THE MESSAGE. The President Discusses the Chinese, Philippine, Finan cial and Other Impor tant Questions. fTo the Senate and House of Representa tives: At the outgoing of the old and the in coming of the new century you begin the last session of the Fifty-sixth congress •with evidences on every hand of individ ual and national prosperity and with proof of the growing strength and increas ing power for good of republican institu tions. Your countrymen will join with you in felicitation that American Liberty is more firmly established than ever be fore and that love for it and the determi nation to preserve it are more unlveisal than at any foriwer period of our history. The republic was never so strong, be cause never so strongly intrenched in the hearts of the people as now. The consti tution, with few amendments, exists as it left the hands of its authors. The ad ditions which have been made to it pro claim larger fre.-dom and more extended citizenship. Popular government has dem onstrated in its 124 years of trial here its stability and security, and its efficiency as the best Instrument of national devel opment and the best safeguard to human rights. , ._ When the Sixth congress assembled in November, lStjO, the population ol the i ru led States was 5.305.4K3. It is now 70,10-i.- 7:9. Then we had 1U states. Now we have THE CHINESE QUESpON. In our foreign intercourse the dominant question has been the treatment of the Chinese problem. Apart 112 10m this our relations with the powers have been hap- P The recent troubles in China spring from the anti-foreign agitation which for the past three years has « alned in the northern provinces. orifcin lies deep in the character c. tile 1 hi races and in the traditions of tlfeir gov ernment. The Taiping rebellion a.nd the opening of Chinese ports to foreign trade and settlement disturbed the aecluslono. •China. Meanwhile foreign activity made Itself felt in ail quarters, not alone 011 the coa'St, but along the great river ai t fries and in the remoter districts, cariy ir.g new ideas and introducing new asso ciations among a primitive people wh ieh had pursued for centuries a national pol icy of Isolation. "/ The telegraph and th railway spread ing over their land, the steamers p.ying on their waterways, the. merchant and the missionary penetrating year by year tar ther to the interior, became to the Chi nese mind types of an alien Invasion, changing the course of their national life aind fraught with vague forebodings of disaster to their beliefs and their self control. Kor several years before tne present troubles all the resources of for •eign diplomacy, backed by moral demon strations of the physical force of fleets arwl arms, have been neided to secure due respect for the treaty rights of foreigners ar.d to obtain satisfaction from the re sponsible authorities for the tfioradlc out rages upon the p-ersons and property of unoffending sojourners, which from time to time occurred at widely separated points in the northern provinces, as in the case of the outbreaks in Sze-Chuen and Shan-Tung. . , „ The sect commonly styled the Boxers developed greatly in the provinces north of the Yang-Tse, and with th-3 collusion of many notable officials, including some in the. immediate councils of the throne itself, became alarmingly aggressive. No foreigner's life, outside of the protected treaty ports, was safe. No foreign inter est was secure from spoliation. The dip lomatic representatives of the powers in Pekin strove in vain to check this move ment. Protest was followed by demand and demand by renewed protest, to be met with perfunctory edicts from the pal ace and futile assurances from the Tsung-1.1-Yamen. The increasing gravity of the conditions In China and the Imminence of peril to •our own diversfied interests in the empire, as well as to those of all the other treaty governments, were soon appreciated by this government, causing It profound so licitude. The United States from the ear liest davs of foreign intercourse with ■China had followed a policy of peace, omitting no occasions to testify good will, to further the extension of lawful trad;;, to respect the sovereignty or its govern ment, and to insure by all legitimate means the fullest measure of protection for the lives ijnd property of our law abiding citizens and for the exercise of their beneficent caJlings among the Chi nese people. To these ends I caused to be addressed *to the several powers occupying territory and maintaining spheres of influence in China the circular proposals of 1599, in viting from them declarations of their in tentions and views as to the desirability of the adoption of measures insuring the benefits of equality of treatment of all .foreign trade throughout China. With gratifying unanimity there- Bfuf.Sis corhekied In this common policy, enabling me to see in the successful ter mination of these negotiations proof of the friendly spirit which animates the va rious powers interested in the untram meled de.veloprr.ant of commerce and In dustry in the Chinese empire as a source of vast benefit to the whole commercial world. In this conclusion, which I had the gratification to announce as a completed •engagement to the interested powers on March 20, 1900, I hopefully discerned a potential factor for the abatement of the ■distrust of foreign purposes which for a year past had appeared to inspire the pol icy of the imperial government and for the effective exertion by it of power and authority to quell the critical anti-foreign movement in the northern provinces. The Chinese government proved, how ever, unable to check the rising strengiii ■of the Boxers and appeared to be a prey "to Internal dissensions. In the unequal conteist the anti-foreign influences soon •gained the ascendancy under the leader ship of Prince Tuan. Organized armies •of Boxers, with which the imperial forces affiliated, held the country between Pe kin and the coast, penetratled Into Man churia up to the Russian border and through their emissaries threatened a like rising throughout northern China. Attacks upon foreigners, destruction of their property, and slaughter of native ■converts were reported from all sides. 