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14 INHERITANCE 7 AX FA VORED BY PRESIDENT OTHER NATIONS, HE SAYS, GET LARGE REVENUE EXCESSIVE FORTUNES SHOULD PAY, HE BELIEVES Nearly One.Fifth of Whole Estate, When It Is Large, Goes to Gov. ernment In England, Hl* Argument i < oniliiu'd from !•«*« Five.) preceding thirty years, had declined to maku tho necessary provision for the army. "Unless ample provision is now made by congress to put the medical corps -where it should be put disaster in the next war is Inevitable, and the responsi bility w.il not Ho with those then In t'hargu oC the war department, but with those who now decline to make the nec essary provision. A well organized -ae<i lcal corps, thoroughly trained before the advent of war in all the important ad ministrative duties of a military sanitary corps, is essential to the efficiency of any large army, and especially of a large volunteer army. Such knowledge of med icine and surgery as is possessed by tho medical profession generally will not alone suffice to make an efficient military surgeon. He must have In addition knowledge of the administration and .san itation of large field hospitals and camps, Jn order to safeguard the health and Uveß of rneu intrusted In great numbers to his care. A bill has long been pend ing before the congress for the reorgani sation of the medical corps; its passage i- urgently needed. Need More Pay "But the medical department is not the only department for which Increased provision should be made. The rate of pay for the officers should be greatly in creased; there is no higher type of cluzen than tho American regular officer, and he should havo a fair reward for his ad mirable work. There shouid be a. rela tively even greater Increase in the pay for the unlisted men. In especial pro vision Khould be made for establishing grades equivalent to those of warrant officers in the navy which should be open to the enlisted men who serve sufficiently long and who do their work well. In ducements should be offered sufficient to encourage really good men to make the army a life occupation. The prime needs of our present army is to secure and re tain competent noncommissioned officers. This difficulty rests fundamentally on the question of pay. "The noncommissioned officer does not correspond with an unskilled laborer; ho corresponds to the best type of skilled workman or to the subordinate official In civil Institutions. Wages have greatly increased in outside occupations in the last forty years and the pay of the sol dier, like the pay of the officers, should be proportionately increased. The first sergeant of a company, if a good man, must be one of such executive and ad ißlnlstratlve ability and such knowledge of his trade as to be worth far more than we at present pay him. The same Is (rue of the regimental sergeant major. "These men should be men who had fully resolved to make the army a life occupation and they should be able to look forward u> amplo reward; while only men properly qualiti.-rl should be Blven a chance to Becure ' these final re wards. The increase over the present pay need not be great in the lower grades for the tirst one or two enlistments, but tin Increase should be harked for the noncorumissii.nod officers of the upper grades who serve long enough to muke It evident that they Intend to stay per manently In the army, while additional pay should be given for high qualifica tions in target practice. The position of warrunt officer should be established and there should be not only an Increase of pay but an increase of privileges and allowances and dignity, so as to make the grade open to noncommissioned of ficers capable of filling them desirably from every standpoint. The rate of de sertion in our army now in time of peace Is alarming. The deserter should we treated by public opinion as a man trull ty of the Krontf-st crime: while on tho other hand the man who serves KteaJily in the army should be treated as what he is. that i.«. as pre-eminently one of the best citizens of this republic. After twelve v.-;>r-' service In the army my own belief is that the man should be given :i preference according to his ability for certain typnn of office over all elvilian applicants without examina tion. This should also apply, of course, to thu men who have served twelve year* In th'- navy. A special corps should be provided to do the manual labor now necessarily demanded of tho private.