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THE ADVOCATE AHD NEWS.
13 DECEMBER T, PRESIDENT HcKINLEY'S HESSAGE. (Continued from pave 5.) peoples In time of peace was communi cated to this government with an earnest invitation to be represented in the con ference which it is contemplated to as semble with a view to discussing the means of accomplishing bo desirable a result Ills majesty was at once In formed of the cordial sympathy of- this government with the principle Involved in Ma exalted proposal and of the readi ness of the United States to take part in the confeFence. The active military force of the United States, as measured by our population, territorial area and taxable wealth, Is, and under any conceivable prospective conditions must continue to be, in time of peace, so conspicuously less than that of the armed powers to whom the czar's appeal la especially addressed that the question can have for ua no particular importance save, as marking an auspi cious step toward the betterment of the condition of modern peoples and the cultivation-of peace and good will among them, but In this vlow ii behooves us as a nation to lend countenance and aid to the beneficent project. Immediately upon the outbreak of the war with Spain the Swiss government, fulfilling the high mission it has de servedly assumed as the patron of the Intern atloral Red Cross, proposed to the United States and Spain that they should severally recognize and carry into exe cution as a modus vlvendl, during the continuance of hostilities, the additional articles proposed by the international conference of Geneva, October 26, 1868, extending the effects of the existing Red Cross convention of 1861 to the conduct of naval war. Following the example set by France and Germany In 1870 in adopting Buch a modus Vivendi, and in view of the accession of the United States to those additional articles in 1882, al though the exchange of ratification thereof still remained unaffected; the Swiss proposal was promptly and cor dially accepted by us and simultaneously by Spain. This government feels a keen satlsfac tlon in having thus been enabled to tes tify Its adherence to the oroadest prln ciples of humanity, even amidst the clash of war, and it Is to be hoped that the ex tension of the Red Cross compact to hos tilities by sea as well as on land may noon become an accomplished ' fact through the general promulgation of the additional naval Red Cross articles by the maritime powers now parties to the convention of 1864. -r -5- 4 The Secretary of the Treasury reports that the receipts of the government from all sources during the fiscal year ended June 30, 1898, including $34,751,223 re ceived from the sale of Pacific railroads, amounted to 1405 321.335 and Its expen ditures to 1413,368,582. There was ob tained from customs $149,575,062, and from internal revenue $100,900,641. Our dutiable Imports amounted to $321,745, 479, a decrease of $58,156,690 over the preceding year, and Importations free of duty amounted to $291,114,175, a decrease from the preceding year of $90,524,068, Internal revenue receipts exceeded those of the preceding year by $24,212,063. Tne total tax collected on distilled spirits was $92,546,999; on manufactured to bacco $36,230,526 and on fermented liquors $39,515,421. We exported mer chandise during the year amounting to $1,231,482,330, an Increase of $18,488,774 from the preceding year. It Is estimated upon the basis of pres ent revenue laws that the receipts of the government for the year ending June SO, 1S99. will be $577,874,607 and its ex penditures $689,874,647, resulting in a de ficiency of $112,000,000. f On the first of December, 1893, there was , held in the treasury gold coin amounting to $133,441,517; gold bullion amounting to $133 502 545; silver bullion amounting to $93,359 250 and other forms of money amounting to $451,963 931. On the same date the amount of money, all kinds, in circulation, or not included la treasury holdings, was $1,836,879,504. an Increase for the year of $165,794,966. Estimating our population at 75.104.000 at the time mentioned, the per capita cir culation was $25.09. On the same date there was in the treasury gold bullion amounting to $138, 502.545. " - - The provision made for strengthening the resources of the treasury In connec tion with the war has given increased confidence In the purpose and power of the government to maintain the present standard, and haa established more firmly than ever the national credit at home and abroad. . A marked evidence of thi3 Is found In the Inflow of gold to the treasury. Its net gold holdings on Nov, 1, 1898, were $239,885,160, as compared with $153,673,147 on Nov. 1, 1897, and an Increase of net cash of $207,756,100, Nov, 1, 1897, to $300,238,275, Nov. 1, 1898. The present ratio of net treasury gold, out standing government liabilities, lnclud ing United States treasury notes of 1890 silver certificates, currency certificates standard silver dollars and fractional sil ver coin, Nov. 1, 1898, was 25.35 per cent as compared with 16.96 Nov. 1, 1897. I renew1 bo much of my recommenda tion of December, 1897, as follows: That when any of the United States notes are presentee for redemption and are re deemed in gold; such notes snail be kept and set apart and only paid out In ex change for gold. This Is an obvious duty, If the holder of the U. S. note prefers the gold and gets It from the government ho should not receive back from the gov ernmeht a U. S. note without paying gold In exchange for.lt The reason for this Ismadfl all the more apparent when the government. Ikshm b interest-bear lag detl to provYgold for. the redemp tion of United tat$s notes a non-inter-eet bearjng debt Surely It should not pay them but again except on demand and for gold. If they are put out in any other way they may return again to oe followed by another bond issue to re deem them, another interest bearing debt to redeem a