The Algona Upper Des Moines from Algona, Iowa on December 15, 1897 · Page 6
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The Algona Upper Des Moines from Algona, Iowa · Page 6

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THE WPMt DEB MOINES: ALGONA IOWA. WEDNESDAY. DECEMBER 15, 1907. IVleKtoley's Ffrst Annual Address to Congress, CONGRATULATES THE COUNTRY Favor* the Cufroncy Plan Submitted by Secretary Gago — Cuban War Gets Considerable Attention — Ret-oEnltlon Not AdTlsert—Klmotnlilc Uommlsslon Wot Yet IMsclinriseil — Hawaii and Other countries Following is the full text of President XlcKIhley's , message to Congress, which met Monday: To the Senate and House of Representatives: It gives me pleasure to extend greeting to the LVth congress assembled at the seat of government. with many of '•whose senators nud representatives I have been associated in the legislative service. The extra S8f>s°lon ot this congress, •which closed July last, enacted important legislation, ami while its full effect has not yet I>PPII realized, what it lias already accomplished assures us of its timeliness and wisdom. To test its permanent value further time will be required and the people, satisfied with Its operation and results thus far, are In no mind to withhold from It a fair trial. Finance yuentlon Next. Tariff legislation having been settled by the extra session of congress, the question next pressing for consideration Is that of the currency. The work of putting our finance upon a sound basts, difficult as it may seem, will appear easily •when we recall the financial operations of the government since 1SGG. On the 30th day of June of that year we had outstanding demand liabilities in the sum of $725,808,447.41. On the 1st of January, 1, J, these liabilities had been reduced to $143,- 889.495.8S. Of our interest-bearing obligations the figures are even more striking. On July 1, 1866, the principal of the Interest-bearing debt of the government was .$2,832,331,208. On the 1st day of July, 1RP3, ithis sum had been reduced to $585,037,100, or an aggregate reduction of $1,117,294,103. The interest-bearing: debt of the United "States on the 1st day of December, 1897, jwas $847,365,620. The government money now outstanding (December 1) consists of $346,681,016 of United States notes, $107,793,280 of treasury notes, Issued by authority of the law of 18DO; $384,963,503 of silver certificates and $61,280,761 of standard silver dollars. With the great resources of the government and with the honorable example of the past before us, we ought not to hesitate to enter upon a currency revision •which will make our demand obligations less onerous to the government and relieve our financial laws from ambiguity and doubt. The brief review of what was 'accomplished from the close of the war to 1S93 makes unreasonable and groundless any distrust either of our financial ability or soundness; while the situation from 1S93 to 1897 must admonish congress .'of the immediate necessity of so legislating as to make the return of the conditions then prevailing Impossible. Many Pluns Are Proposed. Tli ere are many plans proposed as a remedy for the evil. Before we can find ; the true remedy we must appreciate the .real evil. It is not that our currency of every kind is not good, for every dollar of it is good; good because the government's pledge is out to keep It so, and that pledge will not be broken. However, the guaranty of our purpose to keep the pledge will be best shown by advancing toward Its fulfillment. The evil of the present system is found In the great cost to the government of maintaining the parity of our different forms of money— that is, keeping nil of them at par with gold. Wo surely cannot be longer heedless of the burden this imposes upon the people, even under fairly prosperous conditions, while the last four years have demonstrated that it Is not only an expensive charge upon the government, but a dangerous menace to the national credit. It is manifest that we must devise some plan to protect the government against bond issues for repeated •redemptions. We must either curtail the opportunity for speculation, made easy by the multiplied redemptions of our demand obligations, or increase the gold reserve for their redemption. We have $900,000,000 of currency which the government by solemn enactment has under•taken to keep at par with gold. Nobody Is obliged to redeem in gold but the gov- 'ernment. The banks are not recjuired to •redeem In gold. The government is obliged •to keep equal with gold all Its outstand- !ing currency and coin obligations, while • its receipts are not required to : be paid in gold. They are paid iin every kind of money but •gold, and the only means by which the .government can with certainty get gold la •by borrowing. It can get It In no other way when It most needs It. The govern- •rnent without any fixed gold, revenue Is pledged to maintain gold redemption, •which It has steadily and faithfully done, and which under the authority now given jit will continue to do. Hold Must Be Replenished. The law which requires the government after having redeemed Its United States notes to pay them out again as current funds demands a constant replenishment of the gold reserve. This Is especially eo in times of business .panic and when •the revenues are insufficient to meet the expenses of the government. At such times the