-, themselves. "Among tliu officers there should be Mvare examinations to weed out the unfit up to the grade of major. From that position on appointments should be solely by selection and it should be un daretood thHt ;i man of merely average oapocltcy never get beyond the position of major, while every man who serves in any grade ;i certain length of time l.rior ie promotion to the next n"ade without getting the promotion to the next yrii.lr should be forthwith retired. The irn -in-- marches and 1 1 • • 1 » 1 maneuvers of the last twn or three years have been invaluable to the army. They thould be continued and extended. "A rigid and not a perfunctory ex amination or physical capacity has been providcl for the higher grade officers. This will wnrli well. Unless an officer hah v g'jod physique, unless lie can stand Hhrdshlp. ride, well -"¦! walh fairly, he is not tit for any position, even after he baa become a colonel. Before ne has become a colon"! Hit need for physical fitness in tin: officer is almost as great as in the enlist.,] man. 1 hope speedily to see Introduced into the army a far more rigid and thoroughgoing test or horsemanship for all field officers than at present There should be a chief of cavalry juet as there Is a chief of ar tillery. I "Perhaps the moat important of all legislation needed for the benefit of the army is a law to equalize and Increase the pay of officers and enlisted men of the army, navy, marine corps and rev enue cutter service. Such a bill has been prepared, which it is hoped will meet with your favorable consideration. The next most essential measure Is to authorize a number of extra officers as mentioned above. "To make the army more attractive to enlisted men it is absolutely essential to create a service corps, such as exists in nearly every modern army in the world, to do the skilled and unskilled labor, inseparably connected with mili tary administration, which is now ex acted, without just compensation, of en listed men who voluntarily entered tho army to do service of an altogether dli ferent kind. There are a number of other laws necessary ti. .-o organize the army as to promote its efficiency and facilitate its rapid expansion in time of war; but the above aro the most im portant THE NAVY "It was hoped The Hague conference might deal with the question of the llm- LOS ANGETJES HEBALD: WEDNESDAY MORNING, DECEMBER 4, 1907. Itation * of . : armaments. - But : even 1 before It i had assembled | informal I inquiries \ bad developed i that fas * regards ' naval lat ma men j the i only ones In i which ' this ' coun try ' had any interest ..-" it . was ' hopeless to try ;to ' devise ' any.; plan for . which ; ihero was the slightest possibility of seeming the . assent of • the • nations ' gathered ' at The Hague. No plan was even proposed which I would have had | the assent lof more than one first class power outride. of : the , United ; States. The only plan that seemed at all feasible, that of limit- Ing th« size of battleships, met with no favor ' at • all. ¦ "It i.s evident, therefore, that it is folly for this nation to base any hope of se curing peace on any international agree ment as to the limitation of armaments. Such being the (act it would bo most unwise for us to stop the upbuilding of our navy. To build one battleship of the best and most advanced type a year would barely koon otir fleet up to its present fore. This Is not enough. In my Judgment, vie should this year pro vide for four battleships. . "Bat It Is idle to build battleships un less in addition to providing the men and the means for thorough training we provide* the auxiliaries for them, unless we provide .; docks, the ', coaling stations, the: colliers and supply. ships that, they need. " We are extremely deficient In coaling • stations and ' docks on the Pa cific, "and. this- deficiency should not long er 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 provided for all our greatest harbors. : . ' . I <r We need' always ¦ to remember thai in time of war t.h« navy li« not to t>« used to defend harbors . and Bea-coast cities; we should perfect out- system oi coast fortifications The only .efflcienl use for the navy Is. for offense. . Th« only way •in ¦ which It can efficiently protect our own coast against the pos sible* action of a foreign navy . Is bj destroying that foreign navy. For defense against a 1 hostile fleet which actually. attacks. them, the coast cities must depend upon their forts, mines, torpedoes, submarines ' and torpedo boats and destroyers. All of these .to gether are efficient for defensive pur poses, but they in no way supply the place of a ' thoroughly, efficient navy capable of. acting on the offensive; for parrying never yet won a fight. It car. only bo won by hard hitting, and an aggressive, sea-soing, navy alone can do this hard hitting of the offensive type. But the forts and the like. are necessary so that the navy may !be footloose. In time of war there is sure to be demand, under pressure of fright, for the ships to be scattered so as to defend all kinds of ports. Under pen alty or terrible disaster, this, demand must be refused. The ships must be kept together, and their objective made the enemies' fleet. ; ; '_'' -I, , "If fortifications are sufficiently strong, no modern navy will venture to attack