I PRESIDENT'S MESSAGE.
Ito the Senste and Hou of Representa
tives: W still continue In a perjod of tin
feounded prosperity. Thla prosperity l
at the crentur of law, but undoubtedly
the lows undor which we work have been
Instrumental In creating the condition!
whtoh made it possible, and by unwise leg
islation It would be eaey enough to destroy
It. There will undoubtedly be periods of
d)erelon. The wave will recede, but the
Ma will advance. This nation Is seated
a a continent flanked by two great
ceana. It Is composed of men the do
attendants of pioneers or, In a sense, plo
eers themselves of men winnowed out
from among the nations of the old world
y the energy, boldness and lova of ad
venture found In their own eager hearts,
atuch a nation so placed will surely wrest
access from fortune.
As a people we have played a large part
SB the world, and wa are bent upon mak
ing our future even larger than the past.
In particular the events of the lust four
years have definitely decided that for woe
ar for weal our place must be great among
the nations. Wa may either fall greatly
er succeed greatly, but we cannot avoid
the endeavor from which either great
allure or great auccess must come. Even
If we would we cannot play a amall part.
If wa should try, all that would follow
would be that we should play a lurge part
ignobly and shamefully.
But our people, the sons of the men of
the civil war, the sons of the men who
Bad Iron In their blood, rejoice in the
preaent and face the future high of heart
and resolute of will. Uurs is not the
creed of the weakling and the coward;
ours Is the gospel of hope and of tri
umphant endeaver. We do not shrink
from the struggle before us. There are
many problems for us to face at the out
set of the twentieth century grave prob
lems abroad and atlll graver at home but
we know that we can eolve them, and
solve them well, provided only that we
bring to the solution the qualities of head
and heart which were ahown by the men
ho In the days of Washington founded
thla government and In the days of Lin
coln preserved It.
No country has ever occupied a higher
plane of material woll being than ours at
the present momont. This well being Is
due to no sudden or accidental causes, but
to the play of the economic forces In this
country for over a century; to our laws,
our sustained and continuous policies;
above all, to the high Individual average
of our citizenship. Ureat fortunes have
been won by those who have taken the
lead In this phenomenal Industrial devel
opment, and most of these fortunes have
been won not by doing evil, but as an In
cident to action which has benefited the
community aa a whole. Never before has
mater iu I well being been so widely dif
fused among our people. Great fortunes
nave been accumulated, and yet In the
aggregate these fortunes are small In
deed when compared to the wealth of the
people as a whole. The plain people are
better off than they have ever been be
fore. The Insurance companies, which
are practically mutual benefit societies
especially helpful to men of moderate
means represent accumulations of capi
tal which are among the largest In this
country. There are more deposits In the
savings banks, more owners of farms,
more well paid wageworkers In this coun
try now than ever before in our history.
Of course when the conditions have fa
vored the growth of so much that was
good they have also favored somewhat
the growth of what was evil. It is emi
nently necessary that we should endeavor
to cut out this evil, but let us keep a due
tense of proportion; let us not In fixing
jur gsze upon the lesser evil forget the
greater good. The evils are real, and
some of them are menacing, but they are
he outgrowth not of misery or decadence,
ut of prosperity, of the progress of our
rigantlc industrial development. This In
lustrlal development must not be checked,
ut side by side with It should go such
progressive regulation as will diminish
'.he evils. We should fall In our duty It
w did not try to remedy the evils, but we
thall succeed only If we proceed patlcnt
y. with practical common sense aa well
ts resolution, separating the good from
he bad and holding on to the former
.vhlle endeavoring to get rid of the latter.
In my message to the present congress
it Its first session I discussed at length
he question of the regulation of those
lg corporations commonly doing an In
terstate business, often with some tenden
cy to monopoly, which are popularly
.nown as trusts. The experience of the
ast year has emphasized, In my opinion,
he desirability of the steps 1 then pro
posed. A fundamental requisite of social
fllclency Is a high standard of Individual
nergy and excellence, but this is In no
wise Inconsistent with power to act in
combination for alms which cannot so
veil be achieved by the Individual acting
done. A fundamental base of civilization
s the Inviolability of proyerty; but this is
n nowise inconsistent with the right of
.oclety to regulate the exercise of the
trtlficlal powers which It confers upon the
iwners of property under the name of cor
orate franchises In such a way as to
irevent the misuse of these powers. Cor
toratlons, and especially combinations of
'orporatlons, should be managed under
mblio regulation. Experience has shown
hat under our system of government the
lecessary supervision cannot be obtained
y state action. It must therefore be
ichieved by national action. Our aim is
lot to do away with corporations. On the
contrary, theso big aggregations are an
nevltnble development of modern indus
rialism, and the effort to destroy them
vould be futile unless accomplished in
vays thut would work the utmost mls
hlef to the entire body politic. We can
lo nothing of good in the way of regulat
ng and supervising these corporations
.ntil we fix clearly In our minds that we
re not attacking the corporations, but
nduavorlng to do away with any evil in
fiem. We are not hostile to them. We
re merely determined that they shall be
o handled as to subserve the public good.
Ve draw the line against misconduct, not
gainst wealth. The capitalist whs, alone
r In conjunction with his fellows, per
orms some great Industrial feat by which
e wins money Is a welldoer, not a wrong
loer. provided only he works in proper
-nd legitimate lines. We wish to favor
ajoh u man when he does well. We wish
a supervise and control his actions only
0 prevent him from doing 111, Publicity
an do no harm to the honest corporation,
ind we need not be overtender about
purl iik the dishonest corporation.
In curbing and regulating the comblna
lons of cajdtul which are or may become
.ijurlous to the public we must be care
ul not to slop the great enterprises which
uive legitimately reduced the cost of pro
tection, not to abandon the place which
iiir country has won In the leadership of
he international Industrial world, not to
trlke down wealth with the result of
losing factories and mines, of turning
he wufewnMur Idle In the streets and
wiving the farmer without a. market for
hat lie grows. Insistence upon the Im
osHlble means delay In achieving the pos
ible exactly -n, on the other hand, the
tubborn defense alike of what ts good
mi whnt Is bad In the existing system,
tre resolute effort to obstruct any at
empt at betterment, betrays blindness to
he historic truth that wise evolution la
he sure safeguard against revolution.
