"?'' ..- i s, THE SORANTON TRIBUNE-WEDNESDAY, DEOEiMBER 3, 1902. 3 ,"),' rwlJTtrf,v yV "" K?Mi'' 'iih.ii.'.ilp.,! To the Senate und lioute of llepre- senlutlves: We still continue In a period oC un bounded prosperity. This prosperity Is not the creature of law, but undoubted ly the laws under which -we work have been Instrumental In creating the con ditions which made It possible, and by unwise legislation It would be ensy enough to destroy It. There will un doubtedly be periods of depression. The wave will recede; but the tide will ad 'ance. This nation Is seated on u con- lnent flanked by two oceans. It Is uomposed of men the descendants of pioneers, or, In a sense, pioneers them selves; of men winnowed out from among the nations of the old world by the energy, boldness and love of ad venture found In their own eager hearts. Such n. nation, so placed, will surely wrest success from fortune. As a people we have plnyed a large part In the world, and we ate bent upon making our future even larger than tho past. In particular, the events of the last four years have de finitely decided that, for woe or for weal, our place must be great among the nations. We may either fal great ly pr succeed greatly; but we can not avoid tho endeavor from which either sreat failure or great success must come. liven it we would, we can not play a small part. If we should try, lt that would follow would be that we should play a large part Ignobly and shamefully. But our people, the sons of the men of the civil war, tho sons of the men who had Iron In their blood, rejoice In the present and face the future high of heart nnd resolute of will. Ours Is not the creed of the weakling and the cow ard; ours is the gospel of hope and of triumphant endeavor. We do not shrink from the the struggle before us. There arc many problems for us to face at the outset of the twentieth century grave problems abroad and still graver at home; but we know that we can solve them and solve them well, provid ed only that we bring to the solution the qualities or head and heart which were shown by the men who, in the days of Washington, founded this gov ernment, and, In the days of Lincoln, preserved, it. No country has ever occupied a high er plane of material well-being than ours at the present moment. This well being is due to no sudden or accidental causes, but to the play of the econo mic 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 citizen ship. Great fortunes have been won by those who have taken the lead In this phenomenal industrial develop ment, and most of these fortunes have been won not by doing evil, but as an incident to action which has bene fited the community as a whole. Never before has material well being been so widely diffused among our people. Great fortunes have ..been accumulated, and yet in the ag gregate 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 before. The insurance companies, which are practically mutual benefit societies especially helpful to men of moderate means represent accumulations of capital which are among the largest in this country. There are more deposits in the savings banks, more owners of farms, more well-paid wage-workers in this country now than ever be fore in our history. Of course, when the conditions have favored the growth of so much that was good, they have also favored somewhat the growth of what was evil. It is em inently necessary that we should en deavor to cut out this evil, but let us not in fixing our gaze upon the lesser evil forget the greater good. The evils are leal and some of them are menacing, but they urc the outgrowth not of misery or decadence, but of pros perity of the progress of our gigantic industrial development. This industrial development must not be checked, but eido by side with it .should go such progressive regulation as will diminish the evils. We should fail in our duty if we did not try to remedy the evils, but we shall succeed only If we proceed patiently, with practical common sense as well as resolution, separating the good from the bad and holding on l( the former while endeavoring to get rid of the latter. Regulation of Trusts In my message to the present congress at Its last session I discussed at length the question of the regulation or those big corporations commonly doing an In terstate business, often with some ten dency to monoply, which are popularly known as trusts. The experience of tho past, year has emphasized, In my opin ion, the desirability of the steps 1 then proposed. A fundamental requisite of social efficiency is a high standard of individual energy and excellence; but this is in no wise incon eiptent with power to act in combination for aims which can not so well be achieved by the in dividual acting alone. A funda mental base of civilization is the in violability of property; but this is in no wise inconsistent with the right of society to regulate the exeivlse of the artificial powers which it confers upon the owners of property, under the name of corporate franchises, in such a way as to prevent the misuse of these powers. Corporations, and especially combinations of corpora tions, should be managed under public regulation. Kxperlcnce has shown that under our system of government the necessary supervision can not bo obtained by state action. It must therefore be achieved by national ac tion. Our aim Is not to do away with corporations; on the pontrary, these big aggregation are an Inevitable de velopment of modern Industrialism, and the effort to destroy them would be futile unless accomplished in ways that would work the utmost mischief to the entire body