'The Tsung-li-Yamen, already permeated •with hostile sympathies, could make no •effective response to the appeals of the legations. At this critical Juncture, in the early spring of this year, a proposal ■was made by the other powers that a combined fleet should be assembled in Chinese waters as a moral demonstration, tinder cover of which to exact from the Chinese government respect for foreign treaty rights and the suppression of the Boxers. The United States, while not partici pating in the joint demonstration promptly sent from the Philippines all ships that could be spared for service on the Chinese coast. A small force of ma rines was landed at Taku and sent to Pe kin for the protection of the American legation. Other powers look similar ac tion until 400 men were assembled in the capital as legation guards. Still the peril increased. The legations reported the development of the sedition" movement in Pekin and the need of In creased provision for defense against it While preparations were in progress for a larger expedition, to strengthen the legation guards and keep the railway 1 open, an attempt of the foreign ships to 1 make a landing at Taku was met by a fire from the Chinese forts. The forts were thereupon shelled by the foreigfi vessels, the American admiral taking no part in the attack, on the ground thit we were not at war with China and thilt a hostile demonstration might consolidate the anti-foreign elements and strength an the Boxers to oppose tne relieving col umn. Two days later the Taku forts were captured after a sanguinary conflict. Sev erance of communication with Pekin fol lowed, and a combined force of addition al guards, which was advancing to Pekin by the Pei-Ho, was checked at Lang Fan. The isolation of the legations was com plete. The siege and the relief of the lega tions hais passed into undying history. In all the stirring chapter which records the heroism of the devoted band, clinging to hope In the face of despair, and the un daunted spirit that led their relievers through battle and suffering to the goal. It Is a memory of which my countrymen may be Justly proud that the honor of our Hag was maintained alike in the siege and tne rescue. From June 2fl until July 17, writes Min ister Conger, there was scarcely an hour during which there was not firing upon some part of our lines and into some of our legations, varying from a single fhot to a general and continuous attack along the whole line. Artillery was placed around the legations and on the over looking palace walls, and thousands of three-inch shot and shell were tired, de stroying some buildings and damaging all. So thickly did the balls rain that, when the ammunition of the besieged ran low, live quarts of Chinese bullets were gathered In an hour In one compouml and recast. Attempts were made to burn the lega tions by setting neighboring houses on fire, but the (lames were successfully fought off, although the Austrian, Bel gian, Italian and Dutch legations were then and subsequently burned. With the aid of the native converts, directed by the missionaries, to whose helpful co-op eration Mr. Conger awards unstinted praise, the British legation was made a veritable fortress. , J? u r ir £- the ,h e defenders lost 65 Killed, I.j.j wounded, and seven by disease —the last all children. On July 14 the be siegtMj baa their first communication wit ft tin* Tsung-li-Yamen, from which a me?- sage came inviting to a conference, which was declined. Correspondence, however, ensued and a sort of armistice was agreed upon, which stopped the bombardment ar.d lessened the rifle fire for a time J-.ven then no protection whatever was afforded nor any aid given, save to send j .u 'nations a small supply of fruit and three sacks of flour. Not only are the protestations of the Chinese government that it protected and succored the legations positively contra- C l ed .V but ' rr, ', s ' s tible prcof accumulates that the attacks upon them were made by imperial troops, regularly uniformed, armed and officered belonging to the com mand ol Jung Lu, the Imperial command er-in-chief. Decrees encouraging the irnmirfa'I them under prominent impeiial officers, provisioning them and Zl'Z K ? a ,'i" nK thtm lar « p In the ?? the empress dowager, are known to exist. Members of the Tsung-li-Ya men who counseled protection of the for eigners were beheaded. Even in the ™ tar.t provinces men suspected of foreign By £Pi th y were l'"t to death. S \Ni.h the negotiation of the partial ir was'doum JU ' y "• a P r Oceeding whkfh was doubtless promoted by the renresen tations of the Chinese envoy in Washing ton, the way was opened for the convey ance to Mr. Conger of a test mosJage ]f °Wu ta Tfng ti . outside world the first tidings J l ,?,' ~ l J e inmates of the- legations were still alive and hoping for succor Jhe news stimulated the preparation sufficient to re 'nt f expedit,on In numbers .V il 0 overcome the resistance . wl ;!;: h f °r " month had been organizing between Taku and the capital Reinforce ments sent by all the co-operating govl ernments were constantly arriving The I nited States contingent, hastily assem frnni t?™ Philippines or dispatched Co V nt;ry • amounted to some of fi!f n t,lft ab!e command first Chaffee. and afte '»ands of Oen. bei° a n ar i* ."I 6 cnd °l JuI >' the movement T« , i, i 'l re n tO ,"" lct followed at Tien T L . which Col. Lfscum was killer! rht city was stormed aiKl partly destroy ed Its capture afforded a base for oner ations from which to make the final ad vance, which began in the first davs of August, the expedition being made ud of Japanese, Russian, British ind Amerfcar confHct' beneath the Waft's the'Velfel unentered and the legatlons^w^re The imperial family and the envom ment had fled a few- days befo.l The fi »v, Was w 'thout visible control It fell to the occupying forces to restore order r.ounced and scrupulously carried out A circular note to tne powers datert T.Vi,. •» proclaimed our attitude, Treating the condition in the north as orw» nf vld. i anarchy, in which the great^rn,m^ = Ua i tne south and southeast had nr> oho? regarded the local aXr^"^", 6 ter quarters as representing the people, with whom we sough to remain in peace and friendship. Our dec la? S naUon" V °vv' e a^Vred^^'ie office of rescuing the Imperiled ligaUotf to l Wror -*« alrealy su?: reitu, Securing wherever possible the safety of American life and nionertv in China and preventing a spread of the dis orders. or their recurrence As was then said "thepolicy of the government of the United States is to seek a solution which may bring about permanent safety and peace to China preserve Chinese territorial and adm ris tratlve entity, protect all rights euaran teed to friendly powers by treaty linden ternational law, and safeguard for the world the principle of equal and impar emplref W a " p * na of the Chinese Faithful to Uiose professions which a« it pioved reflected the views and pur poses of the other co-operating govern ments, all our efforts have been directed r?w 3 k s the an omalous situation in China by negotiations for a settlement at the earliest possible moment. As soon as the sacred duty of relieving our l^at'on «Ht.