government has no other way to supply Its deficit and maintain redemption but through the Increase of its bonded debt, as during the administration of my predecessor, when $262,315,400 of four- and a half per cent bonds were issued and sold and the proceeds used to pay tha expenses of the government in excess of the revenues and sustain the gold reserve. While it is true that the greater part of the proceeds of these bonds were used to supply deficient revenue, a considerable (Portion was required to maintain the gold 'reserve. . With our revenues equal to our expenses there would be no deficit requiring the Issuance of bonds. But if the gold reserve falls below $100,000,000, how will It be replenished except by selling more bondsY Is there any other way practicable under existing law? The serl- ious question then IB, shall we continue the policy that has been pursued in the past— that is. when the «old reserve reach,ea the point of danger issue more bonds land supply the needed gold, or shall we provide other means to prevent these recurring drains upon the gold reserve? If rno further legislation is had and the policy of selling bonds la to bo continued, ithen congress should give the secretary 'of the treasury authprlty to sell bonds at ilong or short periods, bearing a less rate (of interest than is now authorized by law. I earnestly recommend, as soon, as the Hrepeipts of the government are quite suffl- icient to pay all the expenses of the gov* lemment that, when any of the United States notes are presented fqr redernptloij lin gold and are redeemed In gold such Iliotes shall be kept and set apart, ana ittt paying gold In exchange for It. The reason for this is made all the more apparent when the government Issues an Interest-bearing debt to provide gold for the redemption of United States notes— ft, non-interest-bearing debt. Surely It should not pay them oiit ngaln except on demand and for gold. If they are put out In any other way they may return again to be followed by another bond Issue to redeem them—another interest-bearing debt to redeem a non-interest-bearing debt. In my view it Is of the utmost importance that the government should be relieved from the burden of providing all the gold required for exchanges and export. This responsibility is alone borne by the government without any of the vsual and necessary banking powers to help itself. The banks do not feel tho strain of gold redemption. The whole strain rests upon the government and the size of the gold reserve In the treasury has come to be, with or without reason, the sitrnnl of clamper or of security. This ought to be stopped. If we are to have an era of prosperity in the country, -with sufficient receipts for the expenses .of the government, we may feel no Immediate embarrassment from our present currency: but the danger still exists and will be evor present, menacing us so long as the existing system continues. And, besides. It Is in times of adequate revenues and business tranquillity that the government should prepare for the worst. We cannot avoid, without serious consequences, the wise consideration and prompt solution of this question. The secretary of the treasury has outlined a plan in great detail for the purpose of removing tho threatened recurrence of a depleted gold reserve, and to save us from future embarrassment on that account. To this plan I invite your careful consideration. IiidomeR Secretary GURP. I concur with the secretary of the treasury in his recommendation that national banks be allowed to issue notes to the face value of the bonds which they have deposited for circulation, and that the tax on circulating notes secured by deposit of such bonds be reduced to one- half of one per cent per annum. I also join him In recommending that authority be given for the establishment of national banks with a minimum capital of $25,000. This will enable the smaller villages and agricultural regions of the country to bo supplied with currency to meet their needs. I recommend that the Issue of national bank notes be restricted to the denomination of $10 and upward. If the suggestions I have herein made shall have the approval of congress, then I would recommend that national banks bo required to redeem their notes In gold. The most Important problem w^th which this government is now called upon to deal pertaining to Its foreign relations concerns Us duty toward Spain and tho Cuban Insurrection. Problems and conditions more or less In common with those now existing have confronted this government at various times in the past. The story of Cuba for many years has been one of unrest.growlng discontent; an effort toward a larger enjoyment of liberty and self-control; of organized resistance to the mother country; of depression after distress and of warfare and of ineffectual settlement to be followed by renewed revolt. For no enduring period since the enfranchisement of the continental possessions of Spain in the western continent has the condition of Cuba or the policy of Spain toward Cuba not caused concern to the United States. The prospect from time to time that the weakness of Spain's hold upon the Island and the political vicissitudes and embarrassments of the home government might lead to the transfer of Cuba to a continental power called forth, between 1823 and I860, various emphatic declarations of the policy of the United States to permit