, no effort has been relaxed to convince the Imperial government of the thoroughness of our Inspection of pork products for exportation, and It is trusted that the efficient administration administra-tion of this measure by the department of agriculture will be recognized as a guarantee of the healthfulness of ths food staples we send abroad to countries coun-tries where their uses la large and tecessary. GERMANY'S FRUIT BOYCOTT. I transmitted to the Senate on Febru. ry 10th last, Information touching the prohibition against the Importation of fresh fruits from this country, which had been recently decreed by Germany on the ground of danger of disseminating disseminat-ing the San Jose scale Insect. This precautionary pre-cautionary measure was Justified by Germany on the score of the drastic steps taken In several states of tho Union against the spread of the pett, the elaborate reports of the department to Oerman fruit growing interests should the scale obtain a lodgment tn that country. Temporary relief was at-forded at-forded In the case of large consignments ot fruit then on the way, by Inspection, and admission when found non-Infected. Later the prohibition was extended to dried frultB of every kind, but was re-laxed re-laxed so as to apply only to unpeeled fruit and fruit waste. As was to be ex. pscted, ths alarm reachetl to other countries, coun-tries, and Switzerland has adopted a, similar Inhibition. Efforts aro In progress to Induce the Oerman and Qwlss governments to relax the prohibition prohibi-tion In favor ot dried fruits shown to have been cured under circumstances rendering tho existence ot Animal lite Impossible. ItKLATIONH Willi POlVliltS. rlbute to Comal Itaimden HUpates with Canmla-llnwall Is Willing. Our relations with Great Britain have continued on the most friendly foot-log. foot-log. Assenting to our request, the pro-tictlon pro-tictlon ot Americana and their Interests In Spanish Jurisdiction was assumed by the diplomatic and consular representatives representa-tives of Great Britain, who fulfilled their delicate and arduous trust with tact and zeal, eliciting high commendation, commenda-tion, I may bo allowed to make fitting fit-ting allusion to the Instance ot Mr. Ramsden, her majesty's consul at Santiago San-tiago de Cuba, whose untimely death, after distinguished service and untiring efforts after the siege of that city, was sincerely lamented. In tho early part ot April last, pur-suant pur-suant to a request made at the Instance of the secretary ot state to the British ambassador at this capltol, tho Canadian Canadi-an government granted facilities for the passage for United States revenue cutters cut-ters from ths great lakes to the Atlantic ooast by way of the Canadian canal and tit. I.awrenca river. The vessels had reached Lake Ontario and were there uwaltlng the opening of navlgatlpn when war was declared between tnsl United States and Spain. Her majesty's government thereupon, by a communication communi-cation ot the latter part of April, stated stat-ed that the permission granted before ihe outbreak of hosltltles would not be withdrawn, provided the United State government give assurance that th vessel In question would proceed direct o a United States port without en- -aging In any hostile operation. This overnment promptly agreed to tho tlpulateu condition, It being understood hat the vessel would be prohibited from reentlng any hostile attack. CANADIAN QUIBBLES, It will give mc special satisfaction if I etull be authorized to communicate to vu a favorable conclusion of the-pending the-pending rtegcrtlallons with Great Britain Brit-ain In respect f the Dominion of Canada. Can-ada. It '.s tho earnest wish of th'.i government to remove all sourcts or' d-lscsjrd and Irritation In relations wlth-the wlth-the nc!gl.'rlng dominion The trado-between trado-between the two countries Is constantly constant-ly Increasing, and It ( Important to-both to-both counti'es that all rearonbde facilities facil-ities should be granted for Its development. develop-ment. The government of Greece strongly-urges strongly-urges the onerousness of the duty hers-imrosed hers-imrosed upon the currants of that country, umourtlng to 100 per cent, or mere of thi-'r market value. This fviilt Is elated to be exclusively a Greek-product, Greek-product, not coming Into ccenpetltioni with any domestic pt'Jduct. The question ques-tion of reclprjcfll commercial relations! with Greece, in-ludlng the restoration of currants to thp free list, is under con-rtderatlon. con-rtderatlon. The Vmg r.tnnillrg claim of Bcrand" Campbell for damnges for Injuries sustained sus-tained from n violent nriult committed commit-ted agirni-l him by miriMry authorities in the lslsnd of Haiti has been settled by the egreement of that republic to pay him J10 000 In Amerlctr- gold. Ot this sum. IS.000 hns nlrcudy been paid. It Is hoped I hit other pending claims of American citizens artlnst that repub'.io-may repub'.io-may be amicably adjusted. ANNEXATION OF HAWAII. Pending tho consideration by the Sen- ato of the treaty signed June 16, 1897, by the plenlpotentku'.es of the United. States and the Republic of Hawull, providing pro-viding for the annexation of the Island, n Joint rerolutlon to accomplish tho same purpose by accepting the offered cession nnd Incorporating the ceded ter- itory Into the Union, was urtoptod by the Congresa und approved July 7, 1SJJ. I thereupon directed tho United Stiwtes steumeT Philadeipn'a to convey Rear Admiral XUIor to Honolulu and entrusted to his hands this important legislative aot to be delivered to the- president ot the Republlo of Hawaii, with whom the admiral and the Untted Btutcs minister were authorized to mnko- npproprlate arrangements for tnnsfer- Ing the sovereignty of the Islands to the United Sti,tea. This was simply but Impressively accomplished or. the 12th day of August last, by the delivery of a cprtlfled copy of the resolution to I Prcld"M Dole, nhn thereupon yielded , up to the representntlve c-f the govern-1 govern-1 ment of Ihe Urlted Ftates the river- elgrty and pub'.le property of fhe Ha- wn'lan Islands. Pursuant lo the terms of the Joint resolution and In exercise of ncithorUjr I thereby conferred upon me, I directed lhat the rlv'l. Jud'rlal end mlVitary powers theretofore exrrcl'ed by the officers offi-cers of the government of the Renubllo-1 Renubllo-1 of Hawaii should Mnt1nue to be exercised exer-cised by those officers until Congress- ' shill nmvlde -1 government for the in- corpented teTrlrorv itihject i mv cower cow-er to remove such officers and to fill va- ' canries. The president, officers nnAT. troops of the repirlic thereupon took the mth of alleAuic to the United i States, thus porvldlng for the uninterrupted uninter-rupted continuance of nil the administrative adminis-trative ard municipal functions of tho- , annexed territory until Congress shalT otherwise enoot. Following the further provision or the Joint resolution, I appointed the" Honorsbles Bhetbv A. Curom, of Illl-1 nols; John T. Morgan, of Alibimfi:, Robert R. Hltt. of Illinois: fVinford B. Dole, of Hawaii, and Walter F. Orler, Cf