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Show THE PRESIDENTS debt ta them another Interest-liearina debt. If we arc to have an era of pnsqicr-it- y we may feel no embarrassment from our prcsmit currency, but tlie danger still exists ami will be ever present menacing ns so long as the existing system continues. I concur with the secretary of the treasury that national banka lie allowed to issue notes to the face value of the bonds they have deposited and tliut the tux 011 circulating notes secured by of such deiMisIts Is reduced to 1 tier cent, js-- annum. Also tliut the authority be given for the establishment of national banks with a minimum capital of $2.1.(1110 to enable all regions to lie supplied with currency to meet their needs. I recommend that the Issue of national bank notes lie restricted to the denominations of $10 and upward. If these suggistIous I hare made shall hare the approval of Congress then I would recommend that national banks Is required to redeem their notes In gold. Spain nnl tha Caban Kebellioa. Tlie most Important problem with and hororable alike to Hpalii and the Cuban people. These instructions recited the character and duration of the contest, the widespread losses It the burdens and restraints it Imposes UMiii us, and Its constant disturbance of national interests and tlio Injury resulting from an Indefinite continuance of things. It wag stated that at this juncture onr government wns constrained to seriously Inquire if the time was not ripe when Spain, of her own volition, moved by her own Interests and every sentiment of humanity, should not put a slop to this destructive war and make proposals of settlement honorable to herself and Just to her Cuban colony. It was urgMl that ns a neighboring nation, with large interests in Cuba, we could be required to wait only a reasonable time for tlie mother country to establish . its authority and restore lienee and order within the borders of tin Island, that we could not comem-phi- te an Indefinite period for the of these results. No solution was proposed to which the slightest idea of humiliation to 8 pain could artacli, and, iiideMl, .precise praisisals wen withheld to avoid making' them to that government. All tliut was asked or cxprosKMl wns tlint some safe way ndglit 1m? speedily provided and perina-nelieuce resum'd. It so chanced that the consideration offered wns uddressMl to the same Spanish administration which bnil the tenders of my predecessor, and which for more than two yMirs had poured men nud treasure Into Culm, In the fruitless effort to suppress the revolt, fell to others. Between the departure of (ienernl Woodford and his arrival In Spain, the statesman who had Hliapidthc lMilley of his country, fell h the liand of an assassin, ulthotigh that Cabinet received from our envoy the proposals liefore It gave way within a few days to a new administration under the leadership of Pagasta. t MESSAGE. g rvdi-ei- FINANCIAL QUESTION AND CUBA DISCUSSED. Recommended that Gold Notes Only be Paid Out for Gold- 'Banks Should be Allowed to Issue to the limit of Their Bond Deposits Denounces Spain but Wants to Give Her Another Chance Still Hopes for Some Result of the WoL one-ha- H-- Tlie tatives: It gives me pleasure to extend em-nratl- y greet- ing to tlie Fifty-fift- h Congress assem-IiIm- I in regular session at the Meat of govern meat, with many of whose and representatives 1 hnVe lscn associated lu the legislative service. under felicitous The imetlug conditions, Justifying sincere congratulations niul calling for ever grateful acknowledgment to a beneficent lrovl-dencwhich tins so signally hlraxMl and iirosH'nd us as a nation. Peace and gissl will with all the nations of the earth continue nuliroken. A matter of genuine satisfaction Is the growing reeling of frntcrunl regard of our and nnltlcation of all country, the iiuoiulrtciicss of which has too long delayed realization of the highest blessings of (lie Union. The spirit of patriotism Is universal and Is ever Increasing In favor. The pul die questions wliieh now most engross 11s lire lifted far nluive either partisanship prejudice or former Hcctiotuil differences. They affect every part of 'our ronimon country alike and iiermit of no division on ancient lines. Questions of foreign jsilley, the soundness of tin currency, the Inviolability of uatioiial oldignlions, tlie Improvement of the public service, apsnl to tlie individual Minacleuce of every earnest cilln of whatever party he belongs or in whatever K(ctlou of the count ry lie may reside. The extra session of Congress