| Show I I PRESIPT MKINLYS fIRST MESSAGE = MEET1NG Of THE CONGRESS J Devoid of Sensation and Marked Ability K PLANS OF CURRENCY 4 f COMEDY OF ERRORS On tbe Cuban Question Well Disposed Dis-posed Towards Spain Favors Hawaiian Annexation and Recommends In Anticipation of notification a Home Government For the Island legislation For the Indians and Alaska Pacific Railroads and Government Ownership Own-ership Washington Dec Following is the presidents message To the Senate and House of Representatives Represent-atives It gives me pleasure to etend greeting greet-ing to the Fiftyfifth congress assembled assem-bled in regular session at the seat of government with many of whose senators sen-ators and representatives I have been associated in the legislative service Their meeting occurs under felicitous cunditions justifying sincere congratulation congratu-lation and calling for our grateful acknowledgement ac-knowledgement to a beneficient providence provi-dence which has so signally blessed and prospered us as a nation Peace and good will with all the nations na-tions of the earth continue unbroken A matter of genuine satisfaction is the growing feeling of fraternal regard and unification of al sections of our country coun-try the incomiletjness of which has too Ions delayed realization of the highest blessings of the Union The spirit of patriotism is universal and is ever increasing in fervor The public pub-lic auenioiis which now most engross us are lifted far above either partisanship partisan-ship prejudice or former sectional dlf leivuecF They affect every part of our common country alike and permit of no viMon on ancient lines Questions of fun ign policy of revenue the soundness sound-ness of the currency the inviolability of national obligations the improvement improve-ment of the public service appeal to the individual conscience of every ear TKst citizen to whatever party he belongs be-longs or in whatever section of the country he may reside The extra session of this congress which closed during July last enacted Important rogtslittun arid vhllb Irs full effects hivt not yet been realized what it has art tdy accomplished assures us I of its timliness and wisdom To test I its pimai ent value further time will lie required and the people satisfied with its operation and results thus fur aif in i no mind to withhold from it afar a-far trial EVilS Of CURRfNCY SYSTEM SAME OBJECTIONS PRESENTED BY CLEVELAND Apparently Difficult Work Made Easy and Prompt Action Advised In Currency Revision r Tariff legislation having been settled by the extra session of congress the question next pressing for consideration considera-tion is that of the currency The work of putting our finances upon a sound Vacte difficult as it may seen will appear ap-pear easier when we recall the financial operation of the government since 1SC6 un the 30th day of June of that year we bad outstanding demand liabilities in the sum of S72SK6844741 On the 1st 01 July 1879 those liabilities had been rejuetd to 442S89495 Cf our inter dl bearing obligations the figures ar even more striking On July 1 I860 the principal of the interest baring dA ot the government was ji3l20S On the 1st day of July ISJS this sum had been reduced to S s5Ol < 100 or an aggregate reduction I of 1 74729410S The interest bearing 1 i det of the United States on the 1st r day of December 1897 was 547365620 Th government money now outstanding outstand-ing Dec 1 consists of S34G < 5S101G of Ilit l d States notes 107793250 of treasury notos issued by authority of th law 1 of 1S90 3S4963504 of silver certificates and 61260761 of standard silver dollars PROMPT ACTION ADVISED With the great resources of the government gov-ernment and with the time honored example ex-ample of the past before us we ought rot hesitate to enter upon a currency revision which will make our demand obligations less onorous to the government govern-ment and relieve our financial laws from ambiguity and doubt The Brief review of what was accomplished accom-plished from the close of the war until 1S93 makes unreasonable and groundless ground-less any distrust either of our financial ability or soundness while the situation situa-tion from 1S93 to 1897 must admonish congress of the immediate necessity of PO 1 legislating as to make the return re-turn of the conditions then prevailing I impossible I There are many plans proposed as a I L ivmedy for the evil Before we can i I j find the true remedy we must approcl ate the real evil It is not that our currency cur-rency of every kind 1 is not good for every dollar of it is good good because the governments pledge is out to keep It so and that pledge will not be bro lien However the guaranty of our purpose to keep the pledge will be best 1JUrpo5e by advancing toward its fuUill A DANGEROUS MENACE The evil of the present system is f found in the great cost to the