^l S « e P en ents , was accomplished we withdrew from active hostilities, leaving out legation under adequate guard in pe {ViL—. 8, channel of negotiation and set tlement—a course adopted by others of the interested powers. Overtures of the empowered represeintatives of the Chi nese emperor have been considerably en tertained. The Russian proposition looking to the restoration of the imperial power in Pe kin has been accepted as in full conson ance with our own desires, for we hold that effective reparation for wrongs suf fered and an enduring settlement that will make their recurrence impossible can best be brought about under an authoritv whleh the Chinese nation reverences and obeys. While so doing we forego no jot of our undoubted right to exact exem plary punishment of the responsible au thors and abettors of the criminal acts whereby we and other nations have suf fered grievous injury. I regard as one of the essential factors of a durable adjustment the securement of adequate guarantees for liberty of faith, since insecurity of those natives who may embrace alien creeds is a scarcely less effectual assault upon the rights of foreign worship and teachirg than would be the direct invasion thereof. I he matter of indemnity for our wrong ed citizens is a question of grave concern. Measured in money alone, a sufficient reparation may prove to be beyond the ability of China to meet. All the powers concur in emphatic disclaimers of any purpose of aggrandizement througn the dismemberment of the empire. I am dis posed to think that due compensation may be made in part by increased guar antees of security for foreign rights and Immunities, ar.d, most Important of all by the opening of China to the equal commerce of all the world. These view* have been and will be earnestly advoca ted by our representatives. THE PARIS EXPOSITION. The year of the exposition has been fruitful in occasions for displaying the good will that exists between this coun try ar.d France. This great competition brought together from every nation the best in natural productions, industries, science and the arts, submitted In gener ous rivalry to a judgment made all th. more searching because of that rivalry. The extraordinary increa.se of exporta tions, from this country during the past three years and the activity which our Inventions and wares had invaded n w markets caused much interest to center upon the American exhibit and every en couragement was offered In the way of space and facilities to permit of Its being comprehensive as a whole and complete In every part. It was, however, not an easy task to assemble exhibits that could fitly illus trate our diversified resources and manu factures. Singularly enough our national prosperity lessened the incentive to ex hibit. The dealer in raw materials knew that the user must come to him; tne great factories were contented with the phenomenal demand for their output, not CAMERON COUNTY PRtfSS, THURSDAY, DECEMBER 13, 1900. alone at home, but also abroad, where merit bad already won a profitable trade. Appeals had to be made to the patriotism of exhibitors to Induce them to Incur outlays promising no immediate return. Despite all tht,-e drawbacks the contri bution of the United States was not only the largest foregn display, but was among the earliest in place arid the most or | derly in arrangement. Our exhibits were shown in 101 out of 121 classes anil more completely covered the entire classifica tion than those of any other nation. In total number they ranked next after those of France, asid the_ attractive form In which they were presented secured general attention. A criterion of the extent of our partici pation and of the thoroughness with which our exhibits wore organized is seen in the awards granted to American ex hibitors by the international jury, name ly: Grand prizes 240, gold medals .'97, silver medals 776, bror.ze medals 541, and honor able mentions 322—2,476 in all. being the greatest total number given to the exhib it of any exhibiting nation as well as the largest number in each grade. OUR RELATIONS WITH GERMANY. Good will prevails In our relations with the German empire. An amicable adjust ment of the long pending question of the admission of our life insurance compa nies to do business in Prussia has been reached. The settlement of the Samoan problem has accomplished good results. Peace and contentment prevail In the Islands, espe cially in Tutuila, where an administra tion that has won the confidence and es teem of the kindly disposed natives has been organized under th.- direction of the commander of the United States naval station at Pago-Pago. An imperial meat inspection law has been enacted for Germany. While it may simplify the inspections, it prohibits cer tain products heretofore admitted. There is still great uncertainty as to whether our well-nigh extinguished Germa.n trade in meat products can revive under its new burdens. Much will depend upon regulations not yet promulgated ENGLAND AND THE BOERS. Our frit ndly relations with Great Brit ain continue. The war in South Africa introduced Important questions. A con dition unusual In International wars was presented, in that whil<> one belligerent had control of the seas, the other had no ports, shipping or direct trade, but was on.y accessible through the territory of a neutral. Vexatious questions arose through Great Britain's action In respect to neutral cargoes, not contraband in their own nature, shipped to Portuguese South Africa, on the score of probable or suspected ultimate destination to the Boer states. Such consignments In British ships, by which alone direct trade is kept up be tween our ports and southern Africa, were seized in application of a municipal law prohibiting British vessels from trad ing with the enemy without regard to any contraliand