which closed during July last enacted Imwhile its full portant legislation, and realized. wluit effect lias not yet lseii it has nlready accomplished assures us of its timeliness and wisdom. To tost Its iKrniBiieut value, further time will la required, ami the isople, satisfied with Its alteration and results thus far, are In no mind to withhold fnun it a fair trial. Tariff legislation having lsen Keiths!, the question mnv iircsslng for that of the currency. coiislderntloii 1 e work of putting nur fl nances up-sound luisls, difficult ns It may when we 1. will appear easier it flniinclnl oHrn11ons of the sIijm INilil tin flu 9Htb day outstand-deiiiiui- d urn of that year we hail sum of In the llabllltlis Jnn-i,WW.447.41. On the 1st day of 1SD7, these laid been reduceil to Interest-lwnrln:,SSD,4!KIN. Of our are even more the ions llgnnjp ;at tin prinel-wn- s ISUd. 1. On July sing. 1st day On the $2.3:12,331.208. re-lsen had smn 1WSI this Inly. aeu-ato- ra OM-tir- s e, sM-tlon- s 1 re-t- he gov-nei- r. g The to $.18.1.037.100. Interest-lu- debt of the United Stales on lot iiav of Pecember, 1SD7, was ytUTABkfiai. With the great resources of the government. and with the honorable examnot ple of the past liefore ns, wen ought currency to hesitate to enter upon revision, which will make our demand our obligations less onerous, and relieve flnnuclal laws of ambiguity and doubt. The brief review of wluit was accom-to war plished fnun the clow of the distrust ISlCi makes unreasonable any of onr financial ability niul soundness, while the situation from 1803 to 1807 must admonish Congress of the Immediate necessity of legislating to make the return of the conditions then pre, vailing lnqiosslble. Evil of the Financial System. There are many plans pnqioKrd ns n the evil. Ilefore we can find tlie true remedy we must appreciate the true evil. It is not that our of every kind Is not gissl, for Is gissl, lscniiso the govdollar every reuiMly for enr-,ren- cy ernment's pledge Is nnt to keep It so, niul that pledge will not lie broken. Tlie evil of tlit present system is found In the great Mist of maintaining the parity of our different forms of money, that Is, keeping all of them at par with gold. It Is manifest we must devise some plan 1o protect the government ngnlust lsnul Issues for rcKntcd redemption. We must cither curtail tlie opKrtunity for sisculiition. made easy by the multiplied redemption of our obligations, or Increase the gold We have $!nn,OOO.nn current, which (he government, by solemn enactment, lma undertaken to keep at. par. Noissly Is nhllgiil to ndiciii In gold but the government. The banks are not required to redeem In gold. The government Is ohllgMl to keep Miual with gold all Its outstanding curare not rerency, while 11s quired to he imlil In gold. They are paid In every kind of money, but the only mentis by which the government Is by lmtrowlng. Tills Is cal get gold In so thill's of business imuic, cspis'lntly as during the administration of my predecessor, when the proceeds of $202,313.-10of Istiids were Issued to pa 3 the exHMiscs of the governineiit la excess of the revenues, and sustain llie gold reserve. With the revenue Mpial to our cxHnscs tliere would Is no deficit requiring the issue of IkiihIs. but If the "gold reserve falls Isdow how will It In replenished except by selling limn Isolds? Is there any other practicable way under existing law? if no furl her legislation Is bail, and the policy of sell re-nyr- rcix-lpt- ing ! mnds continues. then Congress should give tlie secretary of the treasury authority to sell Isolds lienring a less rate of Interest than now authorised. I recommend, ns soon as the rVeipts of the government are sufficient to pay its exjidiHCH that when any United States uotcH are hi gold such notes shall lie kept apart ami only mhl out In for gold.- This .Is an obvious duty. If they are put out lu any other way they may return again, to Is followed liv nnoiT wlucn thta government is now caned UIM111 to deal Hrtaluing to Ita foreign relations concerns Its duty toward Simln and the Cuban Insurrection. Problems and conditions more or Uhh In (0111111011 with these now existing have confronted this government at arlous times In the jmst. The story of Culm for iiinuy yenrs lias 1mhii one of unrest and gmwlng discontent, an effort toward a larger enjoyment cf Illx-rtof organised uiul resistance to the mother country, of dcpnHKlou after distress and warfare, and of settlement to be followed by continual revolt. For no enduring of InwIihI since the enfrauehisenieut the continental siss(ssioiiM