politic, AVe can do nothing of good in the way of regulat ing and supervising these corporations until we fix clearly in our minds that wo are not atacklng the corporations, but endeavoring to do away with any evli In them. We are not hostile to Ihem; we aro merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth. The capitalist who, alone or is conjunction with his fellows, per-' PRESIDENT'S forms some great industrial feat by which he wins money is a welldoer, not a wrongdoer, provided only he works in proper and legitimate lines. Wo wish to favor such a man when he does well. We wish to supervise and control his actions only to pre vent him from doing ill. Publicity can do no harm to tho honest corpora tion; and we need not be overtender ubout sparing the dishonest corpora tion. In curbing and regulating the combinations of capital which are or may become injurious to the pub lic we must be careful not to stop the great enterprises which have legitimately reduced the cost of pro duction, not to abandon the place which our country has won in the leadership of the International in dustrial world, not to strike down wealth with th result of closing factories and mines, of turning the wage-Worker idle in the Btreets and leaving the farmer without a market for what he grows. Insistence upon the impossible means delay in nchieving the possible, exactly as, on the other hand, the stubborn de fense alike of what is good and what is bad in the existing system, the resolute effort to obstruct any at tempt at betterment, betrays blind ness to the historic truth that wise evolution is the sure safeguard against revolution. No more Important subject can come before the congress than this of the regulation of Interstate business. This country can not afford to sit supine on the plea that under our peculiar sys-v tern of government we are helpless In the presence of the new conditions, and unable to grapple with them or to cut out whatever of evil has arisen In connection with thein. The power of the congress to regulate Interstate commerce Is an absolute and unqunll llod grant, and without limitations other than those prescribed by the constitution. The congress has con stitutional authority to make all laws necessary and proper for executing this power, and I am satisfied that this power has not been exhausted by any legislation now on the statute books. It is evident, therefore, that evils restrictive of commercial freedom and entailing restraint upon national commerce fall within the regulative power of the congress, and that, a wise and reasonable law would be a neces sary nnd proper exercise of congres sional authority to the end that such evils should be eradicated. I believe that monopolies, unjust discriminations, which prevent or cripple competition, fraudulent over capitalization, and other evils in trust organizations and practices which injuriously affect interstate trade can be prevented under the power of the congress to "regulate commerce with foreign nations and among the several states" through regulations and requirements operat ing directly upon such commerce, the instrumentalities thereof, and those engaged therein. I earnestly recommend this subject to the consideration of (lie congress with a view to tho passage of a law reasonable in Its provisions and effec tive in Its operations, upon which the questions can be finally adjudicated that now raise doubt as to the necee slty of constitutional amendment. If it prove impossible to accomplish the purposes above set forth by such a law, then, assuredly, we should not shrink from amending the constitution so as to secure beyond perndventure the power sought. The congress has not heretofore made any appropriation for the better enforcement of the anti-trust law as it now stands. Very much has been done by the department of justice in secur ing the enforcement of this law, but much more could be done If congress would make a special 'appropriation for this purpose, to bo expended under the direction of the attorney-general. . No Tariff Revision Yet One proposition advocated has been the reduction of the tariff as a means of reaching the evils of the trusts which fall within the category I have described. Not merely would this be wholly ineffective, but the diversion of our efforts In such a direction would mean the abaudomeirc of all intelli gent attempt to do away with these evils. Many of the largest corpora tions, many of those which should cer- tntnly be Included In any proper scheme or regulation, would not bo affected In tho slightest degree by a change In the tariff, save as such change interfered with the general prosperity of the country. The only relation of the tariff to big corpora tions as a whole is that the tariff makes manufactures profitable, and the tariff remedy proposed would be in effect simply to make manufac tures unprofitable. To remove the tariff as a punitive measure directed against trusts would inevitably re sult in ruin to the weaker competi tors who are struggling against them. Our aim should be not by un wise tariff changes to give foreign pro ducts the advantage over domestic products, but by proper regulation to give domestic competition a fair chance; and this end can not be reach ed by any tariff changes which would affect unfavorably all domestlo com petitors, good und bad alike. The question of regulation of the trusts stands upart from the question of tariff revision. .Stability ot economic policy must al ways be the prime economic need of this country, This stability should not be fosslllzation. The country has ac quiesced in the wisdom of the protec tive