Presisdent's Message

Washington, Dec. 6.- President McKinley's first message to the congress cf the United States is as follows: To the Senate and House of Repreeentatives: It gives me pleasure to extnd greeting to the Fifty-flfth con gress, assembled at the seat of government, with many oí whose senators and representatives I have been associated in the legislative service. Their meeting occurs under felicitous conditions, justifying sincere congratulation and calling for our grateful acknowledgemen,t to a beneflcient Providence which has so signally blessed and prospered us as a nation. Peace and good will with all the nations of the earth continue unbroken. A matter of genuine satisfaction is the growing feeling of fraternal regard and uniflcation of all sections of our country, the incompleteness of which has too long delayed realization of the highest blessings of the Union. The spirit of patriotism is universal and is ever increasing in fervor. The public questions which now most engross us are lifted far above either partisanship, prejudice or former sectional differences. They affect every part of our common country alike, and permit of no división on ancient lines. Questions of foreign policy, of revenue, the soundness of the currency, the inviolability of national obligations, the improvement of the public service, appeal to the individual conscience of every earnest citizen, to whatever party he belongs or in whatever section of the country he may reside. The extra session of this congress, which closed during July last, enacted important legislation, and while lts full effect has not yet been realized, what it has already accomplished assures us of its timeliness and wisdom. To test its permanent value further time will berequired, and the people, satisfled with its operation and results thus far, are in no mind to withhold from it a fair trial. CURRENCY THE MAIN QUKST1ON. Cali Attention to What AVe Have Done and Wliat Is To I5e Done. Tariff legislation having been settled by the extra session of congress the question next pressing for consideration is that of the currency. The work of putting our finances upon a sound basis, difflcult as it may seem, will appear easier when we recall the finaeial operations of the government since 1S66. [The president then gives a review of the financial operation of the government since the war.] The brief review of what was acccmplished from the close of the war to 1893 make unreasonable and groundless any distrust either of our financial ability or soundness; while the situation from 1893 to 1897 must admonish congress of the immtdiate necessity of so legislating as to make the return of the conditicns then prevailing impossible. There are many plans proposed as a remedy for the evil. Before we can find the true remedy we must appreciate the real evil. It is not that our currency of every kind is not good, for every dollar of it is good; good because the government's pledge will not be broken. However, the guarantyjj our purpose to keep the pledge wiü be best shown by advancing towards its fulfillment. The evil of the present systemis found in the great cosí tö the government of maintaining the parity of our different forms of money; that is, keeping all of them at par with gold. We surely cannot longer be heedless of the burden this imposes upon the people even under fairly prosperous conditions, while the past four years have demonstrated that it is not only an expensive charge upon the government but a dangerous menace of the national credit. It is manifest that we must devise some plan to protect the government against bond issues for repeated redemptions. We must either curtail the opportunity for speculation, made easy by the multiplied redemptions of our demand obligations, or increase the gold reserve for their redemption. We have $900,000.000 of currency which the government by solemn enactment has undertaken to keep at par with gold. Nobody is obliged to redeem in gold but the government. The banks are not required to redeem in gold. The government is obliged to keep equal with gold all its outstanding currency and gold obligations, while its receipts are not required to be paid in gold. They 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. It can get it in no other way when it mest needs it. The government without any fixed gold revenue is pledged to maintain gold redemption, which it has steadily and faithfuüy done and which under the authority now given it will continue to do so. The law which requiies the government after having redeemed its United States notes to pay them out again as current funds demands a constant replenishment of the go!d reserve. This is especially so in times of business panic and when the revenues are insuffleient to meet the expenses of the government. At such tims the government has no other way to supply its deficit and maintain redemption, but through the increase of its bonded debt, as during the administraron of my predecessor, when $262,315,400 of 4% per cent. bonds were issued and sold and the proceeds used to pay the expenses of the government in excess of the revenues and sustain the gold reBerve. While it is true that the greater part of the proceeds of these bond? were