Speech Transcript:

To the Senate and House of Representatives:

At the threshold of your deliberations you are called to mourn with
your countrymen the death of Vice-President Hobart, who passed from
this life on the morning of November 21 last. His great soul now
rests in eternal peace. His private life was pure and elevated, while
his public career was ever distinguished by large capacity, stainless
integrity, and exalted motives. He has been removed from the high
office which he honored and dignified, but his lofty character, his
devotion to duty, his honesty of purpose, and noble virtues remain
with us as a priceless legacy and example.

The Fifty-sixth Congress convenes in its first regular session with
the country in a condition of unusual prosperity, of universal good
will among the people at home, and in relations of peace and
friendship with every government of the world. Our foreign commerce
has shown great increase in volume and value. The combined imports
and exports for the year are the largest ever shown by a single year
in all our history. Our exports for 1899 alone exceeded by more than
a billion dollars our imports and exports combined in 1870. The
imports per capita are 20 per cent less than in 1870, while the
exports per capita are 58 per cent more than in 1870, showing the
enlarged capacity of the United States to satisfy the wants of its
own increasing population, as well as to contribute to those of the
peoples of other nations.

Exports of agricultural products were $784,776,142. Of manufactured
products we exported in value $339,592,146, being larger than any
previous year. It is a noteworthy fact that the only years in all our
history when the products of our manufactories sold abroad exceeded
those bought abroad were 1898 and 1899.

Government receipts from all sources for the fiscal year ended June
30, 1899, including $11,798,314,14, part payment of the Central
Pacific Railroad indebtedness, aggregated $610,982,004.35. Customs
receipts were $206,128,481.75, and those from internal revenue
$273,437,161.51.

For the fiscal year the expenditures were $700,093,564.02, leaving a
deficit of $89,111,559.67.

The Secretary of the Treasury estimates that the receipts for the
current fiscal year will aggregate $640,958,112, and upon the basis
of present appropriations the expenditures will aggregate
$600,958,112, leaving a surplus of $40,000,000.

For the fiscal year ended June 30, 1899, the internal-revenue
receipts were increased about $100,000,000.

The present gratifying strength of the Treasury is shown by the fact
that on December 1, 1899, the available cash balance was
$278,004,837.72, Of which $239,744,905.36 was in gold coin and
bullion. The conditions of confidence which prevail throughout the
country have brought gold into more general use and customs receipts
are now almost entirely paid in that coin.

The strong position of the Treasury with respect to cash on hand and
the favorable showing made by the revenues have made it possible for
the Secretary of the Treasury to take action under the provisions of
section 3694, Revised Statutes, relating to the sinking fund.
Receipts exceeded expenditures for the first five months of the
current fiscal year by $13,413,389.91, and, as mentioned above, the
Secretary of the Treasury estimates that there will be a surplus of
approximately $40,000,000 at the end of the year. Under such
conditions it was deemed advisable and proper to resume compliance
with the provisions of the sinking-fund law, which for eight years
has not been done because of deficiencies in the revenues. The
Treasury Department therefore offered to purchase during November
$25,000,000 of the 5 per cent loan of 1904, or the 4 per cent funded
loan of 1907, at the current market price. The amount offered and
purchased during November was $18,408,600. The premium paid by the
Government on such purchases was $2,263,521 and the net saving in
interest was about $2,885,000. The success of this operation was
sufficient to induce the Government to continue the offer to purchase
bonds to and including the 23d day of December, instant, unless the
remainder of the $25,000,000 called for should be presented in the
meantime for redemption.

Increased activity in industry, with its welcome attendant--a larger
employment for labor at higher wages--gives to the body of the people
a larger power to absorb the circulating medium. It is further true
that year by year, with larger areas of land under cultivation, the
increasing volume of agricultural products, cotton, corn, and wheat,
calls for a larger volume of money supply. This is especially
noticeable at the crop-harvesting and crop-moving period.

In its earlier history the National Banking Act seemed to prove a
reasonable avenue through which needful additions to the circulation
could from time to time be made. Changing conditions have apparently
rendered it now inoperative to that end. The high margin in bond
securities required, resulting from large premiums which Government
bonds command in the market, or the tax on note issues, or both
operating together, appear to be the influences which impair its
public utility.

The attention of Congress is respectfully invited to this important
matter, with the view of ascertaining whether or not such reasonable
modifications can be made in the National Banking Act as will render
its service in the particulars here referred to more responsive to
the people's needs. I again urge that national banks be authorized to
organize with a capital of $25,000.

I urgently recommend that to support the existing gold standard, and
to maintain "the parity in value of the coins of the two metals (gold
and silver) and the equal power of every dollar at all times in the
market and in the payment of debts," the Secretary of the Treasury be
given additional power and charged with the duty to sell United States
bonds and to employ such other effective means as may be necessary to
these ends. The authority should include the power to sell bonds on
long and short time, as conditions may require, and should provide
for a rate of interest lower than that fixed by the act of January
14, 1875. While there is now no commercial fright which withdraws
gold from the Government, but, on the contrary, such widespread
confidence that gold seeks the Treasury demanding paper money in
exchange, yet the very situation points to the present as the most
fitting time to make adequate provision to insure the continuance of
the gold standard and of public confidence in the ability and purpose
of the Government to meet all its obligations in the money which the
civilized world recognizes as the best. The financial transactions of
the Government are conducted upon a gold basis. We receive gold when
we sell United States bonds and use gold for their payment. We are
maintaining the parity of all the money issued or coined by authority
of the Government. We are doing these things with the means at hand.
Happily at the present time we are not compelled to resort to loans
to supply gold. It has been done in the past, however, and may have
to be done in the future. It behooves us, therefore, to provide at
once the best means to meet the emergency when it arises, and the
best means are those which are the most certain and economical. Those
now authorized have the virtue neither of directness nor economy. We
have already eliminated one of the causes of our financial plight and
embarrassment during the years 1893, 1894, 1895, and 1896. Our
receipts now equal our expenditures; deficient revenues no longer
create alarm Let us remove the only remaining cause by conferring the
full and necessary power on the Secretary of the Treasury and impose
upon him the duty to uphold the present gold standard and preserve
the coins of the two metals on a parity with each other, which is the
repeatedly declared policy of the United States.

