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41 PRESIDENT ROOSfVEirS MtSSAtE K
President Rooosevelt’s annual mes sage to Congress opens with a broad sail confident expression of belief in the resources of America and an ap peal to the citizens to keep their money in circulation. The message attempts to reassure the business man, the railroad man, the working man, the fanner and the labor leader. The President is in favor of curren cy legislation. He would have provi sion made for the issuance by the banks of an emergency currency safely secured by I Kinds, which should be tax ed enough to make it unprofitable to continue itz use after the emergency had passed. He would nave the Sherman anti trust law amended, so as to permit cer tain proper combinations, necessary to industrial progress, and also made to prevent other combinations that are op posed to the public interest. Railroads, ter instance, If his plans are carried oat. could combine under restrictions safeguarded by the Inter state Commerce Commission, while If they did it now tneir officials would face the penitentiary. Railroads, he says, should be permitted to increase their caj al stock, but under scrutiny by tlie Interstate- Commerce Commis sion or other body, whereas when it is done now there is a suspicion that there are improper profits in some se cret syndic: ie. Railroads, hp urges, should have the right to make rate agreements among themselves under the scrutiny of the Interstate Com merce Commission, vhereas now this Is Illegal. In return for this permission the President would have Congress devise •ome scheme which would compel rail roads and great corporations doing an Interstate business to get a federal li cense or charter. While the Presiuon* join mends con sideration by the people of an inherit ance tax and an income tax, he does not suggest their immediate considera tion. He would have consideration given to the subject when Congress comes to revise the revenue laws. Mr. Roosevelt thinks the tariff should be revised at proin-r periods, but not until after the next Presidential elec tion. He looks with favor on the pro posal to remove the tax on print paper and pulp, but only conditioned on the Canadian government permitting its pulp wood to enter the United States free of an export tax. The President wants the condition of women and children who work in ructories improved. He wants more investigation of the subject. So, too, tiie President wants technical trnining extended to the farm. He does not ex pect Congress will enact any of his rec ommendations at this session, except, perhaps, currency reform uud railroad relief. If his present plans are carried out lie will have no fights on his hands with Congress. President Roosevelt is in favor of a fixed sum being providisl for payment to employes for certain injuries or death in case of accident, while in the discharge of their duties. In the end, it is held, this would not be a tax on the manufacturer and other employer, but would lie against the cost of the product and the general public would pay. The President also hopes to see that the use of the injunction against labor unions can lie mitigated. THE MESSAGE IX PART. Horn men t Entire Would Make Over Twenty Newspaper Column*. President Roosevelt’s message to the Sixtieth Congress is of great length, the longest ever penned by any President, and in full contains over 35,000 words. In part th * President says: No-nation has greater resources than ■ours, aiud I think t can be truthfully said that the citizens of no nation possess greater energy and industrial ability. In no nation are the fundamental business conditions sounder than in ours at this very moment; and it is foolish, when such is the case, for people to hoard money instead of keeping it in sound banks; for i; is such hoarding that is the immediate occasion of money stringency. Moreover, as a rule, the business of our people is c inducted with honesty and protnty, and this applies alike to farms and factories, to railroads and banks, to all our legitimate commercial enterprises. In tv targe body of men. however, there a • certain to bo some who are dis liouest, and if the conditions are such that these men prosper or commit their mis deeds with impunity, their example is a very ev.l thing for the coaimunity. Where these men are business men of great sa gacity and of temperament both unscrupu lous and reckless, and where the condi tions are such that they act without su pervision or control and at first without ■effective check from public opinion, they delude many iunoceut people into making investments or embarking in kiuds of business that are- really unsound. Wheu the misdeeds of the-se successfully dishon est men are discovered, suffering comes not only ui-on them, but upon the inno cent men whom they have ntisle-d. it is * painful awakening, whenever it occurs; and, naturally, when it does occur those w ho sufft r are apt to forget that the long er it was deferred the more painful it wot . i be. lu the effort to punish the *ui y it is both wise and proper to en de or so far as possible to minimize the di -ss of those who have been misled by I • Icy. Yet ;t is not possible to re tain because of sack distress from striv : ; to put an ei .1 to the misdeeds that are ihe Ultimate causes of the suffering, aud, ,s . moans to this end. w here poss.ble to punish those resi-oasible for them. There may be hones; differences of opinion as to uv goterumenta! |*oiieio<; but surety there can be no Mich differences as to the need of unflinching perseverance in the "ar against successful dishonesty. Interstate Commerce. The founders of the constitution provid ed that the national government should have complete and sole coutrol >f inter state commerce. There was th-n prac tically no interstate business save such as was conducted by water, and this the ua tiouai government at once proceeded to regulate in thoroughgoing um effective fashion, t ondit.ons. have now so wholly changed that the interstate commerce by water is insignificant compared with the amount that gc-s by land, and almost ail big business concerns are now engaged in interstate commerce. Asa result, it cau be but partially and imperfectly controll ed or regulated by the action of any one of the several States . such action inevita bly tend nst to be either too drastic or ei _• ioo lax. and in either ease ineffective for purpses of justice. Only the navirna! government can in thoroughgoing fashion exorcise the needed control. This does not mean that there should be any extension of federal authority, for such authority already exists under the constitution in amplest and most far-reaching form; but it does mean that there should be an ex tens n of federal activity. The most vital ueed is in connection with the rail roads. As to these, in my judgment there should now be either a national incorpo ration act or a law licensing railway com panies to engage in interstate commerce upon -ertan conditions. The railroads and all other great corporations will do well to recognise that th,* control must come; the only question is aa to what gov ernmental body can most wisely exer cise it. Sherman Antl-Truat taw. Moreover, in my judgment, there should be additional legislation leaking to the proper control of the great Business con cerns engaged in interstate business, this control to be exercised for their own bene fit and prosperity no less than for the protection of investors and of the general public. As I have repeatedly said in messages to the Congress and elsewhere, experience has definitely shown not mere ly the unwisdom but the futility of en deavoring to put a stop to all business combinations. Modern