used to supply deficiënt revenues, a considerable portion was required to maintain the gold reserve. Without revenues equal to our expenses there would be no deficit requiring the issuanc of bonds. But if the gold reserve falls below $100,000,000 how will it be replenished éxcept by selling more bonds? Is there any other way practicable under existing law? SKRIOUS QüESTION PROPOUNDED. Wiall Wb Continue the Present Pollcy? itecommendaMon as to Greenbacks. Tfte serious question then is, shall we continue the policy that has been pursued in the past; that is, when the gold reserve reaches the point of danger, issue more bonds and supply the needed gold, or shall we provide other means to prevent these recurring drains uponthegold reserve? If no further lslatlon Is had and the policy of sslling bonds is to be continued, then congres should give the secretary of the treasury authority to sell bonds at long or short periods hearing a less rate of interest than Is now authorized by law. I earnestly recommend, as soon as the receipts of the government arequite sufflcient to pay all the of the government, that when any of the United States notes are presented for relemption in gold and are redeemed in erold such notes shall be kept and set apart, and only paid out in exchange for gold. This is an obvious duty. If the holder of the United States note prefers the gold and gets it from the Kovernment he should not receive back from a United States note without 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 redempiion of United States notes - a non-interest bearing debt. Surely it ehould 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 - another interest-bearing debt to redeem a non Interest bearing debt. In my view it is of the utmost importance that the government should be relieved from the burden of providing all the gold required for exchanges and export. This responsibility is alone borne by the government without any of the usual and necessary banking powers to help ltself. The banks do not feel the strain of gold redemption. The whole strain I reets upon the government, and the ; size of the gold reserve in the treasury has come to be, with or without reason, the signal of danger or of seI curity. This ought to be stopped. If ' we are to have an era of prosperity in the country with sufficient receipts for I the expenses of the government we may i feel no immediate embarrassment from our present currency, the danger still exists, and will be ever present ' menacing us so long as the existing system continúes. And, besides, it is In times of adequate revenues and business tranquility that the government I should prepare for the worst. We can not avoid without serious consequence 'the wiseconsideration and prompt solution of this question. The secretary. of the treasury has outlined a plan in great detail for the i purpose of removing the threatened recurrer.ce of a depleted gold reserve and saveus from future embarrassment j on that account. To this plan I invite your careful consideration. I concur with the secretary of the treasury in nis recommendation that national banks be allowed to issue notes to the fact value of the bonds which they have deposited for oiruculation, and that the tax on clrculating notes secured by deposit of such bonds be reduced to onehalf cf 1 per cent. per annum. I also Ijoinhim in recommending that authority I be given for the establishment of national banks with a minimum capital of $25.000. This will enable the smaller vil! lages and agricultural regions of the i country to be supplied with currency to meet thelf needs. I recommend that the issue of national bank notes be restrlcted to the denomination of $10 and upwards. If 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. CONSIDERS THE CUBAN I'KOBLEJI. Tells the Story of the Island'8 Years of l'nrest and Discontent. The most important problem with j which this government is now called ! upon to deal pertaining to its foreign rei lations concerns its duty toward Spain and the Cuban insurrection. Problems i and conditions more or less in common [withthose now existing haveconfronted : this government at various times in the ' past. The story of Cuba for many years has been one of unrest; growing disj content: an effort toward a larger en! joyment of liberty and self-control; of ; organized resistance to the mother i country; of depression after distress ' and warfare, and of ineffectual settle] ment to be folio wed by renewed revolt. For no enduring period since the enj franchisement of the continental posi sessions of Spain in the western conI tinent has the condition of Cuba or the policy of Spain toward Cuba not caused concern to the United States. The prospect from time to time that the weakness of Spain's hold upon the island and the political vicissitudes and embarras-sments of the home government might lead to the transfer of Cuba to a Continental power called forth, between 1S23 and 1860, various emphatic declarations of the policy of the United States to permit no disturbance of Cuba's connection with Spain unless in the direction of independence or acquisition by us through purchase, nor has there been any change of this declared pollcy since upon the part of the government. The