non-Interest bearing debt This recommendation was made In the belief that such provisions of law would Insure to a greater degree the safety of the present standard and better protect our currency from the dangers to wnich it Is subjected from a disturbance In the general business conditions of the coun try. In my Judgment the present condition of the treasury amply Justifies the im mediate enactment of the legislation rec ommended one year ago under which a portion of the gold holdings should be placed In a trust fund from which green backs Bhould be redeemed upon presen tation. but when once redeemed should not .thereafter be paid put, except for gold. It is not to be Inferred that other legls latlon relating to our currency 13 not re quired. On the contrary, there is an ob vious demand, for it. The Importance of adequate provls ion which will insure to our future a money standard related as our money standard now Is to that of our commer cial rivals is generally recognized. The companion- proposition that our domestic paper currency shall be kept safe, and yet be so, related to the needs of our Industries and international com merce as to be adequate and responsive to such needs is a proposition scarcely less important. The subject, In all Its parts, is .commended to the wise con slderatlon, of the Congress. The annexation of Hawaii and the changed relations of the United States to Cuba, Porto Rico and the Philippines resulting from the war, compel the prompt adoption of. a maritime policy by frequent steamship communication, en couraged by the United States under .the American nag with the newly acquired Islands. Spain furnished to its colonies, at an .annual cost of about $2,000,000, steamship lines communicating with a portion of the world's markets as well as with trade centers of the home govern ment The United States will not un dertake to do less. It is our duty to fur nish the people of Hawaii with facilities under national control for their export and Import trade. It will be conceded that the present situation calls for legis lation which shall be prompt durable and liberal, r , The part which American merchant vessels and their seamen performed in the war with Spain demonstrates that this service, furnishing both pickets and the second line of defense, is a national necessity and should be encouraged in every constitutional way. Details and methods for the accomp lishment of this purpose are discussed in the report of the Secretary of tne Treasury, to which the attention of Con gress is respectfully Invited. In my last annual message I recom mended that Congress authorize the ap pointment of a commission for the. pur pose of making systematic investigations with reference to the cause and preven tion of yellow fever,. This matter has acquired an increased importance as a result of the. military occupation of the Island of Cuba and the commercial inter course between this island and the United States which we have every rea son to expect. The sanitary problems connected with our new relations with the island of Cuba 'and the acquisition of Porto Rico are no less important than those relating to finance, commerce and administration. It la my earnest desire that these problems' may' be considered by. competent experts and that every thing may be done which' the most re cent advances in sanitary science can offer for the protection of the health of our soldiers who are exposed to the dan gers of infection from the importation of yellow fever. I therefore renew my rec ommendation that the authority of Con gress may be given and a suitable ap proprlatlon made to provide for a com mission of experts to be appointed for the purpose indicated.. -r -r- -r The Importance of legislation for the permanent Increase of the army is manl fest and the recommendation of the Sec retary of war for that purpose has my unqualified approval. There can be no question at this time, and probably for some time In the future, that 100,000 men will be none too many to meet the neces slties of the situation. At all events, whether tiat number shall be required permanently or not, the power should be given to the President to enlist that force, if in his discretion it should be necessary and the further discretion should be given him to recruit within the above limit from the Inhabitants of the island with the government of which we are charged. It is my purpose to muster out the en tire volunteer army as soon as the Con sxess shall provide for the Increase of the regular establishment. This will be only an act of Justice and will be much appreciated by the brave men who left their homes and employments to help the country in Us emergency. In my last annual message I stated: , "The Union Pacific railway, main line was sold under the decree of the United States court for the district of Nebraska, the 1st and 2nd of November, this year. "The amount due the government con slsted of , the principal of the subsidy bonds, $27 236 512. and the accrued inter est thereon. $31,211,511.07. making the total Indebtedness $58,448,223.75. The bid at the sale covered the first mortgage Men and the entire mortgage c'alm of the government, principal and Interest." This left the Kansas Pacific caRe un concluded. Bv a decree of the court In that case; an upset prlee for the property was fixed at a sum whieh would yield to the government only $2 500.000 upon it? 'fen. The sale at the Instance of the gov emmet was postponed first to Dcember 15. 197. and later, upon the application of the United States, was postponed to February 16. 1898. Having satisfied myself that the inter ests of the government reaulred that an effort should be made to obtain a larger sum, I directed the Secretary of the Treasury, under the act passed March 3. 