industrial condi tions are such that combination is not on‘y necessary but inevitable. It is so in the world of business just as it is so in the world of labor, and it is as idle to desire to put an end to all corporations, to all big combinations of capital, as to desire to put an end to combinations of labor. Corporation and labor union alike have come to stay. Each if properly man aged is a source of good and not evil. Whenever in either there is evil, it should be promptly held to account; but it should receive hearty encouragement so loug as it is properly managed. It is profoundly immoral to put or keep on the statute books a law, nominally in the interest of public morality, that really puts a pre mium upon public immorality, by under taking to forbid honest men from doing what must be done under modern business conditions, so that the law itself provides that its own infraction must be the con dition precedent upon business success. To aim at the accomplishment of too much usually means the accomplishment of too little, and often the doing of posi tive damage. The anti-trust law should not be repeal ed ; but it should be made both more effi cient and more in harmony with actual con ditions. It should be so amended as to forbid only the kind of combination which does harm to the general public, such amendment to be accompanied by, or to be an incident of, a grunt of supervisory pow er to the government over these big con cerns engaged in interstate business. This should be uccompunled by provision for the compulsory publication of accounts and the subjection of books and papers to the in spection of the government officials. A be ginning has already been made for such su pervision by the establishment of the Bu reau of Corporations. The design should be to prevent the abuses incident to the crea tion of unhealthy and improper combina tions, Instead of waiting until they are In existence and then attempting to destroy them by civil or criminal proceedings. The law should make its prohibitions and per missions as clear and definite as possible, leaving the least possible room for arbi trary action, or allegation of such action, on the part of the executive, or of diver gent interpretations by the courts. Among the points to be aimed at should be the prohibition of unhealtny competition, such as by rendering service at an actual loss for the purpose of crushing out competi tion, the prevention of inflation of capital, and the prohibition of a corporation's mak ing exclusive trade with itself a condition of having any trade with itself. Heasona ble agreements between, or combinations of. cc.poratious should be permitted, pro vided they are first submitted to and ap proved by some appropriate government lx>dy. To confer upon the national govern ment, In connection with the amendment I advocate in the anti-trust law, power of su pervision over big business concerns en gaged in Interstate commerce, would bene fit them as it has benefited the national banks. In the recent business crisis it is noteworthy that the institutions which railed were institutions which were not under the supervision and control of the national government. Those which were under national conirol stood the test. Those who fear. from any reason, the ex tension of federal activity will do well to study the history not only of the national linking act but of the pure food law, and notably the meat inspection law recently enacted. Pure food Law. Incidentally, in the passage of the pure food law the action of the various State food and dairy commissioners showed in striking fashion how muen good for the whole people results from the hearty co operation of the Federal and State officials In securing a given reform. Currency. In my message to the Congress a yenr ago I called your attention to the condi tion of our currency laws. The national bank act has ably served a great purpose in aiding the enormous business develop ment of the country, and within ten years there has been an Increase in circulation per capita from $21.41 to $33.08. For several years evidence has been accumuiat itig that additional legislation Is needed. The recurrence of each crop season empha sizes the defects of the present laws. There must soon be a revision of them, because to leave them as they are means to incur liability of business disaster. There is need of a change. Unfortunately, however, many of the proposed changes must lie ruled from consideration because they are complicated, are not easy of comprehen sion. and tend to disturb existing rights and Interests. I do not press any especial plan, but l again urge on tne Congress the ueed of Immediate atteutiou to this mat ter. We need a greater elasticity in our currency ; provided, of course, that we rec ognize the even greater need of a safe and secure currency. There must always be the most rigid examination by the national authorities. Provision should lie made for an emergency currency. The emergency is sue should, of course, be made with an ef fective guaranty, and upon conditions care fully prescribed by the government. Such emergency issue must in* based on adequate securities approved by the government, and must be Issued under a heavy tax. This would permit currency being issued when the demand for (t was urgent, while secur ing its retirement as the demand fell off. We must also rememlier that even the wis est legislation on the subject can only ac complish a certain amount. No legislation can by any possibility guarantee the busi ness community against the results of spec uiative folly any more than it can guar antee an individual against the results of ids extravagance. When an Individual mort gages his house to buy an automobile he invites disaster; and when wealthy men. or men who pose as such, or are unscrupu lously or foolishly eager to oecomesuch. In dulge in reckless speculation —especially if It Is accompanied by dishonesty—they Jeopardize not only their own future but the future of all their Innocent fellow-citi zens. for they expose the whole business community to panic and distress. Krvrn ar. The income account of the nation is in a most satisfactory condition. For the six fiscal years ending with the Ist of July last, the total expenditures and revenues of the national government, exclusive of the postal revenues and expenditures, were, in round uujnliers, revenues. $3,465,000,000. and ex penditures, $3,275,000,000. The net excess of income over expenditures, including lu the latter the fifty millions expended for the Panama canal, was one hundred and ninety million dollars for the six years, an average of alwnt thirty-one millions a year. This represents an approximation between Income and oulgo which it would la' hard lo Improve. The satisfactory working of the present tariff law has been chiefly re sponsible for this excellent showing. Nev ertheless. there is an evident and constant ly growing feeling among our people that the time is rapidly approaching when our system of revenue legislation must he re vised. The Tariff. This countrv is a,'finitely committed to the protective system and any effort to up root it com Id not but cause widespread in dustrial dis i- -r. in other word.