No more Important subject can come
lefore the congress than this of the rel
ation of Interstate business. This country
an not afford to alt supine on the plea
hat under our peculiar system of icovern
netjt we nre helpless In the presence of
,he new conditions and unable to grapple
with them or to cut out whatever uf evil
has arlsfin In connection with them. The
jjnwer of the congress to regulate Inter
state commerce Is an absolute and un
qualified grant and without limitations
fjuher than those prescribed by the consti
tution. The congress has constitutional
tuthority to make all laws necessary and
proper for executing this power, and I aw
satisfied that this power has not been ex
haiiHted by any legislation now on the
statute, hooka. It is evident, thereltire,
ihat evila restrictive of commercial free
,1om and entailing restraint upon national
wmrtu-rre fall within the regulative pow
er of the congress and thut a wise and
reasonable law would be a necessary and
proper exercise of congressional authority
to the end that such evils should be erad
icated. 1 believe that monopolies, unjust dis
criminations, which prevent or cripple
competition, fraudulent overcapitalisation
A&4 other evils in trust orgu.uliitt.Uons and
practices which Injuriously affect Inter
state trade can be prevented undor th
power of the congress te "regulate com
merce with foreign nations and amoni
the several states' through regulation!
and requirements operating directly upon
such commerce, the instrumentalities
thereof and those engaged therein.
I earnestly recommend this subject to tha
consideration of the congress with a view
to the passage of a law reasonable In Iti
provisions and effective In Its operations,
upon which the questions can be finally
adjudicated that now raise doubts as to
the necessity of constitutional amend
ment. If It prove Impossible to accom
plish the purposes above set forth by such
a law, then assuredly we should not
shrink from amending the constitution so
as to soenre beyond poradventurs the
power sought.
The congress has not heretofore made
any appropriation for the better enforce
ment of the antitrust law as It now
stands. Very much has been done by the
department of Justice In scouring the en
forcement of this law, but much more
could be done if congress would make a
special appropriation for this purpose, to
be expended under the direction of the
attorney general.
One proposition advocated has been the
reduction of the tariff as n means of
reaching the evils of the trusts which fall
within the category I have described.
Not merely would this be wholly Ineffec
tive, but the diversion of our efforts In
such a direction would mean the aban
donment of all Intelligent attempt to do
away with these evils. Many of the lar
gest corporations, many of those which
should certainly be Included In any proper
scheme of regulation, would not be af
fected In the slightest degree by change
In the tariff, save as such eharfge Inter
fered with the general prosperity of the
country. The only relation of the tariff
to big corporations as a whole Is that the
tariff makes manufactures profitable, and
the tariff remedy proposed would be In
effect simply to make manufactures un
profitable. To remove the tariff as a
punitive measure directed against trusts
would Inevitably result In ruin to the
wenker competitors who are struggling
against them. Our aim should be not by
unwise tariff changes to give foreign prod
ucts the advantage over domestfo prod
ucts, but by proper regulation to give do
mestic competition a fair chance, and
this end cannot be reached by anv tariff
changes which would affect unfavorably
an domestic competitors, good and boa
i alike. The question of regulation of the
trusts stands apart irom the question of
tariff revision.
Stability of economic policy must al
ways be the prime economic need of this
country. This stability should not be fos
sllizstlon. The country has acquiesced
In the wisdom of the protective tariff
principle. It is exceedingly undesirable
that this system should be destroyed or
that there should be violent and radical
changes therein. Our past experience
shows that great prosperity In this coun
try has always come under a protective tar
iff and that the country cannot prosper
under fitful tariff changes at short Inter
vals. Moreover, If the tariff laws as a
whole work well and If business has pros
pered under them and Is prospering. It Is
better to endure for a time slight incon
veniences and Inequalities In some sched
ules than to upset business by too quick
and too radical changes. It Is most ear
nestly to be wished that we could treat
the tariff from the standpoint solely of
our business needs. It Is, perhaps, too
much to hope that partisanship may be
entirely excluded from consideration of
the subject, but at least It can be made
econdury to the business Interests rM the
country that Is, to the Interests of our
fieople as a whole, Unquestionably these
luslness Interests will Dest be served If
together with fixity of principle as re
gurds the tariff we combine a system
which will permit us from time to time to
make the necessary reappllcution of tha
principle to tho ahifting national needs.
We must take scrupulous care that the
reappllcatlon shall be made In such a way
that it will not amount to a dislocation of
our system, the mare threat of which, not
to speak of the performance, would pro
duce paralysis in the business energies
of the community. The llrst considera
tion In making these changes would, of
course, be to preserve the principle which
Underlies our whole tariff system that Is,
the principle of putting American busi
ness Interests at least on a full equality
with Interests abroad and of always al
lowing a sufficient rate of duty to more
than cover the difference between the
labor cost here and abroad. The well be
ing of the wageworker. Ilka the well be
ing of the tiller of the soil, should be
treated as an essential In shaping our
whole economic policy. There must never
be any change which will Jeopardize the
standard of comfort, the standard of
wages, of the American wageworker.
One way In which the readjustment
sought can be reached is by reciprocity
treaties. It ts greatly to be desired that
such treaties may be adopted. They can
be used to widen our markets and to give
a greater field for the activities of our
producers on the one hand, and on tha
other hand to secure In practical shape
the lowering of duties when they are no
longer needed for protection among our
own people or when the minimum of dam
age done may be disregarded for the sake
of the maximum of good accomplished.
If It prove lmpossiVe to ratify the pend
ing treaties and I "there seem to be no
warrant for the endeavor to execute oth
ers or to amend the pending treaties so
that they can be ratified, then the time
end to secure reciprocity should be met
by direct legislation.
Wherever the tariff conditions are such
that a needed change cannot with advan
tage be made by the application of the
reciprocity Idea, then It can be made out
right by a lowering of duties on a given
product. .If possible, such change should
be mude only after the fullest considera
tion by practical experts, who should ap
proach the subject from a business stand
point, having In view both the particular
interests affected and the commercial well
being uf the people as a whole. The ma
chinery for providing such careful inves
tigation can readily be supplied. The ex
ecutive department has already at Its
disposal methods of collecting facts and
figures, and If the congress desires addi
tional consideration to that which will be
given the subject by Its own committees,
then a commission of business experts can
be appointed whose duty It should be to
recommend action by the congress after
a deliberate and scientific examination of
the various schedules aa they are affected
by the changed and changing conditions.
