Democratic Watchman. -- Supplement, BELLEFONTE, PA. FRIDAY, DECEMBER s, 1889. THE PRESIDENT'S MESSAGE MANY TOPICS CONSIDERED —_———— Financial Legislation Recommended — ee THE PROBLEM OF THE SURPLUS. The Pension Laws Considered. THE AMERICAN REPUBL CS. Our Defenseless Coast Cities. A GOOD WORD FOR THE DISTRICT eg The President Suggests Inviting Hawaii Into the Pan-American Circle—The Negro Question Receives Attention— Our Relations with China, Canada and Other Foreign Powers. es Following is the full text of the President's first annual message, sent to Congress today: To rae SENATE AND HOUSE OF REPRESENTA- TIVES: There are few transactions in the administra- tion of the Government that are even tempo- rarily held in the confidence of those charged with the conduct of the public business. Every step taken is under the observation of an intel- ligent and watchful pedple. The state of the Union is known from day to day, and sugges- tions as to needed legislation find an earlier voice than that which speaks in these annual communications of the President to Congress. Good-will and cordiality have characterized our relations and correspondence with other Governments, and the year just closed leaves few international questions of importance re- maining unadjusted. No obstacle is believed to exist that can long postpone the considera- tion and adjustment of the still pending ques- tions upon satisfactory and honorable terms. The dealings of this Government with other states have been and should always be marked by frankness and sincerity, our purposes avowed, and our methods free from intrigue. This course has borne rich fruit in the past, and it is our duty as a nation to preserve the heritage of good repute which a century of right dealing with foreign Governments has secured to us. THE PAN-AMERICAN CONGRESS. It is a matter of high significance, and no less of congratulation, that the first year of the second century of our constitutional ex- istence finds, as honored guests within our borders, the representatives of all the inde- pendent states of North and South America met together in earnest conference touching the best methods of perpetuating and expand- ing the relations of mutual interest and friend- liness existing among them, That the oppor- tunity thus afforded for promoting closer in- ternational relations and the increased pros- perity of the states represented will be used for the mutual good of all, I cannot per- mit myself to doubt. Our people will await with interest and confidence the results to flow from so auspicious a meeting of allied and, in large part; identical interests. : The recommendations of this international confergnee if ened statesmen will doubt! have wonsiderate -attention of Congress, and its co-operation in the removal of unnecesdary barriers to beneficial inter- course between the nations of America. But while the commercial results, which it is hoped will follow this conference, are worthy of pur- suit and of the great interest they have ex- cited, it is believed that the crowning benefit will be found in the better securities which may be devised for the maintenance of peace among all American nations and the settlement of all contentions by methods that a Christian civilization can approve. While viewing with interest our national resources and products, the delegates will, I am sure, find a higher satisfaction in the evidences of unselfish friend- sul which everywhere attend their intercourse wit our people. THE MARITIME CONFERENCE. Another international conference, having great possibilities for good, has lately as- sembled and is now in session in this Capital. An invitation was extended by the Govern- ment, under the act of Congress of July 9, 1888, to all maritime nations to send delegates to con ‘er touching the revision and amendment of the rules and regulations governing vessels at sea and to adopt a uniform system of marine signals. The response to this invitation has been very general and very cordial. Delegates from twenty-six nations are present in the con- ference, and they have entered upon their use- ful work with great zeal, and with an evident appreciation of its imuportance. So far as the agreement to be reached may require legis- lation to give it effect, the co-operation of Con- gress is confidently relied upon. It is an interesting if not indeed an unprece- dented fact, that the two International Confer- ences have brought together here the ac- credited representatives of thirty-three nations. THE AMERICAN REPUBLICS. Bolivia, Ecuador and Honduras are now represented by resident envoys of the pleni- potentiary grade. All the states of the Amer- ican system now maintain diplomatic repre- sentation at this Capital. In this connection it may be noted that all the nations of the western hemisphere, with one exception, send to Washington envoys ex- traordinary and ministers plenipotentiary, be- ing the highest grade accredited to this Gov- ernment. The United States, on the contrary, sends envoys of lower grade to some of our sister republics. Our representative in Para- guay and Uruguay is a minister resident, while to Bolivia we send a minister resident and con- sul-general. In view of the importance of our relations with the states of the American ByS- tem, our diplomatic agents in those countries should be of the uniform rank of envoy extra- ordinary and minister plenipotentiary. Certain missions were so elevated by the last Congress with happy effect, and I recommend the com- pletion of the reform thus begun, with the in- clusion also of Hawail and Hayti, in view of their relations to the American system of states. I also recommend that timely provision be made for extending to Hawaii an invitation to be represented in the International Conference now sitting at this Capital. THE CHINESE QUESTION. Our relations with China have the attentive consideration which their magnitude and inter- est demand. The failure of the treaty nego- tiated under the administration of my prede- cessor for the further and more complete re- striction of Chinese labor-immigration, and, with it, the legislation of the last session of Congress dependent thereon, leave some ques- tions open which Congress should now approach in that wise and just spirit which should char- acterize the relations of two great and friendly powers. While our supreme interests demand the exclusion of a laboring element which experience has shown to be incompatible with our social life, all steps to compass this impera- tive need should be accompanied with a recog- nition of the claim of those strangers now law- fully among us to humane and just treatment. The accession of the young Emperor of China, marks, we may hope, an era of progress and prosperity for the great country over which he 1s called to rule. SAMOA. The present state of affairs in respect to the Samoan Islands is encouraging. The confer- ence which was held in this city in the summer of 1887 between the representatives of the United States, Germany, and Great Britain having been adjourned because of the persist- ent divergence of views which was developed in its deliberations, the subsequent course of events in the islands gave rise to questions of a serious character. On the 4th of February last, the German minister at this Capital, in behalf | of his Government, proposed a resumption of | the conference at Berlin. This proposition was accepted, as Congress, in February last, was in- | formed. Pursuant to the understanding thus reached, commissioners were appointed by me, by and with the advice and consent of the Senate, who proceeded to Berlin, where the conference was renewed. The