revolution which began in 1868 lasted for ten years, depite the strenuous efforts of the successive peninsular governments to suppress it. Then as now the government of the United States testified its grave concern and offered its aid to put an end to bloodshed in Cuba. The overtures made by General Grant were refused and the war dragged on, entailing great loss of life and treasure and increased injury to American interests, besides throwing enhanced burdens of neutrality on the government. In 1878 peace was brought about by the truce of Zanjón, obtainedby negotiations between the Spanish commander, Martínez de Campos, and. the insurgent leaders. The present insurrection broke out in February, 1895. It is not my purpose at this time to recall its remarkable lncrease or to characterize itstenaclous resistance against the enormous torces massed against it by Spain. The revolt and the efforts to subdue it have carried destruction to every quarter of the island, developing wide proportions and defying the efforts of Spain for lts suppression. The civilized code of war has been disregarded; no less so by the Spaniards than by the Cubans. The existing conditions cannot but fill this government and the American people with the gravest apprehensicn. There is no desire on the part of our people to profit by the misfortunes of Spain. We have only the desire to see the Cubans prosperous and contented, enjoying that measure of self-control which is the inalienable right of man, protected in thelr right to reap the benefit of the exhaustless treasures of their country. COXCENTKATIOJi IS A FAILIBE, Was Not Civllized Wurfare- Instrmtlon Given to Minister Woodford. The offer made by my predecessor in April, 1896, tendering the friendly offices of this government failed. Any mediation on our part was not accepted. In brief the answer said: "There is no effectual way to pacify Cuba unless it begins with the actual submission of the rebels to the mother country." Then only could Spain act In the premised direction of her own motion and after her own plans. The cruel policy of concentration was initiated Feb. 16, 1896. The productive districts controlled by the Spanish armies were depopulated. The agricultural inhabitants were herded in and about the garrison towns, their lands laid waste and their dwellings destroyed. Thispolicy the late cabinet of Spain justified as a necessary measure of war and as a means of cuttinj' off supplies from the insurgents. It has utterly failed as a war measure. T It was not clvllized warfare. It was extermination. Against this abuse of therights of war I have feit constrained on repe&ted occasions to enter the firm B.nó namest protest of this government. I feit it rny first duty to make instant demand for the release or Bpeedy trial of all American citizensunder arrest. The instrufctions given to our new minister to Spain h fore his departure for his p'ist directed him to impress upon that government the sincere wish of the United States to lend its aid toward the endin.? of the war in Cuba by reaching a peaceful and lasting result, just and honorable aüke to Spain and to the Cuban people. Those instructions recited the character and duration of the contsst, the Widespread losses it entails. the burdens and restraints it imposes upon us, v.Hh constant disturbance of national i ests, and the injury resulting from an indeflnite continuance of this state of thlngs. It was stated that at this juncture our government was 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 put a stop to this destructive war and make proposals of settlement honorable 1 to herself and just to her Cuban colony. ! Ft was urged that as a neighboring tion, with large interests in Cuba, we . could be required to wait only a ! able time for the mother country to ! establish its authority and restore order j within the borders of the island: that : I we could not contémplate as indefinite period for the accomplishment of this 1 result. No solution was proposed to , j which the slightest idea of humiliation ! to Spain could attach and indeed precise proposals were withheld to avoid ; embarrassment to that government. All that was asked or expected was ' that some safe way might be speedily provided and permanent peace restored. It so chanced that the consideration of I this offer, addressed to the same Span! ish administration which had declined ; the tenders of my predecessor and i which for more than two years had i 1 poured men and treasure into Cuba in ! ! the fruitless effort to suppress the ! j volt, feil to others. Between the departure of General Woodford, the new i envoy, and his arrival in Spain, the i statesmen who had shaped the policy of his country feil by the hand of an assassin. and although the cabinet of : the late premier still held office and ' received from our envoy the proposals he bore that cabinet gave place within a few days thereafter to a new administration under the leadership of Sagasta. REPLÏ THAT SAGASTA MADE. Ackknowledges Our Interest and Outlines a New Policy. The reply to our note was received on the 23d day of October. It is in the direction of a better understanding. It appreciatesthe friendly purposes of this ' I government. It admits that our country is