of Simiu in. the Westrn continent has the condition of Culm or tlie ixdlcy of Simln toward Culm not caused concern In the United States. The pnaqicct from time to time that the weakness of Simla's hold upon the Island anil the political vicissitudes and enilairrnssmeiita of the home government might lead to the transfer of Culm to a continental jsiwer calld forth between 1820 and 1X00 various empliatic declarations of the policy of the United States to permit no withCuba and Spain unless in the direction of iiidcNndciice or acquisition. ly us through purchase, nor lias tliere lsen any change of this iHiIlcy slnco usiu the part of the government. The revolution which lM'guu In ISDN InstMl for ten 3'ears, the strenuous efforts of tlie iienlnsuhi governments to suppress It. Then, ns now, the UnitMl States t(8tlibd Its grave concern and offered Its aid to put an end to lilisid-she- d In Culm. Tlie overtures made by President (Iraut wen refused an.1 it was draggl'd on, entailing great lima of life niul treasure and Increased injury to American interrats, liesidea throwing cnhuncMl burdens of neutrality tqioii this government. The present Insurrection broke out in February, 1803. It Is not my puriiose at this time to recall Its remarkable increase, or to characterize Ita tenacious nsistaiice ngnlust tlie enormous forces mussed ngnlust It by Simln. The revolt, anil the efforts to sulKlue It, curried destruction to every quarter of the Island, developing wide proportions nud defying the efforts of Spain1 for Its suppression. Tlie civilized code of war has I men disregarded no less by the Spaniards than by the Cubans. The existing conditions cannot liut fill tills government and the American ample with Ihe gravest apprehension. Tliere Is no desire to profit by the misfortunes of Spain. We have only the desire that the Culmus lie prosperous niul contented, enjoying that measure of which is the Inalienable right of man. protected I11 their rights to reap the lieucilt of the n listless treasures of their country. The offer made by my predecessor In April. 1800, tendering the friendly offices of this governineiit, failed, and mediation on our part was not accepted. In brief, tin answer read: "There Is no effectual way to pacify Culm unless it lieglus with the actual submission of the rebels to the mother coun. to-Ja- y, s $100.-(NNi.iN- sclf-coutro- en-taih- d, l, nt de-cIIu- de-spi- te sue-ccssl- Sjsiln's Reply. self-contr- ex-h- b' pur-pom- try." Then only could Simln act In the protulsMl direction of lur own motion niul after her owu plans. The cruel Millc3' of concentration was Initiated February lit. 1.800. The productive districts controlled by the Spanish armies wen depredated, the agricultural Inhabitants were horded I11 nud alHiut garrisoned towns, their lands laid waste, anil their dwellings destroyed. This policy Ihe lute cabinet of Spaiu Justified as u iiMressary measure of war and ns a menus of cutting off supplies from the insurgents. It lias utterly failed an a war measure. It wns not ctviliaed warfare. It was extermination. Iiutnirllon Given to Mlnlater Woodford. Against the abuse of the rights of the war I have felt constrained on occasions to cn:cr the firm am; earnest protest of this government. Then wns much of public condemnation of the treatment of Aiuerienn by alleged Illegal arrests anil long Imprisonment awaiting trial. I fell iny first duty to make Instant demands fo'r ihe nlcnse of American citizens under arrest. Ilefore Ihe change of the Swinish Cabinet in Octolmr last, twenty-tw- o prisoners, citizens of the UnitMl States, had Ihcii given their freedom. The Instructions given tnuuir new minister to Spain liefore his departnre to his post, directed liitn to Impress niton that government the sincere wish of tin UnitMl States to lend Its aid toward ending tlie war In Cuba by reaching a imnccnhh and lasting result, Just ed ; Tlie reply to onr note was received Octolier 23d. It is In the direction of It apprecia I letter understanding. ates our friendly puriMises. It admits l that our country Is deeply for desires Its iMace and that the war, nre Just. It declares that the present Spanish government la liouiid by every consideration to change Its policy so ns to satisfy the United States and Iineify Culm within a reasonable time. To this end Simln has decldMl to put Into effect the iMilltleal reforms heretofore advueated by the present premier, without halting for nny consideration in the intli. which In its judgment lends to iMnce. The military operations, It said, would continue, but would be humane, and