deliberations extended through several weeks, and resulted in the conclusion of a treaty which will be submitted to the Senate for its approval. I trust that the efforts which have been made to effect an adjustment of this question will be productive of the permanent establishment of law and order in Samoa upon the basis of the maintenance of the rights and interests of the natives as well as of the treaty powers, ; The questions which have arisen during the ast few years between Great Britain and the Jnited States are in abeyance or in course of amicable adjustment. THE CANADIAN BOUNDARY. On the part of the Government of the Domin- ion of Canada an effort has been apparent dur- ing the season just ended to administer the laws and regulations applicable to the fisheries with as little occasion for friction as was possi- ble, and the temperate representations of this Government in respect of cases of undue hard- ship or of harsh interpretations have been in most cases met with measures of transitory relief, It is trusted that the attainment of our just rights under existing treaties and in virtue of the concurrent legislation of the two con- tigucus countries will not be long deferred and that all existing causes of difference may be equitably adjusted. I recommend that provision be made by an international agreement for visibly marking the water boundary between the United States and Canada in the narrow channels that join the Great Lakes. The conventional line therein traced by the Northwestern Boundary Survey, years ago, is not in all cases readily ascertain- able for the settlement of jurisdictional ques- tions. EXTRADITION WITH ENGLAND. A just and acceptable enlargement of the list of offenses for which extradition may be claimed and granted is most desirable between this country and Great Britain. The territory of neither should become a secure harbor for the evil-doers of the other through any avoid- able short-coming in this regard. A new treaty on this subject between the two powers has been recently negotiated and will soon be laid before the Senate. The importance of the commerce of Cuba and Porto Rico with the United States, their nearest and principal market, justifies the ex- pectation that the existing relations may be beneficially expanded. The impediments re- sulting from varying dues on navigation and from the vexatious treatment of our vessels, on merely technical grounds of complaint, in West India ports, should be removed. The progress toward an adjustment of pend- ing claims between the United States and Spain is not as rapid as could be desired. : Questions affecting American interests in con- nection with railways constructed and operated by our citizens in Peru have claimed the atten- tion of this Government. It is urged that other Governments, in pressing Peru to the payment of their claims, have disregarded the property rights of American citizens. The matter will be carefully investigated, with a view to secur- ing a proper and equitable adjustment. A similar issue is now pending with Portugal. The Delagoa Bay Railway in Africa was con- structed under a concession by Pony to an American citizen. When nearly ose eted the road was seized by the agents of the Portu- guese Government Formal protest has been made through our minister at Lisbon against this act, and no proper effort will be spared to secure proper relief. THE NICARAGUA CANAL. In pursuance of the charter granted by Con- gress, and under the terms of its contract with the Government of Nicaragua, the Interoceanic Canul Company has begun the construction of the important water-way between the two oceans which its organization contemplates. Grave complications for a time seemed immi- nent, in view of a supposed conflictgf jurisdic- tivd hetween Nicar, => Costa Rica in re- ard to the accessory privileges to be conceded 5 the li.iter Republic toward the construction Te on the San Juan River, of which the right bank is Costa Rican territery. I am happy to learn that a friendly arrangement has been effected between the two nations. This Government has held itself ready to promote in every proper way the adjustment of all ques- tions that might present obstacles to the com- pletion of a work of such transcendent im- portance to the commerce of this country, and indeed to the commercial interests of the world. RELATIONS WITH OTHER GOVERNMENTS. The traditional good feeling between this country and the French Republic has received additional testimony in the participation of our Government and people in the International Exposition held at” Paris during the past sum- mer. The success of our exhibitors has been gratifying. The report of the commission will be laid before Congress in due season. This Government has accepted, under proper reserve as to its policy in foreign territories, the invitation of the Government of Belgium to take part in an International Congress, which opened at Brussels on the 16th of November, for the purpose of devising measures to pro- mote the abolition of the slave-trade in Africa and to prevent the shipment of slaves by sea. Our interest in the extinction of this crime against humanity, in the regions where it yet survives, has been increased by the results of emancipation within our own borders. With Germany the most cordial relations continue. The questions arising from the re- turn to the Empire of Germans naturalized in this country are considered and disposed of in a temperate spirit, so the entire satisfaction of both tid ig It is a source of great satisfaction that the internal disturbances of the Republic of Hayti are at last happily ended, and that an appar- ently stable government has been constituted. It has been duly recognized by the United States. A mixed commission is now in session in this Capital for the settlement of long-standing claims against the Republic of Venezuela, and it is hoped that a satistactory conclusion will be speedily reached. This Government has not hesitated to express its earnest desire that the boundary dispute now pending between Great Britain and Venezuela may be adjusted amica- bly and in strict accordance with the historic title of the parties. Ti® advancement of the Empire of Japan has been evidenced by the recent promulga- tion of a new constitution, containing valuable guaranties of liberty and providing for a re- sponsible ministry to conduct the government. It is earnestly recommended that our judi- cial rights and processes in Corea be estab- lished on a firm basis, by providing the ma- chinery necessary to carry out treaty stipula- tions in that regard. The friendliness of the Persian Government continues to be shown by its generous treat- ment of Americans engaged in missionary labors, and by the cordial disposition of the Shah to encourage the enterprise of our citi- zens in the development of Persian resources. A discussion is in [regress touching the jurisdictional treaty rights of the United States in Turkey. An earnest effort will be made to define those rights to the satisfaction of both governments, PROTECTION OF NATURALIZED CITIZENS. Questions continue to arise in our relations with several countries 1n respect to the rights of naturalized citizens. Especially is this the case with France, Italy, Russia, and Turkey, and to a less extent with Switzerland. From time to time earnest efforts have been made to regulate this subject by conventions with those countries, An improper use of naturalization should not be permitted, but it is most import- ant that those who have been duly naturalized should everywhere be accorded recognition of the rights pertaining to the citizenship of the country