The unhurried and unbiased report of this
commission would show what chnnges
should bo made In the various schedules
and how far these changes could go with
out also changing the great prosperity
which this country is now enjoying or
upsetting Its fixed economic policy.
The cases in which the tariff can pro
duce a monopoly are so few as to consti
tute an Inconsiderable factor In the ques
tion; but, of course. If in any case it be
found that a given rate of duty does pro
mote a monopoly which works ill, no pro
tectionist would object to such reduction
of the duty as would oquallze competition.
In my Judgment, the tariff on anthracite
ooal should be removed and anthracite
put actually, where It now is nominally,
on the free list. This would have no effect
at all savo In crises; but In crises It might
be of serrlce to the people.
Interest rates are a potent factor In
business activity, and In order that theso
rates may he equalized to meet the vary
ing needs of the seasons and of widely
separated communities, and to prevent the
recurrence if financial stringencies which
Injuriously affect legitimate business, it
Is necessary that there should be an ele
ment of elasticity In our mohetary sys
tem. Hunks ure the natural servants of
commerce, and upon them should be
placed, us far as practicable, the burden
of furnishing and maintaining a circula
tion adequate to supply the needs of our
diversified industries and of our domestic
and foreign commerce, and the Issue of
this should be so regulated that a sutfl
clent supply should be always available
for the business interests of the country.
It would be both unwise and unneces
sary at this time to attempt to recon
struct our financial system, which has
been the growth of a century, but some
additional legislation la, I think, desirable.
The mere outline of any plan sufficiently
comprehensive to meet these requirements
would transgress the appropriate limits
of this communication. It Is suggested,
however, that all future legislation on the
subject should be with the view of en
couraging the use of such instrumentali
ties as will automatically supply every
legitimate demand' of productive, indus
tries and of commerce, not only In the
amount, but In che character of clrcula- ;
tion, and of making all kinds ef money
Interchangeable ami, at the will of the
hol'der, convertible Into the established
gold standard. i
I again call your attention to the need
of passing a proper Immigration law, cov
ering the points outlined in my message
to you at the first session of tha present I
congress. HubstuntiaMy such a 'Jill baa
already passed tho house. . , I
TH E COLUMBIAN,
How to securo fair treatment allko tm
labor and for capital, how to hold lr
cnecx me unscrupulous man, wnetner em
plover or employee, without weakening
naivinuni initiative, wunoui namperins
and cramping the Industrial development
of tha country, la a problem fraught with
freai airncuities anel one wnicn It IS 01
he highest Importance to solve on lines
of sanity and farslghted common sense at
well as of devotion to the right. This It
an era of federation and combination.
Exactly as business men find they must
often work through corporations, and ai
It is a constant tendenoy of these corpora
tions to grow larger, so It Is often neces
sary for laboring men to work In federa
tions, and these have become Important
factors of modern Industrial life. Moth
kinds of federation, capitalistic and labor,
can do much good, and as a necessary
corollary they can both do evil. Opposi
tion to each kind of Organization should
take the form of opposition to whatever Is
bad In the conduct of any given corpora
tion or union, not of attacks upon cor
porations as such nor upon unions as
such, for some of the most farreachlng
beneficent work for our people has been
accomplished through both corporations
and unions. Each must refrain from ar
bitrary or tyrannous Interference with
the rights of others. Organlxed rs pital
and organized labor alike should remem
ber thut in the long run the Interest of
each must be brought Into harmony with
the Interest of the general public, and the
conduct of each must conform to the
fundamental rules of obedience to the
law, of Individual freedom and of Justice
and fair dealing toward all. Each should
remember that in addition to power it
must strive after the realization of
healthy, lofty nnd generous ideals. Every
employer, every wageworker, must be
guaranteed his liberty and his right to do
as he likes with his property or his labor
so long us he does not Infringe upon the
rights of others. It Is of the highest Im
portance that employer and employee
alike should endeavor to appreciate each
the viewpoint of the other and the sure
disaster that will come upon both In the
long run If either grows to take aa habit
ual an attitude of sour hostility and dis
trust toward the other. Few people de
serve better of the country than those rep
resentatives both of capital and labor
and there are many such who work con
tinually to bring about a good understand
ing of this kind, based upon wisdom nnd
upon broad nnd kindly sympathy between
employers ami employed. Above all, we
need to remember that any kind of class
animosity In the political world Is. If pos
sible, even more wicked, even mors de
structive to national welfare, than sec
tional, race or religious animosity. Wa
can get good government only upon condi
tion that we keep true to the principles
upon which this nation was founded and
Judge each man not ns a part of a class,
but upon his Individual merits. All that
we have a rlitht to ask of any man, rich
er poor, whatever his creed, his occupa
tion, his birthplace or bis residence, is
that he shall act well and honorably by
his neighbor and by his country. We are
nolther for the rich man as such nor for
the poor man aa such; wo are for the up
right man, rich or poor. 80 far as tho
constitutional powers of the national gov
ernment touch these matters of general
and vital moment to the nation, they
should be ex-rcised In conformity with
the principles xbove set forth.
It Is earnestly hoped that a secretary of
commerce may be created, with a seat In
the cabinet. The rapid multiplication of
questions affecting labor and capital, the
growth and complexity of the organiza
tions through which both labor and capi
tal now And expression, the steadv tend
ency toward the employment of copltal In
huge corporations and the wonderful
strides of this country toward leadership
In the International business world Justify
an urgent demand for tho creation of
such a position. Substantially all the
leading commercial bodies In this country
have united in requesting Its creation. It
Is deslrnhlo that some such measure as
that which has already passed tho senate
be enacted Into law. The creation of such
a department would In Itself be an ad
vance toward dealing with and exercising
supervision over the whole subject of the
great corporations doing an Interstate
business, and with this end In view the
congress should endow the department
with large powers, which could be In
creased as experience might show the
need.