them, so Ions: as the foe has in existence a hostile navy of anything like the same size or efficiency. | But unless there exists such a navy then the fortifications are powerless by themselves to secure the victory. For of course the mere deficiency moans that any resolute enemy can at his leis ure combine all his forces upon one point with the certainty that he can "Until our battle fleet is much larger than at present It should never bo split Into detachments 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 At lantic The interests of California, Oregon and Washington are as em phatically the interests of the hole Union as those of Maine and New York, of Louisiana and Texas. The battle fleet should now and then be moved to the Pacific. just as at other time. it should be kept in the Atlantic. ¦•When the Isthmian canal is built the transit of the battle, fleet from one ocean to the other will bo comparatively easy Until oit is built I earnestly hope that the battle fleet will be thus shifted be tween the two oceans every year or two. The marksmanship on all our ships has improved phenomenally during the last five years. Until within the last two or three years it was not possible to train a battle fleet in squadron maneuvers under service conditions, and it is only during these last two or three years that, the: training under these conditions has become really effective. Another and most necessary stride in advance is now being taken. The battle fleet is about starting by the straits of Magel lan to visit, the Pacific coast. Sixteen battleships are going under the com mand of Rear Admiral Evans, while eight armored cruisers and two other battleships will meet him at San Fran cisco, whither certain torpedo destroyers are also going. ¦ •No fleet of such size has ever made such a voyage, anu it will be of very great educational use to all engaged In it. The only way by which to teach officers and men how to handle the fleet bo as to meet every possible strain and emergency in time of war is to have them practice under similar conditions in lime of peace. Moreover, the only way to find out our actual needs is to perform In time of peace whatever maneuvers might be necessary in time of war. After war is declared it is too late to find out the needs; that means to invite dlsuster. This trip to the Pacific will show what some of our needs are ana will enable us to provide for them. The proper place for an officer to learn bis duty is at sea, and the only way In which a navy can ever be made efficient is by practice at sea, under all the con ditions which would have to be met if j war existed. Plea for Navy "I bespeak tho most liberal treatment for the offioers and enlisted men of tho navy. It is true of them, as likewise of the officers and enlisted men of the army, that they form a body whose In terests should be ciose to tho heart of every good American. In return the most rigid performance of duty should be ex acted from them. The reward ahouli be ample when they do their best; and nothing less than their best should be tolerated. It is idle to hope for the best results when the men in the senior grades come to those grades late in life and servo too shOTt a tlmo in them. Up to the rank of lieutenant commander pro motion in tho navy should be as now, by seniority, subject, however, to such rigid teßt3 as would eliminate tno unfit. "After the grade of lieutenant com mander, that Ib, when we come to the grade of command rank, the unlit should bi; eliminated in such manner that only the conspicuously fit would remain, and sea service should be a principal test of fitness. Those who are passed by should, after a certain length of service in their respective grades, be retired. Of a given number of men it may well be that al most all would make good lieutenants and most of them good lieutenant com manders, while only a minority will bj fit to be captains and tut three or four to be admirals. „ "Those who object to promotion other wise than by mere seniority should re flect upon the elementary fact that no business in private llfo could be success fully managed If those who enter at the lowest rungs of the ladder should each in turn, If he lived, become the head ot the llrm, its active director and retire after he had held the position a few months. On its face such a scheme Is an absurdity. Chances for Improper fa voritism can be minimized by a properly formed board; such as the board of last June, which did such conscientious and excellent work iv elimination. Make Beginning "It all that ought to be done cannot now be done, at least let a beginning be in my last three annual messages, and In a special message to the last con gress, the necessity for legislation that ; WELLS FARGO EXPRESS "i • : >_ - THB " MABir ""*"°* l ' A '"'" F ° R "^ **" DRK^°°^ ' Pyrography Blanks AND PO!>TOFFICE " x\l^>^^^*^-^** . both ; pmcmm : ; Ay h.