of their adoption. The appropriate- ness of special conventions for that purpose is recognized in treaties which this Government has concluded with a number of European states, and it is advisable that the difficulties which now arise in our relations with other countries on the same subject should be simi- larly adjusted. THE BRAZILIAN REPUBLIC. The recent revolution in Brazil in favor of the establishment of a republican form of government is an event of great interest to the United States. Our minister at Rio de Janeiro was at once instructed to maintain friendly diplomatic relations with the provisional gov- ernment, and the Brazilian representatives at this capital were instructed by the provisional government to continue their functions. Our friendly intercourse with Brazil has, therefore, Our minister has been further instructed to extend on the part of this Government a formal and cordial recognition of the new Republic so soon as the majority of the people of Brazil shall have signified their assent to its establishment and maintenance. . Within our own borders a general condition of prosperity prevails. The harvests of the last summer were exceptionally abundant, and the trade conditions now prevailing seem to promise a successful season to the merchant and the manufacturer, and general employ- ment to our working people. THE NATION'S FINANCES. The report of the Secretary of the Treasury for the fiscal year ending June 30, 1889, has been prepared, and will be presented to Con- gress. It presents with clearness the fiscal operations of the Government, and I avail my- self of it to obtain some facts for use here. The aggregate receipts from all sources for the year were $387,050,058.84, derived as fol- lows: $223,832,741.69 ch .. 130,881,513.92 From miscellaneous sources.... 32,335,803.23 The ordinary expenditures for the same period were $281,996,615.60, and the total ex- penditures, including the sinking fund, were $320,579,929.25. The excess of receipts over expenditures was, after providing for the sink- ing fund, $57,470,129.59. For the current fiscal year the total revenues, actual and estimated, are £385,000,000, and the ordinary expenditures, actual and estimated, are $293,000,000, making, with the sinking fund, a total expenditure of $341,321,116.99, leaving an estimated surplus of $43,678,883.01. THE PURCHASE OF BONDS. During the fiscal year there was applied to the purchase of bonds, in addition to those for the sinking fund, $90,456,172.85, and during the first quarter of the current year the sum of $37,838,937.77, all of which were credited to the sinking fund. The revenues for the fiscal year ending June 30, 1891, are estimated by the Treasury Department at $385,000,000, and the expenditures for the same period, including the sinking fund, at $341,430,477.70. This shows an estimated surplus for that year of $43,569,522.30, which is more likely to be in- creased than reduced when the actual transac- tions are written up. REDUCING THE SURPLUS. The existence of so large an actual and anti- cipated surplus should have the immediate at- tention of Congress, with a view to reducing the receipts of the Treasury to the needs of the Government as closely as may be. The collec- tion of moneys not needed for public uses im- poses an unnecessary burden upon our people, and the presence of so large a surplus in the public vaults is a disturbing element in the conduct of private business. It has calléd into use expedients for putting it into circulation of very questionable propriety. We should not collect revenue for the purpose of anticipating our bonds, beyond the requirements of the sinking fund, but any unappropriated surplus in the Treasury should be so used, as there is no other lawful way of returning the money to circulation, and the profit realized by the Gov- ernment offers a substantial advantage, A DANGEROUS EXPEDIENT. The loaning of public funds to the banks without interest, upon the security of Govern- ment bonds, I regard as an unauthorized and dangerous expedient, It results in a tem- porary and unnatural increase of the banking capital of favored localities, and compels a cautious and gradual recall of the deposits to avoid injury to the commercial interests. It is not to be expected that the banks having these deposits will sell their bonds to the Treasury so long as the present highly beneficial arrange- ment is continued. They now practically get interest both upon the bonds and their pro- ceeds. No further use should be made of this method of getting the surplus into circulation, and the deposits now outstanding should be gradually withdrawn and applied to the chase of bonds. .It is fortuna can be made of the existing surplus, and oo some time to come of any casual surplus that may exist after Congress has taken the neces- sary teps for a reduévion of the revenue. Such legislation should, be promptly, but very con- sidera’ sly, enacted. REVISION OF THE TARIFF. Irecommend a revision of our tariff law, both in its administrative features and in the schedules. The need of the former is gener- ally conceded, and an agreement upon the evils and inconveniences to be remedied and the best methods for their correction will probably not be difficult. Uniformity of valuation at all our ports is essential, and effective measures should be taken to secure it. It is equally de- sirable that questions affecting rates and classi- fications should be promptly decided. The preparation of a new schedule of cus- toms duties is a matter of great delicacy be- cause of its direct effect upon the business of the country, and of great difficulty by reason .of the wide divergence of opinion as to the objects that may properly be promoted by such legislation. Some disturbance of business may perhaps result from the consideration of this subject by Congress, but this temporary ill effect will be reduced to the minimum by prompt action and by the assurance which the country already enjoys that any necessary changes be 80 made as not to impair the just and reasonable protection of our home in- dustries. The inequalities of the law should be adjusted, but the protective principle should be maintained and fairly applied to the pro- ducts of our farms as well as of our shops. These duties necessarily have relation to other things besides the public revenues. We can not limit their effects by fixing our eyes on the pie treasury alone. They have a direct re- ation to home production, to work, to wages, and to the commercial independence of our country, and the wise and patriotic legislator should enlarge the field of his vision to include all of these. EXTENDING THE FREE LIST. The necessary reduction in our public reve- nues can, I am sure, be made without making the smaller burden more onerous than the larger by reason of the disabilities and limita- tions which the process of reduction puts upon both capital and labor. The free list can very safely be extended by placing thereon articles that do not offer injurious competition to such domestic products as our home labor can supply. The removal of the internal tax upon tobacco would relieve an im- portant Sgrionliars] product from a bur- den which was imposed only because our revenue from customs duties was insufficient for the public needs. If safe provision against fraud can be devised the removal of the tax upon spirits used in the arts and in manufac- tures would also offer an unobjectionable method of reducing the surplus, MONEY IN CIRCULATION. A table presented by the Secretary of the Treasury, showing the amount of money of all kinds in circulation each year from 1878 to the present time, is of