I hope soon to submit to the senate a
reciprocity treaty with Cuba. On May 20
last the United States kept Its promise to
the Island by formally vacating Cuban soil
and turning Cuba over to those whom her
own people had chosen as the first officials
of the new republic.
Cuba lies at our doors, and whatever af
fects her for good or for 111 affects us also.
Bo much have our people felt this that In
the Piatt amendment we definitely touk
the ground that Cuba must hereafter have
doner political relutlons with us than with
any other power. Thus In a sense Cuba
has become a part of our International
political system. This makes it necessary
that in return she should be given soma of
the benefits of becoming part of our eco
nomic Bystem. It Is. from our own stand
point, a shortsighted and mischievous pol
icy to fall to recognize this need. More
over, It is unworthy of a mighty and gen
erous nation. Itself the greatest and most
successful republic In history, to refuse te
stretch out a helping hand to a young and
weak sister republic Just entering upon
its career of Independence, We should al
ways fearlessly InslHt upon our rights In
the face of the strong, and we should with
ungrudging hand do our gunerous duty
by the weak. 1 urge the adoption of reci
procity with Cuba not only because It Is
eminently for our own interests to control
the Cuban market and by every means to
foster our supremacy In the tropical lands
and waters south of us. but also 'because
we of the giant republic of the north
should make all our sister nations of the
American continent feel that whenever
they will permit it we desire to show our
relves disinterestedly and effectively their
friend.
A convention with Great Britain has
been concluded, which will be at ones laid
before the senate for ratification, provid
ing for reciprocal trade arrangements be
tween the I'nlted States and Newfound
land on substantially the lines of the con
tention formerly negotiated by the secre
tary of state, Mr. Blaine. I believe recip
rocal trade relations will' be greatly to tha
advantage of both countries.
As civilization grows warfare becomes
less and less tho normal condition of for
eign relations. The last century has
seen a marked diminution of wars be
tween civilized powers. Wars with un
civilized powers are largely mere matters
of International police duty, essential for
the welfare of the world. W'herever pos
sible arbitration or some similar method
should be employed In lieu of war to settle
difficulties between civilized nations, al
though as yet the world has not pro
gressed sufficiently to render It possible
or necessarily desirable to invoke arbitra
tion In every caae. The forrruitjan of the
international tribunal which sits at The
Hague is an event of good omen from
which great consequences for the welfare
of all mankind may flow. It la far better
where possible to Invoke such u perma
nent tribunal than to create special arbi
trators for a given purpose.
It ie a mutter of sincere congratulation
to our country that the United States and
Mexico should have been the first to use
the good ofllces of The Hague court. This
was done last summer with most satis
factory results in the case of a claim at
Issue between us and our sister republic
It Is earnestly to be hoped thut this first
ease will serve as a precedent for others,
In which not only the United States but
foreign nations may take advantage of
the machinery already in existence at
The Hague.
I commend to the favorable considera
tion of the congress. the Hawaiian fire
claims, which were the subject of careful
Investigation during the last session.
The congress has wisely provided that
we shall build at once an Isthmian canal,
If possible at Panama. The attorney gen
eral report that we can undoubtedly ac
quire good titan from the French Panama
canal company. Negotiations are now
pending with Colombia Ui secure her as
sent to our building the canal. This canal
will be one of the greatest engineering
lewts of the twentieth century, a greater
engineering feat than has yet been ac
complished during the history of mankind.
The work should be carried tout aa a con
tinuing policy without regard to change
of administration, snd It should be begun
Under circumstances which will make It
a mutter of pride for all administrations
to continue the policy.
The canal will he ef great benefit to
America and of importance to 'all the
world- It will be of udvantage to us In
dustrially and ftki'o as Improving our mil
itary position, it will be of advantage to
the countries of tropical America. It is
earnestly to be hoped that all of these
countries will do aa pome of thorn have
already done with signal success and will
Invite to their shores commerce and im
prove their -materi.il conditions by recog
nizing that stability and -order are the
R prerequisites of successful development,
lo independent nation in America need
BLOOMSBU RQ, PA.
have tho slightest fear of aggression from
tha United States. It behooves each on
to maintain order within Its own borders
and to discharge Its Just obligations to
foreigner. When this Is done, they can
rest assured that, be they strong or weak,
they have nothing to dread from outside
Interference. More and more the Inrreas
Ing Interdependence and complexity of.
international political and economic rela
tions render It Incumbent on all civilized
and orderly powers to Insist on the proper
policing of the world.
During the fall of J901 a communication
was addressed to tne secretary of state
asking whether permission would be
? ranted by the president to a corporation
o lay a cnble from a point on the Cali
fornia coast to the Philippine Islands by
way of Hawaii. A stntemont of condi
tions or terms upon which such corpora
tion would undertake to lay and operate
a cable was volunteered.
Inasmuch ss the congress was shortly to
convene and Pacific cable legislation nnd
been the subject of consideration by the
congress for several years, It seemed to
me wise to defer action upon the applica
tion until the congress had first an oppor
tunity to act. The congress adjourned
without taking any action, leaving the
matter In exactly the same condition in
which It stood when the congress con
vened. Meanwhile It appears that the Commer
cial Pacific Cnble company had promptly
proceoded with preparations for laying Its
cable. It also made application to the
firesldent for access to and use of sound
ngs taken by the United States steamship
Noro for the purpose of discovering a
prnctlcnhleroute for a traaspaclfic cable,
the company urging that with access to
these soundings it could complete its cnble
much sooner than If it were required to
take soundings upon Its own account.
Pending consideration of this subject It
appeared important and desirable to at
tach certnln conditions to the permission
to examine and use the soundings if It
should be granted.
In consequence of this solicitation of tha
cnble company certain conditions were
formulated, upon which the president was
willing to allow access to these sound
ings and to consent to the landing and
laying of the cable, subject to any altera
tions or additions thereto Imposed by the
congress. This was deemed proper, espe
cially as It waa clear that a cable con
nection of soma kind with China, a for
eign country, was n, part of the company's
plan. This course was, moreover, in ac
cordance with a line of precedents. Includ
ing President Grant's action In the case
of the first French cable, explained to the
congress In his annual message of De
cember, 1875, and the Instance occurring
In 1X7 of the second French cnble from
Brest to St. Pierre, with a branch to
Cape Cod.