tariff principle. It Is exceedingly undesirable that this system should be destroyed or that there should be vlo. lent and radical changes therein, Our past experience shows that great prosperity in this country has al ways come under a protective tariff; and that the couutry can not prosper under fitful tariff changes at short intervals. Moreover, if the tariff laws as a whole work well, and if business has prospered under them and is prospering, it Is better to endure for a time slight Incon veniences and Inequalities in some schedules than to upset business by too quick and too radical changes. It is most earnestly to bevlshed that we could treat the tin Iff from the standpoint solely of our business needs. It Is, perhaps, too much to hope that partisanship may be entire ly excluded from consideration of the subject, but at leant It can be made secondary to the business Interests of Die country that Is, to the Interests of our people as a whole. Unquestion ably these business Interests will best be served If together with Ilxlty ot principle as regards the tariff we com bine n pystem which will permit us from time to time to inaice tho neces sary teappllcatiou of the principle to the shifting national needs. We must take scrupulouM care that the renppll catlon shall be made In such a way that It will not amount to a dislocation of our system, the mere threat of which (not to speak of the perform ance) would produce paralysis In the business energies of the community. The first consideration In making thcr.e changes would, of course, be to pre serve the principle which underlies our whole tariff system that Is, the ptlnclplo of putting American business Interest's at least on a full equality with Interests abroad, nnd of alwa'3 allowing a sufficient rate of duly to more than cover the difference be tween tho labor cost here and abroad. The well-being of the wage-worker, like the well-being ot the tiller ot 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 ot the American wage-worker. Reciprocity Urged One way In which the readjustment sought can be reached Is by reciprocity treaties. It is greatly to bo desired that such treaties may be adopted. They can be used to widen our mar kets and to give a greater field for the activities of our producers on the one hand, and on the 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 accom plished. If It prove Impossible to rati fy the pending treaties, and If there seem to be no warrant for the en deavor to execute others, or to amend the pending treaties so that they can bo ratified, then the same end to se cure reciprocity should be met by direct legislation. Wherever the tariff conditions are such that a needed change can not with advantage be made by the appli cation of tho reciprocity idea, then it can be made outright by a lowering of duties on a given product. If pos sible, such change should be made only nftor the fullest consideration by prac tical experts, who should approach the subject from a business standpoint, having in view both the particular In terests affected and tho commercial well-being of the people as a whole. The machinery for providing such careful investigation can readily be supplied. The executive department has already at its disposal methods of collecting facts and figures; and if-.the congress desires additional considera tion 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 tho roncress after a deliberate and scientific! exam ination of tne various schedules as they are affected by the changed and changing conditions. The unhurried nnd unbiased report of this commis sion would show what changes should be 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 produce a monopoly are so few as to constitute an Inconsiderable factor in the question; but of course If In any case it be found that a given rate of duty does promote a monopoly which works HI, no protectionist would object to sijch reduction of the duty as would equalize competition. In my Judgment, the tariff on an thracite coal should be removed, and anthracite put actually, where It now Is nominally, on the free list, This would have no effect at nil save In crises; but In crises it might be of service to the people. Improve the Currency Interest rates are a potent factor In business activity, and In order that these rates may be equalized to meet tho varying needs of the seasons and of widely separated communities, and to prevent the recurrence of financial stringencies which Injuriously affect legitimate business, It Is necessary that there should be an element of elasticity In our monetary system. Bunks are the natural servants of commerce, and upon them should be placed, as far as practicable, the bur den of furnishing and maintaining a circulation adequate to supply the needs ot our diversified Industries and of our domestic and foreign commerce; nnd the Issue of this should be so regulated that n sufficient supply should be always avullable for the business interests of the country, It would be both unwise and un necessary at this time to attempt to reconstruct our financial system, which has been the growthAof a cen tury; but some additional legislation is, I think, deshable. The mere out iiue of any plan Hufllclently compre hensive 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 vlow of encouraging the use of such Instrumentalities as will au tomatically supply every legitimate demand of productive Industries and of commerce, not only In the amount, but In tho character of circulation; and of making all kinds of money Inter changeable, and, at the will of the holder, convertible Into