no disturbance of Cuba's connection with Spain unless in the djrection of independence or acquisition by us through purchase—nor has there been any change of this declared policy since upon the part of the government. W»Jy paid, out in exchange for gold. ijf an pbyloue duty. the This It the bolder of the United States note " ------ ------ "- ------ Situation In Cuba Grave. The revolution which began in 1SGS lasted for ten years despite the strenuous efforts of the successive peninsular governments to suppress It. Then, as now, the government ot the United States testified its grave concern and offered its aid to put an end to bloodshed in Cuba. The overtures made by Gen. Grant were refused and the war dragged on, entailing great loss of life and treasure and Increased injury to American Interests, besides throwing enhanced burdens of neutrality on the government. In 1S78 peace was brought about by the truce of Zanjon, obtained by negotiations between the Spanish commander, Martinez do Campos, and the Insurgent leaders. The present insurrection broke out in February, 1895. It is not my purpose at this time to recall its remarkable Increase or to characterize Its tenacious resistance, against the enormous forces massed against It by Spain. Tho revolt and the efforts to subdue it carried destruction to every quarter of the island, developing wide proportions and defying the efforts of Spain for its suppression. The civilized code of war has been disregarded, no less BO by the Spaniards than by the Cubans. The existing conditions cannot but fill this government and the American people with the gravest apprehension. There is no desire on the part of our people to profit by the misfortunes of Spain. We have only the desire to see the Cubans prosperous and contented, enjoying that measure of self-control which is the inalienable right of man, protected in their right to reap the benefit of the exhaustless treasures of their country. The offer made by my predecessor In April, 1S9G, tendering the friendly offices of this government failed. Any mediation on our part was not accepted. In brief, the answer read: "There Is no effectual way to pacify Cuba unless It begins with the actual submission of the rebels to the mother country." Then only could Spain act in the promised direction o£ her own motion and after her own plan. CullH Spain'* Pollny Cruel. The cruel policy of concentration was initiated February 1C, 189G. Tho productive districts controlled by the Spanish armies were depopulated. Tho agricultural inhabitants were herded in and about the garrison towns, their lands laid waste and their dwellings destroyed. This policy of tho late cabinet of Spain was justified as a necessary measure of war and as a means of cutting off supplies from tho insurgents. It has utterly failed as a war measure. It was not civilized warfare. U was extermination. Against this abuse of the rights of war I have felt constrained on repeated occasions to enter the firm and earnest protest of this government. There was much of public condemnation of the treatment of American citizens by alleged Illegal arrests and long imprisonment awaiting trial or pending protracted judicial proceedings. I felt it my first duty to make Instant demand for the release or speedy trial of all American 'citizens under arrest. Before the change of the Spanish cabinet in October last, twenty-two prisoners, citizens of the United States, had been given their freedom. For the relief ot our own citizens suffering because of the conflict the aid of congress was sought in a special message, and under the appropriation of April 4, 1897, effective ftid has been given to American citizens In Cuba, many of at taelr own request b,a,vjn$ beep Ister to Spain before his departure for his post directed him to Impress upon that government tho sincere wish of the United States to lend Us aid toward the ending of the war in Cuba by reaching a peaceful and lasting result, and honorable alike to Spain and to the Cuban people. These Instructions recited the character and duration of the contest, the widespread losses It entails, the burdens and restraints it imposes upon us, with constant disturbance of national Interests and the Injury resulting from an indefinite continuance of this state of things. Time Ripe for a Change. It was stated at this juncture our government was constrained to seriously Inquire If the time was not ripe when Spain, of her own volition, moved by her own Interests and every sentiment of humanity, should not put a stop to this destructive war and make proposals of settlement honorable to herself and just to her Cuban colony. It was urged that as a neighboring nation, with large interests in Cuba, we could be required to wait only a reasonable time for the mother country to establish Its authority and restore order within tho borders of tho Island; that wo could not contemplate an Indefinite period for tho accomplishment of tills result. No solution was proposed to which the slightest idea of humiliation to Spain could attach and Indeed precise proposals were withheld to avoid embarrassment to that government. All that was asked or expected was that some safe way might be speedily provided and permanent peace restored. It so chanced that the consideration of this offer, addressed to the some. Spanish administration which had declined the tenders of my predecessor and which