- the prin ciple of the present tariff law could not with wisdom be changed. But in a coun try of such phenomenat growth as ours It is probably well that every dozen years or so the tariff laws should be carefully scru tinized -o a- *o see that no excessive or improper benefits are conferred thereby, that proper revenue is provided, and that our foreign trade is encouraged. There must always be as a minimum a tariff which will not only allow for the collection of an ample revenue but which will at least make good the difference In cos: of pt due tjon here and abroad; that Is. the differ ence in the labor cost here and abroad, for the well being at the wage-worker must ever be a cardinal point of American pol icy. The question should be approached purely from a business standpoint: loth the time and the manner of the change be ing such a* to arouse tbe minimum of agi tation and disturbance in the business world, and to give the least play for selfish and factional motives. The sole considera tion should be to see that the sum total of changes represents the public gooo." This means that the subject cannot with wis diot be dealt with in the year preceding a presidential election, because as a matter of fact experience has conclusively shown that at such a time it is Impossible to get men to treat it from the standpoint of the public good. In ray judgment the wise time to deal with the matter is immediate ly after such election. Income Tax and Inheritance Tax. When our tax taws are revised the que* tion of an Income tax and an Inheritance tax should receive the careful attention of our legislators. In my judgment both of these taxes should be part of our system of federal taxation. I speak diffidently about ' PRESIDENT TPEODORE U.I. E I the Income tax because one scheme for an income tax was declared unconstitutional by the supreme court; while in addition it is a difficult tax to administer In its practi cal working, and great care would have to be exercised to see that it was not evaded hy the v-ry men whom It was most desira ble to have taxed, for if so evaded it would, of course, be worse than no tax at all; as the least desirable of nil taxes is the tax which bears heavily npon the honest as compared with the dishonest man. Nev ertheless, a graduated income tax of the proper type would be a desirable feature of federal taxation, and it is to be hoped that one may be devised which the supreme court will declare constitutional. The in heritance tax. however, is both a far let ter method of taxation, and far more im portant for the purpose of having the for tunes of the country bear in proportion to their increase in size a corresponding in crease and burden of taxation. The gov ernment has the absolute tight to decide as to the terms upon which a man shall re ceive a bequest or devise from another, and this point in the devolution of proper ty is especially appropriate for the imposi tion of a tax. .Enforcement of the Law. A few yeurs ago there was loud com plaint that the law coufd not be invoked against wealthy offenders. There is no such complaint now. The course of the de partment of justice during the last few years has been such as to make it evident that no inau stands above the law, that no corporation is so wealthy that it cun not lie hold to account. The two great evils in the execution of our criminal laws to day are sentimentality aud technicality. Both of these evils must be removed or public discontent with the criminal law will continue. Injunctions. Instances of abuse in the granting of in junctions in labor disputes continue to oc cur, and the resentment in the minds of those who feel that their rights are being invaded and their liberty of action and of speech unwarrantably restrained continues likewise to grow. Much of the attack on the use of the process of injunction is whol ly without warrant; but I am constrained to express the belief that for some of it there is warrant. This question is becoming more and more one of prime Importance, and unless the courts will themselves deal with it in effective manner, it is certain ultimately to demand some form of legis lative action. I refrain from discussion of this question as I am informed that it will soon receive the consideration of the su preme court. Employers' Liability. The national government should be a model employer. It should demand the highest quality of service from each of its employes and it should care for all of them properly in return. Congress should adopt legislation providing limited but definite compensation for accidents to all workmen within the scope of the federal power, in cluding employes of navy yards and ar senals. in other words, a model employ ers' liability act, fur-reaching and thor oughgoing. should i>e enacted which should apply to all positions, public and private, over which the national government has jurisdiction. intluHtriiil Disputes. Strikes and lockouts, with their attend ant loss and suffering, continue to increase. For the five years ending December 31, 1905, the number of strikes was greater than those in any previous ten years and was double the numlier in tbe preceding five years. These figures indicate the in creasing reed of providing some machinery to deal with this class of disturbances in the interest alike of the employer, the em ploye, and the general public. 1 renew my previous recommendation that the Con gress favorably consider the matter of cre ating the machinery for compulsory inves tigation of such industrial controversies as arc of sufficient magnitude and of sufficient concern to the people of the country as a whole to warrant yie federal government in takiug action. Capital and Labor. It is certain that for some time to come there will be a constant increase absolutely, and perhaps relatively, of those among our citizens who dwell in cities or towns of some size and who work for wages. This means that there will he an ever-increasing need to consider the problems inseparable trotn a great industrial civilization. Where an immense and complex business, especial ly in those branches relating to manufac ture aud transportation, is transacted by a large number of capitalists who employ a very much larger numlier of wage earners, the former tend more and more to com bine iuto corporations and the latter into unions. The relations of the capitalist and wage-worker to one another, and of each to the general public, are not always easy to adjust; and to put them and keep them on a satisfactory basis is one of the most im portant and one of the most delicate tasks ta'fore our whole civilization. It is Idle to hold that without good laws evils such as child labor, as the over-working of women, as the failure to protect employes from loss of life or limb, can lie effectively reached, any more than the evils of rebates and stock watering can be reached without good laws. To fail to stop these practices by legislation means to force honest men into them, liecause' otherwise the dishonest who surely will take advantage of them wili have" everything their own way. If the States will correct these evils, well and good : but the nation must stand ready to aid them. No question growing out of our rapid and complex industrial development Is more Im portsnt than that of the employment of women and children. The presence of wom en in industry reacts with extreme direct ness upon tbe character of the home and upon family life, and the conditions sur rounding the employment of cbiidren hear a vital relation to our future citizenship. Farmers and W age W orkers. The two citizens whose welfare is in the aggregate most vital to tne welfare of the nation, and therefore to the welfare of all other citizens, are the wage-worker who does manna! tabor and the tutor of the soil, the fanner. The calling of the skilled tiller of the soil, the calling of the skilled mechanic, should alike he recognized as pro tensions, just as emphatically as the cail ia cs of lawyer, doctor, merchant, or clerk. The schools should recognize this fact and St should equally lie recognized In popular opinion. It should be one of our prime objects to put both the farmer and the me