interest. It appears that the amount of national bank notes in cireula- tion has decreased during that period $114,- 109,729, of which $37,799,229 is chargeable to the last year. The withdrawal of bank circula- tion will necessarily continue under existing conditions. It is probable that the adoption of the suggestions made by the Comptroller of the Currency, viz, that the minimum deposit of bonds for the establishment of banks be re- duced, and that an issue of notes to the par value of the bonds be allowed, would help to maintain the bank circulation. But, while this withdrawal of bank notes has been going on, there has been a large increase in the amount of gold and silver coin in circulation and in the issues of gold and silver certificates, The total amount of money of all kinds in circulation on March 1, 1878, was $805,793,807, while on October 1, 1889, the total was $1,405, 018,000. There was an increase of $293,417,552 in gold cgin, of $57,554,100 in standard silver dollars, of $72,311,249 in gold certificates, of $276,619,715 in silver certificates, and of $14, 073,787 in United States notes, making a total of 713,976,408. There was during the same period a decrease of $114,109,729 in bank cir- culation, and of $642,481 in subsidiary silver, The net increase was $599,224,193. The circu- lation per capita has increased about five dol- lars during the time covered by the table re- ferred to. . THE COINAGE. The total coinage of silver dollars was, on No- vember 1, 1889, $343,638,001, of which $283,539, 521 were in the Treasury vaults and $60,098,480 were in circulation. Of the amount in the vaults, $277,319,944 were represented by out- standing silver certificates, leaving $6,219,577 notin circulation and not represented by cer- tificates, : by the The law requiring the purchase, Treasury, of two million dollars’ worth of silver dollars of four hundred and twelve and one- half grains, has been observed by the Depart- ment; but neither the present Secretary nor any of his predecessors has deemed it safe to exercise the discretion given by law to increase the monthly purchases to four million dollars, When the law was enacted (February 28, 1878) the price of silver in the market was $1.20 4-10 per ounce, making the bullion value of the dollar 93 cents. Since that time the price has fallen as low as 91.2 cents per ounce, reducing the bullion value of the dollar to 70.6 cents, Within the last few months the market price hassomewhat advanced, and on the 1st day of November last the bullion value of the silver dollar was 72 cents. The evil anticipations which have accom- the coinage and use of the silver dollar ave not been realized. As a coin it has not had general use, and the public Treasury has been compelled to store it. But this is mani- sentative is more convenient. The general ac- ceptance and use of the silver certificate show that silver has not been otherwise discredited. Some favorable conditions have contributed to maintain this practical equality, in their com- mercial use, between the gold and silver dollars. But some of these are trade conditions that statutory enactments do not control and of the continuance of which we cannot be certain, FREE COINAGE. I think it is clear that if we should make the coinage of silver at the present ratio free, we must expect that the difference in the bullion values of the gold and silver dollars will be taken account of in commercial transactions, and I fear the same result would follow any considerable increase of the present rate of coinage. Such a result would be discreditable to our financial management and disastrous to all business interests. We should not tread the dangerous edge of such a peril. And, indeed, nothing more harmful could happen to the silver interests. Any safe legislation upon this subject must secure the equality of the two coins in their commercial uses. I have always been an advocate of the use of silver in our currency. We are large producers of that metal and should not discredit it. To the plan which will be presented by the Secre- tary of the Treasury for the issuance of notes or certificates upon the deposit of silver bullion at its market value, I have been able to give only a hasty examination, owing to the press of other matters and to the fact that it has been 80 recently formulated. The details of such a law require careful consideration, but the gen- eral plan suggested by him seems to satisfy the purpose—to continue the use of silver in con- nection with our currency, and at the same time to obviate the danger of which I have spoken. At a later day I may communicate further with Congress upon this subject. THE CHINESE EXCLUSION ACT. The enforcement of the Chinese exclusion act has been found to be very difficult on the northwestern frontier. Chinamen, landing at Victoria, find it easy to pass our border, owing to the impossibility, with the force at the com- mand of the customs officers, of guarding so long an inland line. The Secretary of the Treasury has authorized the employment of additional officers who will be assigned to this duty, and every effort will be made to enforce the law. The Dominion exacts a head tax of fifty dollars for each Chinaman landed, and when these persons, in fraud of our law, cross into our territory and are apprehended, our officers do not know what to do with them, as the Dominion authorities will not suffer them to be sent back without a second payment of the tax. An effort will be mude to reach an understanding that will remove this difficulty. The proclamation required by section 3 of the act of March 2, 1889, relating "to the killing of seals and other fur-bearing animals, was is- sued by me on the 21st day of March, and a revenue vessel was dispatched to enforce the laws and protect the interests of the United States. The establishment of arefuge station at Point Barrow, as directed by Congress, was pur- | ‘successfully accomplished. that such a pse.l. * % OUR COAST DEFENSES. 8 dged by nfodern standards, we are practi- cofly without coast defenses. ’Many of the structures we have would enhance rather than diminish the perils of their garrisons if sub- jected to the fire of improved guns, and very few are so located as to give full effect to the greater range of such guns as we are now mak- ing for coast-defense uses, This general sub- ject has had consideration in Congress for some years, and the appropriation for the con- struction of large rif] guns, made one year ago, was, I am sure, the expression of a pur- pose to provide suitable works in which these guns might be mounted. An appropriation now made for that purpose would not advance the completion of the works beyond our ability to supply them with fairly effective guns. The security of our coast cities against for- eign attack should not rest altogether in the friendly disposition of other nations. There should be a second line wholly in our own keep- ing. I very urgently recommend an appropri- ation at this session for the construction of such works in our most exposed harbors. I approve the suggestion of the Secretary of War that provision be made for encamping companies of the National Guard in our coast works for a specitied time each year, and for their training in the use of heavy guns. His suggestion that an increase in the artillery force of the Army is desirable is also in this connection commended to the consideration of Congress. RIVER AND HARBOR IMPROVEMENTS. The improvement of our important rivers and harbors should be promoted by the neces- sary appropriations. Care should be taken that the Government is not committed to the prosecution of works not of public