for more than two years had poured men and treasifre into Cuba in the fruitless effort to suppress tho revolt, fell to others. Between the departure of General Woodford, the new envoy, and his arrival In Spain, the statesman who had shaped the policy of his country, fell by the hand of an assassin and, although the cabinet of the late premier still held office and received from our envoy the proposals ho bore, that cabinet gave place within a few days thereafter to a now administration, under the leadership of Sagasla. The reply to our note was received on the 23d day of October. It Is In the direction of a better understanding. Recognized BB Friendly 1'ower. It appreciates the friendly purposes of this government. It admits that our country Is deeply affected by the war in Cuba and that Its desires for peace are just. It declares that the present Spanish government Is bound by every consideration to a change of policy that should satisfy the United States and pacify Cuba within a reasonable time. To this end Spain has decided to put Into effect tho political reforms heretofore advocated by the present premier, without halting for any consideration In the path which in its judgment leads to peace. The military operations, it Is said, will continue, but will be humane and conducted with all regard for private rights, being accompanied by political action leading to the autonomy of Cuba while guarding Spanish sovereignty. This, It is claimed, will result in investing Cuba with a distinct personality; the Island to be governed by an executive and by a local council of chamber, reserving to Spain the control of tho foreign relations, the army and navy and the judicial administration. To accomplish this the present government proposes to modify existing legislation by decree, leaving tho Spanish cortes, with tho aid of Cuban senators and deputies, to solve the economic problem and properly distribute the existing debt. In the absence of a declaration of the measures that this government proposes to take In carrying out its proffer of good offices it sugge-stu tbat Spain be left free to conduct military operations and grant political reforms, while the United States, for Its part, shall enforce its neutral obligations and cut oft' the assistance which It is asserted the Insurgents receive from this country. The supposition of an indefinite prolongation of the war is denied. It is asserted that tho western provinces are well- nigh reclaimed; that the planting of cano and tobacco therein has been resumed and that by force of arms and new and ample reforms very early and complete pacification la hoped for. Hotter Stuto of Affairs Predicted. The immediate amelioration of existing conditions under the new administration of Cuban affairs is predicted ,atid therewithal the disturbance and all occasion for any change of attitude on the part of tho United States, Discussion of the question of tho International duties and responsibilities of the United States as Spain understands them is presented, with an apparent disposition to charge us with failure in this regard. » * » BclllKereney Not Fnvore.il. I regard the recognition of the belligerency of the Cuban insurgents as now un- wlso and therefore Inadmissible. Should that step hereafter bo deemed wise as a measure of right and duty the executive will take It. Intervention tipon humanitarian grounds has been frequently suggested and has not failed to receive my most anxious and earnest consideration. But should such a step be now taken when it Is apparent that a hopeful change has supervened in the policy of Spain toward Cuba? A new government has taken office in the union should the fnct of annexation be accomplished, as I believe it should be. While consistently disavowing from a very early period any progressive policy of absorption in regard to the Hawaiian group, a long series of declarations through three-quarters of a century has proclaimed tho vital interest of the Tjn t- ed States in the independent life of tne islands and their intimate commercial de- pendcnrr upon this country. At the same time, it has been repeatedly asserted that in no event could the entity of Hawaiian statehood cease by tho passage of the islands under the domination or Influence of another power than the United States. Under these circumstances the logic of events required that annexation, heretofore offered, but declined, should in the ripeness of time come about as the natural result of the strengthening ties that bind us to those islands, and be realized by the free will of the Hawaiian state. That treat}- was unanimously ratified without amendment by the senate and president of the republic of Hawaii on tho 10th of September last, and only awaits tho favorable action of the American senate to effect the complete absorption of the islands Into the domain of the United States. What the conditions of such a union shall be; the po- lllleal relation thereof to the United States; the character of the local administration; the quality and degree of the elective franchise of the Inhabitants; the extrusion of the federal laws to the territory or the enactment of special laws to fit the peculiar condition thereof; the regulation, If need bo, ot tho labor system therein, are all matters which the treaty has wisely relegated to the congress. Recommends n Confirmation. If tho treaty is confirmed, as every consideration