Hawaii, as com m Union ers n ponfei- " nan-mi, us commissioners to conrer and recommend tn Congress such legislation legis-lation concerning the Hawaiian Islands1 as thev should deem r-cestnry or prop-l er. The commissioners, having ful-t filled the mission oonfided to Ihem, their, report win be laid before you ait an early day. It Is believed that their rec-' ommendattons will have the earnest! ccnslderstlan due to the magnitude of the responsibility resting upon you to give such shape to the relationship of those mld-Poclfic lands to our horns urion as will benefit both In the highest high-est degree, realizing the aspirations ofi the community that has cast Its lot with, us and elected to tfhare our political heritage, while, ot the same time, Jus-- tlfylng the foresight of those who for ---, three quarters of 't century have looked, to the assimilation of Hawaii as a natural and Inevitable consummation., in harmony with our needs and In fulfillment ful-fillment of our cherished traditions. HAWAII AND JAPAN. The questions heretofore pending between be-tween Hawaii and Japan, growing outj of line allrred mistreatment of Japanese, treaty Immigrants, were, I nm pleased to tay, adjusted before the act ot trams., fur by the payment of a reasonable Indemnity In-demnity to tbe government of Japan. Under the provisions of the Jolnti resolution, the existing customs relations rela-tions of the Hawaiian Islands with the United Suites and with other countries remain unchanged until legislation ' shall otherwise provide. The consul of Hawaii, hers and In foreign countries, coun-tries, continue to fulfill tihelr commercial commer-cial agencies, while the UnPted States consulate at Honolulu Is maintained for all proper services pertaining to tradei and the revenue. It would be dcslnablei that all foreign con-suls In the Hawaiian'. . islands should receive new exequators' ficm this government. U. B. CONSULATES OEASD. The attention ot Congress Is called to the faot that our consular offices having ceased to exist in Hawaii, and being about to cease In other countries, coming under the sovereignty of the United States, the provisions for the relief and transportation of destitute American seamen in these countries under un-der our consular regulations, will, Inl consequence, terminate. It Is proper; therefore, that new legislation should be enacted upon this subject In order to meet the changed condition"!. Tho interpretation of certain provisions provi-sions of the extradition convention of December 11, lhOl, has been nt various t'mes the occasion of controversy with the government of Mexico MEXICAN EXTRADITION, An acute difference arose in the coso of tho Mexican domand for the deltv-l ery of Jesus Guerrera, who having ledl ft marauding expedition near ttie border bor-der with the proclaimed purpose of In-, Klnitlr, Insurrection against President! Diaz, escaped Into the United States Extradition was refused on the ground that the alleged offense was political In Ms character und therefore cams within the treaty provlslo of non-surrender. The Mexican oontun'tlo-n was , that the exception inly related to pure- i ly political offenses, and that as Uuer- rera's acts were admixed with the common com-mon crime of murder, nrson, kidnapping kidnap-ping and robbery. Ilia optton of nondelivery non-delivery became void, a pxaltlon which this government was unable to admit, in view of the received International doctrine and practice In ie ma'titer, M Jrr1n'l'l(0BllPfSrl'SBBsssssssssl Tha Mexican government In view of this gave notice on January 24, ISIS, of the itermlratlon of tht convention, to take effect twelv months from that date, at the same tlm Inviting the con elusion of a coruventlco toward which negotiation's are on foot. In thla relation rela-tion I may reftT ta the necessity of some amendment of our existing extradition ex-tradition statute. It common slip. ulatlA of auch treaties that neither party shall be beund to rlva up lta own citizens, that the added proviso in one of our treaties, that with Japan, that It may surrender If It ee fit it la held In this country by nn almott uniform courae of dedsJors, thatrohtre treaty negatives the obligation to surrender, the president la not Inverted with legal authority to not. The oonrirn r. of uch authority would be la the line of that sound morality wblch shrinks from affording secure asrlum to tho author of a heinous crime. Again, statutory provision might be well made for what Is styled extraflKlon by way of transit, whereby a fugH1" iurmi-dered iurmi-dered by ona foreign government to another may be conveyed acrcee the territory of th United Unt to 'A Jurisdiction of the demanding state. A recommendation In thla behalf, made In 'the President's message of 1816, was .not acted upon. Th matter Is presented present-ed for your consideration. SMUdGLING LEGISLATION. The problem of the Mexican free lone has been often discussed with regard re-gard to Its Inconvenience as a provocation provo-cation of smuggling mto the United states along an extensive line and jfchlniy-guarded land border. The effort made by the Jolr.t resolution of March I. 1195, to remedy the abuse charged by impending the prlvl'cge of .tree, trans- , irtatlon in bond across the territory jf the United States to Mexico failed 'of good resuH a 1a stated in report No. 703 or the House of Representatives, submitted in the last session, March II, 1898. As the question la one to be convenlenitly mat by wise concurrent legislation of the two countries looking iito the protection of the revenues by harmonious measures operating equally equal-ly on either aide of the boundary, rath, r than by conventional arrangements 'I suggest that Oongresa consider the .advisability of authorizing and inviting invit-ing a conference of representatives of 'the treasury departments ox the United States and Mexico to consider the subject sub-ject In all Its complex bearings and make report, with DerUnenit recom- mendatlons to the repeotlve governments govern-ments for the Information and the con-Ideraticn, con-Ideraticn, of their congresses. WATER BOUNDARY. The Max-loan water boundary oommls-irton oommls-irton has adjusted ull matters submitted (Jo It to the satisfaction of both governments govern-ments save In three important oases Ithat of Chamtzal at El Taso, Tex., ;TThre the two commissioners failed to jagree, and wherein, for this case only, 'this government has proposed to Mexico Mex-ico the addition of a third member; the proposed elimination of what are known aa "bancos," small Isolated islands , .formed by th cutting off of bend In the R.o a ran de. from the operation of the treaties of 1884 and 1889, recommended recom-mended by the commissioners and approved ap-proved by this government, but stilt I under consideration by Mexico; and the '.subject of the "equitable distribution of waters of the Rio Orande," for which the commissioners recommended on International In-ternational dam and reservoir, are approved ap-proved by Mexico, but still under con-istderatlon con-istderatlon by this government. Pending these questions it Is necessary to ex. jtend the Hfe of the commission which I experts December 26, next. ' I The coronation of the young quean of the Netherlands was made the occasion occa-sion of fitting congratulation. 