character of the goods, while cargoes shipped to Delagoa bay in neu tral bottoms were arrested on the ground of alleged destination to the enemy's country. Appropriate representations on our part resulted in the British govern ment agreeing to purchase, outright all such goods shown to be the actual prop- y i o i, . erlc ? n citizens, thus closing the Incident to the satisfaction of the im mediately interested parties. THE BOUNDARY QUESTION. The work of marking certain provision o , J > ,°V r . dar ? P° lnts - for convenience of administration, around the head of Lynn canal, in accordance with the temporary arrangement of October, 1899, was com pleted by a joint survey In July last Th modus vlvendi has so far worked wlth out friction, and the Dominion govern ment has provided rules and regulations for securing to our citizens the benefit of reciprocal stipulation that the citizensCe.r subjects of either power found by that arrangement within the temporary juris diction of the other shall suffer no d m - nution of the rights they have hitherto enjoyed. But however necessary such an expedient may have been to tide over the grave emergencies of the situation Its at best but an unsatisfactory make! shift, which should not be sufferer! to *1? s V etd> : establishment of the frontier line to which we are entitled ur. - der the Russo-Amerlcan treaty for the cession of Alaska. In this relation I may refer atrain tn the need of definitely marking the Ala* kan boundary where it follows The nisi meridian A convention to that end hi< been before the senate for some two years, but as no action has been taken I contemplate negotiating a new corvenHon for a joint determination of the meridian by telegraphic observations ™ lan LYNCH INGS.' In my inaugural address I referred to the subject of lynching in these words Lynching must not be tolerated in a great and civilized country like the Uni ted States; courts, not mobs, must exe cute the penalties of the law. The Pres ervation of public order, the right of dis cussion, the Integrity of courts, and the orderly administration of Justice must con tinue forever £M rock of safety upon which our government securely 'rests." This I most urgently reiterate and fryite the attention of my countrymen to this reproach upon our civilization THE ISTHMIAN CANAL The all-important matter of an inter oceanic canal has assumed a new nhase Adhering to its refusal to reopen the question of the forfeiture of the contract of the Maritime Canal Co, which was terminated for alleged non-execution in October, 1899, the government of Nicara wt? rfiof s . lnc e .supplemented that action by declaring the so-styled Eyre-Cragln option void for non-payment of the stipu ated advance. Protests in relation to these acts have been filed in the.state department and are under consideration Deeming itself relieved from existing en gagements, the Nicaraguan government shows a disposition to deal freely with the canal question, either in the way of negotiations with the United States or by taking measures to promote the wa terway- Overtures for a convention to effect the building of a canal under the auspices of the United States are under consideration. In the meantime the views of the congress upon the general subject in the light of the report of the com mission appointed to examine the com parative merits of the various trans isthmian ship canal projects, mav be awaited. I commend to the early attention of the senate the convention with Great Britain to facilitate the construction of such a canal and remove any objection which might arise out of the convention commonly called the Clayton-Bulwer treaty. A TREATY WITH SPAIN Satisfactory progress has been made toward the conclusion of a general treaty of friendship with Spain, in replacement of the old treaty, which passed into abey ance by reason of the late war. A new convention of extradition is approaching completion, and I should be much pleased were a commercial arrangement to fol low. I feel that we should not suuer to pass any opportunity to reaffirm the cor dialtles that existed between us and Spain from the time of our earliest inde pendence and to enhance the mutual ben efits of that commercial intercourse which Is natural between the two coun tries. By the terms of the treaty of peace the line bounding the wd<>d Philippine group in the southwest failed to include several small islands lying west of the Stilus, which have always been recognized as under Spanish control. The occupation of Sibutu and Cagayan, Sulu, by our na val forces elicited a claim on t,he part of Spain, the essential equity of which could not be gainsaid. In order to cure the de fect of the treaty by removing all possi ble ground of future misunderstanding respecting the Interpretation of its third article, I directed the negotiation ot a supplementary treaty, which will be forthwith laid before the senate, whereby Spain quits all title and claim of title to the islands named, as well as to any and all Islands belonging to the Philippine archipelago lying outside the lines de scribed in said third article, and agrees that all such Islands shall be compre hended in the cession of the archipelago as fully as if they had been expressly in cluded within those lines. In considera tion of this cession the United States is to pay to Spain SIOO,OOO. A bill is now pending to effect the rec ommendation made in my last annual message that appropriate legislation be had to carry Into execution Article VII of the treaty of peace with Spain, by which the United States assumed the payment of certain claims for Indemnity of its citizens against Spain. I ask that action be taken to fulfill this obligation SULTAN PROMISES TO PAY. We await the fulfillment of the prom ise of the sultan to make reparation for the Injuries suffered by American citizens in Armenia and elsewhere In the Turkish empire. His' majesty's good disposition In this regard has been evinced by the Is suance of an Irade for building the Amer ican college at Harpoot. THE PAN-AMERICAN EXPOSITION. The exposition of the resources and ppxiucts of the western hemisphere to be held at Buffalo year promises im portant results, not only for the United States but for the other participating countries. It is gratfiytng that the Lat in-American states have evinced the live liest interest and the fact that an inter national American congress will be heid in the City of Mexico while the exposi tion is in progress er.eouraces the hope of a larger display at Buffalo than might otherwise be practicable. The work of preparing an exhibit of our national re sources is making satisfactory progress under the direction of different officials of the federal government and the vari ous states of the Union have shown a disposition toward the most liberal par ticipation In t ie enterprise THE GOVERNMENT'S REVENUES It is gratifying to be able to state that the surplus revenues for the fiscal year endttl June 1900, were $79,527,060. For the six preceding years we hatl only defl ?'