of dignity and honor requires, the wisdom of congress will see to it that avoiding abrupt assimilation of elements perhaps hardly yet fitted to share in the highest franchises of citizenship, and having duo regard to the geographical conditions, tho most just provisions for self- rule in local matters with the largest political liberties as an Integral part of our nation will be accorded to tho Ha- wallans. No less is duo to a people who, after nearly five years of demonstrated capacity to fulfill the obligations of self- governing statehood, come of their own free will to merge their destinies in our body politic. hope to be able to report to congress *t an early day. International Arbitration. International arbitration cannot be 4 gets H *«w the aet receive to the declaration that all the effort In the world cannot suffice to maintain peace in Cuba by tho bayonet; that vague promises of reform after subjugation afford no solution of the Insular problem; that with a substitution of commanders must come a change of the past system of war- faro for one In harmony with a new policy which shall no longer aim to drive the Cubans to the "horrible alternative of taking to the thicket or succumbing in misery"; that reforms must be instituted in accordance with the needs and circumstances of the time and that these reforms, while designed to give full autonomy to the colony and to create a virtual entity and self-controlled administration, shall yet conserve and affirm the sovereignty of Spain by a juat distribution of powers and burdens upon a basis of mutual interest, untainted by methods of selfish expediency. The first acts of the new government l.'e In these honorable paths. The policy of cruel rapine and extermination that so long shocked the universal sentiment of humanity has been reversed. Under the new military commander a broad clemency Is proffered. Measures have already been set on toot to relieve the horrors of starvation. The power of the Spanish armies, it Is asserted, is to be used not to spread ruin and desolation but to protect the resumption of peaceful agricultural pursuits and productive industries. On tho Hawnllan Matter. By a special message dated the sixteenth day of June lastj I laW before the senate a treaty signed that day by the plenipotentiaries of the United States and of the republic of Hawaii, having for its purpose the incorporation of the Hawaiian islands as an Integral part of the United States, and under its sovereignty, The senate, having removed the injunction pf secrecy, although the treaty is pending before thaj, body, the subject may be properly referred to in this because the necesjjftry action of AB to Bimetallic ARrecinent. Under the provisions of the act of congress approved March 3, 1837, for the promotion of an international agreement respecting bimetallism, I appointed on the 14th day of April, 1897, the Hon. Edward O. Wolcott of Colorado, the Hon. Adlai E. Stovenson of Illinois and the Hon. Charles J. Paino of Massachusetts as spe- ciay envoys to represent the United States. They have been diligent In their efforts to secure the co-operation of European countries in the International settlement of the ciuestlon, but up to this time have not been able to secure an agreement contemplated by their mission. The gratifying action of our great sister republic of France in joining this country in tho attempt to bring about an agreement among the principal commercial nations of Kurope whereby a fixed and relative value between gold and silver shall bo secured furnishes assurance that we are not alone among tho larger nations of the world in realizing tho international character of the problem and In the de-Hire of reaching some wise and practical solution of it. The British government has published a resume oil tho steps taken jointly by the French ambassador in London and tho special envoys of tho United States, with whom our ambassador at London f.ctively co-operated in tho presentation of this subject to her majesty's government. This will bo laid before congress. Our special envoys have not made their final report, as further negotiations between tho representatives of this government and tho governments of other countries are 'lending and in contemplation. They believe that doubts which have been raised in certain quarters respecting the position of maintaining the stability of the parity ' between the metals and kindred questions may yet be solved by further negotiations. Meanwhile It gives me satisfaction to stato that the special envoys have already demonstrated their ability and fitness to deal with the subject, and it Is to be earnestly hoped that their labors may result in an international agreement which will bring about the recognition of both gold and silver as money upon such terms and with such safeguards as will secure the use of both metals upon a basis which shall work no injustice to any class of our citizens. Work on Revenue Provisions. In order to execute as early as possible the provisions of the third and fourth sections of the revenue act approved July 21, 1S97, I appointed the Hon. John A. Kasson of Iowa a special commissioner plenipotentiary to undertake the requisite negotiations with foreign countries desiring to avail themselves of these provisions. The negotiations are now proceeding with several governments, both European and American. It is believed that by