1 The laJm of Victor H. McCord le-gut.-st Peru, which for a number of yen, has been pressed by this govern-snent govern-snent and has on several ocoaslons attracted at-tracted thn attention of the Congress, has been satisfactorily adjusted. A (Protocol as Igned May 17, 18S8, where-'oy. where-'oy. thn fa ' of lla'WHty being admitted, the question of the amount to be .awarded was submitted to the chief iustlc o; Canada as sale arbitrator. lis award rets the Indemnity due the I claimant at 840,000. PERU ABROGATES. The government of Peru ha given (the prescribed notification of Its Intention Inten-tion to abrogate the treaty of friendship, friend-ship, commerce and navigation, con-1 con-1 eluded with this country August 31, 1887. As that treaty contains many 'important provisions necessary to the .maintenance of commerce nnd good re-'Rations re-'Rations which oould with cTlfflculty bo replaced by the nomination of renewed provisions vltlrin me brlsf twelvo months Intervening before the treaty 'termlntutes. T hive Invited suggestions ,ly Peru as i, 'La particular provisions 'It Is desired to annul In the hope of I reaching an arrangement whereby tho I remaining articles may be provislonal-liy provislonal-liy saved. NEW AMBABSADOn. Ula majesty, the czar, having an-itiounoed an-itiounoed his purpose to raise the Im-jperlal Im-jperlal Russian mission at this capital to the rank of an enrbassy, I responded under the authority conferred by the Ikot of March 3, 1893, toy commissioning 'nnd accrediting the aotual representative representa-tive at St. Petersburg In tho capacity of ambassador extraordinary and nlenl-, nlenl-, potentlary. The Russian ambassador to i this country has since presented his tredentlals. Tha proposal of the czar for I a general reduction or tne vast mllt-' mllt-' tary establishments that weigh so (heavily upon many peoples In time of )pace was innunlcated to this government gov-ernment n1 tii an earnest ln1tatlon to ba represented In the oonference which lit 1s contemplated to assemble with a I view to discussing the means of accom-iPlalshlng accom-iPlalshlng ro desirable ta result. Ills m'a)ly s is at once informed of I the cordial sympathy of this govern-iment govern-iment with the prinolple Involved In his I exalted proposal and of tha readiness Of the United States to take part In the i conference. Tha active military force of the United Plates as measured by ICur population, territorial area and tax-bj tax-bj wealth 1s, and under any ooneelv- tble prospective conditions, must con-Imie con-Imie to be In time of peace so con-itplouously con-itplouously less titan that of the armed (powers to whom the ozaT's appeal is (especially addressed that the question ton have for us no practical Import-inco Import-inco save as marking an auspicious ,ilep toward the 'betterment of the condition con-dition erf tho modern peoples nnd the cultivation of peace nnd good will among them, and In this view It he-hooves he-hooves us as a natlo- to lend countenance counten-ance and aid to the beneiulent pro-lied. pro-lied. CLAIMfl AOAINST RUSSIA. The oCulma of owners of American (failing vessels for seizure by Russian .embers In Bering exta are being pressed E" r scbtlsment. The equities of ISie ises Justify the expectation that fasure of reparation would eventually 1)0 accorded In harmony wlith precedent and In the light of the provision at the tftot. The resolution made In my speo-j.lal speo-j.lal message of April 'fi, las4t Is renewed, that appropriation i tn to relm-Jbursa relm-Jbursa (he master nrd owners of the Russian bark Huns for wrongful ar-irest ar-irest of the master nnd detention of the 5vesl In February, l&M, by ofllosra Jbf the United (Kates dlstrldt court for the eoirthern aintrlct of MUs'islppI The .papers accompanying my message waUt Vi a JQO't mrturloU'j c&lm and Juntlfy the urgency with which M KAa Ifen presented by the gove-roment of Rinsta. 8AMOAN TROUDLES. Malletoa Laupepa, king or Samoa, died on August 23, last. According to article I of the general act of Berlin, "his auccessor shall be duly elected on. cording to the laws and customs of Ba-moi." Ba-moi." ArmngemtnU had been agreed upon between the signatories of the general ntfl Air the return of Mataafa ard the other exiled Samoan rthlefa, They were brought from Jalult by a Qarman war veissl and landed at Apia on Bept 18, last. Whether the death of Malletoa and the return of hH old-time rival Mataafa, Mataa-fa, will add to the undesirable com-pHca'tlons com-pHca'tlons which the execution of the tripartite general act has heretofore de. teioDed, rnnnln to be seen. Thn efforts ef-forts of this government will as hereto, fure be addressed towards a harmonious harmoni-ous and exact fulfilment of the terms of the International engagement to which the United Stoites became a party In 1889. CLAIM AOAINST 8IAM. The Cheek claim against Slam, afitr some five years of controversy, has been adjusted by arbitration under nn agreement signed July 6. 1897, an award ,ot 708.721 tloala (about 8187,987), with the relesae of the Cheek estate from mortgage mort-gage claims, had been rendered MarcK 21, ISO'S, In favor of trie claimant by the arbitrator, Sir Nicholas John Ilannan, British chief Jurtlce for China and Japan. An envoy from Blam has been accredited ac-credited to thin government and has presented his credential. RED CROSS AND SWITZERLAND. Immediately upon the outbreak of the war with Spain, the Swiss government, govern-ment, fulfilling the high mission It has deservedly assumed as the patron of the International Red Crosa, proposed to the United Rates and Spain thtt tthey should severally recognize and carry Into execution as a modus Vivendi Vi-vendi during the cori'tnuanoe of hostilities hostil-ities the additional artloles proposed by the International conference at Cleneva Oct, it. 1868, extending the effeots of the existing Red Cross convention of Tt.64 to the conduct of naval war. Following Fol-lowing the example act by France and Germany In 1870 In adopting auch modus vlvendl, and In view of the accession ac-cession of the Un'ited Stntei to those additional article In 1882, alJhough the exchange of ratification thereof still remained re-mained unaffected, the Swiss proposal was promptly and cordially aooepted by us -ind elmulttneously by Spain. This government feel a keeni satisfaction satis-faction In having thus been enabled to testify Ms adherence to the broad principle of humanity even amldK tho clash of war, snd It is to be hoped that the extension of the Red Cross cem-nact cem-nact to hostilities by sea aa well as on land may soon become are accomplished fact through the general promulgations of additional naval Red Cross articles by the maritime powers now parties V the convention of 1864 The Important question of the claim of Switzerland to the perpetual cantonal can-tonal allegiance of American cltlm of Owls orlgla. has not made hopeful progress toward a eolutlonv and controversies