government govern-ment of maintaining the panty of our different forms of money that is keeping I keep-ing all of them at par with gold We l surely cannot be longer heedless of the burden this imposes upon the people even under fairly prosperous > conditions I t condi-tions while the past four years have demonstrated that it is not only an expensive I ex-pensive charge upon the government but a dangerus mrnaoj to the national credit II It is manifest that we must devise I some plan to protect the government r aciinst bond issues for repeated redemptions L re-demptions We must either curtail the ipTnrturity fr spi i uixtion made easy li 1 th multiplied redemptions of our demand obligations or increase the gold i I t f T II RESENT 2FKTKTLEY reserve for their redemption We have 9ooOOOOOO of currency vhich the government gov-ernment by solemn enactment has undertaken un-dertaken to keep at par with gold Nobody is obliged to redeem in gold but the government The banks arenot re I Wulrett to redeem in gold The government I gov-ernment is obliged to keep equal with gold all its outstanding currency and coin obligations while its receipts are not required to be paid in gold They I are paid in every kind of money but gold and the only means by which the government can with certainty get gold is by borrowing I can get i in no other way when it most needs it The government without any fixed gold revenue Is pledged to maintain gold redemption which it has steadily and faithfully done and which under the authority now given it will continue con-tinue to do doT THE ENDLESS CHATST Increase of Bonded Debt to Preserve the Gold Reserve The law which requires the government govern-ment after having redeemed its notes to pay them out again as current funds demands a constant replenishment of the gold reserve This is especially so in times of business panic and when the revenues are insufficient to meet the expenses of the government At such times the government has no other way to supply its deficit and maintain redemption but through the increase of its bonded debt as at the urgent administration of my predecessor predeces-sor when 202315400 of 41 per cent bonds were issued and sold and the proceeds sold to pav the expenses of I the government in excess of the revenues reve-nues and sustain the gold reserve While i is true that the greater part of the proceeds of these bonds were used to supply deficient revenues a considerable portion was required to maintain the gold reserve SERIOUS QUESTION With our revenues equal to our expenses ex-penses there would be no deficit requiring re-quiring the issuance of bonds But if the gold reserve falls below 100000000 how will it be replenished except by selling more bonds Is there any other way practicable under existing law The serious question then is shall we continue the policy that has been pursued pur-sued in the past that is when the gold reserve reaches the point of danger dan-ger ipfjc more bonds and supply the needed rrold or shall we provide other means to prevent these recurring drains upon the gold reserve I no further legislation is had and the policy of selling bonds is to be continued then congress should give the secretary of conless gve the treasury authority to sell bonds at long and short periods bearing a less rate of interest than is now authorized by law laGLD GOLD INTEREST NOTES After Redemption They Should Bo Exchanged For Gold Only I earnestly recommend as soon as the receipts of the government are quite sufficient pay all the expenses of the government that when any of the United Uni-ted States notes are presented for redemption re-demption in gold and are redeemed in gold such notes shall be kept and set apart and only paid out In exchange for gold This is an obvious duty I the holder of the United States note prefers pre-fers gold and gets it from the government govern-ment he should receive back from the government a United States note without with-out paying gold in exchange for it The reason for this is made all the more apparent when the government issues an interest bearing debt to provide gold for the redemption of United States notes for a noninterest bearing bear-ing debt Surely it should not pay them out again except on denjand and for gold I they are put out in another an-other way they may return again to be followed by another bond issue to redeem themanother interest bearing debt to redeem a noninterest bearing debtSTRAIN STRAIN ON GOVERNMENT In my view it is of the utmost importance I I impor-tance rllr the government I zJO be relieved from the business I rliev 1lm of providing for all the gold required for exchanges I and export This responsibility is alone j I borne by the government wihout any i of th < > usual and I usal necessary banking powers to help itself The banks do not I j feel I the strain of the gold redemption I The whole strain rests upon