a careful exercise of the powers conferred by that act some grievances of our own and of other countries in our mutual trade relations may be cither removed or largely alleviated, and that the volume of our commercial exchanges may be enlarged, with advantage to both contracting parties. Most desirable from every standpoint of national interest and patriotism Is the effort to extend our foreign commerce. To this end our merchant marine should be Improved and enlarged. Wo should do oar full share of the carrying trade of the world. Wo do not do it now. We should be the laggcr no longer. The inferiority of our merchant marine is justly humiliating to the national pride. The government by every proper constitutional means should aid in making our ships familiar visitors at every commercial port of tho world, thus opening up new and valuable markets to the surplus products of the farm and the factory. Protection of the Fur Seals. The efforts which had been made during the two previous years by my predecessor to secure better protection to the fur seals in the north Pacific ocean and Bering sea were renewed at an early date by this administration, and have been pursued with earnestness. Upon my Invitation tho governments of Japan and Russia sent delegates to Washington and an international conference was held during the months of October and 'November last, wherein it was unanimously agreed that under the existing regulations this species of useful animals was threutei>ed with extinction, and that an International agreement of all the Interested powers was necessary for their adequate protection. The government of Great Britain did not see proper to be represented at this conference, but subsequently sent to Washington, as delegates, the expert commissioners of Great Britain and Canada, who had, during the past two years, visited the X J rtbllof islands and who met in conference similar commissioners on the part of the United States, The result of this conference was an agreement on important fpctg connected with the condition of the seal herd, heretofore in dispute, which should place beyond controversy the duty of the governments concerned to adopt measures wJthfl".t delay for the pregenfftloa and omitted from the list of subjects claiming our consideration. Events have only served to strengthen the general views on this question expressed in my Inaugural address. The best sentiment of the civilized world is moving toward the settlement of differences between nations without resorting to the horrors of war. Treaties embodying these humane principles on broad lines without In any way imperiling our interests or our honor shall have my constant encouragement. Rt sources of tho Navy. The present immediately effective force of the navy consists of four battleships of the first class, two of the second and forty-eight other vessels, ranging from armored cruisers to torpedo boats. There arc under construction five battleships of the first class, sixteen torpedo boats and one submarine boat. No provision has yet been made for the armor of three of the five battleships, as it has been Impossible to obtain it at the price fixed by congress. It is of great Importance that congress provide this armor, as until then the ships are of no fighting value.- The present naval force, especially in view of its Increase by the ships now under construction, while not as large as that of a few other powers, is a formidable force; its vessels are the very best of each type; and with the increase that should be made to it from time to time in the future, and careful attention to keeping It in a high stato of efficiency and repair, It is well adapted to the i ecessltlcs of the country. The great Incuase of tho navy which has taken place In recent years was justified by tho requirements for nat'onat defense and has received public approbation. Tho time has now arrived, however, when this increase, to which the country Is committed, should, for a time, take the form of Increased facilities commensurate with the increase of our naval vessels. It is an unfortunate fact that there Is only one dock on tho Pacific coast capable of docking our largest ships, and only one on the Atlantic coast, and that the latter has for the last six or seven months been under repair, and therefore incapable of use. Immediate steps should be taken to provide three or four docks of this capacity on the Atlantic coast, at least one on tho Pacific coast and a Moat- ing dock on the gulf. This Is the recom- States court for the district of «„„„ on the 1st and 2d of No^be? if year. The amount due the consisted of the principal of ..... bonds, $27,236,512, and the accrued » thereon $31,211,711.75, making th " t Indebtedness $58,448,223.75. The hw J sale covered the first mortgage the entire mortgage claim of tht. , ment, principal and Interest The the subsidized portion of thi» v^ ciflc line, upoS which the?£&*»* 1 holds a second mortgage lien hf* * en|r * postponed at the Instance of the ment to December 36, 1897 The this division of the Union Pacific to the government on November was the principal of the $6,303,000, and the unpaid •, terest thereon, $6,626,690.33, malTlmr' of $12,929,690.33. g The sale of this road was orlglnallv vertiscd for November 4, but for thn h pose of securing the utmost public not), of the event It was postponed until lL^ cember 16, and a second advertisement ^ the sale was made. By decree of «" '* court the upset price on the sale of Kansas Pacific will yield to the EC ment the sum of $2,500,000 over all T,I.