con-troversies In this regard still oontlnue. ARMENIAN TROUBLES. The newly accredited enrvoy of tlhe United States ro the Ottoman Porte carries Instructions looking to tha disposal dis-posal of matters In controversy with Turkey for a number of years. He is especially charged to press for a Just settlement of our claims for Indemnity by reason of the destruction of property proper-ty of American troubles of 1895 as well as for the recognition' of ulder claims of equal Justness. He is also Instructed Instruct-ed to seek an adjustment of the dispute growing out of the refusal of Turkey to recognize the acquired citizenship of Ottoman-Boriwi'lans naturalised In tha United States alnoe 1889 without prior Imperial content, and In the same general relation he Is directed to endeavor en-deavor to bring about a solution of the question wCilch has more or less acutely acute-ly existed slnco 1889 concerning the Jurisdiction and rlgtfts of the United Bt&tes In matters of criminal proceed-ure proceed-ure and punishment under article IV of the treaty of 1830. This latter difficulty diffi-culty grows out of verbal difference, claimed by Turkey to be eskentlal between be-tween tho original Turkish text and the promulgated translation. VENEZUELAN ARBITRATION. After more than two years from the appointment of a cohhuI of this country coun-try to Erzeroum he has received his exequaitor. The arbitral tribunal appointment ap-pointment under tlie treaty of February, Febru-ary, 1897, between Great Britain and Venezuela to dot ermine the boundary between the latter and the oolony of British Oulana la to convene at Paris during the present month. It Is n source of much gratification to this government to see the friendly resort of arbitration applied to tha settlement of this controviirsy, not alone because of the earnest part we have had In bringing about the result but alo because be-cause the two members named on behalf be-half of Venezuela, Mr. Chief Justice Fuller and Mr. Justice Brewer, chosen from our highest court, appropriately testified the continuing Interest we feel In the definite adjustment of the question ques-tion according to the etrlctest rules of Justice. The British membtrs, Lord Herschel and Sir Richard Collins, are Jurists of ro less exalted repute, while the fifth number &nd president of the tribunal, M. F. Demartens, has earned a world-wide reputation as an authority author-ity upon international law. The claim of FeUpc flcandella against Venezuela for arbitrary expulsion and Injury to his bushnes has been adjusted by the revocation of the order of expulsion ex-pulsion and by the payment of tho sum of 318,000. WESTERN COMMERCE. I havu the u tlsf action of being able to atato that the bureau of the American Amer-ican repitbllo created In li0 u the organ or-gan for promotl:.g oommerdul intercourse inter-course and fraternal relations among the countries of the Wemarn Hemisphere, Hemis-phere, has become a more efficient Instrument In-strument of the wise purpose of its founders and Is receiving the cordial support of the contributing members of the international union which are actually represented In tla board of management. A commercial dlreatory in two volumes containing a mass of statistical matter, descriptive of the industrial in-dustrial and commercial interests of the various countries, has oeen printed In English, Spanish, Portugal and Oerman and a monthly bulletin published In these four languages and dltitrlbuted in tho Latln-Ameiloan countries us well as in the United States has proved to be a. valuable medium for disseminating Information and furthering the varied interests of tho international union. During the past yar the Important work of collecting Information of praa-tlcal praa-tlcal benefit to American Industttes and trade through the ngenoy of diplomatic and consular officers has been steadily advanced, and In order to lay such data before the public with the least delay the pracJtlco was begun In January, Jan-uary, 1808, of Issuing the commercial reports re-ports from day to day as they are received re-ceived by tha department of state. It is believed that for promptitude as well as fullness pf Information the service thus supplied to our meroharJrs nnd manufacturers vlll be found to show sensible improvement arid to merit tho liberal suppoi of Congress. rnivATn rrtorntiTr. International Aerremtnt Tropoifd lle-gardlns: lle-gardlns: nietnptlnn from CaptnreDar. tag War. The experiences of the last year bring forcibly home to us a sense of the burden bur-den and the waste of war. We desire, In common with most civilized nations, to reduce to the lowest posmble point the damage suitaln! In time of war by peaceable trade and commerce. It 1s true we may suffer tn such cases lees thin other communities, but all na. pons are damaged more or less by tho state of unewelne- ami npprehen-elon npprehen-elon Into which an out break of hostilities throws the entire commercial world. It nould be our object.therefore, to minimize, so far as practicable, thla Inevitable loss and disturbance. dis-turbance. This purpose can probably be best accomplished by an international internation-al ugreetrait to regard all private property prop-erty at sea as exempt from capture or destruction by the forces of belligerent powers. The United States government has for many years advocated this humane hu-mane and beneficent principle and is now In position to recommend It to other powers without the Imputation of selfish motdves. I therefore suggest for your consideration that the executive be authorized to correspond with the governments of principal maritime powra with a view of Incorporating Into In-to the permanent law of civilized nations na-tions the principle of the exemption of bund of war, from capture or dertrue-till dertrue-till private property nt sea, not contra-tlon contra-tlon by belligerent rowers. NATION'S FINANCES. Statement nf the Recrrtary of the Trenr, nrj Gold fltnmlnnl to bo Maintained. Tha secretary of the treasury reports that the receipts of the government from all sources during the fiscal year ending June 30, 1893, Including 381,781,-223 381,781,-223 reoelved from sale of Pacific railroads, rail-roads, amounted to 3105,321,335, and Its expenditures to $143,36S,C82. There was abtalned from customs 3149,576,002, and from Internal revenue 3170.900,641. Our dutiable Imports nmnunted to 3324,73V 479, a decrease of 358,158,690 over the precedlnV year, and importations free of duty nmounted 3291.414.175, n decrease from the preceding year of $90,524,063. Internal revenue receipts exceeded those of the preceding year by 324,212,068, The total tax collected on distilled spirits was $92,546,999, on manufactured tobacco 336,230,522, and on fermented liquors 339.516.421. Wo exported merchandise mer-chandise during the year amounting to 31,231,482,320, In Increase of 3180.483,774 from the preceding year. DEFICIENCY OF $112,000,000. It is estimated upon the basis of present pres-ent revenue Ian a the receipts of the government for the year ending June 30, 1899, will be $677,374,607, and Its expenditures ex-penditures $689,874,647, resulting In a deficiency de-ficiency of $112,000,000. On the 1st of December, 1893, there was held In the treasury, gold coin amounting to $133,441,547; gold bullion amounting to $138,502,645; Oliver bullion amounting to $93,359,260,and other forma of money amounting to $451,963,981. On the same date the amount of money of all kinds In circulation or not Included In treasury holdings was $1,-836,891,604, $1,-836,891,604, In Increase for the year of $166,794,966. Estimating our population at 75,004,000, at the time mentioned the per capita circulation was $25.09. On the aame date there was In the treasury gold bullion amounting to $138,. 