.!?■ 'he aggregate of which from 1894 to Inclusive,, amounted to $283,082,991. Ihe receipts for the year from all sources, exclusive of postal revenues, ag gregated $567,240,851, anel expenditures for all purposes, except for the administra slß7 713 791 6 postal department, aggregated During the year a considerable reduc tion Is shown In the expenditures of the government. The war department expen for tllf ' fiscal year 1900 were $134,- "r i i a ' tio!l of $95,066,486 over thus.- of IV'li. In the navy department the ex penditure Were $55,953,077 for the year 1900, as against $63,942,104 for the preced ing year, a decrease of $7,989,026. 1 he secretary of the treasury estimates that the receipts for the current fiscal year will aggi,gate $580,000,000 and th expenditures $."t)O.COO.OOO, leaving an excess of revenues over expenditures of sso.oo(i.- 000. The present condition of the tre-as ury 's one of undoubted strength. I he beneficial effect of the financial act of 1900 so far as it relates to the modifi cation of the national banking act, is al ready apparent The provision for the incorporation of national banks with a capital of not less than $25,000 in places not txceedlr.g 3.<x:o Inhabitants has re sulted in the extension of banking facili ties to many small communities hitherto unable to provide themselves with bank ing institutions under the national sys tem. ' OUR FOREIGN TRADE. Our foreign trade shows a remarkable record of commercial and Industrial pro gress. The total of imports and exports for the first time in the history of the country exceeded $2.0W),C00,000. The ex ports are greater than they have ever beer, before, the total for the fiscal year 1900 being $1,ii94,480,082, an increase over 1899 of $167,459,780. TAXES SHOULD BE REDUCED. I recommend that congress at its pres ent session reduce the internal revenue taxes* imposed to meet the expenses of the war with Spain in the- sum of s3"*.- OOO.OCO. This reduction should be secured by the remission of those taxes which experience has shown to be the? most bur densome to the industries of the people THE MERCHANT MARINE. American vessels during the past three years have carried about 9 per cent, of our exports and imports. Foreign ships should carry the least, not the greatest part of American trade. The remarkable growth of our steel industries, the pro gress of shipbuilding for the domestic trade. and our steadily maintained ex penditures for the navy have created an opportunity to place the Unit.nl States in the. first rank of commercial maritime powers. In again urging immediate action by congress on measures to promote Ameri can shipping and foreign trade, I direct attention to the recommendations on the subject In previous messages, and partic ularly to the opinion expressed in tne message of 1899: "I am satisfied the judgment of the country favors the policy of aid to our merchant marine, which will broader, our commerce and markets and upbuild our sea-carrying capacity for the proelucts of agriculture and manufacture, which wltn the increase of our navy, mean more work ar.d wages to our countrymen as well as a safeguard to American inter ests in every part of the world." THE TRUST PROBLEM. In my last annual message to congress I called attention to the necessity for ear,y action to remedy such evils as might be found to exist in connection with combinations of capital organized into trusts, and a-ain invite attention to my discussion of the subject at that time. Restraint upon such combinations a.s are injurious, and which are within fed eral jurisdiction, should be promptly ap plied by congress. THE PHILIPPINES. In my last annual message I dwelt at some length upon the condition of affairs in the Philippines. While seeking to im press upon you that the grave responsi bility of the future government of those islands rests with the congress of the United States, I abstained from recom mending at that time a specific and final form of government for the territory act ually held by tne United States forces and in which as long as insurrection con tinues the military arm must necessarily be supreme. I stated by purpose, until congress shall have made known the for mal expression of its will, to use the au thority vested in me by the constitution and the statutes to uphold the sovereign ty of the United States in those distant islands as in all other places where our flag rightfully floats, placing, to that end, at the disposal of the army and navy ail the means which the liberality of con gress and the people have provided. No contrary expression of tihe will of con gress having been made, I have stead fastly pursued the purpose so declared, employing the civil arm as well toward the accomplishment of pacification and thie institution of local governments with in the lines of authority and law. The commission was Instructed to pro ceed to Manila and to communicate with the military governor of the Philippine islanelis, who was directed to render to them every assistance within his power in the performance of their duties. With out hampering them by too specific in structions, they were enjoined, after mak ing themselves familiar with the coneli tions and needs of the country, to devote their attention in the first instance to the establishment of municipal governments, in which the natives of the islands, both in the cities and in the rural communi ties, shall he afforded the opportunity to manage their own local affairs to the fullest extent of which they are capable and subject to the least degree of super vision ar.d control which a careful study of their capacities and observation of the workings of native control show to be consistent with the maintsnance of law, order and loyalty. The next subject in order of importance should be