and general advantage, and that the relative usefulness of works of that class is not overlooked. So far as this work can ever be said to be completed, I do not doubt that the end would be sooner and more economically reached it fewer separate works were undertaken at the same time, and those selected for their greater general interest were more rapidly pushed to completion. A work once considerably begun should not be subjected to the risks and deterioration which interrupted or insufficient appropriations neces- sarily occasion. PROTECTION OF FEDERAL OFFICERS. The assault made by David 8. Terry upon the person of Justice Field, of the Supreme Court of the United States, at Lathrop, California, in August last, and the killing of the assailant by a deputy United States marshal who had been deputed to accompany Justice Field and to [Eotont him from anticipated violence at the ands of Terry, in connection with the legal proceedings which have followed, suggest questions which, in my judgment, are worthy of the attention of Congress. I recommend that more definite provision be made by law, not only for the protection of Federal officers, but for a full trial of such cases in the United States courts. In recom- mending such legislation I do not at all im- peach either the general adequacy of the pro- vision made by the State laws for the protec- tion of all citizens or the general good isposi- tion of those charged with the e ion of such laws to give protection to the officers of the United States. The duty of protecting its officers, as such, and of punishing those who assault them on account of their official acts, should not be devolved ex ressly or by acqui- escence upon the local authorities. Events, which have been brought to my at- tention, happening in other parts of the coun- try, have also suggested the propriety of ex- tending, by legislation, fuller protection to those who may be called as witnesses in the courts of the United States. The law compels those who are supposed to have knowledge of public offenses to attend upon our courts and grand juries and to give evidence. There is a manifest resulting duty that these witnesses shall be Tied from injury on account of their testimony. The investigations of crim- inal offenses are often rendered futile, and the panilinsnt of crime impossible, by the in- imidation of witnesses. THE OVER CROWDED SUPREME COURT. The necessity of providing some more speedy method for disposing of the cases which now come for final adjudication to the Supreme Court becomes every year more apparent and urgent. The plan of providing some inter- mediate courts, having final appellate juris- diction of certain classes of questions and cases, has, I think, received a more general approval from the bench and bar of the country than any other. Without attempting to discuss details, I recommend that provision be made for the establishment of such courts, The salaries of the judges of the district courts in many of the districts are, in my judg- ment, inadequate. I recommend that all such salaries now below five thousand dollars per annum be increased to that amount. It is quite true that the amount of labor performed by these judges is very unequal, but as they suffered no interruption, bullion each month, to be coined into silver can not properly engage in other pursuits to festly owing to the fact that its paper repre- supplement their incomes, the salaries should be such in all cases as to provide an inde- pendent and comfortablg, support. THE “TRUSTS.” Earnest attention should be given by Con- gress to a consideration of the question how far the restraint of those combinations of capital commonly called *‘trusts” is matter of Federal jurisdiction. When organized, as they often are, to crush out all healthy competition and to monopolize the production or sale of an article of commerce and general necessity, they are dangerous conspiracies against the public good, and should be made the subject of pro- hibitory and even penal legislation. The subject of an international copyright has been frequently commended to the atten- tion of Congress by my predecessors. The en- actment of such a law would be eminently wise and just. NATURALIZATION LAWS. Our naturalization laws should be so revised as to make the inquiry into the moral character and good disposition towards our Government of the persons applying for citizenship more thorough. This can only be done by taking fuller control of the examination, by fixing the times for hearing such applications, and b requiring the presence of some one who Shay represent the Government in the inquiry. Those who are the avowed enemies of social order, or who come to our shores to swell the injurious influence and to extend the evil practices of any association that defies our laws, should not only pe denied citizenship but a domicile. - The enactment of a national bankrupt law of a character to be a permanent part of our general legislation is desirable. It should be simple in its methods and inexpensive in its administration. THE POST OFFICE DEPARTMENT. The report of the Postmaster-General not only exhibits the operations of the Department for the last fiscal year, but contains many val- uable suggestions for the improvement and ex- tension of the service, which are commended to your attention. No other branch of the Government has so close a contact with the daily life of the people. Almost every one uses the service it offers, and every hour gained in the transmission of the great commercial nails has an actual and possible value that only those engaged in trade can understand, The saving of one day in the transmission of the mails between New York and San Francisco, which has recently been accomplished, is an incident worthy of mention. The plan suggestive of a supervision of the post offices in separate districts that shall in- volve instruction and suggestion and a rating of the efficiency of the postmasters would, I have no doubt, greatly improve the service. A pressing necessity exists for the erection of a buiiding for the joint use of the Depar- ment and of the city post office. The Depart- ment was partially relieved by renting outside quarters for a part of its force, but it is again over-crowded. The building used by the city office never was fit for the purpose and is now inadequate and unwholesome, The unsatisfactory condition of the law re- lating to the transmission through the mails of lottery advertisements and remittances is clearly stated by the Postmaster General and his suggestion as to amendments should have your favorable consideration. THE NEW NAVY. The report of the Secretary of the Navy shows a reorganization of the Bureaus of the Department that will, I do not doubt, promote the efficiency of each. In general, satisfactory progress has been made in the construction of the new ships of war authorized by Congress. The first vessel of the new Navy, the Jlolphin, was subjected to very severe trial tests and to very much adverse criticism. But it is gratifying to be able to state that a cruiseg arBund the world, from which she has Bly returned, has demon- strated that shige a firstclass vessel of her rate. The report of the Sectetary shows that while the effective force of the Navy is rapidly in- creasing, by reason of the improved build and armament of the new ships, the number of our Shins fit for sea duty grows very slowly. We had, on the 4th of March last, thirty-seven serviceable ships, and though four have since been added to the list, the total has not been in- creased, because in the mean time four have been lost or condemned. Twenty-six additional vessels