These conditions prescribed, among oth
er things, a maximum rate for commer
cial messages and that the company
should construct a line from the Philip
pine Islands to China, there being at pres
ent, aa is well known, a British line from
Manila to Hongkong.
Tho representatives of tho cable compa
ny kept these conditions long under con
sideration, continuing In the meantime to
prepare for laying the cable. They have,
however, at length acceded to them, and
an all American line between our Pacific
coast and the Chinese empire by way of
Honolulu and the Philippine Islands Is
thus provided for and Is expected within
a few months to be ready for business.
Among the conditions is one reserving
the power of the congress to modify or re
peal any or all of them. A copy of the
conditions Is herewith transmitted.
Of l'orto Klco It Is only necessary to say
that the prosperity of the Island and the
wisdom with which It has been governed
have been such as to make it serve aa an
example of all that Is best in insular ad
ministration. On July 4 last, on the one hundred and
twenty-sixth anniversary of the declara
tion of our Independence, pence nnd am
nesty, were promulgated in the Philippine
Islands. Some trouble has since from
time to time threatened with the Moham
medan Moros. but with the late Insurrec
tionary Filipinos the war hus entirely
ceased. Civil government has now beun
introduced. Not only does each Filipino
enjoy such rights to life, liberty and the
pursuit of happiness as he has never be
fore known during the recorded history of
the Islands, but the people, taken as a
whole, now enjoy a measure of self gov
ernment greater than that granted to any
other orientals by any foreign power and
greater than that enjoyed by any other
orientals under their own governments
savo the Japanese ulone. We have not
f:one too far in granting these rights of
Iberty and self government, but we have
certainly gone to the limit that in the In
terests of the Philippine people themselves
it was wise or Just ts go. To hurry mat
ters, to go faster than wo are now going,
would entail calamity on the people of
the islands. No policy ever entered Into
by tho Amerlcnn people has vindicated It
self In more signal manner than the poli
cy of holding the Philippines. The tri
umph of our arms, above all the triumph
of our laws and principles, has come soon
er than we had any right to expect. Too
much praise cannot be given to the army
for what it has done In the Philippines,
both In warfare and from an administra
tive standpoint. In preparing the way for
civil government, and similar credit be
longs to the civil authorities for the way
In which they have planted the seeds of
self government In the ground thus mado
ready for them. The courage, the un
flinching endurance, the high soldierly effi
ciency and the general kind heurtedness
and humanity of our troops have been
strikingly manifested. There now remain
only some 15,000 troops in tho Islands. All
told, over lOO.SOt) have been sent there. Of
course there have been Individual In
stances of wrongdoing among them. They
warred under fearful difficulties of cli
mate and surroundings, and under tne
strain of the terrible provocations which
they continually received from their foes
occasional instances of cruel retaliation
occurred. 1 Every effort has been made to
prevent such cruellies, and finally these
efforts have been completely successful.
Every effort has also been made to de
tect and punish the wrongdoers. After
making all allowance for these misdeeds
It remains true that few indeed have been
the Instances in which war has been
waged by a civilized power against sornl
clvilized or barbarous forces where there
has been so little wrongdoing by the vic
tors as In the Philippine Islands. On the
other hand, the amount of diltlcult, Impor
tant and beneficent work which has been
dons Is well nigh incalculable.
Taking tha work of the army and the
civil authorities together. It may be ques
tioned whether anywhere else in modern
times the world has seen a better exam
ple of real constructive statesmanship
than our people have given in the Philip
pine Islands. High praiso should also ha
given those Filipinos In the aggregato
very .numerous who have accepted the
new conditions and Joined with our repre
Iteiitatlvea to work with hearty good will
for the welfare of the Islands.
The army hns been reduced to the mini
mum allowed by law. it Is very small for
the size of the nation and most certainly
should be kept at the highest point of efll
cincy. The senior officers are given scant
chance under ordinary conditions to ex
ercise commands commensurate with their
rank under circumstances which would fit
them to do their duty In time of actual
war. A system of maneuvering our army
In bodies of some little size has been be
gun and should be steadily continued.
Without such maneuvers it is folly to ex
pect that In the event of hostilities with
any serious fee even a small army corps
could be handled to advantage. Both our
officers and enlisted men are such that
we can take hearty pride in them. No
better material can be found. But the
must tie thoroughly trained, both as Indi
viduals and in the mass. The marksmun
shlp of the men must receive special at
tention. In the circumstances of modern
warfare the man must act fur more on
his owa Individual responsibility than
ever before, and the high individual etll
clency of the unit Is of the utmost im
portance. Formerly this unit was the
regiment. It is now not the regiment, not
even the troop or company; It Is the Indi
vidual soldier. Every effort must be made
to develop every workmanlike and scA
dterly quality In both tho oitlcer and tbs
enlisted man.
I urgently call your attention to the
need of passing a bill providing for a gen
eral staff and for the reorganisation of
the supply departments on the lines of the
bill proposed by the secretary of war lost
yeur. Whea the young officers enter the
army from West Point, they probably
stand above their compeers In any other
military service. Every effort should be
mado by training, by reward of merit, by
scrutiny Into their careers and capacity,
to kerp them of the same high relative
excellence throughout their carcersT
The measure providing for the reorgan
ization of the militia system and for se
curing the highest etltclency in the nation
al guard, which has already passed the
house, should receive prompt attentiuu
and action. It ia of great Importance thut
the relation of the national guard to tha ,
mtl'tla and volunteer forces of the United -Stairs
should be dellned and that In place
of our present obsolete laws a practical ;
and efllclent system should be adopted. ;
Provision should be mnde to enable tha
secretnrv of war to keep cavalrj and ar
tillery horse worn out In long perform
ance of dutv. Such horses fetch but a
trifle when sold, and rather than turn
them out to the misery awaiting them
when thus disposed of it would be better
lo employ them at light work around tho
posts and when necessary to put them
painlessly to death. 1
For the first time In our history naval
maneuvers on a large scale are being held
tinder the Immedlnte command of the ad
miral of the navy. Constantly Increasing
attention Is being paid to the gunnery of
the navy, but it is yet far from what It
should be. 1 earnestly urge that the In
crease asked for by the secretary of tha
navy In the appropriation for Improving
tho marksmanship be granted. In battle
tho only shots that count are the shots
that hit. It la necessary to provide ample
funds for practice with the great guns In
time of peace. These funds must provide
not only for the purchase of projectiles,
but for allowances for prizes to encour
age the gun crews, and especially the gun
pointers, and for perfecting an Intelligent
system under which alone It Is possible to
get good practice.