the organization of govern ment in the larger administrative divi sions corresponding to counties, depart ments or provinces, in which the common Interests of many municipalities failing within the same lines, or the same natu ral geographical limits, may best be sub served by a common adminlstration. Whenever the commission is of the opin oln that the condition of affairs In the Islands is such that the central adminis tration may safely be transferred from military to civil control they will report that conclusion to the secretary of war, with their recommendations as to the form of central government to be estab lished for the purpose of taking over the control. Beginning with September 1, 1900, the authority to exercise, subject to my ap proval, through the secretary of war. that part of the power of government in the Philippine islands which is of a legis lative nature was transferred from the military governor of the islands to this commission, to be thereafter exercised oy them in tne place and stead of the mili tary governor until the establishment of the c-ivil central government for the isl ands, or until congress shall otherwise provide. t-rogress In the hopeel-for direction has been favorable.. Our forces have success fully controlled the greater part of the Islands, overcoming the organized forces of tne insurgents and carrying order and administrative regularity to all quarters. What opposition remains is for the most part scattered, obeying no concerted plan of strategic action, operating only by tne methods common to the traditions of guerilla warfare, which, while ineffective to alter the general control now estab lished, are still sufficient to beget inse curity among the populations that have felt the good result* of our control and thu* delay the conferment upon them of I the fuller measures of local aelf-govern ment, of education and of Industrial and agricultural development which we stand ready to give them. By the spring of this year the effective opposition of the dissatisfied Tagals to the authority of the Unlt/ed States was virtually ended, t>>us opening the door for the extension of a stable admlnistra -1 tlon over much of the territory of the j archipelago. Desiring to bring this about, I J appointed In March last a civil com- I mission composed of Hon. William H. [ Taft. of Ohio; Prof. Dean G. Worcester, of Michigan: Hon. Luke 1. Wright, of Tennessee: Hon. Henry C. Ide, or Ver mont, and Prof. Bernard Moses, of Cali j fornia. The airr.s of their mission ar.d | the scope of thedr authority are clearly set forth in my instructions of April 7, j 1900, addressed to the secretary of war to be transmitted to them. I Coincldentally with the entrance of the commission upon Its labors, I caused lo be issued by Gen. Mac Arthur, the mili tary governor of the Philippines, on June 21, 1900, a proclamation of amnesty in generous terms, of which many of tne insurgents took advantage, among them ' a number of Important leaders. This commission, composed of eminent citizens representing the diverse geo graphical ami political Interests of the country, ar.d bringing to their task the ripe fruits of long and intelligent service In educational, administrative and judi cial careers, made great progress from the outset. As early as August 21, 1900. ' it submitted a preliminary report, whic'.i will be laid before congress and from which it appears that already the good effects of returning order are felt; that business is improving as peace extents: that a larger area is under sugar culti vation than ever before; that the customs revenues are greater than at any time during Spanish rule; that economy in the military administration has created a surplus fund of $6,000,000. available for needed public Improvements; that a stringent civil service law is in prepara tion; that railroad communications are expanding, opening up rich districts, and that a comprehensive scheme of educa tion is being organized. Later reports from the commission show yet more encouraging advance toward insuring the benefits of liberty and good government to the Filipinos, In the in terest of humanity and with the aim of building up an enduring, self-supportirg and self-administering community in those far eastern seas. I would impress upon congress that whatever legislation may be enacted in respect to the Philip pine islands should be along these gen erous lines. The fortune of war has thrown upon this nation an unsought trust which should be unselfishly dis charged and devolves upon this govern ment a moral as well as material respon sibility toward these millions whom we have freed from an oppressive yoke. I have on another occasion called the Filipinos "the wands of the nation." Our obligation as guardian was not lightly assumed: It must r.ot be otherwise than honest.y fulfilled, aiming first of all to benefit those who have come under our festering caw. It is our duty to so treat them that our flag may be no less beloved in the mountains of Luzon and the fer tie zones of Mindanao a.nd Negros than t is at home, that there as here it shall be the symbol of liberty, enlightenment ar.d progress in every avenue of develop ment. PORTO RICO. The civil government of Porto Rico provided for by the act of congress ap proved April 12, 1900. is In successful op eration. The courts have been establish ed. , The governor and his associates, working intelligently and harmoniously are meeting with commendabie success On the 6th of November a general elec tion was held in the island for members of the legislature and the bodv elected has -en called to convene on the first Montlay of December. I recommend that legislation be enact ed by the congr'ess conferring uuon the °f th « interior supervision over the public lands in Porto Rico, and that he be directed to ascertain the location and quantity of lands the title to which remained in the crown of Spain at the date of cession of Porto Rico to the Unl- a f> * anri th f l a lmpropriations nec essary for surveys be made, and that the methods of the disposition of such lands be prescribed by law. On the 23th of July, 1900, I directed that a call be issued for an election In Cuba for members of a constitutional conven tion to frame a constitution as a basis for a stable and Ir.depemder.t government In the Island. The election wa, held on September 10, and the convention assem seission" vember 5 ' 190 °. and is now in THE ARMY. • P nfsent strength of the army is 100,000 men—6s,COO regulars and 35,000 vol unteers. Under the a.ct of March 2. 