the established gold stundard. n Regulate Immigration ' I again cull your attention to the r.ec-i of passing u proper Immigration law, covering the points outlined In MESSAGE. my message to you nt the first session of the present congress! substantially such a bill has already passed the house. Labor and Capital - How to secure fair treatment alike for labor nnd for capital, how to hold In check , the unscrupulous man, whether employer or employed, with out weakening Individual Initiative, without hampering nnd cramping the industrial development of the country, Is a problem fraught with great diffi culties and one which It Is of the high est Importance to solve on lines of sanity and fur-sighted common sense as well us of devotion to tho right. This is an era of federation nnd com bination. Exactly as business men find they must often work through corporations, and as It is a constant tendency of these corporations to grow larger, so it is often necessary for laboring men to work in federa tions, and these have become Im portant factors of modern industrial life. Both kinds of federation, cap italistic and lnbor, can do much good and as a necessary corollary they can both Ho evil. Opposition to each kind of organization should take the form of opposition to whatever is bad in the conduct of any given cor poration or union not of attacks upon corporations as such nor upon unions as such; for some of the most far-reaching beneficent work for our people has been ' accomplished through both corporations and unions. Each must refrain from arbitrary or tyrannous interference with the rights or others. Organiz ed capital and organized labor alike should remember that in the long run the interest of each must be brought into harmony with the in terest 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 and generous ideals. Every employ er, every wage-worker, must be guaranteed his liberty and his right to do as he likes with his property or his labor so long as he does not infringe Upon the rights of others. It Is of the highest importance that employer and employe alike should endeavor to appreciate each tho view point of the other and the sure dis aster Hint will come upon both In the long run If either grows to take as habitual an atitude of sour hostility and distrust toward the other. Few people deserve bettor of the country than those representatives botli of capital and labor and there are many such who work continually to bring about a good understanding of this kind, based upon wisdom and upon a broad artd kindly sympathy between employers and employed. Above all, w need to remember that any kind of class animosity in the political world is, if possible, even more wicked, oven more destructive to national welfare, than sectional, lace, or religious ani mosity. We can get good government only upon condition that we keep time to the principles upon which this nation was founded, and judge each man not as a part of a class, but upon his individual merits. All that we have a right to ask of any man, rich or poor, whatever his creed, his occupation, his birthplace, or his residence, is that he shall act well and honorably by his neighbor and by his country. We are neither for the rich man as such nor for the poor man as such; we are for tho up right man, rich or poor. So fur as the constitutional poweis of the na tional government touch these mutters of general and vitul moment to the nation, they should be exercised In conformity with the principles above set forth. Department of Commerce It Is earnestly hoped that u secretary of commerce may be created, with a seat in the cabinet. The rnpid multi plication of questions affecting labor and capital, the growth and complex ity of the organizations through which both labor and capital now find ex pression, the steudy tendency toward the employment of capital In huge corporations, and thu wonderful strides of this country toward leadership In the International business world justi fy an urgent demand for the creation of slid i a position. Substantially all the leading commercial bodies In this country have united In requesting Its creation. It Is desirable that some nuch measure as that which has al ready passed the senate bo enacted Into law. The creation of such a de partment would In Itself be an ad vance toward dealing with and exer cising supervision over the whole sub ject of the great corporations doing an Interstate business; nnd with this end In view, the congress should endow tho department with large powers, which could be Increased as experience might show the need. Reciprocity with Cuba T 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 va cating Cuban soil und turning Cuba over to those whom her own people hud chosen as the first otllcluls of the new republic, Cuba lies at our doois, and what ever utfects, her for good or for ill affects us also. So much have our people felt this that in tho Piatt uinendment we definitely took the ground thut Cuba must hereafter have closer political telatlous with us than with any other power. Thus In a sense Cuba has become a part of our inter national political system. This makes It necessary that In return she nhould be given some of the benefits of be coming purt of our economic system. It is, from our own standpoint, a short-sighted and mischievous policy to fall to recognize this need. More over, It is unworthy of a mighty and generous nation, Itself thu greatest and most successful republic In his tory, to refuse to stretch out a help ing hand to a young und weak sister republic just entering upon Its career of Independence. We should