chanic on a higher plane of efficiency and reward, so as to increase their effectiveness in the economic world, and therefore the dignity, the remnueration. and the power of their pos ions in the social world. No growth of cities, no growth of wealth, can make t for any loss in either the numlier or ;e character of the farming population. W* of the l asted States should realize this fiove almost al! other people*. We began • r existence as a nation of farmers, ar in every great ertst* of the past a peer, ar dependence has had to be placed upot the farming population: and this depend- ce has hitherto been justified But it can -ot be Justified in the future If agriculture is permitted to sink In the scale as compared with other employments. We can not afford to lose that pre-eminently typical American, the farmer who owns his own medium-sized farm. To have his place taken by either a class of small peasant proprietors, or by a class of great land lords with tenant-farmed esta'es would be a veritable calamity. The growth of our cities is a good thing but only in so far as It does not mean a growth at the ex pense of the country farmer. We must welcome the rise of physical sciences In their application to agricultural practices, and we must do all we can to render coun try conditions more easy and pleasant. There are forces which now tend to bring about both these results, but they are, as yet, in their infancy. The national gov ernment through the department of agri culture should do all it can by joining with the State governments and with independ ent associations of farmers to encourage the growth in the open farming country of such institutional and social movements ns will meet the demand of the best type of farmers, both for the improvement of their farms and for the betterment of the life it self. The grain producing industry of the coun try. one of the most Important in the United States, deserves special consideration at the hands of the Congress. 1 suggest to the Congress the advisability of a national system of inspection and grading of grain entering into Interstate and foreign com merce as a remedy for the present evils. Inland Waterway*. For the last few years, through several agencies, the government has been endeav oriug to get our people to look ahead and to substitute a planned and orderly devel opment of our resources in place of a hap hazard striving for immediate profit. Our great river systems should be developed as national water highways; the Mississippi, with its tributaries, standing first in import ance, and the Columbia second, although there are many others of importance on the I‘aciflc, the Atlantic and the Gulf slopes. The national government should undertake this work, and I hope a beginning will be made in the present Congress; and the greatest of all our rivers, the Mississippi, should receive special attention. From the Great Lakes to the mouth of the Mississippi there should be a deep waterway, with deep waterways leading from it to the east and west. Such a waterway would prac tically mean the extension of our coast line into the very heart of our country. It would be of incalculable benefit to our peo ple. If begun at once It can he carried through In time appreciably to relieve the congestion of our great freight-carrying lines of railroads. I have appointed an In land waterways commission to study and outline a comprehensive scheme of develop ment along all the lines Indicated. Igiter I shall lay its report before the Congres. Heclumiit ion Work. Irrigation should be far more extensively developed than at present, not only In the States of the great plains, and the Rocky Mountains, but in many others, as. fdr in stance, in large portions of the south Atlan tic and Gulf States, where It should go hand In hand with the reclamation of swaro land. The Federal Government should seriously devote Itself to this task, realizing" that utilization of waterways and water power, forestry, irrigation, and the reclamation of lands threatened with over flow. are all interdependent parts of the same problem. The work of the reclamation service in developing the larger opportuni ties of the western half of our country for irrigation Is more important than almost any other movement. Public I,find*. The effort of the Government to deal with the public land has beeu based upon the same principle as that of the reclamation service. The land law system which was designed to meet the needs of the fertile and well-watered regions of the middle west has largely broken down when ap plied to the drier regions of the great plains, the mountains, and much of the Pacific slope, where a farm of 1(10 acres is inadequate for self-support. In these re gions the system lent itself to fraud. Three years ago a public lands commission was appointed to scrutinize the law, and de fects, and recommend a remedy. Their ex amination specifically showed the existence of great fraud upon the public domain, and their recommendations for changes in the law were made with tho design of conserv ing the natural resources of every part of the public lanas by putting it to its best use. The recommendations of the public lands commission are sound: for they arp especially ir the interest of the actual home-maker;' and where the small home maker eanr.ot at present utilize the land they provide that the Government shall keep control of it so that It may not )*e monopolized by a few men Some such legislation as that proposed is essential In order to preserve the great stretches or public grazing land which are unfit for cul tivation under present methods and are valuable only for the forage which they supply. Preservation of Forests. Optimism is a good characteristic, but if carried to an excess it becomes foolishness We are prone to speak of the resources of this country as Inexhaustible: this is not s<>. The miners' wealth of the country, the coal. Iron, oil. gas, and the like, doe* not re produce itself, and therefore is certain to be exhausted uutlmateiy; and wastefulness in Vailng with it to-day means that our de scendants will lee! the exhaustion a gener ation or two l>efore they otherwise would. Rut there are certain other forms of waste which could V entirely stopped—the waste of soil by washing, for instance, which 1* among the most ilanserou* of ail wastes now in progress in the United State*, is easily preyentable. so that this present enormous los- of fertility is entirely un necessary. The preservation or replacement of the forests is one of ,£* most important means of preventing this loss. We have made a beginning in forest preservation, but It is only a beginning. At present lumbering is the fourth greatest industry in the United States : and ret. so rapid has leen the rate of exhaustion of timber in the Tnited States in the past, and so rap idly is th remainder being exhausted, that the country is unquestionably on the verge of a timber famine which will be felt in every household in the land. There has aiready been a rise in the price of lumber, but there is certain to be a more rapid and heavier rise in the future. The present annual consumption of lumber is certainly three times as great as the annual growth": and if the consumption and growth roatinue unchanged, practically ail our lumber will be exhausted in another generation, while long before the Itmit to complete exhaus tion is reached the growing scarcity will make itself felt in many blighting ways upon our national welfare. Forest* can be lumbered so as to give to the public the full use of their mercantile timber without the slightest -atriment to the forest, any more than it i* a detria-mt to a farm to furnish a harvest. But