conducted with all regard to private rights, being accompanied by political nctlon leading to the autonomy of Cnlm, while guarding Spanish sovereignty. In tlie nlisonce of a declartion of the 's measures that this government to take In carrying out ita proffer of Its good olfices, It suggests that Simln be left free to conduct its military operations and grant jKilltlcal reforms, while the United States, for Its inrt. shall enforce Its neutral obligations and out off the assistance which it Is nssertMl the Insurgents mclve from this country. The supiMisitlon of an Indefinite prolongation of the war la denied. It la asserted that the western provinces nre already well nigh reclaimed, that the planting of emu and tolmcco lias lMcn rcsuniMl, and that by force of arms aiul new and ample reforms very early and complete pacification is lioKd for. The ImniMlinte amelioration of existing conditions under tlie new administration of Cnlmu affairs Is predicted, and therewith all the disturbances. and all oeraslon for any change of attitude on the part of the UnitMl affM-tM- 1 clti-xe- lf r cott Commission's Work. President's Washington, Pm. message, which was submitted to Conwan an follows: gress To tin Senate and House of Represen- u ns States. Discussion of the question of International duties niul the rraiKHisIblli-tlo- s of the UnitMl States, ns Simln un- derstands them. Is presentMl, with an npimrent disHsltloii to charge ns with fnllure hi this regard. This charge Is without any basis In fact. It could not have Inhu made if Simln had lieen cognizant of the constant efforts this government has made at the Mst of millions to perform ita full duty to the law of nations. That it has successfully prcvcntMl the depart nre of a single military cximlition or nmiMl vra-from our slionm In violation of our laws would hm'iii to In n sulflelent answer to the question. But of this as-Iof the Simnish note it Is not ncccs-snr- y to siienk further now. Finn In the conviction of a wholly Hrforined obligation, due mqMinse to tliis charge lias 1hii made lu diplomatic course. forcible Annexation Cannot lie Canalileml. Throughout nil these horrors nm danger to our own imim, this goven S V ;neut has never In any way abrogated Its sovereign prerogative of reserving to itself tlie determination of its policy and course, according to Its own liigli sense of right, and lu consonance with tlie dearest Interests ami convictions of our owu iMople, should the prolongation of the strife so deiuuud. Of the untried measures there remain only: Recognition of the Insurgents as recognition of tlie lndeiMml-ene- e of Culm. national Intervention to end tlie war liy huiMisiug a national compromise between tlie Miutestmits, or prevention lu favor of one or tbe other parties. I speak not of forcible nniiexation, for that cannot 1m thought of. That, by our code of morality, would be criminal aggression. Recognition of the Cuban Insurgents has often Imcii canvassMl as a imissI-lilif not an Inevitable step, both In regard to the previous ten 3'ears' struggle and during the present war. I am not unmindful that the two houses of Congress In the spring of 1800 expressed the oplulon by concurrent resolution tlint a condition of public war exIstMl, requiring or Justifying tin recognition of lMlllgerency In Cuba, and during the extra session the Senate votMl a joint resolution of like Import, which, however, was nnt brought to a vote In tha House of Representatives. Tlie presence of these great expressions lKluNtveM the exccutlv(tn solely consider the conditions under which so liniMirtunt a measure must iicmI rest for justification. It Is to 1m seriously cousidcml whether the Culmn insurrection jiosKCHKcd lMyoud dispute the attributes of statehood, which alone can demand the recognition of in Its favor. I'ossession, In short, of the esMcrtinl mmlltlcations of sovereignty by the Insurgents and the conduct of the war liy them according to the rcMignixed code of war nre no less liiiMrtaiit fucts toward the determination of tlie problem than are the Influences and cuiisMiucnces of the struggle niMin the internal iKilicy of recognizing tle state. The wise utterances of I resident memorable message of (rant In his187.1. an signally relevant' December 7, to the present situation in Culm, and It may Im wholesome now to recall them. At that time a ruinous conflict hail for seven years wasted the neiglilsiriiig Island. During all those yenrs an utter disregard of civilized warfare ami the demands of humanity, which called for the expnssIon of condemnation fnun the nations of all