alwuys fearlessly Insist upon our rights In the fnco of the strong, and we should with ungrudging hand do our generous duty by the weak. I urge the adop Hon of reciprocity with Cuba not only because It Is eminently for our own Interests to control the Cuban market and by every means to foster our su premacy In the tropical lands and waters south ot us, but also because we, ot tho giant republic ot the north, should make nil our sister nations ot the Amerleun continent feel that when ever they will permit It we desire to show ourselves disinterestedly and effectively their friend. H Treaty with Newfoundland A convention with Great Britain has been concluded, which will be at once laid before the senate for ratification, providing for reciprocal trade arrange ments between the United States and Newfoundland on substantially the lines ot the convention formerly nego tiated by the secretary ot state.Mr. Blaine. I believe reciprocal trade re lations will be greatly to the advan tage of both countries. International Arbitration As civilization grows, warfare be comes less and less the normal con dition of foreign relations. The last century has seen a marked diminution of wars between civilized powers; wars with uncivilized powers are largely mere matters of international police duty, essential for the welfare of tho world. Wherever possible, ar bitration or some similar method should be employed In lieu ot war to settle difficulties between civilized na tions, although as yet the world has not progressed sufficiently to render It possible, or necessarily desirable, to Invoke arbitration In every ease. The formation of the International tribunal which sits at The Hague Is an event of good omen from which great con sequences for the welfare of all man kind may flow. It Is far better, where possible, to Invoke such a permanent tribunal than to create special arbitra tors for a given purpose. It Is a matter of sincere congratula tion to our country that the United States and Mexico have been the first to use tho good offices of The Hague court. This was done last summer with most satisfactory results In the case of a claim at Issue between us and our sister republic. It Is earnest ly to be hoped that this flrst'ease will serve as a precedent for others, In which not only the United Slates but foreign nations may take advantage of the muchlnery already In existence at The Hague. Hawaiian Fire Claims, I commend to the favorable con sideration of the congress the Hawaii an fire claims, which were the subject of careful Investigation during the lust session. Isthmian Canal Situation The congress has wisely provided that we shall build nt once an Isthmian canul, if possible at Panama. The attorney-general reports that we can undoubted)! acquire good title from the French Panama canul company. Negotiations are now pending with Colombia to secure her assent to out building the cannl. This canal will be one of the greatest engineering feats of the twentieth century; a great er engineering feat than has yet been accomplished during the history of mankind. Tho work should be carried out as a continuing policy without re gard to change of administration; and It should be begun under circumstances which will make It a matter of pride for all administrations to continue the policy. The canal will be of great benefit to America, and of Importance to all the world. It will be of advantage to us industrially and also as Improving our military position. It will be ot ad vantage to the countries of tropical America. It Is earnestly to be hoped that all ot these countries will do as some of them have already done with signal success, and will invite to their shores commerce and Improve their material conditions by recognizing that stublllty and cider aie the prerequis ites of successful development. No independent nation in America need have the slightest fear of aggression from the United States. It behooves each one to maintain order within its own borders and to discharge its just obligations to foreigners. 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 in creasing interdependence and com plexity of international political and econoniic relations render It in cumbent on all civilized and orderly powers to insist on the proper polic ing of the world. Pacific Cable Agreement During the full of 1001 a communi cation was addressed to tho secretary of stnU-, asking whether permission would be granted by the president to a corporation to lay u cable from a point on the California coast to thu Philippine Island.- by way or Hawaii, A statement of conditions or terms upon which such corporation would undertake to lay and operate a cuble wus volunteered. Inasmuch as the congress was short lv to convene, und Pacific-cable legisla tion hud been the subject of consider ation by the congress for seveial years il seemed to me wise to defer action upon tho triplication until the congress had first an opportunity to act. The congress udjomued without taking uuy action, leaving the matter in exactly tho sume condition In which It stood when the congress convened. Meanwhile It appears that the Com mercial Pacific Cable company had promptly proceeded with preparations for laying lt cuble. it also mude ap plication to the uresldent for access to und use of soundings taken by the I.'