In this connection I repeat my former recommendations that a portion
of the gold holdings shall be placed in a trust fund from which
greenbacks shall be redeemed upon presentation, but when once
redeemed shall not thereafter be paid out except for gold.

The value of an American merchant marine to the extension of our
commercial trade and the strengthening of our power upon the sea
invites the immediate action of the Congress. Our national
development will be one-sided and unsatisfactory so long as the
remarkable growth of our inland industries remains unaccompanied by
progress on the seas. There is no lack of constitutional authority
for legislation which shall give to the country maritime strength
commensurate with its industrial achievements and with its rank among
the nations of the earth,

The past year has recorded exceptional activity in our shipyards, and
the promises of continual prosperity in shipbuilding are abundant.
Advanced legislation for the protection of our seamen has been
enacted. Our coast trade, under regulations wisely framed at the
beginning of the Government and since, shows results for the past
fiscal year unequaled in our records or those of any other power. We
shall fail to realize our opportunities, however, if we complacently
regard only matters at home and blind ourselves to the necessity of
securing our share in the valuable carrying trade of the world.

Last year American vessels transported a smaller share of our exports
and imports than during any former year in all our history, and the
measure of our dependence upon foreign shipping was painfully
manifested to our people. Without any choice of our own, but from
necessity, the Departments of the Government charged with military
and naval operations in the East and West Indies had to obtain from
foreign flags merchant vessels essential for those operations.

The other great nations have not hesitated to adopt the required
means to develop their shipping as a factor in national defense and
as one of the surest and speediest means of obtaining for their
producers a share in foreign markets. Like vigilance and effort on
our part cannot fail to improve our situation, which is regarded with
humiliation at home and with surprise abroad. Even the seeming
sacrifices, which at the beginning may be involved, will be offset
later by more than equivalent gains.

The expense is as nothing compared to the advantage to be achieved.
The reestablishment of our merchant marine involves in a large
measure our continued industrial progress and the extension of our
commercial triumphs. I am satisfied the judgment of the country
favors the policy of aid to our merchant marine, which will broaden
our commerce and markets and upbuild our sea-carrying capacity for
the products of agriculture and manufacture; which, with the increase
of our Navy, mean more work and wages to our countrymen, as well as a
safeguard to American interests in every part of the world.

Combinations of capital organized into trusts to control the
conditions of trade among our citizens, to stifle competition, limit
production, and determine the prices of products used and consumed by
the people, are justly provoking public discussion, and should early
claim the attention of the Congress.

The Industrial Commission, created by the act of the Congress of June
18, 1898, has been engaged in extended hearings upon the disputed
questions involved in the subject of combinations in restraint of
trade and competition. They have not yet completed their
investigation of this subject, and the conclusions and
recommendations at which they may arrive are undetermined.

The subject is one giving rise to many divergent views as to the
nature and variety or cause and extent of the injuries to the public
which may result from large combinations concentrating more or less
numerous enterprises and establishments, which previously to the
formation of the combination were carried on separately.

It is universally conceded that combinations which engross or control
the market of any particular kind of merchandise or commodity
necessary to the general community, by suppressing natural and
ordinary competition, whereby prices are unduly enhanced to the
general consumer, are obnoxious not only to the common law but also
to the public welfare. There must be a remedy for the evils involved
in such organizations. If the present law can be extended more
certainly to control or check these monopolies or trusts, it should
be done without delay. Whatever power the Congress possesses over
this most important subject should be promptly ascertained and
asserted.

President Harrison in his annual message of December 3, 1889, says:
Earnest attention should be given by Congress to a consideration of
the question how far the restraint of those combinations of capital
commonly called "trusts" is matter of Federal jurisdiction. When
organized, as they often are, to crush out all healthy competition
and to monopolize the production or sale of an article of commerce
and general necessity they are dangerous conspiracies against the
public good, and should be made the subject of prohibitory and even
penal legislation. An act to protect trade and commerce against
unlawful restraints and monopolies was passed by Congress on the 2d
of July, 1890. The provisions of this statute are comprehensive and
stringent. It declares every contract or combination, in the form of
a trust or otherwise, or conspiracy in the restraint of trade or
commerce among the several States or with foreign nations, to be
unlawful. It denominates as a criminal every person who makes any
such contract or engages in any such combination or conspiracy, and
provides a punishment by fine or imprisonment. It invests the several
circuit courts of the United States with jurisdiction to prevent and
restrain violations of the act, and makes it the duty of the several
United States district attorneys, under the direction of the Attorney
General, to institute proceedings in equity to prevent and restrain
such violations. It further confers upon any person who shall be
injured in his business or property by any other person or
corporation by reason of anything forbidden or declared to be
unlawful by the act, the power to sue therefore in any circuit court
of the United States without respect to the amount in controversy,
and to recover threefold the damages by him sustained and the costs
of the suit, including reasonable attorney fees. It will be perceived
that the act is aimed at every kind of combination in the nature of a
trust or monopoly in restraint of interstate or international
commerce.

The prosecution by the United States of offenses under the act of
1890 has been frequently resorted to in the Federal courts, and
notable efforts in the restraint of interstate commerce, such as the
Trans-Missouri Freight Association and the joint Traffic Association,
have been successfully opposed and suppressed.

President Cleveland in his annual message of December 7, 1896--more
than six years subsequent to the enactment of this law--after stating
the evils of these trust combinations, says: Though Congress has
attempted to deal with this matter by legislation, the laws passed
for that purpose thus far have proved ineffective, not because of any
lack of disposition or attempt to enforce them, but simply because the
laws themselves as interpreted by the courts do not reach the
difficulty. If the insufficiencies of existing laws can be remedied
by further legislation, it should be done. The fact must be
recognized, however, that all Federal legislation on this subject may
fall short of its purpose because of inherent obstacles, and also
because of the complex character of our governmental system, which,
while making the Federal authority supreme within its sphere, has
carefully limited that sphere by metes and bounds which cannot be
transgressed. The decision of our highest court on this precise
question renders it quite doubtful whether the evils of trusts and
monopolies may be adequately treated through Federal action, unless
they seek directly and purposely to include in their objects
transportation or intercourse between States or between the United
States and foreign countries. It does not follow, however, that this
is the limit of the remedy that may be applied. Even though it may be
found that Federal authority is not broad enough to fully reach the
case, there can be no doubt of the power of the several States to act
effectively in the premises, and there should be no reason to doubt
their willingness to judiciously exercise such power. The State
legislation to which President Cleveland looked for relief from the
evils of trusts has failed to accomplish fully that object. This is
probably due to a great extent to the fact that different States take
different views as to the proper way to discriminate between evil and
injurious combinations and those associations which are beneficial
and necessary to the business prosperity of the country. The great
diversity of treatment in different States arising from this cause
and the intimate relations of all parts of the country to each other
without regarding State lines in the conduct of business have made
the enforcement of State laws difficult.