deeply affected by the war in Cuba and that its desires for peace are just It declares that the present' Spanish i goyernment is bound by every eration to a change of policy that i should s-atisfy the United States and pacify Cuba within a reasonable time. I To this end Spain has decided to put ln- to effect the polictical reforms hereto fore advocated by the present premier, i without halting for any consideration j in the path which in its Judgment leads i to peace. The military operations, it is I said, will continue, but will be humane I and conducted with all regard for prij vate rights, being accompanied by po: litical action leading to the autonomy ! of Cuba while guar.ftg Spanish sovereignty. This, it is elaimed, will result in investing Cuba with a distinct perponality; the island to be governed by an executive and by a local council or chamber, reserving to Spain the control of the foreign relations, the army and navy and the judicial administration. To accomplish this the present [ government proposes to modify exist ing lepislation by decrees, leaving the t Spanish cortes, with the aid of Cuban senators and deputies, to solve the I economie problem and properly distribute the extsting debt. In the absence of a declaration of the measuresthat this government proposes to take in carrying out its proffer of good offices it suggests that Spain be left free to conduct military operations i and grant political reforms; while the ! United States, for its part, shall enforce its neutral obligations and cut off the assistance which it is asserted the insurgents receive from this country. The supposition of an indefinite prolongation of the war is denied. It is asserted that the western provinces are already well nigh reclaimed; that the planting of I cañe and tobáceo therein has been resumed, and that by force of arms and new and ampie reforms very early and complete paciftcation is hoped for. The immediate amelioration of existing ■ conditions under the new j tion of Cuban affairs is predicted, and thf-rewithal the disturbance and all occasion for any change of attitude on the i part of the United States. Discussion of the question of the international duties. and responsibilitiea I of the United States as Spain ! j stands them is presented with an apparent disposition to charge us with failure in this regard. This charge is ! without any basis in fact. It could not have been made if Spain had been cognizant of the constant efforts this government has made at the eost of millions and by the employment of the administrative machinery of the nation at command to perform its full duty according to the Iaw of nations. That it has successfully prevented the departure of a single military expedition or armed vessel from our shores in violation of our laws would seem to be a sufficient answer. But of this aspect of the Spanish note it is not necessary to speak further now. Firm in the conviction of a wholly performed obligation, due response to this charge has been made in diplomatic course. Throughout all these horrors and dangers to our own peace this government has never broken over or in any way abrogated its sovereign prerogative ofreserving to itself the determination of its policy and course according to its own high sense of right and in consonance with the dearest interests and convictions of our own people, should the prolongation of the war so dernand. JIEASURES AS YET UNTBIED. Refers to Congressional Actlons and Kecognition of Cuban Belligerency. Of the untried measures there remain only: Recognition of the insurgents belligerents; recognition of the independenee of Cuba; neutral intervention to end the war by imposing a rational compromise between the insurgents, and intervention in favor of one or the other party. I speak not of forcible annexation, for that cannot be thought of. That by our code of morality would be criminal aggression. Recognition of the belligerency of the Cuban insurgents has often been canvassed as a possible if not inevitable step, both in regard to the previous ten years' struggle and during the present war. I am not unmindful that the two houses of congress in the spring of 1896 expressed the opinión by concurrent resolution that a condition of public war existed or Jus-tifying the recognition of the state of belligerency in Cuba, and during the extra session the senate voted a joint resolution of like import, which, however, was not brought to a vote in the house of representatf.ves. In the presence of these significant expressions of the sentiment of the legIslativebranch it behooves the executive to soberiy oonsider the conditions under which so Important a measure must needs rest for justiflcatlon. It is to be seriously considered vvhether the Cuban insurrectlon possesses beyond dispute the attributes of statehood which alone can demand the recognition of belligerency in its favor. Possession, in short, of the essential qualiflcations of sovereignty by the insurgents and the conduct of the war by them according to the received code of war are no less important factorstoward thedetermJnation of the problem of belligerency than are the influences and consequences of the struggle upon the internal polity of the recognizing state. [The president