There should be no halt In the work of
building up the navy, providing every
year additional fighting craft. W are a
very rich country, vast In extent of terri
tory and great In population, a country,
moreover, which has an army dlmlnutlva
indeed when compared with that of any
other first class power. We have deliber
ately made our own certain foreign poli
cies which demand the possession of a
first class navy. The Isthmian canal will
f;reatly Increase the efllclencv of our navy
f the navy Is of sufficient size, but If wa
have an Inadequate navy then the build
ing of the canal would be merely giving a
hostage to any power of superior strength.
The Monroe doctrine should be t rented as
the cardinal feature of American foreign
policy, but It would be worse thnn Idle
to assert It unless we Intended to back It
up, and It can be hacked up only by a
thoroughly good nnvy. A good navy Is
not a provocative of war. It is the surest
guaranty of peace.
Each Individual unit of our nnvy should
be the moat elllcient of its kind as regards
both material and personnel thut Is to be
found In the world. 1 call your special
attention to the need of providing for the
manning of the ships. Serious trouble
threatens us If we cannot do better than
we nre now doing as regards securing the
services of a sufllclent number of the high
est type of sullormen, of sea mechanics.
The veterun seamen of our warships are
of as high a typo ss ran be found In any
navy which rides the waters of the world.
They are unsurpassed In daring, In reso
lution. In readiness, In thorough knowl
edge of their profession. They deserve ev
ery consideration that can be shown them.
Hut there nre not enough of them. It Is
no more possible to Improvise n crew thnn
It Is possible to Improvise a warship. To
build the finest ship, with the deadliest
battery, and te send It nflo-. with a raw
crew, no matter how braveltey were In
dividually, would be to Insure dlsnster If a
foe of average capacity were encountered.
Neither ships nor mon can be Improvised
when war has begun.
We need a thousand additional officers
tn order to properly man the ships now
provided for and under construction. Tho
classes at the naval school at Annapolis
should be greatly enlarged. At tho same
time that we thus add the ofllcers where
we need them, we should facilitate the re
tirement of those at the head of the list
whose usefulness has become Impaired.
Promotion must be fostered If the service
is to be kept efllclent.
The lamentable scarcity of officers and
the largo number of recruits and of un
skilled men necessarily put aboard the
new vessels aa they have been commis
sioned has thrown upon our officers, and
especially on the lieutenants and Junior
grades, unusual labor and fatigue and has
gravely strained their powers of endur
ance. Nor Is there sign of any immediate
letup In this strain. It must continue for
some time longer until more officers are
graduated from Annapolis and until the
recruita become trained and skillful In
their duties. In these difficulties Incident
upon the development of our war fleet the
conduct of all our olflcers hss been cred
itable to the service, and the lieutenants
and Junior grades in particular have dis
played an ability and a steadfast cheer
fulneM which entitle them to Hit ungrudging
thank! of ill who realize the disheartening trials
sad fatigues to which they are ol nacttaity sub
jected. There is not a cloud on the horizon at present.
Thuro seems not the slightest cfesnre of troul.lt
with a foreign powtr. We mott earnestly hope
thtt this state of things may continue, and tht
way to insure its continuance is to provide for a
thoroughly efficient navy. The refusal to main
tain such a navy would Invite trouhle, and if
trouble came would insure disaster. Fatuous self
complacency or vanity or shortsightedness n re
futing to prepsre for danger I both foolish and
wicked in such a nation at ours, and psst experi
ence has shown that such fatuity in refusing te
recogaiie or prepare for any crisis in advsnct it
usually succeeded by a mad panic of hysterical
fear once the criait hat actually arrived.
The striking increase In the revenues of tht
pomofflce department shows clearly the prosperity
of our sop)e and the increasing activity uf the
buaineta of tht country.
The receipts of tht postoffice department for
the nal year tnding June 80 lmt amounted to
12l,W8,M7.2rt, an increase of 10,'.'l(t,a.s.H7 over
tht preceding year, tht largeet increase- known in
the history of the postal service. Tht muKiiitu.it
of thit inrrcast will bent appear from the fact
tiiat the entire postal rrceipta for the yeur 1WW
amounted to but H,M3.07.
Hural free delivery service it no longer in tht
experimental stage. It has become a fined policy
The reaulta following ita Introduction have fullv
Justified the congrrsa In tht lirct appropriations
msde for its establishment and rau-nioii The
average yearly increase in putt office receipts in
tlit rural districts of tht country is about 2 per
cent. W are now tide, by actual results, to
show that where rural fret delivery service hat
been tstalilished to such an extent as to enshlt
lit to nuke compariioni the ytarly increase has
been upward of HI per vent.
On Nov. 1, l'.Wi, ll.tuO rural free delivery
routet had been established and were in operation
covering about one-third of the territory of the
United States available for rural free delivery
service, 'i'iicre are now awaiting the actios of
the department petition! and applications for tht
entablishmcnt of 10,744 additional routea This
shews conclusively tht want which the tatablish
ment of the service has met and the need uf fur
ther extending it aa rapidly as possible. It it
Justified both by the financial results and by the
t tactical benefits to our rural population- it
rings the men who live on tiie toil into clow
relations with the active business world; it keeps
tht farmer in daily touch with tht markets; It it
a potential educational force; it enhances tht
valut ol farm proptrty, makes farm life far
pleasanter and let isolated, and will do muoh to
hook tht undesirable current from country to -
It it to be hoped that tht congreet will make I
liberal appropriations for the continuance ef the
service already tttablishtd and for its further ta- 1
tension.