602,645. aOLD STANDARD. The provision made for atrengthenlna the resources of the treasury In connection connec-tion with the war, has given Increased confidence In the purposs and power of the government to maintain the present standard, and has established more firmly firm-ly than ever the national credit at horns and abroad. A marked evidence of this is found In the Inflow of gold to the treasury. Its net gold holdings on November No-vember 1, 1893. were $239,885,160, aa compared com-pared with $163,673,147 on November 1, 1897, and an lncresasa of net cash of $207,766,100, November 1, 1898, to $300,233.. 275, November 1, 1898. Tho present ra. tlo of net treasury gold outstanding, giving llabllltles.lncludlng United States treasury notes of 1890, silver certificates, currency certifications, standard silver dollars and fractional silver coin. No-vember No-vember 1, 1898, was 25.35 per cent, as compared with 16.96 per cent November J, 1897. I renew so much of my recommends., tlon of December 1, 1897, as follows: "That when any of the United States notes are presented for redemption and are redeemed In gold auch notes shall be kept and set apart and only paid out in exchange for gold. This Is an obvious duty. If the holder of a United Unit-ed States note prefers gold ami gets It from the government he should not receive re-ceive back from the United States a note without paylwr To'd fr ll ln ex" dhange. The reason for this Is made all the more apparent when the government gov-ernment Issues an lnterest-bearing dabl to provide gold for the redemption of United States nates, a non-Interest bearing debt. Surely It should not pay them out again except on demand and for gold. If they are put out In any other way they may return again, to be followed by another bond Issue to redeem them, o-other Interest bearing debt to redeem a non-Interest bearing debt." Thla recommendation is made In the belief that such provisions of law ovould 1-rrure t3 a greater degree rtihe safety of the present Mtandard and better protect our currency from the dangers to which It Is subjected from disturbance in the general business conditions of the country. In my Judgment Judg-ment the present condition of the treasury treas-ury Justifies the Immediate enactment of the legislation recommended one year ago, under which a portion of the gold holdlnge should be placed In a trust fund from which greenbacks tihould be redeemed upon presentation, But when once redeemed should mot thereafter be paid out except far gold." It Is not to be Inferred that other legislation relating o our currency Is not required. On the contrary, there Is an obvious demand for It. The Importance of adequate provision which will Insure to our future money standard related aa our money standard stand-ard now ami to that of our commercial rivals, Is generally recognized. The companion proposition that out domestlo paper currency shall be kept nafo and yet be so related to the needs of our Industries and Internal commerce com-merce as to be adequate ami responslvt to such neds Is a proposition scarcely less Important. The subject In all its parts 1a commended to the wise consideration consid-eration of the Congress. NIKAMNIIII' LINKS. Uitcuilon of Territory Makes It Imperii, tlrn for ail tmerlran Mercantile Mwrliii-. The annexation of Hawaii and the changed relations of the United Btates to Cuba, Porto Rico and the Philippines Philip-pines resulting from the war compel the prompt adoption of a, maritime policy by frequent ptearnshlp communication communi-cation encouraged by the United States under the Amerlonn Hag with the newly new-ly acquired islands, Spain furnished to Its colonies at an annual cost of about two million dollars, steamship lines communicating -with a portion of the world's markets as well as with trade centers of the home government, The United States will rot undertake to do less. It Is our duty to furnish tho PWPl of Hawaii jvKJj. facIlttlM under national control for their export nnd Import trade. It will be conceded that the present situation calls for legislation legisla-tion whlth shall ne prompt, durable and liberal. The part whloh American merchant vessels and their seamen performed In the war with Spain demonstrates that this eervlc, furnishing both pickets und the aecond line of lrfn u M. clonal necessity and should be encouraged encour-aged In every constitutional way. Details Mid methods for the accomplishment accom-plishment of this purpose are discussed In the report of the secretary of the treasury, to which the attention of the gress Is respectfully Invited. YELLOW FEVER. In my last annual message, I recommended rec-ommended that the Congress authorize tho appolntm-ent of a committee for the put pose of making systematic Investigations Invest-igations with reference to the cause and prevention of yellow fever. This mat-ter mat-ter has acquired an Increased Importance Import-ance as a result of the military occupa. tlon of the Island of Cutu and the commercial intercourse between this Island and the United States, which ve have every reason to expeot. The ani tary problems connected with our reM. tlcns with the Is'and of Cuba and the acquisition of Porto Rico are no less Important than those relating to finance, fin-ance, commerce and administration. It It my earnest desire that these problems prob-lems may be considered by competent experts and that everything may be cUne which the most recent advances ln runltury science can offer for the protection of health of our soldiers In those Islands and of our citizens who are exposed to the censers of Infection from the Importunon of yellow fever. I therefore renew my recommendation that ICve authority of Congrer miy bo given and a sut able appropratlon madi to provide for u committee ' experts to be appointed for the purpose indicated. INCHKASi: (IK Alt.MV. Approves Itrcnnimrntlrttlntt nf ttie Srcre-tary Srcre-tary of War In tint t Illrrrtlnn. Under the act of Congress, approved April 26, 1898, authorizing the President in his discretion upon a declaration of war, by Congress, or a declaration by Congress that war exists, I directed the Incrcur of the regular army to the maximum of 62,000 authorized In said act. There are now In the regular army 67,862 officers nrd men. In euld act It was provided "that at the end of any war ln which tine United States may be.com Involved, the army shall bo reduced re-duced to a peace basis by the transfer in the same arm of the service or absorption ab-sorption