It is apparent that uniformity of legislation upon this subject in
the several States is much to be desired. It is to be hoped that such
uniformity founded in a wise and just discrimination between what is
injurious and what is useful and necessary in business operations may
be obtained and that means may be found for the Congress within the
limitations of its constitutional power so to supplement an effective
code of State legislation as to make a complete system of laws
throughout the United States adequate to compel a general observance
of the salutary rules to which I have referred.

The whole question is so important and far-reaching that I am sure no
part of it will be lightly considered, but every phase of it will have
the studied deliberation of the Congress, resulting in wise and
judicious action.

A review of our relations with foreign States is presented with such
recommendations as are deemed appropriate.

The long-pending boundary dispute between the Argentine Republic and
Chile was settled in March last by the award of an arbitral
commission, on which the United States minister at Buenos Ayres
served as umpire.

Progress has been made toward the conclusion of a convention of
extradition with the Argentine Republic. Having been advised and
consented to by the United States Senate and ratified by Argentina,
it only awaits the adjustment of some slight changes in the text
before exchange.

In my last annual message I adverted to the claim of the
Austro-Hungarian Government for indemnity for the killing of certain
Austrian and Hungarian subjects by the authorities of the State of
Pennsylvania, at Lattimer, while suppressing an unlawful tumult of
miners, September 10, 1897. In view of the verdict of acquittal
rendered by the court before which the sheriff and his deputies were
tried for murder, and following the established doctrine that the
Government may not be held accountable for injuries suffered by
individuals at the hands of the public authorities while acting in
the line of duty in suppressing disturbance of the public peace, this
Government, after due consideration of the claim advanced by the
Austro-Hungarian Government, was constrained to decline liability to
indemnify the sufferers.

It is gratifying to be able to announce that the Belgian Government
has mitigated the restrictions on the importation of cattle from the
United States, to which I referred in my last annual message.

Having been invited by Belgium to participate in a congress, held at
Brussels, to revise the provisions of the general act Of July 2,
1890, for the repression of the African slave trade, to which the
United States was a signatory party, this Government preferred not to
be represented by a plenipotentiary, but reserved the right of
accession to the result. Notable changes were made, those especially
concerning this country being in the line of the increased
restriction of the deleterious trade in spirituous liquors with the
native tribes, which this Government has from the outset urgently
advocated. The amended general act will be laid before the Senate,
with a view to its advice and consent.

Early in the year the peace of Bolivia was disturbed by a successful
insurrection. The United States minister remained at his post,
attending to the American interests in that quarter, and using
besides his good offices for the protection of the interests of
British subjects in the absence of their national representative. On
the establishment of the new Government, our minister was directed to
enter into relations therewith.

General Pando was elected President of Bolivia on October 23.

Our representative has been instructed to use all permissible
friendly endeavors to induce the Government of Bolivia to amend its
marriage laws so as to give legal status to the non-Catholic and
civil marriages of aliens within its jurisdiction, and strong hopes
are entertained that the Bolivian law in this regard will be brought,
as was that of Peru some years ago, into harmony with the general
practice of modern States.

A convention of extradition with Brazil, signed May 14, 1897, has
been ratified by the Brazilian Legislature.

During the past summer two national ships of the United States have
visited Brazilian ports on a friendly mission and been cordially
received. The voyage of the Wilmington up the Amazon River gave rise
to a passing misunderstanding, owing to confusion in obtaining
permission to visit the interior and make surveys in the general
interest of navigation, but the incident found a ready adjustment in
harmony with the close relations of amity which this Government has
always sedulously sought to cultivate with the commonwealths of the
Western Continent.

The claim growing out of the seizure of the American-owned newspaper
"The Panama Star and Herald" by the authorities of Colombia has been
settled, after a controversy of several years, by an agreement
assessing at $30,000 the indemnity to be paid by the Colombian
Government, in three installments of $10,000 each.

The good will of Colombia toward our country has been testified anew
by the cordial extension of facilities to the Nicaraguan Canal
Commission in their approaching investigation of the Panama Canal and
other projected routes across the Isthmus of Darien.

Toward the end of October an insurrectionary disturbance developed in
the Colombian Republic. This movement has thus far not attained any
decisive result and is still in progress.

Discussion of the questions raised by the action of Denmark in
imposing restrictions on the importation of American meats has
continued without substantial result in our favor.

The neighboring island Republic of Santo Domingo has lately been the
scene of revolution, following a long period of tranquility. It began
with the killing of President Heureaux in July last, and culminated in
the relinquishment by the succeeding Vice-President of the reins of
government to the insurgents. The first act of the provisional
government was the calling of a presidential and constituent
election. Juan Isidro Jimenez, having been elected President, was
inaugurated on the 14th of November. Relations have been entered into
with the newly established Government.

The experimental association of Nicaragua, Honduras, and Salvador,
tinder the title of the Greater Republic of Central America, when
apparently on the threshold of a complete federal organization by the
adoption of a constitution and the formation of a national
legislature, was disrupted in the last days of November, 1898, by the
withdrawal of Salvador. Thereupon Nicaragua and Honduras abandoned the
joint compact, each resuming its former independent sovereignty. This
was followed by the reception of Minister Merry by the Republics of
Nicaragua and Salvador, while Minister Hunter in turn presented his
credentials to the Government of Honduras, thus reverting to the old
distribution of the diplomatic agencies of the United States in
Central America for which our existing statutes provide. A Nicaraguan
envoy has been accredited to the United States.