have been authorized and appropriated for, but it is probable that when they are com- pleted our Fit will only be increased to forty- two, a gain of five. The old wooden ships are disappearing almost as fast as the new vessels are added. These facts carry their own argu- ment. One of the new ships may, in fighting strength, be equal to two of the oid, but it can- not do the cruising duty of two. It is import- ant, therefore, that we should have a more rapid increase in the number of serviceable ships. I concur in the recommendation of the Secretary that the construction of eight arm- ored ships, three gun boats, and five torpedo boats be authorized. THE DISASTER AT APIA. An appalling calamity befell three of our naval vessels on duty at the Samoan Island, in the harbor of Apia, in March last, involving the loss of four officers and forty-seven seamen, of two vessels, the Trenton and the Vandaha, and the disabling ofa third, the Nipsic. Three vessels of the German Navy, also in the harbor, shared with our ships the force of the hurri- cane and suffered even more heavily, While mourning the brave officers andmen who died, facing with high resolve perils greater than those of battle, it is most gratifying to state that the credit of the American Navy for sea- manship, courage and generosity was magnifi- cently sustained in the storm-beaten harbor of Apia. THE INDIAN POLICY. The report of the Secretary of the Interior exhibits the transactions of the Government with the Indian tribes. Substantial progress has been made in the education of the children of school age and in the allotment of lands to adult Indians, It is to be regretted that the Eollsy of breaking up the tribal relation and of ealing with the Indian as an individual did not appear earlier in our legislation, Large reservations, held in common, and the main- tenance of the authority of the chiefs and head-men have deprived the individual of every incentive to the exercise of thrift, and the an- nuity has contributed an affirmative impulse towards a state of confirmed pauperism, Our treaty stipulations should be observed with fidelity, and our legislation should be highly considerate of the best interests of an ignorant and helpless people. The reserva- tions are now generally surrounded by white settlements. We can no longer push the In- dian back into the wilderness, and 1t remains only, by every suitable agency, to push him upward into the estate of a self-supporting and responsible citizen. For the adult, the first step is to locate him upon a farm, and for the child, to place him in a school. School attendance should be promoted by every moral agency, and those failing, should be pelled. The national schools for Indians have been very successful, and should be mul- tiplied, and, as far as possible, should be so or- ganized and conducted as to facilitate the transfer of the schools to the States and Terri- tories in which they are located, when the In- dians in the neighborhood have accepted citi- zenship, and have become otherwise fitted for such a transfer. This condition of things will be attained slowly, but it will be hastened by keeping it in mind. And in the meantime that co-operation between the Government and the mission schools, which has wrought much good, should be cordially and impartially maintained. THE SIOUX LANDS. The last Congress enacted two distinct laws relating to negotiations with the Sioux Indians of Dakota for a relinquishment of a portion of their lands to the United States and for divid- ing the remainder into separate reservations. Both were approved on the same day—March 2. The one submitted to the Indians a specific proposition; the other (section 8 of the Indian appropriation act) authorized the President to appoint three commissioners to negotiate with Ee Indians for the accomplishment of the same general purpose, and required that any agreements made should be submitted to Con- gress for ratification. + On the 16th day of April last I appcinted Hon. Charles Foster, of Ohio, Hon, William Warner, of Missouri, and Major-General George Orook, of the United States Army, commission - ersunder the last-named law. They were, how- ever, authorized and directed, first, to submit to the Indians the definite proposition made to them by the act first mentioned, and only in the event of a failure to secure the assent of the the requisite number to that proposition to open negotiations for modified terms under the other act. The work of the Commission was prolonged and arduous, but the assent of the requisite number was, it is understood, finally obtained to the proposition made by Congress, though the report of the Commission has not yet been submitted. In view of these facts, I shall not, as at present advised, deem it neces- sary to submit the agreement to Congress for ratification, but it will in due course be sub- mitted for information. This agreement re- leases to the United States about nine million acres of land. THE CHEROKEE CONFERENCE. The Commission provided for by section 14 of the Indian appropriation bill to negotiate with the Cherokee Indians and all other In- dians owning or claiming lands lying west of the ninety-sixth degree of longitude, for the cession to the United States of all such lands, was constituted by the appointment of Hon. Lucius Fairchild, of Wisconsin, Hon. John F. Hartranft, of Pennsylvania, and Hon. Alfred M. Wilson of Arkansas, and organized on June 29 last. Their first conference with the repre- sentatives of the Cherokees was held at Tahle- i July 29, with no definite results. General ohn F. Hartranft, of Pennsylvania, was pre- vented by ill-health from taking part in the conference. His death, which occurred re- cently, is justly and generally lamented by a Jeopis he had served with conspicuous gal- antry in war and with great fidelity in peace. The vacancy thus created was filled by the ap- pointment of Hon. Warren G. Sayre, of Indiana. A second conference between the Commission and the Cherokees was begun November 6, but no results have yet been obtained, nor is it be- lieved that a conclusion can be immediately expected. The cattle syndicate now occupying the lands for grazing purposes is clearly one of the agencies responsible for the obstruction of our negotiations with the Cherokees. The large body of agricultural lands constituting what is known as the ‘Cherokee Outlet” ought not to be, and indeed cannot long be, held for grazing. and for the advantage of a few against the public interests and the best advantage of the Indians themselves. The United States has now under the treaties certain rights in these lands. These will not be used oppressively, but it can be allowed that those who by sufferance occupy these lands shall interpose to defeat the wise and beneficent purposes of the Govern- ment. I cannot but believe that the advan- tageous character of the offer made by the United States to the Cherokee Natlon, for a full release of these lands, as compared with other suggestions now made to them, will yet obtain for it a favorable consideration. THE CREEK AGREEMENT. Under the agreement between the United States and the Muscogee (or Creek) Nation of Indians on the 19th day of January, 1889, an absolute title was secured by the United States to about three and a half millions acres of land. Section 12 of the general Indian appro- priation act, approved March 2, 1889, made provision for the purchase by the United States from the Seminole tribe of a certain portion of their lands. The delegates of the Seminole Nation, having first duly evidenced to me their power to act in that behalf, delivered a proper release and conveyance