forests, if used a* all oar forests have been used In the past and as most of theta are still used, win be either whaLy destroyed, or so damaged that many decades have to put before effective use can be made of them again. All these facts ar so obvious that it is extraordinary that it should be necessary to repeat them. The only trouble wRh the movement for the preservation of our forests. Is that it has not gone nearly far enough, and was not begun soon enough. It Is a most for tunate thing, however, that we began it when we did. We should acquire In the Appalachian and White Mountain regions ail the forest lands that it is possible to ac quire for the use of the nation. These lands, because they form a national asset, are as emphatically national as the rivers which they feed, and which Cow through so many .States before they reach the ocean. Tariff on Wood Pulp. There should be no tariff on any forest product grown in this country; and. in especial, there should lie no tariff on wood pulp; due notice of the change being of course given to those engaged in the busi ness so as to enable them to adjust them selves to the new conditions. • The repeal of the duty on wood pulp should if possible be accompanied by an agreemnt: with Can ada that there shall be no export duty on Canadian pulp wood. Mineral Lands. In my judgment the Government should have the right to keep the fee of the coal, oil and gas fields in its own possession and to lease the rights to develop them under proper regulations; or else, if the Congress will not adopt this method, the coal deposits should be sold under limita tions. to conserve them as pub.ic utilities, the right to mine coal being separated from the title to the soil. • The Panama Canal. Work on the Panama Canal is pr i eedlng in a highly satisfactory manner. Ltu>t win ter bids were requested and received for doing the work of canal construction by contract. None of them was found to is; satisfactory und all were rejected. It is tile unanimous opinion of the present com mission that the work can lie done better, more cheaply, and more quickly by the Gov ernmont than by private contraolors. Fully 80 per cent of the entire plant needed for construction has been purchased or con tracted for ; machine shops have been erect ed and equipped for making aii needed re pairs to the plant; many thousands of em ployes have been secured; an effective or ganization has been perfected ; a recruiting system Is in operation which is capable of furnishing more lalior than can be used ad vantageously ; employes are well sheltered and well fed : salaries paid are satisfactory and the work is not only going forward smoothly, but it is producing results far in advance of the most sanguine anticipa tions. Under these favorable conditions, a change in the method of prosecuting the work would be unwise and unjustifiable, for it would inevitably disorganize existing con ditions. check progress, and Increase the cost and lengthen the time of completing the canal. The chief engineer and all his profes sional associates are firmly convinced that the 85-foot level lock canal which they are constructing In the best that could be de sired. °ome of them had doubts on tfils point when they went to the Isthmus. As the plans have developed under their direc tion their doubts have been dispelled. While they may decide upon changes in detail as construction advances, they are in hearty accord in approving the general plan. They believe that it provides a canal not only adequate to all demands that will lie made upon it, but superior in every way to a sea level canal. I concur lu this belief. I'oHtnl Affairs. I commend to the favorabfo consideration of the Congress a postal savings bank sys tem, as recommended by the Postmaster General. The primary object is to encour age among our people economy and thrift and by the use of postal savings banks to give them an opportunity to husband their resources, particularly those who have not the facilities at hand for depositing their money in savings banks. Viewed, however, from the experience of the past few weeks, it is evident that the advantages of such an Institution are still more far-reaching. Timid depositors have withdrawn their sav ings for the time being from national banks, trust companies and savings banks; individuals have hoarded their cash and the workingmen their earnings: all of which money has been withheld and kept in hid ing or in the safe deposit box to the detri ment of prosperity. Through the agency of the postal savings banks such money wouM be restored to the channels of tiude, to the mutual benefit of capital and lalior. I fur ther commend to the Congress the consid eration of the Postmaster General’s recom mendation for an extension of the parcel post, especially on the rural routes. Presidential Campaign Expenses. It is well to provide that corporations shall not contribute to presidential or na tional campaigns. The need for collecting large campaign funds would vanish if Con gress provided an appropriation for the proper and legitimate expenses of each of the great national parties, an appropriation ample enough to meet the necessity for thor ough organization and machinery, which re quires a large exendlture of money. Oeean Mali Service. I call your especial attention to the un satisfactory condition of our foreign mail service, which, because of the lack of Amer ican steamship lines. Is now largely done through foreign lines, and which, particu larly so far as South and Central America are concerned, is done in a manner which constitutes a serious barrier to the exten sion of our commerce. The time has come, in my judgment, to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development. The only serious question is whether at this time we can afford to improve our ocean mail service as it should lie Improved. All doubt on this subject Is removed by the reports of the I’ostoffice Department. The Govern ment of th-: Cnited States, having assumed a monopoly of carrying the mails for the people, is making a profit of over $3,000,000 by rendering a cheap and inefficient service. That profit 1 believe should be devoted to strengthening our maritime power in those directions where it will best promote our prestige. I strongly recommend, therefore, a simple amendment to the ocean mail act of 1891 which shall authorize the Postmas ter General in his discretion to enter into contracts for the transportation of malls to the republics of South America, to Asia, the Philippines, and Australia at a rate not to exceed $4 a mile for steamships of 16 knots speed or upwards, subject to the restrictions and obligations of the act of 1801. The \riuy. Not only there is not now. but there never has been, any other nation In tha world so wholly free from the evils of mil itarism as is ours. Never at any time of our history has the regular army been of a size which caused the slightest apprecia ble tax upon the tax-paying citizens of the nation. Asa nation we have always been shortsighted in providing for the efficiency of the army in time of peace. I think it is only lack of foresight that troubles us, not anv hostility to the army. There are, of course, foolish jieople who denounce any care of the army or navy as "militarism," but 1 do not think that these people a-e nunc;,, ous. We are -1 glad to help in any movement for international peace, but this is because we sincerely lieiieve that it is our duty to help all such movements provided they are sane and rational, and not liecause there l any tendency toward militarism on our part which needs to tie cured. The evils w<* have to fight are those in connection with industrialism, not