|»* liens, costs and charges. If no other S'* better bid is made, this sum is all HIM '• the government will receive on it* 1.1.1!. f of nearly $13,000,000. The government hS I no Information as to whether there \ be other bidders or a better bid than minimum amount herein stated, question presented therefore Is Tho the government shall, under the authorJ ity given it by the act of March 3 ifxt', purchase or redeem the road in the even* that a bid is not made by private parties covering the entire government claim. < ! How It HI nut Qualify, mendation of a very competent board, ap pointed to investigate the subject. There should also be ample provision made for powder and projectiles, and other munitions of war, and for an Increased number of officers and enlisted men. Some additions are also necessary to our navy yards for the repair and care of our larger number of vessels. As there are now on tho stocks flvo battleships of the largest class, which cannot be completed for a year or two, I concur with the recommendation of the secretary of the navy for an appropriation authorizing the construction of one battleship for the Pacific coast, where at present there is only one in commission and one under construction, while on the Atlantic coast there are three in commission and four under construction; and also that several torpedo boats be authorized in connection with our general system of coast defense. Alaska Require*) Attention. Tho territory of Alaska requires the prompt and early attention of congress. The conditions now existing demand material changes In the laws relating to the territory. The great Influx of population during tho past summer and fall and the prospect of a still larger Immigration in the spring will not permit us to longer neglect the extension of civil authority within the territory or postpone the establishment of a more thorough government. A general system of public surveys has not been extended to Alaska and nil entries thus far made in that district arc upon special surveys. The act of congress extending to Alaska tho mining laws of the United States contained the reservation that it should not bo construed to put in force the general land aws of the country. By an act approved March 3, 1&91, authority was given for entry of lands for town site purposes and also for the purchase of not exceed- ,ng 1GO acres then or then-alter occupied for purposes of trade and manufacture. The purpose of congress as thus far expressed has been that only such rights should apply to that territory as should l>e specifically named. * * * Military Force la Necessary. I concur with the secretary of war In his suggestions as to the necessity for a military force in tho territory of Alaska for the protection of persons and property. Already a small force, consisting of twenty-five men, with two officers, under command of Lieut.-Col. Randall of the Sth infantry, has been sent to St. Michael to establish a military post. As it is to the Interest of tho government to encourage the settlement of the country and its duty to follow up its citizens with the benefit of its legal machinery, I earnestly urge upon congress the establishment of a system of government with such flexibility as will enable it to adjust itself to the future areas of greatest population. The startling, though possibly exaggerated reports from the Yukon river country of the probable shortage of food for the largo number of people who are wintering there without the means of leaving the country arc confirmed in such measure as to justify bringlng~The matter to the attention of congress. Access to that country In winter can be had only by the passes from Dyea and vicinity, which is a most difficult and perhaps an Impossible task. However, should these reports of the suffering of our fellow-citizens be further verified, every effort at any cost should be made to carry them relief. Yellow Fever a Menace. The recent prevalence of yellow fever in a number of cities and towns throughout the South has resulted in much disturbance of commerce and demonstrated the necessity of such amendments to our quarantine laws as will make tho regulations of the national quarantine authorities paramount. The secretary of the treasury, in the poi-tlon of his report relating to the operation of the marine hospital service, calls attention to the defects of the present quarantine laws and recommends amendments thereto which will give the treasury department the requisite authority to prevent the Invasion of epidemic diseases from foreign countries, and In times o£ emergency like that of the past summer will add to the efficiency of the sanitary measures for tha protection of the people and at the same time prevent unnecessary restriction of commerce. I concur In his recoinmen-* dation. In further effort to prevent tho invasion of the United Stales by yellow fever the importance of the discovery of the exact cause of the disease, which up to the present time has been undetermined, is obvious, and to this end a systematic bacteriological investigation should be made. I therefore recommend that congress authorize the appointment of a commission by the president, to con* slst of four expert bacteriologists, one to be selected from the medical officers of the marine hospital service, one to be appointed from civil life, one to be detailed from the medical officers of the army and one from tho medical officers of the navy. B*~S l *»,-?»