1887, to pay out of the treasury to the persons entitled to receive the same, the amounts due unon all prior mortgages unon the middle and eastern divisions of said railroad, out of any money In the treasury not otherwise appropriated Whereupon the Attorney General pre pared a petition to be presented to the court offering to redeem said prior liens in such manner as the court might di rect, and praying that thereupon the United States might be held to be sub rogated to all rights of Bald prior lien holders, and that a receiver might be appointed to take possession of the mort gaged premises and maintain and oper ate the same until the court or Congress otherwise directed. Thereupon the reorganization commit tee agreed that if said petition was with drawn and the sale allowed to proceed on February 16, they would bid a sum at the sale which would realize to the gov ernment the entire principal of its debt, $6,303,0Q0. Believing that no better price could be obtained and appreciating tne difficulties under which the government would labor if it should become the pur chaser of the road at a sale, In the ab sence of any authority by Congress to take charge and operate the road, I di rected that upon guaranty of a minimum bid. which should give the government the principal of its debt, the Bale should proceed. By this transaction tne govern ment secured an advance or i3,8U.t,uou over and above the sum which the court had fixed as the upset price and which the reorganization committee had de clared was the maximum which they would pay for the property. It is a gratifying fact that tne result of these proceedings against the Union Pacific system and the Kansas racmc line la that the government has received on account of Its subsidy claim, the sum of $64,751,223.75, an increase of $18,997, 163.75 over the sum which the reorgaai xation committee originally agreed to bid for the Joint property, the govern ment receiving its whole claim, princl- tmM0m Dal and Interest, on the TTnlon PHn a i tbe principal of its debt on the Kansas pacific railway. Steps have been taken to foreclose the government's Hen upon the Central Pa cific Railroad Company, but before ac tion was commenced, Congress passed an act, approved July 7, 1898, creating a commission consisting of the Secretary of the Treasury, the Attorney General and the Secretary of the Interior and their successors In office, with full power to settle the Indebtedness to the govern ment growing out of the Issue of bond3, in aid of construction' of the Central Pa cific and Western Pacific bond-aided rail roads, subject to the approval of the President i No report has yet been made to ma by the commission thus created. What ever action is had looking to a settlement or the Indebtedness in accordance wltn the act referred to will be duly submitted to Congress. The postal service of the country ad vances with extraordinary growth. Within twentv years both the revenues and the expenditures of the posofflce de nartment have multiplied threefold. In the last ten years they have nearly doubled. Our postal business gows more rapidly than our population. It now In volves an expenditure of $100,000,000 a vear. numbers 73 000 potofflces and en rols 200,000 emp'ovps. This remarkable extension of a service which Is an accu rate Index of the public conditions pre sents gratifying evidence of the advance ment of education, of the increase of communication and business activity and of the Improvement of mall facili ties, leading to their constantly aug menting use. ' The war with Spain laid new and ex ceptional duties unon the Postofflce De- oartment. The mustering of the mPltary and naval forces of the United States renulred special mall arrangements for every camp and every campalen. The , oommun'cnt'on between home and camp was naturnliv eaeer and expectant In ome of the larger places of rendezvous s may as Konoo letters a dav renulred handl'ng. This necs'ty was met by the" womnt detail of experienced men from the etb'iphd fve and by dlrct'ng all the lntr"mentaMt'es of the rM'wny mall and postal pervlce. so far as necessary, to this new need. Coneress passed an act emnowerlne the Postmaster General to othiph offices or branches at every military camp or station. ad under this authority the postal machinery was speedily put into effective operation. The following recommendations of the Secretary of the Navy relative to the in crease of the navy have my earnest ap proval: First Three seaerolne sheathed and coppered battleships of about 13,500 tons trial displacement, carrying the heaviest armor and most powerful ordnance ror vessels of their class and to have the highest practicable speed and the great est radius of action. Estimated cost, ex clusive of armor and armament, $3,600,- 000 each. Second Three sheathed and coppereu armored ernlsers of about 12.000 tons trial displacement, carrying the heaviest armor and most powerful ordnance ror vessels of their class and to have tne highest practicable speed and greatest radius of action. Estimated cost, exclu sive of armor and armament, $4,000,000 each. Third Three sheathed and coppered protected cruisers of about 6,000 tons to tal disnlaoement. to have the highest practicable speed and the greatest radius of action and to carry the most powerful Arrinnnpe suitable for vessels of their class. Estimated cost, exclusive of ar mor and armament, $2,150,000 each. Fourth Six sheathed and coopered cruisers of about 2,500 tons trial displace ment, to have the highest speea com natihle with trood cruising qualities, greatest radius of action and to carry the most powerful ordnance suited to vessels of their class. Estimated cost, exclusive of armament, $1,141,800. I Join with the Secretary of the Navy in rerommendlne that the grades or ad miral and vice admiral be temporarily revived to be filled by officers who, have especially distinguished themselves in the war with Spain. . I earnestly urge upon Congress the Importance of early legislation provldiaj for the takine of the twelfth census. This is necessary in view of the large amount of work which, must Do per- X-'i