militarism. Industry is always necessary, just as war is som-times necessary. Each has its price, and industry in the United States now exacts, and ha's always exacted, a far heavier toll of death than all our wars put together. We should maintain in peaec a fairly complete skeleton of a large army. A great and long continued war would have to lie fought by volunteers. But months would pass before any large body of efficient vol unteers could lie put in the field, and our seguiar army should fie large enough to meet any immediate need. In particular it Is essential that we should possess a num ber of extra officers trained in peace to per form ifficiently the duties urgently required upon the breaking out of war. The rate of pay for the officers should be greatly in creased; there is no higher type of citizen than the American regular officer, and he should have a fair reward for his admir able work. There should be a relatively even greater Socee-ase in the pay for the enlisted men. toe rate of desertion in our army now in time of peace is alarming. The deserter should be treated by public opinion as a man guilty of the greatest crime: while on the other hand the man who serves steadily in the army should tie treated as what he is, that Is. as pre-emi nently one of the best citixens of this re public. The Xsvy. It was hoped The Hague Conference might deal with the question of the limita tion of armaments. But even before It had assembled informal inquiries had developed that as regards naval armaments, the only ones in which this country had any inter est. It was hopeless to try to devise any plan for which there was the slightest pos sibility of securing the assent of the na tions gathered at The Hague It is evi dent. therefore, that it i folly for tis nation to base any hope of securing peace on any international agreement as to the limitation of armaments. Such being the fact it would be most unwise for us to stop the upbuilding of our navy. To build one battleship of tat best and most ad vanced type a year would barely keep our fleet up to its present force. This Is not enough. In my judgment, we should this year provide for four battleships. Bat it la idle to build bat tic'hi pa unless in add! tion to providing the men. and the means for thorough training, we provide the aux iliaries for them, unless we provide docks, the coaliiL. stations, the colliers and supply ships that they ueed. We are extremely deficient in coaling stations and docks on the Pacific and this deficiency should not longer be permitted to exist. Plenty of tor pedo boats and destroyers should be built Both on the Atlantic and Pacific coasts fortifications of the best type should be pro vided for all our greatest harbors. We no'd always to remember that in lime of war the navy is not to be used to defend harbors and seacoast cities; we should perfect our system of coast fortifica tions. The only efficient use for the navy is for offense. The only way in which it can efficiently proteet our own coast against the possible action of a foreign uavy is by destroying that foreign navy. For defense against a hostile fleet which actually attacks them, the coast elites must depend upon tbeir forts, mines, torpedoes, submarines and torpedo boats and destroyers. Until our battle fleet is much larger than at present it should never be split into de tachments so far apart that they could not in event of emergency be speedily united. Our coast line is on the Pacific just as much as on the Atlantic. The interests of California. Oregon and Washington are as emphatietily the interests of the whole Union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the Pa cific, just as at other times it should be kept in the Atlantic. I bespeak the most liberal treatment for the officers and enlisted men of the navy. It is true of them, as likewise of the officers and enlisted men of the army, that they form a body whose interests should be close to the heart of every good Ameri can. in return the most rigid performance of duty should be exacted from them. The reward should be ample when they do their best; and nothing less than their best should be tolerated. It must be remembered that everything done in the navy to fit it to do well in time of war must lie done in time of peace. Modern wars are short; they do not last the length of time requisite to build n bat tleship ; and it takes longer to train tha officers aud men to do well on the battle ship than it takes to build it. Nothing ef fective can be done for the navy once war has begun, and the result of the war, if the combatants are otherwise equally matched, will depend upon which power has prepared best in time of peace. The United States navy is the best guaranty the na tion has that its honor and Interest will not be neglected ; and in addition it offers by far the best Insurance for peace that can by human ingenuity be devised. Foreign Affairs. In foreign affairs this country's steady policy is to behave toward other nations as a strong and self-respecting man should behave toward the other men with whom he is brought iuto contact. In other words, our aim is disinterestedly to help other nations where such help can be wisely given without the. appearance of meddling with what does not concern us ; to be care ful to act as a good neighbor; and at the same time, in good-natured fashion, to make it evident that we do not intend to be im posed upon. Tlio Pence Conference. The second international peace conference was convened at The Hague on the 15th of June lust and remained in session uutll tlie 18th of October. For the first time the representatives of practically all the civilized countries of the world united in a temperate and kindly discussion of the methods by which the causes of war might be narrowed uud Its injurious effects re duced. Although the agreements reached in the conference did not in any direction go to the length hoped for by the more sanguine, yet in many directions important steps were taken, and upon every subject on the program there was such full and consider ate discussion as to justify the belief that substantial progress lias been made toward further agreements in the future. The delegates of the United Stales worthily represented the spirit of the American peo ple and maintained with fidelity and abil ity the policy of our government upon all the great questions discussed in the con ference. Calm. A year ago in consequence of a revolu tionary movement in Cuba which threat ened the immediate return to chaos of the island, the United States intervened, send ing down an army and establishing a pro visional government under Gov. Magoon. Absolute quiet and prosperity have re turned to the island liecause of this action. We are now taking steps to provide for elections in the island and our expecta tion is within the coming vear to be able to turn the island over again to a govern ment chosen by the people thereof. Cuba is at our doors. German Tm-iff Agreement. The adoption of anew tariff by Ger many, accompanied by .'onventlons for re ciprocal tariff concessions oetween that country and most of the other countries of continental Europe, led ‘he German gov ernment to give the notice necessary to terminate tlie reciprocal commercial ngre mout with this country proclaimed July 13, 1!)00. The notice was co take effect ou the Ist of March, 1006. Under a special agree ment made between the two governments in February. 