189 a on June 3D next the present volunteer force will be discharged and the regular army will be reduced to 2,447 officers and 19,025 enlisted men. We have In Cuba between 5,000 and 6 000 troops. For the present our troops' In that island cannot be materially dimin ished, ar.d certainly not until the conclu sion of the labors of the constitutional convention now In session and a govern ment providtd by the new constitution shall have been established and its sta bility assured. In Porto Rico we have reduced the gar risons to 1,635, which includes 879 native troops. Therie is no room for further re duction here We will be required to a consider able force in the Philippine inlands for some time to con*. From the best in formation obtainable we will need there for the immediate future from 45,000 to 60,000 men. I am sure the number may be reductd, as the insurgents shall acknowledge the authority of the United States of which there are assuring indi cations. It must be apparent that we will re quire an army of about 60.000. and that during present conditions in Cuca ar.d the Philippines the president should have authority to increase, the force to the present number of 100,000. Included in this number authority should be given to raise native troops in the Philippines up to 15,000. The full discussion of this subj&ct by the secretary of war in his annual re-port is called to your earnest attention. THE NAVY. Very efficient sendee has been rendered by the navy In connection with the in surrection in the Philippines and the re cent disturbance in China. A very satisfactory settlement has been made of the long pending question of the manufacture of armor plate. A reason able price has been secured and the ne cessity for a government armor plant avoided. I approve of the recommendations of the secretary for new vessels ar.d for ad ditional officers and mien which the re quired increase of the navy makes neces sary. THE POSTAL SERVICE. The rapid growth of the postal service Is a sure Index of the great business ac tivity of the country, its most striking new development Is the extension .of the rural free delivery. This has come al most wholly within the last year. At the beginning of the fiscal year 1899-1900 the number of routes in operation was only 391, and most of these had been running less than 12 months. On November 13, 1900, the number had increased to 2,614, reaching Into 44 states and territories, and serving a population of 1,801,524. The numtor of applications now pending and awaiting action nearly equals all those granted up to the present time, and by the close of the current fiscal year about 4,000 routes will have be.en established. PENSIONS. At the end of the fiscal year there were on the pension roll 993,529 names, a net Increase of 2,010 over the fiscal year 1899. The number added to tjie rolls during the year was 45,344. The amount disburs ed for army pensions during the year was J134.700.597 and for navy pensions $3,- 761,533, a total of $138,462,130, leaving an unexpended balance of $5,542,768 to be cov ered into the treasury, which shows ail increase over the previous year's expen diture of $107,077. HAWAIIAN AFFAIRS. Much Interesting information is given in the report of the governor of Hawaii as to the progress and development of the islands during the period from July 7. 1898, the date of the approval of the Joint resolution of congress providing for their annexation, up to April 30, 1900, the date of the approval of the act providing a government for the territory and tnere after. The last Hawaiian census, taken In the year 1896, gives a total population of 109,- 020, of which 31,019 were native 11a waiians. The number of Americans re ported was 8,485. The results of the fed era] census, taker. tn'ji year. Fhow th« islands to have a total population ot 154.U01, showing an increase over that re ported in 1896 of 44,981, or 41.2 per cent. There has been marked progress in tn® educational, agrlcutural and railroad de velop!),■!,( of the islands. THK CENSUS. The director of the census states that the work in connection with the twelftn census is progressing favorably. This na tional undertaking, ordered by congress | each decade, has Anally resulted In the | collection of an aggregation of statistical j facts to determine the Industrial growth of the country, its manufacturing and mechanical resources, its richness In mines and forests, the number of Its ag riculturalists. their farms and products, its education; I and religious opportuni ties, as well as questions pertaining to sociological conditions. The labors of the officials in charge of the bureau indicate that the law of March 3, 1899, requiring the completion of the four important and most desired subject*, namely, population, agricultural, manu facturing and vital statistics, will be con— pletfid within the prescribed limit. The field work incident to the above inquiries is now practically finished, and as a result the population of the states and territories, including the Hawaiian Islands and Alaska, has been announced. The growth of population during the last decade amounts to over 13,000,000, a gtiEa:- er numerical increase than in any pre vious census in the history of the coun try. Bulletins will he issued as rapidly as possible giving the population by states and territories and by minor civil divi sions. Several announcements of this kind have already been made, and it is i hoped that the list will be completed by January 1. Other bulletins giving the results of the manufacturing and agri cultural inquiries will be given to tne public as rapidly as circumstances will admit. The director, while confident of his abil ity to complete the different branches of the undertaking in the allotted time, finds himself embarrassed by the la.ek of a trained force properly equipped for sta tistical work, thus raiidnu ihe question whether In the interest of economy and a thorough executon of the census work there should not be retained in the gov ernment employ a certain number of ex perts, not only to aid in the preliminary organization prior to the taking of the decennial census, but in addition to have the advantage in the field and office work of the bureau of trained assistants to fa cilitate the early