Few tubjecta ef mort importanct have been '
taken up by the congrett in recent yeara than
the inamruratlon of tht system of nationally aided
irrigation for Iht arid regioat of the tar west
A good beginning therein haa been made Now
that this policy of national irrigation hsi bats I
dopted tht need of thorough anif scientittc forest
protection will grow mora rauldiy than aver 1
throughout tht public land states ' I
Legislstioa should be provided for the protee- I
tloa of the game and tht wild creaturea gsner
ally en the foreat reMrvea. The tenseleaa .l.h. I
tor at game, which can by Judicious protection ba
permanently preserved on our national reserve!
for tht people as a whole, should be stopped at
once. It it for instanct, 1 aeriout count against
our national good sanae to permit tht piesoat
practice of butchering og tuch a ,t.t,. y "
tka cr,,,ure " th 'r ltt sutlers
Ho far aa they are avallablt for agriculture and ''
to whatever extent they may b. reclaimed under
the national irrigation law, iht remaining puhlio i
Undt thould be Raid rigidly for tht hom.-builder! 1
the aettler who hvet on hit rand, and for no one
hf their actual uso the desert land law!
the timber and atont law and the commutation
claute of tht homestead law have been au Z"
verted from tht intention with which the were
enaoted at to permit the acquisition of larae
areaa of the public domain for other than actuul '
settlers and the coasequent prevention of settle '
mtnt. Moreover, the approaching exhaustion of
the public ranges lias t! late 1,3 to much d"
eutsion aa to tli beat manner of using these pub.
lie lands in the west which art suitable chiefly or
only for grating Tl. tound and ate.dy develop
T'.1' .I!' ".'! ','"t ieA"n VP'' th. building u
of hornet therein. Much ol our prosperity m k
nation haa been due lo tht operation of the hor..
stead law. On th. other hand. w. ".houlj
sit tht fact that in tht graiing region thman
who oorre.ppn.la to tht hoincst.-ader nmy be un"
abl, to aettlt (M-rsnunently It only allowed to use
the taint amount of iwtture land that his brother
the homesteader, ia allowed te use of aruble land'
One hundred and tixty acre, ef fairly rich aud
well watered suil or a much s.nallc-r amount "l
irrigated land may keep a family is plenty, whete.
aa no one could set a living from let) acres ol
Jnt."1J''l.? "'lM.orti.ig I
Utne aVrhrtTS"tB 7S ,"5Sl
hare bean feaced in by persons having no titlt
then-to. In direct defiance of tht Itw fnnii
tht maintenance er cone.ructlon of anv .. 2
lawful IscloHire of public land, 1 w . J
reaeona thrrt haa been little Interfer. nr
tuch Ineloeures in the psst, hut ample not! ."I?
now been given the trrpaert, ami til ih
tuHrrea at tha command of the goierrinwi
hereafter he ueed to put a ttop to mil, jr , J"1'
In view of the capital importance r.f th,.
tera 1 commend th.-ra to the earnest conu.lP"'
of tht conaresa, and if the conresa ?
rilly in dealing with them from la.-k nl 11....
L . i . L - ...Kl 1 1 . V "if,ron-s
knowledge of iht mhject I rcenmnntid 11,.', 1"
vislos be made for a commission ol en,,,.
:.n !..... " l rts site
iini.j . ."-'-"i."'. ivjior upon Ilia
pllclted nuestinna Involved. " r"
I especially urge Umn the contrreaa th, .... .
wise legislation for Alaska. It I. I '. nS
credit aa a nation that Ala.ka, which VAVl?
ours for thirty-five years, should m have a.iH
a system of laws at ia the caae. No coubu-v i!2
a more valuable pnsaeaalnn in mineral weslih 1
fisheries, furs, forcMi and alto In lend avmilu
for certain kinds of farming and ito,k lT"l'
It la a territory of greal also and varied
sourcei, well fitted to support t Isrg. berm.tJS
population. Alaska needs a good land law .nl
such provisions for homesteads and pre-emiitiI
aa will encourage permanent settlement wl
aliould shape legislation with a view not t n,
exploiting and abandoning of the territory 1 1
to the building up of hnmce therein. Tl,'.' u.j
lawi aheuld be liberal In tyiw, i 0 h,i,
inducements to the actual ecitlcr whom we m,
detirt to see tske possession of the rouretj-y tvI
forest! of Alsska should be protected, ami as
secondary but atill important matttr, the' aim.
also, and at the same time it it Imperative th?
the tettlert should be allowed to cut timl.rr mL
der proper regulntlona, for their own uw .
should bt enacted to protect the Alask.n' snlrm
fisheries against the greed which would destroy
them. They should be preserved aa a permanesa
Industry and food supply. Their mnsgrm.-4
and control thould he turned over to the comnuT
tion of fish and fisheries. Alsska should have a
delegate In tht congrett. It would be wl ,
congressional committee could vlelt Alaska ml
invest Igatt Ita needa on the ground.
In dealing with the Indians our aim should he
thtlr ultimate absorption Into the bo.lv of our
people, but In many caaet thit absorption m.t
and should be very alow. In portions of the ra
dian Territory Hie mixtiirt of blood hss gone t
at the snme time with progress in weslth nt
education, so that there are plenty of nun oa
varying degreea of purity of Indian blood cba
are absolutely Indistinguishable In point of soi.L
political and economic ability froan their wrurt
associates. There are other trihea which hive m
yet made no peri-eptlble advance toward su-h
niuelity. To try to force eurh trlbet too fast u
to prevent their going forward at all. Moreover
tht tribet live under widely different rondttinat
Where a tribe haa made considerable advance nJ
Uvea on fertile farming toil it ia possible to allot
the member lands In severalty much sa ia th
case with while tettltrs. There art other tribes
whert tuch a course la not desirable, tin the
arid pnrlrie lands tht effort thould bt to induct
the Indians to lead psttoral rather than agricul
tural Uvea and to permit them to aettle In vil
lagrt rather than to force them Into (eolation
The large Indian achuolt aituatrd remote from
tny Indian reservation do a special and peculiar
work of great importance; but, excellent th.niuk
these are, an Immense smount of additional work
must be done on the reservations themselves
among the old, and, above all, among the yeuat
lndisns.
The first and moat important itep toward tht
absorption of the Indian It to fetch him to ears
hit living, ytt it ia not necessarily to be sssumrd
thst in each community all Indiana must beeomt
either tiller, of the soil or stock raux-ra. Tb.w
Industries msy properly be diversified, ana irhn
who show special dceire or adaptability for indus
trial or even commercial puraulta tliuuld be en
couraged so far aa practicable to follow out eark
hit own lw-nt.