1006, the German government postponed the operation of their notice until the 30th of June, 1907. In the mean time 1 sent to Berlin a commission com jiosed of competent experts in tlie opera tion and administration of the customs tariff, from the departments of the treas urv 'nd commerce and lulsir. This cotn was engaged for several months in conference with a similar commission ap pointed by the German Government, under instructions, so far as practicable, to roach a common understanding as to all the facts regarding the tariffs of tlie United States and Germany material and relevant to the trade relations between the two countries. The commission reported, and upon tlie basis of the report, a further temporary commer cial agreement was entered into hy the two countries. This agreement is to remain in force until the 30th of June. 1008, and until six months after notice by either party to terminate it. The Public Health. At last the public mind'is awake to fhe fact that many diseases, notably tuberculo sis, are national scourges. The work of ihe State and city boip'Js of health should be supplemented by a instantly increasing interest on the part i the national govern ment. Other Kecommendafiona, I recommend that a naval monument be established in the Vicksburg National Park. legislation should lie enacted at the pres ent session of the Congress for the thir tenth census. There should be a national gallery of art established In the capital city of this coun try. Ia tain recommend that the rights of citl zensh p be conferred upon the people of Port* Rico. r .'he Secretary of War has gone to the Philippines. On his return I shall submit his report on the islands. 1 strongly recommend to the Congress to provide funds for keeping up the Hermit age. the home of Andrew Jackson. The loss of life and limb from railroad accidents in thi§ evuntry has liecomo ap palling. It is a subject of which the na tional government should take supervision. 1 reiterate my recommendations of last year as regards Alaska. Some form of local self-government should Is- provided, aa simple and inexpensive as posibie. The biological survey is quietly working for the good of our agricultural Interests, and is an excellent example of a govern ment bureau which conducts original scien tific research the findings of which are of much practical utility. The Congress should consider the exten sion of the eight-hour law. The general in troduction of the eight hour day .should be the goal toward which we should steadily tend, and the government should set the example in this respect. Unless the Congress is prepared by posi tive encouragement to secure proper facili ties in the way of shipping Between Hawaii and the mainland, then the coaslvrls.- ship ping laws should be so far relaxed as to prevent Hawaii suffering as it is now suf fering. A bureau of mines should be created un der the fwotrol and direction of the Secre tary of the Interior; the bureau to hare power to collect statistics and make inves tigations in all matters pertaining to mining and particularly to the accidents and dan gers of the industry. Oklahoma has become a State, standing on a full equality with her elder sisters, *nd her future is assured by her great nat ural resources. The duty of the national government to guard the personal and prop ertv right* of the Indians within her bor ders remains of course unchanged. I ask for authority to re-form the agree ment with China under which the indemni ty of 1000 was fixed by remitting and can celling the obligation of China for the pay ment of a” that part of the stipulated in demnity whi -h is in excess of the sum of $11,635,492.69. and interest at 4 per cent. No Sight baa been thrown on the real identity of Mrs. Nicholas M. Smith, who killed her husband at New Rochelle, X. \\ She represented herself to be the daughter of., the late Lieut- Got. William H. Buikley of Connecticut, but this claim was found to be untrue. WILL ADD TO MISERY OF A HARD WINTER. European Labor Leaders Alarmed Over Increase in Homecoming Contingent. STEAMSHIPS ARE LOADED DOWN Hundreds of Destitute Aliens Wan dering Streets of Paris on Verge of Destitution. The increasing contingents of home coming Italians, Lithuanians and othei Mediterranean steerage passengers are disconcerting not only to tlie steamship companies, who have inadequate facili ties for dealing with such a sudden and unexpected traffic, but to the lalior leaders of Europe, who deny that these newcomers have sufficient money to pass the winter without working, and declare that they will thus add to the misery of wlrat is sure to he a lwrd win ter among tlie European working classes. The figures given In- itn French la bor bureau as to tlie retc-aing emi grants are corroborated by Nicholas Martin, agent of the American line, who says that all the steerage capacity of every vessel has been taken until Feb. 1, while thousands more will he unable to return to Euroi>e before spring. If this keeps up. a l’aris eorre spotdent says, some sisn-ial measures must be taken to repatriate the hordes of disappointed adventurers, for the ordinary means are insufficient. “To my knowledge several hundred of more or less destitute aliens are wan dering in the streets of Paris on the verge of starvation, and the prefecture police books will probably multiply this figure by three,'' said one of the officials at the ministry of works to the corre spondent. “The best we can do is to expedite their return to their native countries. Something like half of them have no more money than Is barely sufficient to pay their fare.’’ Titrii of Immiicrnlion Tide. Never since tlie first ship sailed out of New York harbor has there been any thing like the present exodus of emi grants from that port. Day by day the crowds clamoring for transportation abroad grow greater, with no prospect of their reduction in numbers. Last week 30.000 steerage passengers were carried from New York; this week steamship men say the total will reach 50,000. The steerage rate was raised from s2l to s3l in hope of staying the exodus, but without avail. DEFECTIVE CHILDREN. One-Third of All School Pupils L. ** Something Wrong with Them. According to the report of a committee of prominent educators, headed by Charles C. Burlingham, former p-esident of the board of education of New York City, one-third of all the school pupils in the United States are behind in their grades because of some physical defect, such as impaired hearing and vision, enlarged glands or malnutrition. The committee •reports that in the vast majority of cases these defects could be cured it taken in hand at once. That many millions of the children of the United States have phy sical defects which are retarding their progress, that in most cases these defects are removable, but that in the vast ma jority they not be because of ignor ance or careur- ’ss are statements start ling enough to merit wide attention. If the average throughout the United States is the same as that in Now York, there are in our country 1,440,000 ill-nourished children, 5,615,000 with enlarged glands and 6,025,000 with defective breathing. Comprehensive plans for dealing with the physical defects of school children are outlined in the report. These include a thorough physical examination of all children, notification to parents and the enforcement of existing laws. Where proper authority is now lacking it is plan ned to compel parents to take necessary steps in behalf of their children's health. Enforcement of health, tenement house and child labor laws and the establish ment, .in Connection with boards of edu cation, of departments of school hygiene, the duties of which shall be to see that school buildings are so constructed and so conducted thgt they cannot themselves produce or aggravate physical defects, are also recommended. Differ About Saturn's Kliikm. The view advanced by Prof. Percival Lowell that the "knots’’ recently discov