completion of this enor mous undertaking. THE AGRICULTURAL DEPARTMENT. "he department of agriculture has been extending its work during the past year, reaching farther for new varieties of seeds and plants; co-operating more fully with the states and territories in re search along useful lines; making pro gress in meteorological work relating to lines of wireless telegraphy anei fore casts for ocean-going vessels; continuing Inquiry a»s to animal disease; looking into the extent and character of food adul teration; outlining plans for the care, preservation and intelligent harvesting of ejur woodlands; studying soils that pro ducers may cultivate with better knowl edge of conditions and helping to clothe desert places with grass. Our island possessions are being consid ered that their peoples may l>e. helped to produce the tropical products now so ex tensively brought into the United States. Inquiry into of improving our roads has been active during the year; help has been given to many localities and scientific investigation of material in the states and territories has been Inau gurated. Irrigtation problems in our semi arid regions are receiving careful and in creased consideration. The collection of statistics regarding our crops Is being improved and sources of information are being enlarged, to the end that producers may have the earliest advices regarding crop conditions. There* Was never been a time when those for whom it was established have shown more appreciation of the services of tho department. In my annual message of December 5, I£9S, I called attention to the necessity ror some amendment of the alien con tract law. There still remain important features of the rightful application of the eight-hour law for the benefit of labor and of the principle of arbitration, ar.d I again commend these subjects to the careful attention of congress THE CIVIL SERVICE. That thare may be secured the best service possible in the Philippine islands, I have issued, under date of November 30, 1900, the following order: "The Unitdd States civil service com mission is directed to remde-r such assist ance as may be practicable to the civil service board for maintenance of an hon est civil service in the Philippine inlands and for that purpose to conduct exami nations for the t'vll service of the Phil ippine islands, upon the request of the civil service board of said Islands, under such regulations as may be agreed upon by the said board and the said United States civil service commission." The civil service commission is greatly embarrassed In its work for want of an adequate permanent force for clerical and other assistance. Its needs are fully set forth in its report. I invite attention to the report, and especially urge upon con gress that this important bureau of the public service, which passes upon the qualifications and character of so large a number of the officers and employes of the government, should be supported by all ne«eded armropriations to secur® promptness and efficiency. I am very much impressed with the statement made by the heads of all the departments of the urgent necessity of a hall of public records. In every depart mental building in Washington, so far as I am informed, the space for official rec ords is not only exhausted, but all the rooms are lined with shelves, the middle floor spare of many rex>ms is tilled with file cas.es, atnd garrets and basements, which were never intended and are un fitted for their accommodation, are crowded with them. Aside from the in convenience there is great danger, not only from lire, but from the weight of these records upon timbers not intended for their support. Titene should be a sep arate building especially designed for the purpose of receiving and preserving the annually accumulating archives of the several executive departments. Such a hall neeel not be a costly structure, but should be so arranged as to admit of en largement from time to time. I urgently recommend that congress take early ac tion In this matter. I transmit to congress a resolution adopted at a recent meeting of the Amer ican Bar association concerning the pro posed celebratiion of John Marshall day, February 4, 1901. Fitting exercises have been arranged, and it is earnestly desir ed by the committee that congress may participate In this movement to honor th® memory of the great jurist. The transfer of the government to this city is a fact of great historical interest. Congi-ess having provided for "an appro priate national celebration of the centen nial anniversary ot the establishment of the seat of government in the District of Columbia," the committees authorized by it have prepared a program for the 15th of December, 1900. which date has been selected as the anniversary day. Deep interest has beer, shown fn the ar rangements for the celebration by the members of the committees of the senate and hou.se of representatives, the com mittee, of governors appointed by the president, ar.d the committees appointed by the citizens ar.d Inhabitants of the District of Columbia generally. The pro gram, in addition to a reception and oth er exercises at the executive mansion, provides commemorative exercises to be held jointly by the senate and house of representatives in the hall of the house of representatives and a reception in tne evening at the Corcoran Gallery of Art in honor of the governoT3 of the states and territories. In our great prosperity wo must guard against the danger it invites of extrava gance in government expenditures and appropriations; and the chosen represen tatives of the people will, I doubt not. furnish an example in their legislation of that wise economy which in a season of plenty husbands for the future. In thm era of great business activity and oppor tunity, caution is not untimely. It will not abate, but strengthen Oonfldene-e. It will not retard, but promote legitimate industrial and commercial expansion. Our growing power brings with It tempta tions and perils requiring constant vigi lance to avoid. It must not he used to Invite conflicts nor for oppression, but for the more effectived maintenance of those principles of equality and justice upon which our Institutions and happi ness depend. Let us keep always In m'.g'l that the fecundation of our government U liberty; Us superstructure, peace. WILLIAM McKINLET, , 3
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