An insurrectionary movement, under General Reyes, broke out at
Bluefields in February last, and for a time exercised actual control
in the Mosquito Territory. The Detroit was promptly sent thither for
the protection of American interests. After a few weeks the Reyes
government renounced the conflict, giving place to the restored
supremacy of Nicaragua. During the interregnum certain public dues
accruing under Nicaraguan law were collected from American merchants
by the authorities for the time being in effective administrative
control. Upon the titular government regaining power, a second
payment of these dues was demanded. Controversy arose touching the
validity of the original payment of the debt to the de facto regent
of the territory. An arrangement was effected in April last by the
United States minister and the foreign secretary of Nicaragua whereby
the amounts of the duplicate payments were deposited with the British
consul pending an adjustment of the matter by direct agreement
between the Governments of the United States and Nicaragua. The
controversy is still unsettled.

The contract of the Maritime Canal Company of Nicaragua was declared
forfeited by the Nicaraguan Government on the Tenth of October, on
the ground of nonfulfillment within the ten years' term stipulated in
the contract. The Maritime Canal Company has lodged a protest against
this action, alleging rights in the premises which appear worthy of
consideration. This Government expects that Nicaragua will afford the
protestants a full and fair hearing upon the merits of the case.

The Nicaragua Canal Commission, which had been engaged upon the work
of examination and survey for a ship-canal route across Nicaragua,
having completed its labors and made its report, was dissolved on May
P, and on June To a new commission, known as the Isthmian Canal
Commission, was organized under the terms of the act approved March
3, 1899, for the purpose of examining the American Isthmus with a
view to determining the most practicable and feasible route for a
ship canal across that Isthmus, with its probable cost, and other
essential details.

This Commission, under the presidency of Rear-Admiral John G. Walker,
U. S. N. (retired), entered promptly upon the work intrusted to it,
and is now carrying on examinations in Nicaragua along the route of
the Panama Canal, and in Darien from the Atlantic, in the
neighborhood of the Atrato River, to the Bay of Panama, on the
Pacific side. Good progress has been made, but under the law a
comprehensive and complete investigation is called for, which will
require much labor and considerable time for its accomplishment. The
work will be prosecuted as expeditiously as possible and a report
made at the earliest practicable date.

The great importance of this work cannot be too often or too strongly
pressed upon the attention of the Congress. In my message of a year
ago I expressed my views of the necessity of a canal which would link
the two great oceans, to which I again invite your consideration. The
reasons then presented for early action are even stronger now.

A pleasing incident in the relations of this Government with that of
Chile occurred in the generous assistance given to the war ship
Newark when in distress in Chilean waters. Not alone in this way has
the friendly disposition of Chile found expression. That country has
acceded to the convention for the establishment of the Bureau of the
American Republics, in which organization every independent State of
the continent now shares.

The exchange of ratifications of a convention for the revival of the
United States and Chilean Claims Commission and for the adjudication
of claims heretofore presented but not determined during the life of
the previous Commission has been delayed by reason of the necessity
for fresh action by the Chilean Senate upon the amendments attached
to the ratification of the treaty by the United States Senate. This
formality is soon to be accomplished.

In view of disturbances in the populous provinces of northern China,
where are many of our citizens, and of the imminence of disorder near
the capital and toward the seaboard, a guard of marines was landed
from the Boston and stationed during last winter in the legation
compound at Peking. With the restoration of order this protection was
withdrawn.

The interests of our citizens in that vast Empire have not been
neglected during the past year. Adequate protection has been secured
for our missionaries and some injuries to their property have been
redressed.

American capital has sought and found various opportunities of
competing to carry out the internal improvements which the Imperial
Government is wisely encouraging, and to develop the natural
resources of the Empire. Our trade with China has continued to grow,
and our commercial rights under existing treaties have been
everywhere maintained during the past year, as they will be in the
future.

The extension of the area open to international foreign settlement at
Shanghai and the opening of the ports of Nanking, Tsing-tao (Kiao
chao), and Ta-lien-wan to foreign trade and settlement will doubtless
afford American enterprise additional facilities and new fields, of
which it will not be slow to take advantage.

In my message to Congress of December 5, 1898, I urged that the
recommendation which had been made to the Speaker of the House of
Representatives by the Secretary of the Treasury on the 14th of June,
1898, for an appropriation for a commission to study the commercial
and industrial conditions in the Chinese Empire and report as to the
opportunities for, and obstacles to, the enlargement of markets in
China for the raw products and manufactures of the United States,
should receive at your hands the consideration which its importance
and timeliness merited, but the Congress failed to take action.

I now renew this recommendation, as the importance of the subject has
steadily grown since it was first submitted to you, and no time should
be lost in studying for ourselves the resources of this great field
for American trade and enterprise.

The death of President Faure in February last called forth those
sincere expressions of sympathy which befit the relations of two
Republics as closely allied by unbroken historic ties as are the
United States and France.

Preparations for the representation of the industries, arts, and
products of the United States at the World's Exposition to be held in
Paris next year continue on an elaborate and comprehensive scale,
thanks to the generous appropriation provided by Congress and to the
friendly interest the French Government has shown in furthering a
typical exhibit of American progress.

There has been allotted to the United States a considerable addition
of space, which, while placing our country in the first rant among
exhibitors, does not suffice to meet the increasingly urgent demands
of our manufacturers. The efforts of the Commissioner General are
ably directed toward a strictly representative display of all that
most characteristically marks American achievement in the inventive
arts, and most adequately shows the excellence of our natural
productions.

In this age of keen rivalry among nations for mastery in commerce,
the doctrine of evolution and the rule of the survival of the fittest
must be as inexorable in their operation as they are positive in the
results they bring about. The place won in the struggle by an
industrial people can only be held by unrelaxed endeavor and constant
advance in achievement. The present extraordinary impetus in every
line of American exportation and the astounding increase in the
volume and value of our share in the world's markets may not be
attributed to accidental conditions.

The reasons are not far to seek. They lie deep in our national
character and find expression year by year in every branch of
handicraft, in every new device whereby the materials we so
abundantly produce are subdued to the artisan's will and made to
yield the largest, most practical, and most beneficial return. The
American exhibit at Paris should, and I am confident will, be an open
volume, whose lessons of skillfully directed endeavor, unfaltering
energy, and consummate performance may be read by all on every page,
thus spreading abroad a clearer knowledge of the worth of our
productions and the justice of our claim to an important place in the
marts of the world. To accomplish this by judicious selection, by
recognition of paramount merit in whatever walk of trade or
manufacture it may appear, and by orderly classification and
attractive installation is the task of our Commission.