to the United States of all the lands mentioned in the act, which was accepted by me and certified to be in compli- ance with the statute. By the terms of both the acts referred to all the lands go purchased were declared to be a vart of the public domain, and open to settle- ment under the homestead law. But of the lands embraced in these purchases, being in the aggregate about five and a half million acres, three and a half million acres had al- ready, under the terms of the treaty of 1866, been acquired by the United States for the pur- pose of settling other Indian tribes thereon, and had been appropriated to that purpose. The land remaining and available for settle. ment consisted of 1,887,796 acres, surrouaded on all sides by lands in the occupancy of Indi tribes. Congress had provided no civil go¥= ernment for the people who were to be invited by my proclamation to settle upon these lands, except as thd new court. which had been estgh- lished at Muscogee, or the United States courts in some bf the adjoining States, had power to enforce the general laws of the United States, In this condition of things I was quite reluc- tant to open the lands to settlement. But in view of the fact that several thousand persons, many of them with their families, had gathered upon the borders of the Indian Territory, with a view to securing homesteads on the ceded lands, and that delay would involve them in much loss and suffering, I did, on the 23d day of March last, issue a proclamation declaring that the lands therein described would be open to settlement under the provisions of the law on the 22d day of April following, at 12 o'clock noon. Two land districts had been established and the offices were open for the transaction of business when the appointed time arrived. THE SETTLERS IN OKLAHOMA. It is much to the credit of the settlers that they very generally observed the limitation as to the time when they might enter the Terri- tory. Care will be taken that those who en- tered in violation of the law do not secure the advantage they unfairly sought. There was a good deal of apprehension that the strife for locations would result in much violence and bloodshed, but happily these anticipations were not realized. Itis estimated that there are now in the Territory about sixty thousand people; and several considerable towns have sprung up, for which temporary municipal governments have been organized. Guthrie is said to have now a population of almost eight thousand. Eleven schools and nine churches have been established, and three daily and five weekly newspapers are pubiished in this city, whose charter and ordinances have only the sanction of the voluntary acquiescence of the people from day to day. Oklahoma City has a population of about five thousand, and is proportionately as well pro- vided as Guthrie with churches, schools, and newspapers. Other towns and villages havin populations of from one hundred to a aaa are scattered over the Territory. In order to secure the peace of this new community, in the absence of civil government, I directed General Merritt, commanding the Department of the Missouri, to act in conjunc- tion with the marshals of the United States to preserve the peace, and upon their requisition to use the troops to aid them in executing war- rants and in quieting any riots or breaches of the peace that might occur. He was further directed to use his influence to promote good order and to avoid any conflicts between or with the settlers. Believing that the introduc- tion and sale of liquors, where no legal re- straints or regulations existed, would endanger the public peace, and in view of the fact that such liquors must first be introduced into the Indian reservations before reaching the white settlements, I further directed the general com- manding to enforce the laws relating to the in- troduction of ardent spirits into the Indian country, The presence of the troops has given a sense of security to the well-disposed citizens, and has tended to restrain the lawless, In one instance the officer in immediate command of the troops went further than I deemed justifi- able in supporting the de facto municipal gov- ernment of Guthrie, and he was informed and directed to limit the interference of the mili- tary to the Suppor} of the marshals on the lines indicated in the original order. I very urgently recommend that Congress at once provide a Territorial government for these people. Serious questions, which may at any time lead to violent outbreaks, are awaiting the institu- tion of courts for their peaceful adjustment. The American genius for self-government has been well illustrated in Oklahoma, but it is neither safe nor wise to leave these people longer to the expedients which have tem- porarily served them, ALASKA. Provision should be made for the acquisition of title to town lots in the towns now estab- lished in Alaska, for locating town sites and for the establishment of municipal governments. Only the mining laws have been extended to that Territory, and no other form of title to lands can now be obtained. The general land laws were framed with reference to the dispo-’ sition of agricultural lands, and it is doubtful J5 fhotr operation in Alaska would be bene- cial. We have fortunately not extended to Alaska the mistaken policy of establishing reserva- tions for the Indian tribes, and can deal with them from the beginning as individuals with, I am sure, better results, But any disposition of the public lands and any regulations relating to timber and to the fisheries should have a kindly regard to their interests. Having no power to levy taxes, the people of Alaska are wholly dependent upon the General Govern- ment, to whose revenues the seal fisheries make a large annual contribution. An appropriation for education should neither be overlooked nor stinted, The smalluess of the Population and the great distances between the settlements offer serious obstacles to the establishment of the usual Territorial form of government. Per- haps the organization of several subdistricts, with a small municipal council of limited powers for each, would be safe and useful. Attention is called in this connection to the suggestions of the Secretary of the Treasury relating to the establishment of another port of entry in Alaska, and of other needed cus- toms facilities and regulations, THE LAND LAWS. In the administration of the land laws the policy of facilitating, in every proper way, the adjustment of the honest claims of individual settlers upon the public lands has been pur- sued. The number of pending cases kad, dur- ing the preceding administration, been greatly increased under the operation of orders for a time suspending final action in a large part of the cases originating in the West and North- west, and by the subsequent use of unusual methods of examination. Only those who are familiar with the conditions under which our agricultural lands have been settled can appre- ciate the serious and often fatal consequences to the settler of a policy that puts his title under suspicion, or delays the issuance of his patent. While care is taken to prevent and to expose fraud, it should not be imputed without reason. The manifest purpose of the homestead and The pnnijon laws was to promote the settle- ment of the public domain by persons having a bona-fide intent to make a home upon the selected lands. Where this intent is well es- tablished and the requirements of the law have been substantially complied with. the claimant 18 entitled to a prompt and friendly considera- tion of his case. But where there is reason to believe that the claimant is the