. S. 8. Nero, for the purpose ot dis covering a pruutlcable route for a trans-Pacltiu cable, the company urg- I Free Distribution JbOK THE BENEFIT OF THOSE WHO HAVE , NOT TESTED THE VIRTUES OF Dr. David Kennedy's Favorite Remedy nnd are unfamiliar with Its merits, arinugenienls hnvo been made for a. I'ltEB DISTRIBUTION Of SAMl'IiK BOTTMSS, from tho drug stoics ot this city. Ask your, ilriiRBlst for n PiusK HOTTIjK and convince yoursttt of the wonderful value of this great euro for Kidney Disease, Female Weakness nnd the other conditions for which It Is recommended, nttd for which It has been used with stioh success In this locality. Samples ficc at tho following drug stores: William II, McOarrah, J. H. Phelps, S. It. lien wood & Co., Matthews Bros. Ing thut with access to these sound ings It could complete Its cable much sooner than It It were required to take soundings upon its own account, Pend ing consideration of this subject, It appeared Important and desirable to attuch certain conditions to the permis sion to examine and use the sound lugs, If It should be granted. In consequence of this solicitation of the cable company, certain conditions wore formulated, upon which the presi dent was willing to allow access to these soundings and to consent to the landing and laying of the cable, sub ject to any alterations or additions thereto Imposed by the congress. This wus deemed proper, especially us It was clear that a cable connection of come kind with China, a foreign couu try, was a part ot the company's plan, This course was, moreover, In accord ance with a line of precedents, includ ing President Grunt's action in the case of the first French cable, explain ed to the congress In his annual mes sage of December, 1&75, and the In stance occurring In 1S79 of the second Vrench cuble from Brest to St. Pierre, with a branch to Cape Cod. These conditions prescribed, among other things, a maximum rale for commercial messages nnd that the company should construct a Hue from the Philippine Islands to China, there being nt present, as Is well known, a British line from Manila to Hongkong. The representatives of the cable com pany kept these conditions long under consideration, continuing. In the mean lime, to prepure for laying the cable. They have, however, at length acceded to them, and an All-Amerlcan line be tween our Pacific coast and the Chin ese Rmplre, 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 reserv ing the power of the congress to modi fy or repeal any or all of them. A copy of the conditions Is herewith transmitted. Porto Rico a Model Of Porto Itico it is only necessary to say that the prosperity ot the Island and the wisdom with which it has been governed have been such as to make It servo as an example of all that Is best In Insular administration, Progress in the Philippines On July i last, on tho one hundred and twenty-sixth anniversary of the declaration of our Independence, pepee and amnesty were promulgated In the Philippine Islamls. Some trouble has since from time to time threatened with the Mohammedan Moros, but with the late -Insurrectionary Filipinos the war has entirely ceased. Civil govern ment has now been introduced. Not only does each Filipino enjoy such rights to life, liberty, and the pur suit of happiness as he has never before known during the recorded history of the islands, but the peo ple taken as a whole now enjoy a measure of self-government greater than that granted to any other Ori entals by any foreign power and greater that that enjoyed by any other Orientals under their own gov ernments, save the Japanese alone. AVe have not gone too far In gi anting these rights of liberty and self-government; but we have ceitalnly gone to the limit that In tho Interests oft the Philippine people themselves Ic was wise or just to go. To hurry mat ters, to go faster than we are now go ing, would entail calamity on thu peo ple of the islands. No policy ever entered into by the American people has vindicated itself in more signal inaner than the policy of holding the Philippines. The triumph of our arms, above all the triumph of our laws and principles, hasv come sooner than we had any right to ex pect. Too much praise can not bo given to the army for what It bus done In the Philippines both in wurfare and from an administrative standpoint In preparing the way for civil govern ment; and similar credit belongs to tho civil authorities for the way In which they have planted the seeds or self-government In the giouud thus made jeudy for them. The courage, the unflinching endurance, the high soldiery efficiency, and the general kind-heurirduess and humanity of our troops have been strikingly manifest ed. Tht'io now remain only somo fif teen thousand troops In the Inland. Ml told, over one hundred thousand liavo befn sent there. Of course, there have been Individual Instances of wrongdoing among them. They wur red under fearful difficulties of cllmnte and surroundings,' and under the strulu of the terrible, provocations which they continually tecelved from Their foes, occasional Instances of cruel retalia tion occuuvd, Kvery effort has been made to prevent such cruelties, and finally these efforts have been com pletely successful. livery effort has also been mpde to detect and punish the wrongdoers. Alter making all al lowance for these misdeeds, It remains true that few Indeed have been the In stances In which war has been waged by civilized power against semi civilized or burbarons forces wheie there has been so little wiongdolng by the victors uu In the Philippine Islands. On the other hand, the amount of dif ficult, Important, and beneficent work which has befit done Is w'ell-nlgh In calculable. Taking the work of the army und the civil authorities together, It may be questioned whether anywhere else u modem times the world bus seen u hotter example of real constructive statesmanship than our people have given In the Philippine Isluuds. High praise should also be given those Fili pinos, in the aggregate very numer ous, who have accepted the new condi tions and Joined with our representa tives to work with hearty good wllj for the welfuie of the Islands. To Perfect the Army The army has beeu reduced to th minimum allowed by law. It Is very, small for the sl.'