??*>. «3»w .wtta row ? Hit i ^ To qualify the government to hid at thj -'1 sale will require a deposit of $900,000 ai '-I follows: In the government cause $5001 -5 000 and in each of the first mortgage " causes $200,000, and In the latter the fle« ''' posit must be In cash. Payment at the sale Is as follows: Upon the acceptance, of the bid, a sum which the amount all ready deposited shall equal 15 per cent o{ the bid; the balance in Installments thirl ty, forty and fifty clays after tho confirmation of the sale. The Hen on thj Kansas Pacific prior to that of tho government on July 30, 1S97, principal ana Interest, amounted to $7,281,048.11. Tha government, therefore, should it becoma the highest bidder, will have to pay th« amount of the first mortgage lien. • I believe that under tho act of 1887 It has the authority to do this, and In ah- sence of any action by congress, I shall direct the secretary of the treasury to make the necessary deposit as required by the court's decree to qualify as a bldi der and to bid at the sale a sum which will at least equal the principal of tha debt due to the government; but sug, gest, in order to remove all controversy^ that an amendment of the law be Irm mediately passed explicitly giving such] powers and appropriating in general terms whatever sum Is sufficient there- for. In so Important a matter as the government becoming tho possible owner of ralli road property, which It perforce must conduct and operate, I feel constrained to lay before congress these facts for its consideration and action before the con? summation of the sale. It is clear to mtf mind that the government should no{ permit tho property to bo sold at a prlca which will yield less than one-half of thfl principal of its debt and less than one* fifth of its entire debt, principal and In; terest. But whether the government; rather than accept less than its claim; should become a bidder and thereby tha owner of tho property, I submit to congress for action. Views on Civil Service. The Important branch of our government, known as the civil service, the practical improvement of which has long been a subject of earnest discussion, has. of late years received increased legislative and executive approval. During the past few months the service has been placed upon a still firmer basis of business methods and personal merit. AVhlle thtf right of our veteran soldiers to reinstatement in deserving cases has been asserted, dismissals for merely political reasons have been carefully guarded against, the examinations for admittance to the service enlarged and at the same time rtn* dered less technical and more practical and a distinct advance has been made by. giving a hearing before dismissal upon all cases where Incompetency Is charged; or demand made for the removal of of: iicials In any of the departments. j • * » i I am forced by ths length of. this mes-I sage to omit many important references to affairs of the government with which congress will have to deal at the present session. They are fully discussed in ths departmental reports, to all of which I Invite your earnest attention. The estl j mates of the expenses of the government; by tho several departments will, lam sure, have your careful scrutiny. While the. congress may not find It an easy task to reduce the expenses of the government, It should not encourage their increase. These expenses will, In my judgment, admit of a decrease In many branches of the government without Injury to tha public service. It is a commanding duty to keep the appropriations within the receipts of the government and thus avoid a deficit. WILLIAM M'KINLBT. I Intelligence of Swallows. Grant Allen tells some curious and wonderful things about swallows. In making the inud waals of their nests, they allow each layer to dry thoroughly before proceeding to top it with another. In building their nests in chimneys they place them five or six feet below the top to keep out of the way of owls, and not directly over the fire, but over an adjoining flue. The emergence of the young bil'da from this place is a remarkable instance of instinct which seems to almost reach intelligence. As soon as they are strong enough to move, the little things clamber up the shaft by, beating their wings "in some ineffeot' ual compromise between a flop and & flutter. Having succeeded in reaching the top, it is some time before they venture to fly; they acquire the art by , degrees." Many instances have been given of their remarkable intelligence, In one case a bell-wire on which a swallow's nest partly rested twice demolished it. Convinced that it was » dangerous object, they constructed ft' tunnel for the wire to pass through.,, and were troubled no more. In an* other, a pair of swallows were lested by sparrows trying to them from their nest. They, diately wept to worH and changed ffif entrance of their little home so tft«i instead of opening by a simple b°l fl haa 'to be entered by passing a tunnel of straws and Tk« Benson- Ethel—"Why 4oea lightning n,eyef strike twjce in. the same 1 ™ ejc -"Can't JJnd tfe J ' V V il *>• i ' ' ^ i '< '****" X f H- * 1*\ " *1 1 -T '^J.'ff''

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