^kan9b 337 . . ,<¦ »"* Ss^Ov\ ! 1 / ' '¦ : - -'¦.¦''¦¦ worth i> ' *°' 7.-«- \:' '¦'¦ . frl pcp c u n b d Ac:t e iephone;"accommoda: " tlon desk, rest room and a splen- V/ \\|K "^Ss!";.\\" • ' " ' .' •/\•r" ' ' V ' <~^Z*S y y / /nV\\ beautifully designed; values :up II I\\ Bpojmjllw^, O* 4 ttfr- ftLoo APßfl&ca Ap&tawr JLrtttts V/ I \\ | |to 7 S c; choice raky. ,m 81 . 6 , 3 »,P Spirit of Christmas, Santa Claus, the Toys ¦ Holiday Crowds Grow Greater. Shop in the Morning ,",."¦ ::;-.; ¦;• '.'.l ':? : %'.-..\-:- §A Magic Wonderland of Toys with Santa Claus in His Castle Cambric Muslin • Thousands' of square feet devoted to the selling cf toys and dolls. The f great Santa Claus head- - •¦•^SBjS',li r4 "* XI ° d * ro " > , 8 *° w ¦ ouarters-the beautiful castle, his f-epiace and the real, live Santa Claus coming and going in th, £Q M{\ ¦, IT m?- ™L°l w^a^ C hie chimney ; Don't fail to have: the children see this, wonderful display. Santa. Claus will have ;< "-Pi ImlliPs ,2500 .yds.: -short .lengths. As "^jf funny book for all his little boy and girl friends accompanied by an older person, in the morning at. U/ lf^ }£« ? toSo"Si^ flcTlS U^ 9-30 'to 10:30, in the afternoon at 2:30. to 5. '. We r e going to give away, absolutely free, the Parisian., Jj|/! l\\\/ nrx - V(<r ''' 6c - . .... -- ;,:. ..' :•. Mystery now operating in our window. It is wo r th $200. Particulars on the third floor. : Special jfllf |j \\ \\ .'','' ' ' "' ' /''".','. 'V^' — — " prices for .Wednesday, buyer?. -V-.;^'; •; ' :¦.'¦' f' ; .---. ! '':;'¦ V -; : '.. V. '* \ ffl'l^UJJ '¦' Infante' i Shoes •' :rvll r* V-^ ci n« * * » " ¦ . in rants 3hocs F ,ne don iSS»iH^ :^^|f=f ; ¦22SS3fcv;: ; $4.50 Pedal Wagon $3.98 E^U, ""' '"""Z, : : ;!; ' .. ,- v -^__ -%&?2?S££?££OyC ¦> Have heavy': steel wheels, rubber tires; just tho kind ol >=====? • FILL JOINTED . ¦. ... $1.25 '¦ RBBB9v ' they last Wednesday; Bto . ' V gffTlPprH wagon your boy will d.llsht in. ¦: ¦ . ; /MU k net and arm join kid doll; cork; £ftx £ft*^ 10, A. Sl ° '* P<Ur> 39C ' _ ' .', 1 . ; .:.- W&F^lm HARDWOOD 7Qr I- LARGE noxWAfiOX pa- IMF^A :Xffed; One. sewed wig; fitted with ¦• shoes <«& VXXg/ _____ \ _ RfSEPIB OAK CHAIRS .39C I BUILDING BLOCK uwv *.. [) v an d stockings. . :¦ , i '.¦..-.!.; ..^-^ ' C, A f-,V ' GAME OF LOUISA 80f- JK rClt oIIDDCrS OAJdOfl OF PIT, FLINCH. 7Qr M^^g|M 4«fV. SHERLOCK HOLMES -- j IjT-'HTK "^fcJi JSi ¦¦ M M — ¦} y^%W^^S^ fc* 75C One " tor Won " n > from Sto 10 i^^i nl^u|MW| fc^g~J^~jß^Jß^_^ : 'j Womon'K felt opera, or low » y^ Send for Bro.dw« y Book otß^c.^i Torn .'/'.,{ g »«^ TELEPHONE TO SANTA CLAUS C ' Pted <]¦ _¦ ; 1 " 1 """" ¦ . ~..) KOSC > for WOmCn S«,d for Bro-dw-y Book of Book, and Tor. Every Xt«1 B « from 6to 8, Sunday Exceed *^^ ftfc KOSC fOI" WOmCII Suit Case, $5.98 Value v Eiderdown Flannels B^c Standard Prints Bta^^l^. >;- : Genuine leather suit case : •<? * A %^ V^C, i.%" K^^tTSSftuffi*^ : 5S.°S^ o^^'^, fk ](* frame; heavy leather corners; leath- *L A i \ 'SwlgM Srts Md "iripee; extra heavy. I the best 8 l-3c grade in the city; mall or phone orders: res--; \jA\* er handle; valance Clasps and lock; JV^. |HK . ?* ?*kiraonoi! f -4 sacques: 20c grade. "It/ V ¦'* a Wednesday special, third t/V . ular .i2 H c. values, today.. <*~ Wednesday, third floor, $4.74. T" " .third floor annex, yard. 15c. floor annex, yard. sc. . • Aisle C, 6 '« - : ¦¦ ¦ .. ¦- .;¦ will muse officers of the line of trie navy to reach the grades oi captain and rear admiral at leas advanced ages and whioh will cause them to have more sea training and experience In the highly responsible duties of thoce grades, so t,.at they may become thorougnly skillful In handling battleships, divisions, squad rons and fleets In action, has been fully explained and urgently recommended. "Boon this subject the secretary of the navy hns submitted detailed and definite recommendations wiileh have received mv approval, and which. U enacted into law, will accomplish what Is Immediate ly necessary, and will, as compared with existing law. make a saving of more than live millions of dollars during the next seven years. The navy personnel act of 1899 has accomplished all that was expected of it In providing satisfactory periods of service in the several subor dinate: grades, from the grade of ensign to the grade of lieutenant commander, but the law Is inadequate in the upper grades and will continue to be inade quate on account of the expansion of the personnel since its enactment. "As stated In my special message to the last congress T am firmly of the opinion that unless the present condition of the higher commissioned personnel is rectified by judicious legislntlon the fu ture of our navy will bo pn.vely compro mised It i« also urgently nocessary to morose the efficiency of the medical corps of tho navy. Special legislation to this end has already been proposed; and I trust it may be enacted without delay. "It