then quotes approvingly the utterances of President Grant in nis message of Dec. 7, 1875, when he said that recognition of the i,ndependence of Cuba was indefensibie at that time and that belligerence was a fact that the Cuban situation then did not present.] Turning to the practical as-pects of a recognition of belligerency and reviewIng its inconveniences and positive dangers still further pertinent considerations appear. In the code of nations there is no such thing as a naked recognition of belligerency unaccompanied by the assumption of international neutrality. Such recognition without more will not confer upon either party to a domestic conflict a status not heretofore actually possessed, or .affect the relation of either party to other States. The act of recognition usually takes the form of a solemn proclamation of neutrality which recites the de facto condition of belligerency as its motive. It announces a domestic law of neutrality in the declaring state. It assumes the International obligations of a neutral in the presence of a public state of war. It warns all citizens and others within the jurisdiction of the proclaimant that they viólate those righteous obligations at their own peril, and cannot expect to be shielded from the consequences. The right of visit and search on the seas and seizures of vessels and cargoes as contraband of war and good prize under admiralty law must under international law be admitted as a legitímate consequence of a proclamation of belligerency. While according the equal belligerent rights defined by public law to each party in our ports, disfavors would be imposed on both which, while nominally equal, would weigh heavily in beha-lf of Spain herself. Possessing a navy and controlling the ports of Cuba her maritime rights could be asserted not only for the military investment of the island but up to the margin of our own territorial waters, and a condition of things would exist for which the Cubans within their own domain could not hope to créate a parallel, while its creation through aid or sympathy from within our domain would be even more impossible than now, with the additional obligations of international neutrality we would perforce assume. The enforcement of this enlarged and onerous code of neutrality would only be influential within our own jurisdiction by land and sea and applicable by our own instrumentalities. It could impart to the United States no jurisdiction between Spain and the insurgents. It would give the United States no right of intervention to enforce the conduct of the strife within the paramount authority of Spain according to the international code of war. For these reasons I regard the recognition of the belligerency of the Cuban insurgents as now unwise and therefore inadmissable. Should that step hereafter be deemed wise as a measure of right and duty the executive will take it. AS TO HUMANITARIAS GKOUND. Reasons Advaneed "Why the United States Should Hold lts Hand. Interventicn upon humanitarian gTOunds has been frequently suggested, and has not failed to receive my most anxious and earnest consideration. But should such a step be now taken when it is apparent that a hopeful change has supervened in the policy of Spain toward Cuba? A new government has taken office in the mother country. It is pledged in advance to the declaration that all the effcrt in the world cannot suffice to maintain peace in Cuba by the bayonet; that vague promises of reform after subjugation afford no solution of the insular problem; that with a substitution of commanders must come a change of the past system of warfare for one in harmony with a new policy which shall no longer aim to drive the Cubans to the "horrible alternative of taking to the thicket or succumbing in misery;" that reforms must be instituted in accordance with the needs and circumstances of the time, and that these reforms, while designed to give full autonomy to the colony and to créate a Virtual entity and self-controlled administration, shall yet assert and afflrm the sovereignty of Spain by a just distribution of powers and burdens upon a basis of mutual interest untainted by methods of selfish expediency. The flrst acts of the new government lie in these honorable paths. The policy of cruel rapiñe and extermination that so long shocked the universal sentiment of humanity has been reversed. Under the new military commander a broad clemency is proffered. Measures save already been set on foot to relieve the horrors of starvation. The power of the Spanish armies, it is asserted, is to be used not to spread ruin and desolation, but to protect the resumption of peaceful agricultural pursuits and productive industries. That past methods are futile to forcé a peace by subjugation is freely admittad, and that ruin without conciliation must inevitably fail to win for Spain the fidelity of a contented dependency. Decrees in application of the foreshadowed reforms have already been promulgated, The full text of these decrees has not been received, but as furnished in a telegraphic summary from our minister are: [The president here summarizes the scheme of autonomy, which has been already widely printed in the press.] That the government of Sagasta has entered upon