by promotion or honorable dla. charge, under such regulations ns tho secretary of war may etttvbllsh, of supernumerary su-pernumerary command officers and the honorable discharge or transfer of supernumerary enlisted men and nothing noth-ing contained In 'jhH aot shall be construed con-strued as authorizing the permanent ln. ciease of the command or enlisted force of the regular army beyond tht now provided by the law In force prior to the passage of this act except as to the Increase of 25 majors, provided for In section 1 hereof" The Importance of legislation for the permanent increass of the army Is therefore manifest, and the recommen. Action of the secretary of war for that purpose has my unqualified approval. Ther can be no question that uit this time and probably for some time In the future 100,000 men will be none too rrswxy to meet tho necessities of the situation. At nil events, whether that number shall be required permanently or not, the power should be given to tho 'President to enlist that force if In his discretion lit ehould be necessary, and itha further discretion should be given hkm to recruit within the above limit (from the Inhabitants of the lstandt with the government of which we are enlarged. VOLUNTEERS TO BE MUSTERED OUT. It Is my purpose to murtr out Ore entire volunteer army as soon as the Congress shall provide for the increase of the regular establishment. This will be only an aot of Justice and will be much appreciated by the brave men who left their homes and employment to help the country In Us emergency. CNION l'AOIPIU UAILKOAI). Sallifaetorj financial Outcome of the (Iot-ernmenl (Iot-ernmenl Actions lu llallroail Matters, In my last annual message I stated; "The Union Pacific railroad, main line, was v,nld under the decree of tha United Btates for the district of Nebraska, Ne-braska, the first and second of November Novem-ber of this year." The amount due the government consisted con-sisted of the principal of the subsidy bonds, 327,236,612, and the accrued Interest In-terest thereon, $31,211,611.07, making the total Indebtedness $58,443,!23,75, The bid ait tho sale covered the first mortgage Han tin.1 4hn nHr mnftaMim ftlfllm nt lien and tho entire mottgage claim of the government, principal and Interest. Inter-est. TWs left the Kansas Pacific case un-concluded. un-concluded. lly a decree of the court In that case an upset price for the property was fixed at a sum which would yield to the government only $2.-500,000 $2.-500,000 upon Its Hen. The sale at the In-stance In-stance of the government was postponed postpon-ed to Feb. 16, 1893. Having satisfied myself that the In-terest In-terest of the government required that an effort should be made to obtain a larger sum, I directed the secretary of the treasury, under the act passed March 3, 1897, to pay out of the treasury treas-ury to the persons entitled to receive the same the amjr.nts due upon all prior mortgages ifpon the middle and rastcrn divisions nf soli railroad, out of any money In the treasury not other-wise other-wise appropriated. Whereupon, the attorney general pre-pared pre-pared a petition to be presented to the court offering to redeem ald prior liens In such manner as the court might direct, di-rect, nnd praying that thereupon the Unfted States might be held to be sub-ro sub-ro gated to all rights of said prior Hen holders, and that a receiver might bo appointed to take possession of the mortgaged premises and maintain and operate 'the mme until the court or Congress otherwise directed. Thereupon Thereup-on the reorganization commltteo agreed that If said petition was withdrawn and the sale allowed to proceed on Feb. 16, they would Irtd n sum at the sale which would realise to the government tho entire principal of Its debt, $6,-S03.000. $6,-S03.000. BeHevIng that no better price could be oMalned anil upiiu.iunn iu difficulties undir which tho government would labor If it should become the purchaser of the road at a sale, ln thi absenoe of any authority by Oongresi to take charge of and operate tho road I dlreoted that upon the guaranty of o minimum hldtvhtchshould give the government gov-ernment the prlno.pal of tts debt the vale should proceed. By thla transaction transac-tion the government secured an advance ad-vance of 33,803,000, over and above tho sum which the court had fixed as the upset price and which the reorganization reorganiza-tion commit'tee had declared was tho maximum wlrtch they would pay for the property. It Is gratifying to know that the result of these proceedings against the TTn'on Pacific and the Kan-n Kan-n Paolflo lines Is that the government bras received on account nf Its subsidy claim the turn of $61 761,!!3.75, an Increase In-crease pt $18 997,161.86 over the uum which the reorB'anizatKin committee originally agreed to bid for the Joint ' properly, the government reccivlni Its whole cdolm. principal and Interest ln UnToh Pacific and the prlnelptl of tts ')bt on the Kansas Pacific railroad. COMMISSION APPOINTED. Steps had Ibeen taken to foreclose the government's Hen upon Ihe Central Taenia Ta-enia Railroad company, but before action ac-tion was commenced. Congress passed a,i act. approved July 7, 1S9S. creating a commission consisting of the secretary secre-tary of the treasury, the attorney general gen-eral and the secretary of the Interior and their successors In office) with full power to se'tle the Indebtedness to the government growing out of Iho Issue of bend 1n aid of construction of the Central Pacific rd Western Patfflo bond aided pillrond" subject to the approval ap-proval of the President. No report has yet been made to me by the commls-rton commls-rton thus crciled. Whatever action Is had Inoklng to n settlement nf the Indebtedness In-debtedness in accordance with the net referred to, will be duly submitted to (ngrcsg. NF.W IIUIMIINCI WANTKII. Dnnrttnent of .Juntlce In lllro Need of a Htnnte Domicile, I deem It my duty to call o the, attention at-tention cf Congress the condition of the present building occupied by the department de-partment of Justice. The buslnesi of that deportment has Increased greatly slnco It was established In Its present quarters. The building new occupied by It Is neither large trough nor of su'able arr-tigement for the proper accommodation of the department. The supervising architect has pronounced it ursafe and unsutted for the use tu which It Is put, The attorney general In his reports states that the library of the department Is on the iurth floor ard that nil the space allotted to It Is so crowded with books as to dangerously danger-ously overload the structure. Tho first fl'jor Is occupied by the court of claims. The building Is of an old and dilapidated dilap-idated arpearance, ttiieuUrd to the dignity dig-nity which should attach to this Important Im-portant dipaitmtnt. A proper regard for Ihe safety, comfort com-fort ood convenience .of the officers and employes would Justify the expenditure of a liberal sum of money In the erection erec-tion tvf a new building or commodious proportions and handsome appearance upon the very advantageous site nl-readv nl-readv secured for that purpose, Including Includ-ing the ground occupied by the present structure and vacant ground adjoining to that, comprising 1n ull a frontage of 201 feet on Pennsylvania avunue and a depth of 136 feet. SUPREME COURT QUARTERS. In this connection I may likewise refer re-fer to the Inadequate accommodations provided for the Supreme court In tho Capitol, and suggest the wisdom of making provision far the erection of a separate building for the court nnd Us officers nnd library upon avallablo ground near the Capitol. VOSMI. HI'MMAIIY. nailnris Daring tlio I, nt Ten Ycnrs Has Nearly Doubled. The postal service of the country advances ad-vances with extraordinary growth. Within twenty years, both revenues and expenditures of the postofllce department depart-ment have multiplied three fold. In the last ten years they have nearly doubled. Our postal business grows much more rapidly than our population. It now Involves nn expenditure of $100,. 