.e of the nation, nnd motft ccrtutnly should be kept at the highest point of efficiency. Tho senior officers are given scant chance undent ordinary conditions to exercise com mands commensurate with their rank under circumstances which would fit them to do their duty In time ot actual war. A system of maneuvering oiifl army In bodies of some little size has been begun und should be steadily con tinued, Without such maneuvers It In folly to expect that In the event ofl hostilities with any serious foe even ai small army corps could be handled lu Rdvuntuge. Moth our olllceis and en listed men are such that wo ran take) hearty pride In them. No better ma terial can be found. But they musl be thoroughly trained, both as Indiv iduals and In the muss, The marks manship of the men must receive special attention. In the circumstan ces ot model u warfare the man must act far more on his own Individual lesponslbility than ever before, and the high Individual efficiency of the libit Is of the utmost Importance. For merly this unit was the regiment; l Is now not the regiment, not even thu troop or company, it Is the Individual soldier. Kvery effort must be maclfl to develop every workmanlike nndl soldierly qualtty In both the officer and? the enlisted man. I urgently cull your attention to thd need of passing a bill providing for at general staff and for the reorganiza tion of the supply departments on tho lines of the bill proposed by the sec retary of war last year. "When thd young oiricers enter tho army front West Point they probably stanlr abovo their compeers In any other military service. Kvery effort should bo made, by training, by reward of merit, bit, scrutiny into -their careers and capa city, to keep them of the same high) relative excellence throughout thcli" careers. The measure providing for the re organization of the militia system anil for the highest efficiency In the Na tional Guaid, which has already passed the house, should receive prompt at tention and action. It Is of great Im portance that the relation of the Na tional Guard to the militia and volun teer forces of the United States shoulit be defined, and thut In place of ouf present obsolete laws a practical and) efficient system should be adopted. Provision should be made to cnabld the secretary of war to keep cavalry and artillery horses, worn-out in long" performance of duty. Such horses fetch but a trifle when sold; and rather than turn them out to the mis ery awaiting them when thus disposer! of, It would be better to employ them at light work around the posts, and! when necessary to put them painless ly to death. Needs of the Navy For the first time In our history naval maneuvers on a huge scale aid being held under the Immediate com mand of the admiral of the navy. Con stantly Increasing attention la being paid to tho gunnery of the navy, but it is yet far from what it should be. C earnestly urge that the Increase asked for by the secretary of the navy lt the appropriation for improving thu markmanshlp be granted. In battla the only shots that count are tho shots that hit. It is necessary to provide ample funds for practice with the great guns in time of peace. These funds must provide not only fof the purchase of projectiles, but for al lowances for prizes to encourage tho gun crews, and especially the gun poluteis, and for perfecting nu Intelli gent system under which nlo'ne It Id possible to get good practice. There should be no halt in tho work of building up the navy, pro viding ever year additional fighting craft. We are a very rich country, vast in extent of territory and great in population; a country, more over, which has an army diminutive indeed when compared with that ofi any other first-class power. We hava deliberately made our own certain, foreign policies which demand tho possession of a first-class navy. Tha Isthmian canal will greatly increase the efficiency of oui navy if tho navy is of sufficient size; but If wo have nn Inadequate navy, then the) building of the canal would be mere ly giving a hostage to any power ofl superior strength. The Monroe Doc trine should be treated as the cardin al feature of American foreign policy; but It would be worse than idle to assert It unless we Intended to back it up, and It can be backed up only by a thoroughly good navy. A good navy is not a provocative ofl war, It is the surest guaranty ofl peace. Kuch Individual unit of our uavM bhould be the most clllclent or Its klin as regards both material and person nel that Is to be found In the wqM. I call your attention to the need1 oil providing for the munulng o, jhu ships, Serious trouble threatens us IC we can not do better than we aie now doing as regards securing the ser vices of a sufficient number of tlid highest type of sullormen, of sea me chanics. The veteran seamen of our war ships are of as high a type ait can be found In any navy which ride, the waters of the world; they are un surpassed In dating, In resolution, lit radlne'ss, In through knowledge ofl their profession, They deserve every, consideration thut can be shown them. But there are not enough of them. It Is no nioio possible to Improvise a creM than tt Is possible to Improvise a watt ehlp. To build (he finest ship, with) XCaatJuued ou Puge 5. J 1. . "ti i, i