a course from which recession with honor is impossible can hardly be questioned; that in the few weeks that it has existed it has made earnest of the sincerity of its professions is undeniable. I shall not impugn its sincereity, nor should impatience be suffered to embarrass it in the task it has undertaken. It is honestly due to Spain and to our friendly relations with Spain that she should be given a reasonable chance to realize her expectations and to prove the asserted efflgacy of the new order of things to which she stands irrevocably ccmmitted. She has recalled the commander whcse brutal orders infiamed the American mind and shocked the civilized world. She has modiíied the horrible order of concentration, and has undertaken to care for the helpless and permit those who desire to resume the cultivation of their fields to do so, and assures of them of the protection of the Spanish government in their lawful occupations. She has just released the Competitor prisoners heretofore sentenced to death, and who have been the subject of repeated diplomatic correspondence during both this and the preceding administration. Not a single American Citizen is now in arrest or confinement in Cuba of whom this government has any knowledge. The near future will demónstrate whether the indispensable condition of a righteous peace, just alike to the Cubans and to Spain, as well as equitable to Dur interests so intimately involved In the welfare of Cuba, is likely to be I attained. If not, the exigency of ' ther and otlier action by the United States will rmain to be taken. When that time comes that aetion will be determined in the line of indisputable right and duty. It will be faced without misgiving hesitaney in the light of the obligation this government owes to itself, to the people who have confided to it the protection of their interests and honor, and to humanity. Sure of the right, keeping free from all offense ourselves, actuated only by upright and patriotic considerations, moved neither by passion nor selfishness, the government will continue its watchful care over the rights and property of American citizens, and will abate none of its efforts to bring about by peaceful agencies a peace which' shall be honorable and enduring. If it shall hereafter appear to be a duty im-posed by our obligations to ourselves, to civilization and humanity. to intervene v.ith force it shall be without fault i on our part, and only because the necessity for such action will be so clear as to command the support and approval of the civilized world. FAVOBS HAWAIIAN ANtiEXATION. Says That Every Consideration of Honor and Dignity Requires the Same. By a special message dated the 18th day of June last, I laid before the senate a treaty signed that day by the plenipotentiaries of the United States and of the republic of Hawaii having for its purpose the incorporation of the Hawaiian islands as an integral part of the United States and under its sovereignty. The senate having removed the injunction of secrecy, although the treaty is stil] pending before that body, the subject may be properly referred to in this message because the necessary action of the congress is required to determine by legislation many details- of the eventual unión, should the fact of annexation be accomplished, as I believe it should be. While consistently disavowing from a very early period any aggressive policy of absorption in regard to the Hawaiian group, a long series of declarations through three-quarters of a century has proclaimed the vital interest of the United States in the independent life of the islands and their intímate commercial dependence upon this country. At the same time it has been repeatedly asserted that in no event could the entity of Hawaiian statehood cease by the passage of the islands under the domination or influence of another power than the United States. I Under these circumstances the logic of events required that annexation, heretofore offered but declined, should in the ripeness of time come about as the natural result of the strengthening ties that bind us to those islands, and be realized by the free will of the Hawaiian state. That treaty was unanimously ratified without amendment by the senate and president of the republic of Hawaii on the lOth of September last, and only the favorable action of the American senate to effect the complete absorption of the islands into the domain of the United States. What the conditions of such a unión shall be, the political relation thereof to the United States, the character of the local administration, the quality and degree of the elective franchise of the inhabitants, the extensión of the federal laws to the territory or the enactment of special laws to fit the peculiar condition thereof, the regulation, if need be, of the labor system therein - are all matters which the treaty has wisely relegated to the congress. If the treaty is conflrmed, as every ' consideration of dignity and honor requires. the wisdom of congress will see to it that, avoiding abrupt assimilation of elements perhaps hardly yet fitted to share in the highest franchises of citizenship, and having due regard to the geographical conditions, the most just provisions for self rule in local