000,000 a year, numbers 73,000 postolllces, nnd enrolls 200,000 employes. This re-markable re-markable extension of a service which is nn accurate Index of the publlo con-dltlons, con-dltlons, presents gratifying evidence of ' the advancement of education, of the Increase of communication and business activity, nnd of tho Improvement of mall facilities, leading to their constantly con-stantly augmenting use. The war with Spain laid new nnd exceptional ex-ceptional labors on the postofllce department. depart-ment. The mustering of the military and naval forces of the United States required special mall arrangements for every camp and every campaign. The communication between home and camp was naturally enger an expectant. In some of the larger places of rendezvous, ns many as 60,000 letters a day required handling. This necessity was met by the prompt detail of experienced men from tho established force, nnd by directing all the Instrumentalities of the railway mall nnd postofllce servlco so far as necessary to this new need. Congress passed an net empowering the postmaster postmas-ter general to establish an office or branch at every military camp or station, sta-tion, and under this authority the postal machinery was speedily put Into effective effec-tive operation. ACROSS THE SEAS. Under tho same authority, when our forces advanced upon Cuba, Porto Rico and the Philippines, they were attended and followed by the postal service. Though the act of Congress authorized the appointment of postmasters where necessary, It was early determined thut I the publlo Interests would lie best sun- served, not by new designations, but bv the del! nt Ttwrljnf,1 M.n r-mlll- uy the detl or experienced men familiar famili-ar with every branch of the service, and this policy was steadily followed. When the territory which was the theater of conflict came Into our possession, It be-camo be-camo necessary to re-establlih mall facilities fa-cilities for the resident population as well as to provide them for our foroes of occupation, and the former require-ment require-ment was met through the extension and application of the latter obligation. I gave the requisite authority, nnd the same general principle was applied to this as to other branches of civil administration admin-istration undei military occupation. The details are more particularly given ln the report of the postmaster general, and while the work Is only Jvt begun, It is pleasing to be able to say that the service In the territory which has coma under our control is already materially Improved. TO SWKKI' Till! HI" AS. Iteooininendatlons of the Nucretary of Nutj for More Fighting Craft. Tne following recommendations of the secretary of the navy relative to the Increase of the navy have my earnest approval: 1. Three sea-going, sheathed and cop. pered battleships o( about 13.600 tons trial displacement, carrying the heaviest heavi-est armor and most powerful ordnanoe, fur vessels of their class, and to have thn hlghttJt practicable speed, and greait rudlus of action. Estimated cost, exclusive of armor and armament, $3,-tOO.OOO $3,-tOO.OOO each. 2. Three sheathed and coppered ar. morcrd cruisers of about 12,000 tons trlul displacement, carrying Dlie heaviest armor ar-mor and most powerful ordnance for vessels of their claw, and to have tho hlglveiit practicable speed and greut radius of action. Estimated cost, ex. clustvo of armor and armament, $4,-OOO.OuO $4,-OOO.OuO each. 3. Three sheuthed and coppered protected pro-tected cruisers of about 6,000 tons trial dispkicemnt, to have the highest pntc. tlcabls speed and great radios of action, ac-tion, and to curry th most powerful ordnanoe suitable for vessei of their. class. Estimated cost, exclusive of atmv and annulment, $2,150,000 each. 4. Six shealded und coppered cruisers of about 2,500 tons trial dlap'MCement, to have the highest speed compatible with good on Islng quaWrles, greot radius of action and to carry the most powerful ordnance suited to vessels of their class. Estimated cost, exoluslvo of armament, $l,llt,600 each. REWARDS FOR FIOUTDRB. I Join with the secretary of ttw navy - t In recommending Oft the cratTeT at H admiral and vice admiral be temporarU H ly revived, to be filled by officers who H have specialty distinguished themselves, H in the war with Spain. H OTIIKIt MATTI-.IIS. H Twelfth Census t'enalnn Itntls-rntenl' 1 Ofllie llelnrns-rolille Lands and Res-' 1 J earnestly urge upon Congress the' H Importance of early legislation provid- H ing for the taking of the twelfth census, 1 This is necessary In view of the large H amount of work which must be per- H formed in the preparation of the sched-' H utes preparatory to the enumeration oil H the population. There were on the pension rolls cm H June 30, 1S93, 993.711 names, nn Increase H of neatly 18,000 over the number on thd H roll on the same day of the preccdlnn H year. The amount appropriated by thn H act of December 22, 1896, for the pay H ment of pensions for the fiscal year, IH 1898, was $110,000,000. Eight million. H seventy thousand, eight hundred nnd IJIJIJJ seventy-tj dollars and forty-six cents H was appropriated by ihe net of March H 31, 1898, to rover deficiencies In army $H pensions and repayment In the sunt H of 312,020.33, miking total of $118,032,- IB 892.79 available for the payment of pcnJ IH slons during tho fiscal year 1898, The) pjpjH amount disbursed from that sum was H $U4,C51,879.S0, leaving a bO.ince of $3,- B 431,012.99 unexpended on the 30th as. H June, 1898, which wns covered Into the IH treasury. There were 3SI) names added H to tho rolls during the year by special pjH acts passed nt the second session of ths IH Flfty-flfth Congrera, making a total ol pjpjH 6,486 pensioners by congressional en- H actments since 1861. H hTe total receipts of the patent oN H flee during the past year were $l,253,- H 948.44. The expenditures were H,031,V H 633.79, leaving a surplus of $172,314.85. pjpjj PUBLIC LANDS. H The public lnnds disposed of by tb H governmei.t dining the year reachnl H 8,463,896.92 acres, an Increase of 614,-1 H 780.26 acres over the previous year. H The total receipts from public lands! B during