must be remembered that every thing done in the navy to tit It to do well in time of war must be done in time of peace. Modern wars are short; thej do not luat the le.nKth of time requlslu to build o. battleship; and It takes longer to train the officers and men to do we.. Ml a battleship than it. takes to build It Nothing effective can bo done for the navy once war has begun, and the. result of the war if the combatants are other wise equally matched, will depend upon which power has prepared best In time of i-eace. The United States navy is the best guaranty the nation has that its honor and Interest will not be neglected: and in udditlon 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 na tions as a strong and t;e.lf-respectlng man shculd behave toward the other men with whom he Is brought into contact. In other words, our aim is disinterestedly to help other nations where such help can be wisely given without the appear ance of meddling with what does pot con cern us; to be careful 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 imposed upon. THE HAGUE "The Second International Peace con ference was convened at The Hague on the loth day of June last and remained In ses&lon until the tiith of October. For the flrst time the representatives of practically all the civiilied countries of the world united ip a temperate and kindly discussion of the methods hv which the causes of var might bo nar rowed and Its Injurious effects reduced. "Although I the agreement* reached in the conference did not In any direction go to the length hoped lor by. the more sanguine, yet In uany directions import ant: steps were taken, and upon every subject on the program .. there . was such full and considerate discussion' as to justify the belief | that substantial prog rets has been made toward further agree ments In the future. Thirteen conventions were agreed upon embodying the definite conclusions which had been reached, and resolutions i were . adopted ¦ marking the progress made Sln matters 9 upon which agreement was j not yet ] sufficiently com plete to make conventions practicable. | "The delegates of the \ United States were . instructed ¦to ¦ favor an . agreement for obligatory arbitration, , the establish ment of a permanent court of arbitration to proceed Judicially in . the ¦ hearing and decision ' of international causes, the pro hibition of force ' for the collection of contract debts.- alleged to! bo duo from governments ¦ to citizens [of other coun tries until after arbitration ¦¦ as to the justice and amount of : the. debt and the time ¦ and manner ,of payment, the . im munity .of private • property ,at , : sea, . the better definition of the rights of neutrals, and, in case 1 any t measure ; to that; ond should 'be . introduced, ¦ the llmltatior of armaments. .v. v •¦* . '. :. v .. • •- •• • "In the Meld of peaceful disposal of in ternational difference* several important advances were made. First, as to ob ligatory arbitration. Although the con ference failed to recure a unalraous agree ment upon thu details of a corventlon for obligatory arbitration, It did resolve as follows: " 'It Is unanimous: (1) In accepting the principle for obligatory arbitration; (2) In declaring thai certain differences, and notably those relating to the Interpreta tion and sppllcntlon of International con ventional stipulations, are susceptible of being submitted to obligatory arbitration without any restriction.' "In view of thu fact that as a re«ult of the discussion the vote upon the def inite treaty of obligatory arbitration, which was proposed, stood 33 in favor to ft against the adoption of tho treaty, there enn be but little doubt that he great majority of the countries of the world have reached a point where they are now ready to apply practically the principles thus unanimourly agreed upon by the conference. "The second advance, and a very great one, Is the agreement which relates to the use of force for the collection of con tract debts. "A third advance has been made in amending and perfecting the convention of 1899 for tlie voluntary settlement of International disputes, and particularly the extension of those parts of that con vention which relate to commistions of inquiry. The existence of thope provisions enabled the government of Great Britain and ItuSßla to avoid war. notwithstand ing great public excitement, at the time of the Dogger bank Incident, and the new convention agreed upon by the con ference gives practical effect to the ex perience gafped In that Inquiry. Progress Made "Substantial progress was also made towurd the creation of a permanent Ju dicial tribunal for the determination of International causes. There was very full discussion of the propoeal for such a court and a general agreement was fin ally reached In favor of its creation. The conference recommended to tho signatory powers thu adoption