matters, with the Iargest political liberties as an integral part of our nation will be accorded to the Hawaiians. No less is due to a people who, after nearly flve years of demonstrated capacity to fulfill the obligations of self governing statehood, come of their own free will to merge their destinies in our body politie. The questions which have arisen between Japan and Hawaii by reason of the treatment of Japanese laborers emigrating to the islands under the Hawaiian-Japanese convention of 1888 are in a satisfactory stage of settlement by negotiation. This government has not been invited to mediate, and on the other hand has sought no intervention in that matter further than to evince its kindliest disposition towai-d such a speedy and direct adjustment by the two sovereign states in interest as shall comport with equity and honor. It is gratifying to learn that the apprehensions at flrst displayed on the part of Japan lest the cessation of Hawaiia's national life through annexation might impair privileges to which Japan honorably laid claim, have given place to ; confldence in the uprigntness of this i government and in the sincerity of its ■ purpose to deal with all possible uli terior questions in the broadest spirit ! of friendliness. WOLCOTTS MISSION FOB SILVEK. President Hopes That It May Yet Besult in an Agreeinent. Under the provisions of the act of j congress approved March 3, 1897, for the promotion of an international agree; ment respecting bimetallism, I appointed on the 14th day of April, 1S97, Hon. ! Edward O. Wolcott, of Colorado; Hon. Adlai E. Stevenson.of Illinois, and Hon. Charles J. Paine, of Massachusetts, as special envoys to represent the United States. They have been diligent in their efforts to secure the co-operation of European countries in the international settlement of the question, but I up to this time have not been able to secure an agreement contemplated I by their mission. The gratifying acI tion of our great sister republic of i France in joining this country in the attempt to bring about an agreement ' among the principal commercial nations of Europe whereby a flxed and j relative value between gold and sil ver shall be secured, furnishes assurances that we are not alone among the larger nations of the world in realizing the international character of the problem, and in the desire of reaching some wise and practical solution of it. The British government has published a resume of the steps taken Jointly by the Frenen ambassador in London and ' the special envoys of the United States, with whom our amcassador at London actively co-operated in the presentation of this subject to her majesty's government. This will be laid before congress. Our special envoys have not ! made their final report, as further negotiations between the representatives of this government and the governments of other countries are pending and in contemplation. They believe that doubts which have been raised in certain quarters respecting the position of maintaining the stability of the parity between the metáis, and kindred questions, may yet be solved by further negotiations. "While it gives me satisfaction to state that the special envoys have already demonstrated their ability and ' fitness to deal with the subject, it is to be earnestly hoped that their labors may result in an international agreement which will bring about recognition of both gold and silver as ' money upon such terms and with such safeguards as will secure the both metáis upon a basis whlch shálí work no injustice to any class of our citizens. EXTENSIÓN OF FOKEIGX IKADÏ, Negotiation of Reciprocity Treaties - The Seal Qnestion - Arbitration. In order to execute as nearly as possible the provisions cf the thml anfl fourth sections of the revcnue act appróved Ju!y 24, 1897, I appointed the Hon. John A. Kasson, of Iovva, a speciaal commissioner plenipotentiary to undertake the requisite negotiations wíth foreign countries desiring to avaH themselvea of these provisions. The negotiations are ncw proceeding with several governments, both Europèan and American. It is believed -that by a careful exercise of the powers conferred by that act some grievances of our own and of other countries in our mutual trade relations may be either removeJ or largely alleviated, and that the volume of our commercial exchanges may be enlarged with advantage to bath contracting parties. The efforts which had been made during the two previous years by my predecessor to secure better protection to the fur seals in the north Pacific ocean and Behring sea were renewed at an early date by this administration, and have been pursued with earnestness. Upon my invitation the governments of Japan and Russia sent delegates to Washington and an international conference was held during the months of October and November last, wherein lt was unanimously agreed that under the existing regulationa thie specks of useful animáis was threatened with extinction ar,d that an international agreement of all the interesten powers was necessary for their adequate protection. The government of Great Britain did not see proper to be represented at this conference, but subsequently sent te "Washington as delegates the expert commissioners of Great