Christendom, continued uunlmted. Desolation and ruin Iiervaded that productive region, enormously affecting the commerce of all nations, but that of tbe UnitMl States more than nny other by reason of proximity and larger trade and intercourse. At tlint- Juncture fieneral Ornnt uttered these words, which now, ns then, sum up the elements of the pmhleui: "A recognition of the independence of. Culm being. In iny opinion. Impracticable and Iiiilefensllile, the question that next presents itself Is that of a rMngiiitlnn of ln'lllgerent rights of the lt parties. Such recognition entails and luqiortnut duties. It confers tlie right of search upon tlie high seas; It would subject tlie carrying of nnns and munitions In vessels of the UnitMl States to detention nnd imsslhle seizure: It would give rise to countless vexatious questions; would relieve the imreiit government from resiKiusIhll-lt- y for nets done by insurgents, and would invest Spain with a right to a suiMrvislon over our commerce on the high sons." Turning to the practical aspects of a recognition of iK'llIgerency and reviewing the inconveniences and dangers still further iKrtlnent considerations npiMar. ts. e, lMlllg-erenc- y Insurgents us now ' unwise, and therefore inadmissible. Should that step hereafter Im iheimd wist as a measure of right and duty the executive will take it. So Intervention Now. Intervention humanitarian npon ground lins lMen frequently suggested, nnd It lias not failed to my anxNo ious and earnest consideration. such step should no.w lit taken, however, when It Is apparent that a hopeful change has suiMrvemd in the jiolicy of Simln toward China. A new government has taken oIIIm lu the mother country. It Is said ibat all the efforts In tha world ea not sufilce to iimlntaiu peace by the bayonet, that vague promises of reform after, subjugation afford no In the insular problem, that with a sulistliutlou of (iiuiinnndeni must come a change of the lMist system of warfare for one of harmony, with a new policy which shall no longer aim to drive the Culmns to the "horrible alternative of taking to the thicket or succumbing lu misery, Ilia; reforms must be instituted In aecui dance with the needs ml circumstances of the lime, niul that reforms, while deslgnul to give full autonomy to the colony and to create a virtual entity and administration, shall 3et conserve and aifirm the sovereignty of Spain liv a lust distribution of iKiwers ami burdens uiniu a basis of mutual interest, untainted by selfish expectancy. Tlu first nets of the new government lie in these honorable paths. The policy of cruel rapine mul exterthe unimination that so long versal sentiment of liumanit3 Is reversed. Measures have already been set on foot to relieve the horrors of starvation. The power of the Sianlsb army. It Is nssertMl, is to he uhmI, not to spread ruin mul desolation, but to prelect the resumption of jieaceful agricultural pursuits nud priMlnctlve Industries. That past methods were futile, to force a lmace by subjugation, la freely admitted, mid that ru'ii without conciliation must Inevitably full to win fos Spain the fidelity of a contented m-clv- e 11 so-utio- n 11 self-controll- sluK-ke- d deiwu-denc- , y. Decrees In application of the foreshadowed reforms have already been promnlgntML The full text of these decrees has not been received, hut as furnished in n telegraphic summary from our minister nre: All civil and electoral rights of the peninsula exercised by Spaniards are, by virtue of existing constitutional anthorlty, forthwith extended to colonial Spaniards. A scheme of autonomy has been proclaimed by decree to Im; effective upon ratification by the Cortes. It creates a Cuban which, with tlie Insular executive, can consider mul vote niKin nil subjects affecting local order mul interests, possessing uulimltMl powers save as to matters of state, war mul the mi ry, as to which the governor generals acts liy his own authority after the delegate of the central government. It hns the right to propose to the central governineiit. through the governor general modification of the national charter mul to initiate new prejeers of law or executive measures in the inter- est of tlie colons. That the government of Sagasta has entered uikiu a course by which a recession with honor is lniMissible eau hardly fu questioned, anil tliai in The few weeks it has existed it has made earnest of the sincerity of Its professions Is undeniable. I shall not impugn it sincerity, mul Impatience should be gnffered rather than to emliarrass It In the task it has undertaken. Will Give