The United States Government building is approaching completion, and
no effort will be spared to make it worthy, in beauty of
architectural plan and in completeness of display, to represent our
nation. It has been suggested that a permanent building of similar or
appropriate design be erected on a convenient site, already given by
the municipality, near the exposition grounds, to serve in
commemoration of the part taken by this country in this great
enterprise, as an American National Institute, for our countrymen
resorting to Paris for study.

I am informed by our Commissioner-General that we shall have in the
American sections at Paris over 7,000 exhibitors, from every State
ill our country, a number ten times as great as those which were
represented at Vienna in 1873, six times as many as those in Paris in
1878, and four times as many as those who exhibited in Paris in 1889.
This statement does not include the exhibits from either Cuba, Puerto
Rico, or Hawaii, for which arrangements have been made.

A number of important international congresses on special topics
affecting public interests are proposed to be held in Paris next
summer in connection with the exposition. Effort will be made to have
the several technical branches of our administration efficiently
represented at those conferences, each in its special line, and to
procure the largest possible concourse of State representatives,
particularly at the Congresses of Public Charity and Medicine.

Our relations with Germany continue to be most cordial. The
increasing intimacy of direct association has been marked during the
year by the granting permission in April for the landing on our
shores of a cable from Borkum Emden, on the North Sea, by way of the
Azores, and also by the conclusion on September 2 of a Parcels Post
Convention with the German Empire. In all that promises closer
relations of intercourse and commerce and a better understanding
between two races having so many traits in common, Germany can be
assured of the most cordial cooperation of this Government and
people. We may be rivals in many material paths, but our rivalry
should be generous and open, ever aiming toward the attainment of
larger results and the mutually beneficial advancement of each in the
line of its especial adaptabilities.

The several governments of the Empire seem reluctant to admit the
natural excellence of our food productions and to accept the evidence
we constantly tender of the care with which their purity is guarded by
rigid inspection from the farm, through the slaughterhouse and the
packing establishments, to the port of shipment. Our system of
control over exported food staples invites examination from any
quarter and challenges respect by its efficient thoroughness.

It is to be hoped that in time the two Governments will act in common
accord toward the realization of their common purpose to safeguard the
public health and to insure the purity and wholesomeness of all food
products imported by either country from the other. Were the Congress
to authorize an invitation to Germany, in connection with the pending
reciprocity negotiations, for the constitution of a joint commission
of scientific experts and practical men of affairs to conduct a
searching investigation of food production and exportation in both
countries and report to their respective legislatures for the
adoption of such remedial measures as they might recommend for
either, the way might be opened for the desirable result indicated.

Efforts to obtain for American life insurance companies a full
hearing as to their business operations in Prussia have, after
several years of patient representation, happily succeeded, and one
of the most important American companies has been granted a
concession to continue business in that Kingdom.

I am also glad to announce that the German insurance companies have
been readmitted by the superintendent of insurance to do business in
the State of New York.

Subsequent to the exchange of our peace treaty with Spain, Germany
acquired the Caroline Islands by purchase, paying therefore
$5,000,000. Assurances have been received from the German Government
that the rights of American missionaries and traders there will be
considerately observed.

In my last annual message I referred to the pending negotiations with
Great Britain in respect to the Dominion of Canada. By means of an
executive agreement, a joint High Commission had been created for the
purpose of adjusting all unsettled questions between the United States
and Canada, embracing twelve subjects, among which were the questions
of the fur seals, the fisheries of the coast and contiguous inland
waters, the Alaskan boundary, the transit of merchandise in bond, the
alien labor laws, mining rights, reciprocity in trade, revision of the
agreement respecting naval vessels in the Great Lakes, a more complete
marking of parts of the boundary, provision for the conveyance of
criminals, and for wrecking and salvage.

Much progress had been made by the Commission toward the adjustment
of many of these questions, when it became apparent that an
irreconcilable difference of views was entertained respecting the
delimitation of the Alaskan, boundary. In the failure of an agreement
as to the meaning of Articles III and IV of the treaty of 1825 between
Russia and Great Britain, which defined the boundary between Alaska
and Canada, the American Commissioners proposed that the subject of
the boundary be laid aside, and that the remaining questions of
difference be proceeded with, some of which were so far advanced as
to assure the probability of a settlement. This being declined by the
British Commissioners, an adjournment was taken until the boundary
should be adjusted by the two Governments. The subject has been
receiving the careful attention which its importance demands, with
the result that a modus vivendi for provisional demarcations in the
region about the head of Lynn Canal has, been agreed upon; and it is
hoped that the negotiations now in progress between the two
Governments will end in an agreement for the establishment and
delimitation of a permanent boundary.

Apart from these questions growing out of our relationship with our
northern neighbor, the most friendly disposition and ready agreement
have marked the discussion of numerous matters arising in the vast
and intimate intercourse of the United States with Great Britain.

This Government has maintained an attitude of neutrality in the
unfortunate contest between Great Britain and the Boer States of
Africa. We have remained faithful to the precept of avoiding
entangling alliances as to affairs not of our direct concern. Had
circumstances suggested that the parties to the quarrel would have
welcomed any kindly expression of the hope of the American people
that war might be averted, good offices would have been gladly
tendered. The United States representative at Pretoria was early
instructed to see that all neutral American interests be respected by
the combatants. This has been an easy task in view of the positive
declarations of both British and Boer authorities that the personal
and property rights of our citizens should be observed.

Upon the withdrawal of the British agent from Pretoria the United
States consul was authorized, upon the request of the British
Government and with the assent of the South African and Orange Free
State Governments, to exercise the customary good offices of a
neutral for the care of British interests. In the discharge of this
function, I am happy to say that abundant opportunity has been
afforded to show the impartiality of this Government toward both the
combatants.

For the fourth time in the present decade, question has arisen with
the Government of Italy in regard to the lynching of Italian
subjects. The latest of these deplorable events occurred at Tallulah,
Louisiana, whereby five unfortunates of Italian origin were taken from
jail and hanged.