of a draft upon which it agreed for the organization of the court, leaving to be determined only the method by which the Judges should be fe.leeted. This remaining unsettled question Is plainly one which time and good temper will solve. "A further agreement of the first im portance was that for the creation of an international prl«e court. The constitu tion, organization and procedure of such a tribunal were provided for in detail. "Numerous provisions were adopted for reducing the evil effects~of war and for fit -lining the rights and duties of neutrals. "The conference also provided for the holding of a third conference within a period similar to that which elapted be tween the first and second conferences. "The delegates of the United States worthily represented the splrtt of the American people and maintained with 11 dellty and ability tho policy of our gov ernment upon all the great questions dis cussed In tho conference. "The report of the delegation, together with authenticated copies of the conven tions eigned, when received, will be laid before the senate for its consideration. "When we remember how difficult it is for one of our own legislative bodies, composed of citizens of the same country, speaking the same language, .Ivtng under the same laws, and having the came cus toms, to reach an agreement, or even to secure a majority upon any difficult and important subject which is proposed for legislation, It becomes plain that the representavies of forty-tlve different countries, speaking many different lan guages, accustomed to different methods of procedure, with widely diverse Inter ests, who discussed so many different sub jects and reached agreements upon »o many, aro entitled to grateful apprecia tion for the wisdom, patience and mod eration with which they havo discharged their duty. "The example of this temperate dis cussion, and the agreements and the ef forts to agree, among representatives of all the nations of the earth, acting with universal recognition of the supreme ob ligation to promote peace, cannot fall to be- ft powerful influence for good In future international relations. CUBA "A year ago in consequence of a revo lutionary movement in Cuba which threatened the immediate return to chaos of the inland, tho United Stater. Inter vened, tending down an army and estab lishing a provisional government under Governor Magoon. Absolute quiet and prosperity have returned to the island be cause of this action. We are. now taking stops to provide for elections in the island and our expectation is within the coming year to be able to turu the lUund over again to a government chosen by the people thereof. Cuba is at our doors; It Is not possible that this nation should permit Cuba again to sink Into the con dition from which we rescued It. All that we ask of the Cuban people is that they be prosperous, that they govern them selves so as to bring content, order and progress to their Island, the Queen of the Antilles; and our only interference hap been and will be to help them achieve these results. IAPANESE EXPOSITION "An invitation has been extended by Japan to the government and people of the United Stati to participate in n great national exposition to be held at Tokio from April 1 to October ::i, 1912. and in which the principal countries of the world are to be Invited to take part. This is an occasion of special interest to all the nations of the world, and pe culiarly co to us; for It is tho lirst in stance in which such a great rational exposition hat been beld by a great pow er dwelling on the Pacific; und all the nations of Europe and America will, I tnibt. Join in helping to success this first great exposition ever held by a great nation of Asia. The geographical rela tion!? of Japan and the United States an the possessors of such large portions of the coasts of the Pacific, the intimate trade relations already existing between the two countries, the warm friendship which has been maintained between them without break since the opening of Japan to Intercourse with the western nations, and her Increasing wealth and produc tion, which we regard with hearty good will and wish to- make the occasion of mutually beneficial commerce, all unite in making it eminently desirable that this Invitation should be accepted. 1 heartily recommend such legislation as will provide In generous fashion for the representation of this government and Its people In the proposed exposition. "Action should be taken now. We are apt to underestimate tho time necessary for preparation in such cases. The In vitation of the French exposition of 1900 was brought to the attention of the con gress by President Cleveland In De cember, 1895, and so many am thu de lays necessary to such proceedings that the period of four years and a half which then intervened before the exposition proved none too long for the proper preparation of tho exhibits. GERMAN TARIFF "The adoption of a new tariff by Ger many, accompanied by conventions for reciprocal tariff concessions between that country and most of the other countries of continental Europe, led the OerSUW government to givo the notice necessary to terminate the reclproeal oommerobil agreement with this country proclaimed July 13, 1900. Tho notico wan to tako effect on the Ist of March. 