Spain a Chance, It is honestly due to Ppain tlint she should le given a reasonable chance to realize her expectations nnd prove tlie asserted efficacy of the new order of things to which she stands lrrevK-nblRecognition of Uclllgcreney. committed. She has recalled the comIn the mkIo of nations there is no mander whose brutal orders Inflamed such thing as a naked recognition of the American mind nud shocked the Itclllgerency unaccompanied by the as- civilized world Sin lias modified the sumption of Interna tlonnl neutrality. horrible order of concentration and has Such recognition, without that, will not undertaken to rare for the helpless mul confer upon either party to a domestic IM'rmlt those who desire to resume the conflict a status not heretofore actually cultivation of their farms to do so mid possessed. The net of ivcogultlon us- assures them of tlie protection of the ually takes the form of a solemn proc- Spanish government in their lawful lamation of neutrality which recites pursuits ngnlnat outrages. She has rethe de facto condition of lMlllgenncy leased the Competitor prisoners hereas a motive. It assumes the interna- tofore sentenced to death mul who tional obligations of neutrality in the have been the subject of reien ted diplopresence of a 'public state of war. It matic correspoudctK'e (luring both this warns all citizens and others within and the preceding administration. Not the jurisdiction of the proclaimant tlint a single citizen is now under arrest nr they violate those obligations at their in confinement In Culia of whom this own iHril niul cannot exiHct to lie shel- government hns nny knowledge. Tho tered from the consMiuom-os- . Tlie right near future will demonstrate whether to visit aud search vessels and the the IndlsiMUisable conditions of a seizure of vessels nnd cargo and con- righteous pence Just alike to tlie Cutraband of wnr under admiralty law lmns nnd to Spain ns well, equitnlilo must be ndniittMl ns a legitimate to nil our Interests so Intimately inof a proclamation of bellig- volved In the welfare of Culm Is likely erency. While according to each equal to Im attnhiMl. If not the exigencies of lMlligerency rights, us defined by pub- further and other action by tlu United lic biw, to each party in oitr ports, dis- Sintra will remain to be taken. favors would be linposMl on iMitb When the time comes tlint action will which, while nominally MpinL wonld lie determined in the line of indisputweigh heavily on Spain herself. Pos- able right nnd duty. It will be faced sessing a navy and controlling the without misgiving or hesitancy In the ports of Culm Spnin's maritime rights light of tlu obligation this government could Im nssertMl not only for the mil- owes to Itself, to the people who have itary Investment of the Island, hut up ronlhlcd to It the of their Into the margin of our owu territorial terests mul honor, protection and to humanity. wnters, and a condition would exist for Sure of the right, keeping free from which the Culmns within their own all offenses ourselves. nctuatMl only hy douinhi could not hope to create a parnnd un:r!otlc considerations, allel: while its crention. through aid or upright neither moved by passion nor selttsh-nrasyuqmthy, from within our domain, will continue Its tbe government would Im even more Imimssihle than y rare over the rights nnd now, with the additional obligations of watchful will citizens and Ainericnu of neutrality we would iKrfnree assume. almte none of Its efforts to bring about The enforcement of this enlarged nnd by iMnceftil agencies a jurnc-which onerous code of neutrality would only shall Im honorable nnd enduring. If it Ik Influential within our own Jurisdicshall hereafter appear to 1m a duty tion by land nnd sen. and applicable by by our obligations to ourselves, rt onr own InKtniinentnliMcH. It could to civilization mul liumnniiy to Interto the United Slates no Jurisdic- vene with force. It sluill Im done wy lition lietWM'n SkiIii nnd the insurgents; mit fault 011 onr jmrt nnd only been use h would give tlu United States no tlu of such action will Im so necessity rights of intervention to enforce the clear ns to command the supiMirt and conduct of strife within the paramount approval of ihe cIvIIIzmI world. authority of Spain according to tlie inTha Wnl rot I Mission. ternational code of war. For these reasons 1 regard the recogUnder fill provisions of the not of nition of tlie iM'lllgcrency of the Cuban Congress, approVMl March 3, 1SU7, for . imr-liuine- - dlfli-cn- ex-prcl- se imikI-tl- . ve y - ce s, proi-ert- e im-Pok- mI Im-pn- |