ered in the rings of Saturn Indicate that the rings are failing is not accepted by Prof. Simon Newcomb of Washington, who says that Struve more than a half century ago propounded the theory of the falling rings of Saturn, based upon early drawings compared with late ones. New comb says the rings are now viewed al most edgewise, so that it is impossible to distinguish one from another. He prefers the theory put forth by Clerke-Maxwell sixty years ago, that tbe small satellites which compose the rings sometimes crowd together. Prof. Brashear of Pittsburg agrees with Newcomb. Near Aeroplane I’rixe. Henry Farman came very near to win ning the 50,000-franc Deutsch-Archdeneon aeroplane prize Monday at Paris. The conditions of this prize are that the ma> chine shall complete a kilometer in a closed circle without touching tbe ground. Mr. Farnam made several flights. In the final effort the machine left the ground easily and traveled down the held to the turning point at a good speed. In turn ing, the wheels touched for an instant, and again a few seconds later, but after that the rest ‘of the circle was completed with ease. ' MqcnMrriwrg on Charity. Prof. Emil Mnensterberg, head of the public charities of Berlin, was the prin cipal speaker at the celebration of the twenty-fifth anniversary of the New York Charity Organization Society at Gamegie Hall recently, along with .Mayor Mc- Clellan, Gov. Hughes and others. Prof. Mnensterberg sak* that charity work had to be undertaken ncfW in “the twilight of widespread egotism and selfishness,’’ but that the work had changed from a purely philanthropic to a social conception. He (Buds that private charity does in this country the work done by the government in Germany. To Prodar* Sorlaliatle Piny*. The Socialist Stage Society of New York City has for its object the produc tion of plays in which socialism is the keynote. Its manager, Mr. Hopp, says that when the society is in good running order it wili be able to assure a manager an audience of 5,000 at the start for a satisfactory play. In the meantime it intends to produce its own play*, which It Ls claimed can be done for a very small actual cash outlay. In an explosion on the Eastern Con etruction works of the Grand Trunk Pa cific at Dry den. Ont., seven men were killed and four injured. TKWECKLY I 14B2—Columbus arrived at Hayti and learned that tlie colony left then' had perished. 1400—Perkin Warbeck. who styled him self Richard IV., King of England, executed. 1518—Cortez sailed from Cuba to cap ture Mexico. 1540—De Soto left the const and began his inland march. 1542—English defeated the Scots at Sol way Moss 1578—Sir Humphrey Gilbert’s first expe dition sailed to found a colony in America. 1626—St. Peter’s. Rome, dedicated by Pope Urban VIII. 1633—Sliiits Ark and l>ove sailed from England with 200 persons to found a colony in Maryland. 1643—Birth of La Salle, the explorer of the Mississippi valley. 1083 -Boundary line agreed upon by New York ami Connecticut. 1755—Severe earthquake shocks felt along tin 1 eastern coast of North America. 1758 —Fort Duquesue renamed Pittsburg by the English. I*7s—American force took and fortified Cobble Hill, near Boston 1776—British under Cornwallis crossed the Hudson to attack Fort Lee. 1794 —Jay’s treaty between the United States and Great Britain signed. 1796—French under Bounparie defeated tbe Austirans at Areola.... Much property destroyed by tire in Sa vannah, Ga. 1801—The Pillory used in Boston for the last time. 181(*—A I‘hiladelphia theater lighted by gas, firist in the country. 183"-’ —Eruption of Mt. Etna; town of Kro.ite destroyed. 1837 —Montreal used gas for illuniinatiug purposes for the first time. SBS1 —Ernest Augustus, King of Han over and Duke of Cumberland, died. las2—Napoleon 111. elected Emperor of the French. IB6o—Legislature of Georgia voted sl,* 000,000 to arm the State. 1863 —Rattles before Chattanooga, Tenn., began.... The National Soldiers’ cemetery at Gettysburg dedicated. 18(57—Committee on the House rejiorted in favor of the impeachment of President Johnson 1871 —The Grand Duke Alexis arrived at New York 1874—British immigrant ship Cospatrick burned at sea, with loss of 473 lives. 1877—The Halifax fishery commission, under treaty of Washington, render ed its decision. 1883—Standard time adopted throughout Canada. 1880—Remarkable cliff dwellings dis covered in Colorado. 1880—Alaska first demanded representa tion in Congress. 1890 —Indian outbreak near Pine ltidge. South Dakota.... Battleship Maine launched at the Brooklyn navy yard. Tlie Scientific Immortality. Sir Oliver Lodge, the noted British scientist, has delivered another pro nouncement on the subject of the im mortality of the soul. lie says first that the simple important truth to be kept in sight is the commonplace fact that there is nothing immortal or persistent about the body except the material atoms of which it is composed. He dismisses ut terly the notion, still taught by part of the Christian church, that these atoms will some day be gathered and reunited so as to constitute n complete man as he appeared on the earth, and who there after will last forever. This he regard* as merely a clumsy expedient to make pleasing the idea of the homeless, wan dering spirit or ghost of the departed in dividual. Sir Oliver says that nobody knows what the soul is, but that com mon sense rebels against its being noth ing, and that no genuine science had as sumed tb declare it a purely imaginary nonentity. He holds it must be acknowl edged by science that no really existing thing perishes, it only changes form. As this has been shown clearly in the case of matter and energy, it must also be true of mind, consciousness, will, mem ory, love and other activities which in teract vrtth matter and appeal to lb* bodily senses. These facts of the indi vidual human consciousness, he says, can not be regarded as nothing, and they will never vanish into nothingness. They did arise with us. Tbey never sprang sud denly into being from previous non-exist ence. They are as eternal as tbe God head itself, and -will in eternal being en dure forever. Atmosphere on Mercury. 'The transit of Mercury across the fare of the sun, Nov. 14, was the occasion of careful observations by astronomers with more or less satisfactory results. Wil liam It. Brooks, professor of astronomy at Hobart college, Geneva, N. If., dis covered a diffused ring surrounding tha planet. This wag thought to indicate the presence of an atmosphere. Near tne cen ter of the planet was noticed a white spot, which has been seen at former tran sits. Many photograjdis were taken. Immense Flame on San. Prof. Ambau, director of the Kadcliffe observatory in England, on Nov. 15 wit nessed a remarkable outburst on tbe sun. An immense flame shot up at the rate of more than 12,000 miles a minute until It reached a height of 325.(k¥) miles. It then broke into fragments and disap peared. Tbe sun spots and solar disturb ance* which have been observed of late have caused astronomers to predict vio lent magnetic disturbances on tbe earth, perhaps causing storms, earthquakes and volcanic eruptions, although not of su®- cient gravity to c*igs alarm Utilities Lin Upheld. The New York Arm Irnte division has upheld kae new law under which the public service commission received from tbe Legislature tbe power to fix rate* for public service corporations. The court holds that tbe Legislature may thus dele gate its power provided the law estab lished a standard by which the commis sion may be guided. Fewer Import* of Gem*. A continued falling off in the imports of diamonds and other precious stones noted for tbe last ten months, and dally during the money stringency.