the fiscal year amounted to $2,- 277,995.18, an Increase of $190,063 90 ovee pjpjpj the preceding year. The lands embraced IB In the eleven forest reservations which B were suspended by the act of June i 1807, again became subject to the oper-' nUons of the proclamations of February 22, 1807, creating them, which added an' estimated amount uf 19,951,860 acres to the area embraced 1n the reserves pre- v.oufiy created, tin addition thereto; mJ two new reserves -were created duilnn the year tho Pine Mountain and Zaoaj H Ijake reservation In California, emlbraoj pjpjpj ing 1,641.604 acres and the Prescoctl pH reservation In Arizona, embracing 10,-. pH 240 acres, while the Pecos River In New H Mexico has been changed und enlarged H to Include 120,000 additional acres. H FORESTRY RESERVATIONS. H Alt the close of the year thirty tar H estry reservations, not Including those) H of tho Afognac forest and the Fish CulJ H ture -reserve In Alaska, had been H created by executive proclamation un- H der section 21, of the act of March 3,1 H 1891, embracing an estimated area ol H 4,719,454 acres. H The department of the Interior has H Inaugurated n tou system made pos- pH slble by the act of July, 1893, for a H graded force of officers In control of the H reserves. This system has only been In H full operation since August, but good H results have already been secured In B many sections. The reports received In- dlcalte that the system of patrol has no I only prevented destructive fires from gaining headway, but has diminished the number of fires. H CONDITION OF INDIANS. M The opecial attention of the Congress H Is called to that part nf the report ol the secretary of the Interior In relation H to the Five Civilized Tribes. It Is note- worthy that tho general condition of H the Indians shows marked prop, -us. H But one outbreak of n serious cn-arac- H ter occurred during the year, and thai H among the Chippewa Indians of Mlnne- H seta, which, happily, has been sup- H pressed. B White It has not yet been practicable H to enforcM all the provisions of the ad of June 2S, 1899, "for the protection of H the people of the Indian Territory and for other purposes," It Is having a snlu- H tary effect upon the nations oompoAimi tho Five Tribes. The Dawes commla-l H alon reports that the most gratifying! results and greater advance toward the' attainment of theobjectsof thegovern-i H ment have been secured ln tho past' fl year than In any previous year. I can- not too strongly Indorse the recom-l fl mtndatlon of the commission und of' H the secretary of the Interior, of thv H necessity of providing for the education H of the 30,000 -white children resident In H the Indian Territory. H DEPARTMENT OF AGRICULTURE! M The department of agriculture has H been active Inthe past year. Explorart H have been sent to many of the count H tries of the eastern and western hemli H spheres for seeds and plants that mal H be useful to the United Btates and witi H the further view of opening up market! H for our surplus products. The forestrj H division of the department is glvrhfl H special attention to the treeless regions H of our country and Is lntroducimj H spucies especially adapted to semi-arid H regions. Forest fires, which seriously H Interfere with production, especially 10 H Irrigated regions, are belnir studied) H that the losses from this cause may bq H avoided. The department Is Inquiring H Into the uee and abuse of water In H many states of the west and collecting H Information regarding the laws of H mates, tho decisions of the courts and, H the customs of the people In this re-i H gard, so that uniformity may be sew H Experiment stations are becoming H mors effective every year. The annual H appropriation of $720,000 by Congrcsei M is supplemented by $400,000 from the, M states. fH SUOAR FACTORIES DOTJHLDD. H Wide experiments have been can H ducted to ascertain the suitableness ta H soil and climate and states Air growing H sugar beets. The number of sugai' 1 factories has been doubled In the pasli H two years and the ability of the United M States to produce lta own sugar from H this source has been clearly demon-l sH st rated. 1 M The weather bureau, forecast and ob- M nervation stations have been extended,' bH around the Caribbean Sea, to glvoi ianH early warning of the approach of hur-l sUH rlcnncK from the south bcub to our! aH fleets and merchant marine. i H In ths year lsoo will occur the centenJ H nlal anniversary of the founding of th3 sllH ojty of Wuhslngton for the permanent H oupltal of the government of the UnltH sH ed States, by authority uf an act oil sH Congress, approved July 16, 1790, 1 In May, 1800, the aruhlves and gn-i oral offices of the Federal government) 1 wero removed to this place. On the!. H 17th of November, 1S00, the nation all Congress met here for the first tlma IH and aesu'med exclusive control of thi H Federal dWtrlot and olty. Thla Inter-! pH entlng event assume- all the mnro slg .ssfl nlfleance when we recall the nlrcunw sH stances attending the choosing of thai M site, the naming of tne capital ln bono H of the father of his oountry, and ths IH Intemt taken by him tn tha adoption H of prarei for Ms future development on H a magnificent scale. M BBJ Thee original pinna have been BBJ hvrougWl nut wrh a coirs tant progre-ss BBjl land a signal sueccs-s, even beyond ony- BBj Hhlng -their framers lnd foreseen. The BBj iieop ci' the pourotry qr Justly noud BBf of the distinctive biiu.:y and govern- BBJ - krnnit of tCie capital nnd t the rare In- BBBJ fetrumervta of science and education BBJ Rvhloh hero find their natural home. BBBJ NATIONAL CELnUllATiON. (A. mn-errvent Htely Inaugurated by BBJ (tlio citizens to have the anniversary BBBJ Kelebratnl with I'. it I ne ccrmnorHes, In- BBJ Icludlng perhaps the cstabllihm-eft't of a BBJ handsome permanent memorial to mark BBJ "no hliV.orlo.il an ociig,yn, nml to give BBJ ji! mora than local recognition, his me't BBBJ hvrth irsneral favor on tSie part of tha BBJ public. BBJ I rerommend 4o the Congress the BBJ pro n tins (of n appropriation for this BBJ purpose, uml the appointment of a BBj commute from lta respective bod lei. It H imltth rt-o be advlsnblo to authorize the BBBI l'resklent to appoint a committee from She country at large, which, noting with he oongrtuslonsl und District of Co- ixmbU committees, can complete the BBB iithins for an appropriate naitlonal cele- BBB 'bratlon. BBB SUNDRIES. BBB The alien contmct law la shown by BB Experience to need aome amendment; a BB ineanure providing better protection for BB nramen Is proposed, the rightful pp1t- BB cation of the eight hour law for the BB Ibennnt of falwr nnd of the prlnolple BB of orhKrutlon, nra auggested for the BB consideration, and t commend these BB pubJeoN 'to the careful consideration, of BB the Oongrcra. BB Tho several departmental reports will BB be laid l'eforo you. They give In great BB UctJll the conduct of the affairs of the BB srovernmsnt during the pant year and BB tdlsciiHj many nuretlons upon whiah the BBB ttongrees may I called upon to net. BBB WIMIAM McKINLBY. BBfl Executive Mansion, December C, BJBJJ |