Britain ana Canada, who had during the past two years visited the Pribilof islands, and who met in conference similar commissioners on the part of the United States. The result of this conference was an agreement on important facts connected with the condition of the seal hert! heretofore in dispute, which shoulS place beyond controversy the duty oí the governments concerned to adopt measures without delay for the preservation and restoration of the herd. Negotiations to this end are now in progress, the result of which I hope to be able to report to congress at an early day. International arbitration can not be I omitted from the list of subjects elaim1 Ing our consideration. Events have only served to strength the general views on the questicn expressed in my Inaugural address. The best sentimeot of the civilized worlii is moving towarfi the settlement of n.ifferences between nations without resorting to the horrors of war. Treaties cmbodying these humane principies on broad lines, without in any way imperiling our interests or our honor, shall have my constant eneouragement. NAVY NOW IN NEED OF DOCKS. AIbo of Armor and Projectiles- Itemarti on Civil Service Reform. The great increase of the navy which has taken place in recent years was jusified by the requirements for national defense and has received public approbation. The time has now arrived, however, when this increase should for a time take the form of increased facilities commensurate with the inerease ot our naval vessels. It is an unfortunate fact that there is only one doek on the Pacific coast capable of docking our largest ships, and only one on the Atlantic coast, and that the latter has for the last six or seven months been under repair and therefore ineapable ot use. Immediate steps should be takes to provide three or four docks of this capacity on the Atlantic coast, at least I one on the Pacific coast, and a floating doek on the gulf. ♦ There should also be ampie provisión made for powder and projectiles and other munitions of war, and for an 1bI creased number of offleers and enlisted men. Some additions are also necessary to our navy yards for the repair and care of our larger number of vessels. I concur with the reeommendation of the secretary of the i navy for an appropriation authorizing the construction of one battleship for ! the Pacific coast, and also that severa! ! torpedo boats be authorized in connecI tion with our general system of coast defense. [The president also calis attention to the eed of armor for three battleships now building, and whieïi j could not be obtained at the price dej manded by eongress.] The important branch of our govern ment known as the civil service, the I practical improvement of which haE long been a subject of earnest diseusI sion, has of late years received increased legislative and executive approval. During the past few moiuhs the service has ben placed upon a. stilt firmer basis of business methods and personal merit. While the ï'ight of our veteran soldiers to reinstatement m. deserving cases has been as,serted, dismissals for merely political reasons have been carefully guarded agatnst, and a distinct advance has been made by giving a hearing before dismissal upon all cases where ineompetency is charged or demand made for the removal of officials in any of the departments. This order has been made to give to the accused nis right to be heard but without in any way impairing the power of removal, which should always be exercised in cases of inefHciency and ineompeteney. Much, of course, still remains to be accomplished before the system can be made reasonably perfect for our needs. There are places now in the classified service which ought to be exempted, and others not classified may properly be included. I shall not hesitate to exempt cases which I think have been improperly included in the classifled service, or include those which in my judgment will best promote the public service. The system has the approval of the people and it will be my endeavor to uphold and extend it. INDIANS REQUIRE ATTEXT1ON. fcolution of the Problem Is Individual Ownership - Nicaragua Canal. With reference to the Indian question the preseident says: "For a number of years past it has been apparent that the conditions under which the five civilized tribes were established in the Indian Territory under treaty provisions with the United States, with the right of self-government and the exclusión of all white persons from within their, borders, have undergone so complete a change as to render the continuance of the -system thus inaugurated practically impossible." He then quotes approvingly Henry L. Dawes, who says: "Individual ownership is in theïr (the commission's) opinión absolutely essential to any permanent improvement in present conditions, and the lack of it is the root of nearly all the evlls which so grievously afflict these people." He urg-es better government for Alaska, and speaks a good word for the Nicaragua canal; advocates an adequate United States exhibit at the Paris exposition in 1900; calis attention, favors improvement of the national quarantine laws to guard against yellow fever, and refers congress for information on other subjects to the departmental reports.