Kvery effort thould bt made to develop the .
dian along the lines of natural aptitude and a
encourage the existing native industries prmlial
to certain tribet, euch aa the venous kinds t
basket weaving, cano building, smith work and
blanket work. Abuvt all, tht Indian bova tni
r:irlt should be given confident command ol e.jl
oquial I.ngllsh and should ordinarily bt prepared
for a vlgoroua strugglt with the conditions un.W
which their people live rather than for Ininir.U
stt absorption into tome more highly developed
community.
The officials who represent the government Is
dealing with tht Indians work under hard cou.fc
tiuna and alto under conditions which render tl
stay to do wrong and very difficult te detect
wrong. ( onscquenlly they should be amply rui4
on the out hand, and on the other hand a par
ticularly high atandard of conduct thould In- de
manded from them, and where miaconduct can be
proved the punishment should be exemplary.
In no department of governmental work in re
cent years has there been greater success this
in thut of giving scientific aid to the fanuinf
population, thereby allowing them how amua ;IV
ciently to help theinselvet. There it no need of
insisting upon its importance, for tht weifart .il
the farmer ia fundamentally necessary to tht
welfare of tht republic at a whole. Is addition
to such work 11 quarantine against animal snd
vegetable plagues, and warring against them whet
hurt introduced, much efficient help haa been ren
dered to the 'farmer by the introduction of ne
plants specially fitted for cultivation under the
peculiar conditions existing in different portions
of tht country. New cereals have beta established
in tht temiarid west. For instance, the practi
cability of producing tht bett types of macaroni
wkeuia in reglont of an annual rainfall ol only
ten inches or thereabout hat been conclusively
demonstrated. Through the introduction ol new
rices in Louisiana and Texas tht production ol
rice in thit country hat been madt to about equal
tht home demand. In the southwest th. postitul
ily of regraasing ovtntocktd rangt Undt haa bees
demonstrated; in the north many new for.ge
crops have been introduced, while in the mat il
haa been ahown that tome of tur choicest troiu
can bt atored and thipped in such a way as ts
find a profitable market abroad.
I again recommend to the favorable conai.lera
tion ol the congrett tht plana of tha Smithsoniat
institution for making tht museum under its
charge worthy of tht nation and for pre-ria
at the national capital not only recorda of thi
vuiiisliing races of man, but of tht auimalt of this
continent which, likt the buffalo, will soon be
come extinct unless specimena from which tlieit
representative! may be renewed art sought it
their native region! and maintained there ia
safety.
The District of Columbia Is the onlv part A
our territory ia which the national guiKtieni
exerdtcs local or municipal functions and where
in cosstuuenct the government hat a free hand
in reference t certain tvpet of social and no
nomic legislation which amat be essentially local
or municipal in their character. Tht government
should aee to it, for Instance, that the hygieua
nnd sanitary legislation affecting Washington 11
of n high character. The evilt of alum dwsltinis.
whether in tht shape of crowded and eonge.tt
tenement house diairlctt or of the bact alley
type, should never be permitted t grow up in
Washington. Th oity should be a model ia tu-ry
respect ftr nil tha cities of the country. Tlit
charitable and correctional sreU-ma ef the Pin
triet should receive ctnnderiiion at tht lian.ls of
tht congretn to the end that they may eiatody
the results of tht moat advanced thought ia liiess
fields. Moreover, while Washington In not a greea
industrial city, there In some industrislinn bar,
and our labor legialatitn, whllt It would not bt
important la itat-lf, might bt made a uvsdel for
the rest of tht nation. Wt should past, for in
stance, a wise employer's liability not for the Dis
trict of Columbia, and wt need such an act it
our navy yarda. Railroad companies in the Dis
trict ought te be required by law to block their
frogs.
Tlit safety npplinnce law, for the better pro
tection of the lives and limbs ol rnilwiy erw
loyeen, which wan pasted in lsut, wtnt into full
effect on Aug. 1, luol. It has resulted in avert
ing thoustndt of casualties. Kxperience shewn,
however, tht necessity of additional legislation
to perfect this law. A bill to provide for this
paased the eenate at the laat session, it is to bt
hoped that some suck mcaturt may now ba en
acted into law.
There ia n growing tendency to provide far te
publication u masses of doeunwnra for winch
there it no public demtnd nnd for tht priming of
"nien there ia no real nttcsaity. Large numbers
of volumes art turned out by the govorniuen!
printing preetee for which there it no Justification.
Nothing ahtuld be printed by ssy of tha depait
monta unless it eontaint aomtthing of permanent
vakie, and tht congrett could witii advtntage cat
down yery materially on all tht printing which
it has now become customary It provide. The
txceasivt cost of government printing it a strong
argument against the position of those who art
inclined on abstract grounds te advocate the gov
ernment'! doing any work which can with pre
priety bt left in private hands.
Gratifying progress hsa been madt during tht
yoar in tht extension of tilt merit system of mak
ing appointmanta is tht government acrvict. U
aliould bt extended by law to the liiatrict of (
lumbia. It it much ts ba desired that our con
sular aystsna be established by law en n luxis
providing lor appointment and promotion only is
consequence of proved Illness.
Through n wist provision of tht congress at It!
iai session int watte House, which bad becoiut
disfigured by inoongruo.it additions tnd changes,
hat now been restored to what it wan planned te
be by Washington. In making the restorations
tlit utmost oart hat been exerciatd to come u
near aa possible to tht early dune and to supple
ment these plana by n careful ttudy of su.lt
buildings aa that of the University of Virginia,
which waa built by Jefferson. The White House
is the property of the nation, and to fur aa in
compatible with living therein it should bt kept
na it originally waa, for tht aamt reasons tail
we keep Ileum Vernon aa it oriainaJly waa. Tim
stately simplicity of its architecture it an ex
pression of tho character of the ptriod in whit
it wua built and ia in accord with the purpoxn
it waa designed to serve. It la a good thiiuf t
preserve such buildings as historic monuments
which keep alivt our aenst of continuity with the
Dution'a pust.
Tht reports of the several executive depsrt
ments nre submitted to the congress with thin
communication. TUEOUOHli KOOSEVELT.