The authorities of the State and a representative of the Italian
Embassy having separately investigated the occurrence, with
discrepant results, particularly as to the alleged citizenship of the
victims, and it not appearing that the State had been able to discover
and punish the violators of the law, an independent investigation has
been set on foot, through the agency of the Department of State, and
is still in progress. The result will enable the Executive to treat
the question with the Government of Italy in a spirit of fairness and
justice. A satisfactory solution will doubtless be reached.

The recurrence of these distressing manifestations of blind mob fury
directed at dependents or natives of a foreign country suggests that
the contingency has arisen for action by Congress in the direction of
conferring upon the Federal courts jurisdiction in this class of
international cases where the ultimate responsibility of the Federal
Government may be involved. The suggestion is not new. In his annual
message of December 9, 1891, my predecessor, President Harrison,
said: It would, I believe, be entirely competent for Congress to make
offenses against the treaty rights of foreigners domiciled in the
United States cognizable in the Federal courts. This has not,
however, been done, and the Federal officers and courts have no power
in such cases to intervene either for the protection of a foreign
citizen or for the punishment of his slayers. It seems to me to
follow, in this state of the law, that the officers of the State
charged with police and judicial powers in such cases must, in the
consideration of international questions growing out of such
incidents, be regarded in such sense as Federal agents as to make
this Government answerable for their acts in cases where it would be
answerable if the United States had used its constitutional power to
define and punish crimes against treaty rights. A bill to provide for
the punishment of violations of treaty rights of aliens was introduced
in the Senate March 1, 1892, and reported favorably March 30. Having
doubtless in view the language of that part of Article III of the
treaty of February 26, 1871, between the United States and Italy,
which stipulates that "The citizens of each of the high contracting
parties shall receive, in the States and Territories of the other,
most constant protection and security for their persons and property,
and shall enjoy in this respect the same rights and privileges as are
or shall be granted to the natives, on their submitting themselves to
the conditions imposed upon the natives," the bill so introduced and
reported provided that any act committed in any State or Territory of
the United States in violation of the rights of a citizen or subject
of a foreign country secured to such citizen or subject by treaty
between the United States and such foreign country and constituting a
crime under the laws of the State or Territory shall constitute a like
crime against the United States and be cognizable in the Federal
courts. No action was taken by Congress in the matter.

I earnestly recommend that the subject be taken up anew and acted
upon during the present session. The necessity for some such
provision abundantly appears. Precedent for constituting a Federal
jurisdiction in criminal cases where aliens are sufferers is
rationally deducible from the existing statute, which gives to the
district and circuit courts of the United States jurisdiction of
civil suits brought by aliens where the amount involved exceeds a
certain sum. If such jealous solicitude be shown for alien rights in
cases of merely civil and pecuniary import, how much greater should
be the public duty to take cognizance of matters affecting the lives
and the rights of aliens tinder the settled principles of
international law no less than under treaty stipulation, in cases of
such transcendent wrong-doing as mob murder, especially when
experience has shown that local justice is too often helpless to
punish the offenders.

After many years of endeavor on the part of this Government to that
end the Italian Government has consented to enter into negotiations
for a naturalization convention, having for one of its objects the
regulation of the status of Italians (except those of an age for
active military service) who, having been naturalized in the United
States, may revisit Italy. It is hoped that with the mutually
conciliatory spirit displayed a successful conclusion will be
reached.

The treaty of commerce and navigation between the United States and
Japan on November 22, 1894, took effect in accordance with the terms
of its XIXth Article on the 17th of July last, simultaneously with
the enforcement of like treaties with the other powers, except
France, whose convention did not go into operation until August 4,
the United States being, however, granted up to that date all the
privileges and rights accorded to French citizens under the old
French treaty. By this notable conventional reform Japan's position
as a fully independent sovereign power is assured, control being
gained of taxation, customs revenues, judicial administration,
coasting trade, and all other domestic functions of government, and
foreign extra-territorial rights being renounced.

Comprehensive codes of civil and criminal procedure according to
western methods, public instruction, patents and copyrights,
municipal administration, including jurisdiction over the former
foreign settlements, customs tariffs and procedure, public health,
and other administrative measures have been proclaimed. The working
of the new system has given rise to no material complaints on the
part of the American citizens or interests, a circumstance which
attests the ripe consideration with which the change has been
prepared.

Valuable assistance was rendered by the Japanese authorities to the
United States transport ship Morgan City while stranded at Kobe.
Permission has been granted to land and pasture army horses at
Japanese ports of call on the way to the Philippine Islands. These
kindly evidences of good will are highly appreciated.

The Japanese Government has shown a lively interest in the
proposition of the Pacific Cable Company to add to its projected
cable lines to Hawaii, Guam, and the Philippines a branch connection
with the coast of Japan. It would be a gratifying consummation were
the utility of the contemplated scheme enhanced by bringing Japan and
the United States into direct telegraphic relation.

Without repeating the observations of my special message of February
10, 1899, concerning the necessity of a cable to Manila. I
respectfully invite attention to it.

I recommend that, in case the Congress should not take measures to
bring about this result by direct action of the Government, the
Postmaster General be authorized to invite competitive bids for the
establishment of a cable; the company making the best responsible bid
to be awarded the contract; the successful company to give ample bonds
to insure the completion of the work within a reasonable time.

The year has been marked by constant increase in the intimacy of our
relations with Mexico and in the magnitude of mutually advantageous
interchanges. This Government has omitted no opportunity to show its
strong desire to develop and perpetuate the ties of cordiality now so
long happily unbroken.

Following the termination on January 20, 1899, by Mexico of the
convention of extradition of December 11, 1861, a new treaty more in
accordance with the ascertained needs of both countries was signed
February 22, 1899, and exchanged in the City of Mexico on the 22d of
April last. Its operation thus far has been effective and
satisfactory. A recent case has served to test the application of its
IVth Article, which provides that neither party shall be bound to
deliver up its own citizens, but that the executive authority of each
shall have the power to deliver them up if in its discretion it be
deemed proper to do so.

