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THE SORANTON TRIBUNE-WEDNESDAY, DEOEiMBER 3, 1902.
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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
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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
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