the government I gov-ernment and the size of the gold reserve re-serve in the treasury has come to be I with I or without reason the signal of danger or of security This ought to be stopped TTTS SECRETAEYS PLAN Concurs I Gages Views to Give Free Rein t the Banks I we are to have an era of prosperity pros-perity in the country with sufficient receipts re-ceipts for the expenses of the government ment we may feel no immediate embarrassment em-barrassment from our present currency curren-cy but the danger still exists and will be ever present menacing us as long as the existing system continues And besides it is in times of adequate revenues rev-enues and business transquility that the government should prepare for the worst We cannot avoid without serious se-rious consequences the wise consideration considera-tion and prompt solution of this question ques-tion tionThe The secretary of the treasury has outlined a plan in great detail for the purpose of removing threatened recurrence recur-rence of a depleted gold reserve and save us from future embarrassment on that account To this plan I invite your careful consideration FREE REIN TO THE BANKS I concur with the secretary of the treasury In his recommendation that national banks be allowed to issue notes to the face value of the bonds which they have deposited for circulation circula-tion and that the tax on circulating notes secured by the deposit of such bonds be reduced to onehalf of 1 percent per-cent per annum I also join him in recommending that authority be given for the establishment of national banks j with a minimum capital of S2500 This will enable the smaller villages and agricultural regions of the country to be supplied with currency to meet their demands I recommend that the issue of national bank notes be restricted to the denomination of S10 and upwards I the suggestions I have herein made shall have the approval of congress then I would recommend that national banks be required to redeem their notes in gold SrAIN AND THf CUBAN REVOLT T THE GREATEST PROBLEM IH OUR FOREIGN RELATIONS Our Policy I the PastBrief Review Re-view of Cuban Insurrections Uncivilized Warfare The most imuortant problem with which this government is now called upon to deal that pertaining to its foreign for-eign relations concerns its duty toward Spain and the Cuban insurrection Problems and conditions more or less in common with those now existing have confronted this government at various va-rious times in the past The story of Cuba for many years has been one of unrest growing discontent an effort toward to-ward the larger enjoyment of liberty and selfcontrol of organized resistance to the mother country of depression and warfare and of ineffectual settlement settle-ment to be followed by renewed revolt re-volt For no enduring period since the enfranchisement of the continental possessions of Spain in the western continent con-tinent has the condition of Cuba or the policy of Spain toward Cuba not caused concern to the United States PAST POLICY The prospect from time to time that the weakness of Spains holding upon the Island and the political vicissitudes and embarrassments of the home government gov-ernment might lead to the transfer of Cuba to a continental power called forth between 1823 and 1SGO various emphatic declarations of the policy of the United States to permit no disturbance dis-turbance of Cubas connection with Spain unless in the direction of inde Continued o Page C = = = > tho MESSAGE jjifraa Frczn Pasro 1 ptmee1 nr I aiauiston by the United Stas brovuh iurchi e nor has there Lea any chiuae of ius declared policy tw upon the pat of the govern e CriJA > 7 REVOLUTION The revolution which began Jn 1S5S lasted fT t < u jHars dfppitt the strcn inua v < Torts ot rim successive peninsular peninsu-lar Kernuic7ts to bijppress it Then a no v thajo fTiiiiiit of the United Slates testified its grave concern and oft red its ad ii i ut an end to Moo J ihfd in Cuba Th overtures made by Cviicra OrwT v re refusd and the car drgi 1 entailing great loss of lifi and isoamre and increased injury to American interests besides throwing ruhane < < l bardif of neutrality upon tins uovcrnrneit In 1678 peat was Mnupfct about by the truce i > I yarijon ooijsmfvl bv notHiations betwo < 1 the t paujsh commander Martini dc Cam pos and the insurant leaders PRESENT WAn I The presctt insurrection brok out in Fibruaiy 16W It is not Fdlual I my purpose at this time tn recall its remarkable in i ria > e 0 rtu haracHrizo its tenacious O tenacous J resistance against UK pnormous forces masse against it by Spain The r volt and the efforts to subdue i carried I ried destruction to every quarter of the island developing wide proyiortions atl defying the efforts of Spain for its suppression t pression The oiviliTvl ouo 11 war has been disregarded no Jess I so by the Spaniards than by the Cubans |