The extradition of Mrs. Mattie Rich, a citizen of the United States,
charged with homicide committed in Mexico, was after mature
consideration directed by me in the conviction that the ends of
justice would be thereby subserved. Similar action, on appropriate
occasion, by the Mexican Executive will not only tend to accomplish
the desire of both Governments that grave crimes go not unpunished,
but also to repress lawlessness along the border of the two
countries. The new treaty stipulates that neither Government shall
assume jurisdiction in the punishment of crimes committed exclusively
within the territory of the other. This will obviate in future the
embarrassing controversies which have heretofore arisen through
Mexico's assertion of a claim to try and punish an American citizen
for an offense committed within the jurisdiction of the United
States.

The International Water Boundary Commission, organized by the
convention of March 1, 1889, for the adjustment of questions
affecting the Rio Grande frontier, has not yet completed its labors.
A further extension of its term for one year, until December 24,
1899, was effected by a convention signed December z, 1898, and
exchanged and proclaimed in February last.

An invitation extended to the President of Mexico to visit Chicago in
October, on the occasion of laying the corner stone of the United
States Government building in that city, was cordially accepted by
him, with the necessary consent of the Mexican Congress, but the
illness of a member of his family prevented his attendance. The
Minister of Foreign Relations, however, came as the personal
representative of President Diaz, and in that high character was duly
honored.

Claims growing out of the seizure of American sealing vessels in
Bering Sea have been under discussion with the Government of Russia
for several years, with the recent happy result of an agreement to
submit them to the decision of a single arbitrator. By this act
Russia affords proof of her adherence to the beneficent principle of
arbitration which her plenipotentiaries conspicuously favored at The
Hague Disarmament Conference when it was advocated by the
representatives of the United States.

A suggestion for a permanent exposition of our products and
manufactures in Russia, although not yet fully shaped, has been so
cordially welcomed by the Imperial Government that it may not inaptly
take a fitting place in whatever legislation the Congress may adopt
looking to enlargement of our commercial opportunities abroad.

Important events have occurred in the Samoan Islands. The election,
according to the laws and customs of Samoa, of a successor to the
late King, Malietoa Laupepa, developed a contest as to the validity
of the result, which issue, by the terms of the General Act, was to
be decided by the Chief justice. Upon his rendering a judgment in
favor of Malietoa Tanu, the rival chief, Mataafa, took up arms. The
active intervention of American and British war ships became
imperative to restore order, at the cost of sanguinary encounters. In
this emergency a joint commission of representatives of the United
States, Germany, and Great Britain was sent to Samoa to investigate
the situation and provide a temporary remedy. By its active efforts a
peaceful solution was reached for the time being, the kingship being
abolished and a provisional government established. Recommendations
unanimously made by the commission for a permanent adjustment of the
Samoan question were taken under consideration by the three powers
parties to the General Act. But the more they were examined the more
evident it became that a radical change was necessary in the
relations of the powers to Samoa.

The inconveniences and possible perils of the tripartite scheme of
supervision and control in the Samoan group by powers having little
interest in common in that quarter beyond commercial rivalry had been
once more emphasized by the recent events. The suggested remedy of the
joint Commission, like the scheme it aimed to replace amounted to what
has been styled a tridominium, being the exercise of the functions of
sovereignty by an unanimous agreement of three powers. The situation
had become far more intricate and embarrassing from every point of
view than it was when my predecessor, in 1894, summed up its
perplexities and condemned the participation in it of the United
States.

The arrangement under which Samoa was administered had proved
impracticable and unacceptable to all the powers concerned. To
withdraw from the agreement and abandon the islands to Germany and
Great Britain would not be compatible with our interests in the
archipelago. To relinquish our rights in the harbor of Pago Pago, the
best anchorage in the Pacific, the occupancy of which had been leased
to the United States in 1878 by the first foreign treaty ever
concluded by Samoa, was not to be thought of either as regards the
needs of our Navy or the interests of our growing commerce with the
East. We could not have considered any proposition for the abrogation
of the tripartite control which did not confirm us in all our rights
and safeguard all our national interests in the islands.

Our views commended themselves to the other powers. A satisfactory
arrangement was concluded between the Governments of Germany and of
England, by virtue of which England retired from Samoa in view of
compensations in other directions, and both powers renounced in favor
of the United States all their rights and claims over and in respect
to that portion of the group lying to the east of the one hundred and
seventy-first degree of west longitude, embracing the islands of
Tutuila, Ofoo, Olosenga, and Manua. I transmit to the Senate, for its
constitutional action thereon, a convention, which besides the
provisions above mentioned also guarantees us the same privileges and
conditions in respect to commerce and commercial vessels in all of the
islands of Samoa as those possessed by Germany.

Claims have been preferred by white residents of Samoa on account of
injuries alleged to have been suffered through the acts of the treaty
Governments in putting down the late disturbances. A convention has
been made between the three powers for the investigation and
settlement of these claims by a neutral arbitrator, to which the
attention of the Senate will be invited.

My annual message of last year was necessarily devoted, in great part
to a consideration of the Spanish War and of the results it wrought
and the conditions it imposed for the future. I am gratified to
announce that the treaty of peace has restored friendly relations
between the two powers. Effect has been given to its most important
provisions. The evacuation of Puerto Rico having already been
accomplished on the XIVth of October, 1898, nothing remained
necessary there but to continue the provisional military control of
the island until the Congress should enact a suitable government for
the ceded territory. Of the character and scope of the measures to
that end I shall treat in another part of this message.

The withdrawal of the authority of Spain from the island of Cuba was
effected by the 1st of January, so that the full re-establishment of
peace found the relinquished territory held by us in trust for the
inhabitants, maintaining, under the direction of the Executive, such
government and control therein as should conserve public order,
restore the productive conditions of peace so long disturbed by the
instability and disorder which prevailed for the greater part of the
preceding three decades, and build up that tranquil development of
the domestic state whereby alone can be realized the high purpose, as
proclaimed in the joint resolution adopted by the Congress on the 19th
of April, 1898, by which the United States disclaimed any disposition
or intention to exercise sovereignty, jurisdiction, or control over
Cuba, except for the pacification thereof, and asserted its
determination when that was accomplished to leave the government and
control of the island to its people. The pledge contained in this
resolution is of the highest honorable obligation and must be
sacredly kept.