mere agent of another. who is seeking to evade a law in- tended to promote small holdings, and to se- cure by frandulent methods large tracts of timber and other lands, both principal and agent should not only be thwarted in their fraudulent purpose, but should be made to feel the full penalties of our criminal statutes. The laws should be so administered as not to con- found tifese two classes, and to visit penalties only upon the latter. The unsettled state of the titles to large bodies of lands in the Territories of New Mex- ico and Arizona has greatly retarded the de- velopment of those Territories. Provision should be made by law for the prompt trial and final adjustment, before a judicial tribunal or commission, of all claims based upon Mexican grants, It is not just to an intelligent eople that their peace should be disturbed RD their prosperily retarded by these old contentions. express the hope that differences of opinion as to methods may yield to the urgency of the case. THE PENSION LAWS. The law now provides a pension for every soldier and sailor who was mustered into the service of the United States during the civil war and is now suffering from wounds or dis- ease having an origin in the service and in the line of duty. Two of the three necessary facts, viz, muster and disability, are usually suscepti- ble of easy proof; but the third, origin in the service, is often difficult, and in many deserv- ing cases impossible to establish, That very many of those who endured the hardships of our most bloody and arduous campaigns are now disabled from diseases that had a real but not traceable origin in the service I do not doubt. Besides these there is another class composed of men many of whom served an en- listment of three full years, and of re-enlisted veterans who added a fourth year of service, who ie the casualties of battle and the as- saults of disease, who were always ready for any detail, who were in every Battle line of their command, and were mustered out in sound health, and have, since the close of the war, while fighting with the same indomitable and independent spirit the contests of civil dife, been overcome by disease or casualty. I am not unaware that the pension-roll already involves a very Juse annual expen- diture, neither am I deterred by that fact from recommending that Congress yeaa a pension to such honorably discharged soldiers and sailors of the civil war as having rendered sub- stantial service during the war are now de- pendent upon their own labor for a mainte- nance, and by disease or casualty are incapaci- tated from earning it. Many of the men who would be included in this form of relief are now dependent upon public aid, and it does not, in my judgment, consist with the national honor that they shall continue to subsist upon the local relief given indiscriminately to pau- pers instead of upon the special and generous rovision of the nation they served so gal- antly and unselfishly. Our people will, I am sure, very generally approve such legislation. And I am equally sure that the survivors of the Union Army and Navy will feel a grateful sense of relief when this worthy and suffering class of their comrades is fairly cared for. There are some manifest inequalities in the existing law that should be remedied. To some of these the Secretary of the Interior hascalled attention, It is gratifying to be able to state that by the adoption of new and better methods in the War Department the calls of the Pension Office for information as to the military and hospital records of pension claimants are now promptly answered, and the injurious and vexatious de- lays that have heretofore occurred are en- tirely avoided. This will greatly facilitate the adjustment of all pending claims, THE NEW STATES. The advent of four new States, Squth Dakota, North Dakota, Montana, and Washington, into the Union under the Constitution, in the same month, and the admission of their duly chosen representatives to our National Congress at the same session, is an event as unexampled as it is interesting. The certification of the votes cast and of the constitutions adopted in each of the States was filed with me as required by the eighth section of the act of February 22, 1889, by the gover- nors of said Territories respectively. Having, after a careful examination, found that the several constitutions and governments were republican in form and not repugnant to the Constitution of the United States, that all the provisions of the act of Congress had been complied with, and that a majority of the votes cast in each of said proposed States was in favor of the adoption of the constitution submitted therein, I did so declare by a sepa- rate proclamation as to each; as to North Dakota and South Dakota on Saturday, Novem- ber 2, as to Montana on Friday, November 8, and asto Washington on Monday, November 11. Each of these States has within it resources the development of which will employ the en- ergies of, and yield a comfortable subsistence to, a great population. The smailest of these new States, Washington, stands twelfth, and the largest, Montana, third, among the forty- two in area. The people of these States are already well trained, intelligent, and patriotic American citizens, having common interests and sympathies with those of the older States, and a common purpose to defend the integrity and uphold the honor of the nation, RAILROAD LEGISLATION. The attention of the Interstate Commerce Commission has been called to the urgent need of Congressional legislation for the better pro- tection of the lives and limbs of those engaged in operating the great interstate freight lines of the country, and especially of the yard-men and brakemen. A petition, signed by nearly tenthousand railway brakemen, was presented to the Commission, asking that Stops might be taken to bring about the use of automatic brakes and couplers on freight cars, At a meeting of State railroad commission- ets and their accredited representives, held at Washington in March last, upon the invitation of the Interstate Commerce Commission, a resolution was unanimously adopted, ur, ing the Commission ‘‘to consider what can be done to prevent the loss of life and limb in coup- ling and uncoupling freight cars, and In handling the brakes of such cars.” During the year ending June 30, 1888, over 2,000 rail- road employes were killed in service, and more than 20,000 injured. It is competent, I think, for Congress to require uniformity in the construction of cars used in interstate com- merce, and the use of improved safety appli- ances upon such trains. Time will be necessary to make the needed changes, but an earnest and intelligent beginning should be made at once. It is a reproach to our civilization that any class of American workmen should, in the pursuit of a necessary and useful vocation, be subjected to a peril of life and limb as great as that of a soldier in time of war. THE AGRICULTURAL DEPARTMENT. The creation of an Executive Department, to be known as the Department of Agriculture, by the act of February 9, last, was a wise and timely response to a request which had long been respectfully urged by the farmers of the country. But much remains to be done to per- fect the organization of the Department so that it may fairly realize the expectations which its creation excited. In this connection atten- tion is called to the suggestions contained in the report of the Secretary, which is herewith submitted. The need of a law officer for the Department, such as is provided for the other Executive Departments, is manifest. The fail- ure of the last Congress to make the usual pro-