I believe that substantial progress has been made in this direction.
All the administrative measures adopted in Cuba have aimed to fit it
for a regenerated existence by enforcing the supremacy of law and
justice; by placing wherever practicable the machinery of
administration in the hands of the inhabitants; by instituting needed
sanitary reforms; by spreading education; by fostering industry and
trade; by inculcating public morality, and, in short, by taking every
rational step to aid the Cuban people to attain to that plane of
self-conscious respect and self-reliant unity which fits an
enlightened community for self-government within its own sphere,
while enabling it to fulfill all outward obligation.

This nation has assumed before the world a grave responsibility for
the future good government of Cuba. We have accepted a trust the
fulfillment of which calls for the sternest integrity of purpose and
the exercise of the highest wisdom. The new Cuba yet to arise from
the ashes of the past must needs be bound to us by ties of singular
intimacy and strength if its enduring welfare is to be assured.
Whether those ties shall be organic or conventional, the destinies of
Cuba are in some rightful form and manner irrevocably linked with our
own, but how and how far is for the future to determine in the
ripeness of events. Whatever be the outcome, we must see to it that
free Cuba be a reality, not a name, a perfect entity, not a hasty
experiment bearing within itself the elements of failure. Our
mission, to accomplish which we took up the wager of battle, is not
to be fulfilled by turning adrift any loosely framed commonwealth to
face the vicissitudes which too often attend weaker States whose
natural wealth and abundant resources are offset by the incongruities
of their political organization and the recurring occasions for
internal rivalries to sap their strength and dissipate their
energies. The greatest blessing which can come to Cuba is the
restoration of her agricultural and industrial prosperity, which will
give employment to idle men and re-establish the pursuits of peace.
This is her chief and immediate need.

On the 19th of August last an order was made for the taking of the
census in the island, to be completed on the 30th of November. By the
treaty of peace the Spanish people on the island have until April 11,
1900, to elect whether they will remain citizens of Spain or become
citizens of Cuba. Until then it cannot be definitely ascertained who
shall be entitled to participate in the formation of the government
of Cuba. By that time the results of the census will have been
tabulated and we shall proceed to provide for elections which will
commit the municipal governments of the island to the officers
elected by the people. The experience thus acquired will prove of
great value in the formation of a representative convention of the
people to draft a constitution and establish a general system of
independent government for the island. In the meantime and so long as
we exercise control over the island the products of Cuba should have a
market in the United States on as good terms and with as favorable
rates of duty as are given to the West India Islands under treaties
of reciprocity which shall be made.

For the relief of the distressed in the island of Cuba the War
Department has issued supplies to destitute persons through the
officers of the Army, which have amounted to 5,493,000 rations, at a
cost Of $1,417,554.07.

To promote the disarmament of the Cuban volunteer army, and in the
interest of public peace and the welfare of the people, the sum Of
$75 was paid to each Cuban soldier borne upon the authenticated
rolls, on condition that he should deposit his arms with the
authorities designated by the United States. The sum thus disbursed
aggregated $2,547,750, which was paid from the emergency fund
provided by the act of January 5, 1899, for that purpose.

Out of the Cuban island revenues during the six months ending June
30, 1899, $1,712,014.20 was expended for sanitation, $293,881.70 for
charities and hospitals, and $88,944.03 for aid to the destitute.

Following the exchange of ratifications of the treaty of peace the
two Governments accredited ministers to each other, Spain sending to
Washington the Duke of Arcos, an eminent diplomatist, previously
stationed in Mexico, while the United States transferred to Madrid
Hon. Bellamy Storer, its minister at Brussels. This was followed by
the respective appointment of consuls, thereby fully resuming the
relations interrupted by the war. In addition to its consular
representation in the United States, the Spanish Government has
appointed consuls for Cuba, who have been provisionally recognized
during the military administration of the affairs of that island.

Judicial intercourse between the courts of Cuba and Puerto Rico and
of Spain has been established, as provided by the treaty of peace.
The Cuban political prisoners in Spanish penal stations have been and
are being released and returned to their homes, in accordance with
Article VI of the treaty. Negotiations are about to be had for
defining the conventional relations between the two countries, which
fell into abeyance by reason of the war. I trust that these will
include a favorable arrangement for commercial reciprocity under the
terms of sections 3 and 4 of the current tariff act. In these, as in
all matters of international concern, no effort will be spared to
respond to the good disposition of Spain, and to cultivate in all
practicable ways the intimacy which should prevail between two
nations whose past history has so often and in so many ways been
marked by sincere friendship and by community of interests.

I would recommend appropriate legislation in order to carry into
execution Article VII of the Treaty of Peace with Spain, by which the
United States assured the payment of certain claims for indemnity of
its citizens against Spain.

The United States minister to Turkey continues, under instructions,
to press for a money payment in satisfaction of the just claims for
injuries suffered by American citizens in the disorders of several
years past and for wrongs done to them by the Ottoman authorities.
Some of these claims are of many years' standing. This Government is
hopeful of a general agreement in this regard.

In the Turkish Empire the situation of our citizens remains
unsatisfactory. Our efforts during nearly forty years to bring about
a convention of naturalization seem to be on the brink of final
failure through the announced policy of the Ottoman Porte to refuse
recognition of the alien status of native Turkish subjects
naturalized abroad since 1867. Our statutes do not allow this
Government to admit any distinction between the treatment of native
and naturalized Americans abroad, so that ceaseless controversy
arises in cases where persons owing in the eye of international law a
dual allegiance are prevented from entering Turkey or are expelled
after entrance. Our law in this regard contrasts with that of the
European States. The British act, for instance, does not claim effect
for the naturalization of an alien in the event of his return to his
native country, unless the change be recognized by the law of that
country or stipulated by treaty between it and the naturalizing
State.

The arbitrary treatment, in some instances, of American productions
in Turkey has attracted attention of late, notably in regard to our
flour. Large shipments by the recently opened direct steamship line
to Turkish ports have been denied entrance on the score that,
although of standard composition and unquestioned purity, the flour
was pernicious to health because of deficient "elasticity" as
indicated by antiquated and untrustworthy tests. Upon due protest by
the American minister, and it appearing that the act was a virtual
discrimination against our product, the shipments in question were
admitted. In these, as in all instances, wherever occurring, when
American products may be subjected in a foreign country, upon
specious pretexts, to discrimination compared with the like products
of a