1906, and In default of :;ome other arrangements t.hlH would have left the exports " from tho United States to Germany BUbJ&ct to tho general German tariff duties, from ft to 50 par cent higher than the conven tional duties lmposou upon tho goods of most of our competitors for German trade. "Under a speclaJ agreement made be tween the two governments In February, lflOG, the German government postponed the operation of their notice until the 30th of June, 1907. In the meantime, deeming It to be my duty to make every possible effort to prevent a tariff war between the Unjted States a,nd Germany arising from misunderstanding by either country of the cond.tions existing in the other, and acting upon the invitation of the German government, I sent to BSr- Un a commission composed of competent experts In the operation and ndminls trailon of the customs tariff, from tho departments of the treasury and com merce and labor. This commission was engaged for several months In conference with a similar commission appointed by tho German government, under Instruc tions, so fa. as practicable, to reach a common understanding as to all the facts regarding the tariffs of the United States and Germany material and rel evant to tho trade relations between the two countries. "The commission reported, and upon the basis of the report, a further tem porary commercial agreement was en tered into by tho two countries, pursu ant to which, in tho exercise of tho au thority conferred upon the president by tho third section of tho tariff act of July, ISB7. 1 extended the reduced tariff rates provided for In that section to champagne and all other sparkling wines and pursuant to which the Gorman con ventional or minimum tariff rates wero extended to about sfi'i- per cent of all the exports from the United States to Germany. This agreement is to remain In force until the 30tn of Jiroe, 1908, and until six months after notice by either party to terminate lU~ CHINA "I ask for authority to reform the agreement with China under which the and canceling the obligation of China and cancelling the obligation of China for the payment of all that part of the stipulated indemnity whicn ie in excess of the sum of $11,665,492.63 and interest at 4 per cent. After the rescue of tho for eign legations in Peking during the Box er troubles In 1900 the powers required from China the payment of equitable in demnities to thevseveral nations, and the final protocol under which the troops wero withdrawn, signed at Peking, Sep tember 7. 1901, fixed the amount of this Indemnity allotted to the United States at over $20,000,1>-v, and China paid, up to and Including the Ist day of June, last, a little over $6,000,000. "It was tba first intention of thie gov ernment at the proper time, whpn all claims had been presented and all ex penses ascertained as fully as possible, to revise the. estimates and account, and as a proof of sincere friendship for China voluntarily to release that country from its legal liability for all payments in ex cess of the sum which should prove to be necessary for actual indemnity to the United States and its citizens. CHINESE STUDENTS "This nation Fhould help in every prac ticable way in tho education of tho Chi nese people, so that the vast and popu lous empire of China may gradually ndapt itself to modern conditions. One. way of doing this is by promoting the coming of Chlnesu students to this country and -naklng it attractive to thorn to take courses at our universities and higher educational institutions. Our educators should, so far BJ possible, take concerted action toward thi:, end, CENTRAL AMERICA "On the courteous invitation of the president of Mrxlro tho secretary of state visited that country in September and October and was ic civic) every whero with the greatest kindliest! and hospi tality. "He carried from the government of the United Status to our southern neigh bor a. . message of respect and good wm and of desire for better acquaintance and increasing friendship. The response from the government and the people of Mex ico whs hearty and sincere. No pains were spared to manifest the most friend ly atlltudu and feeling toward trie United .States. ¦ ' ,-! ¦ .*- ;.• , ','. ¦ ¦ "~ ¦ V V ¦' "In view of the close neighborhood of the i\v'> coimtrlcs the relations which vxlst between Mexico and the United St;it. ,ir<: Just cauce. for stratification. Wa have a common boundary of over 1500 miles from the Gulf of Mexico to ihfc i'liolflc- Much of \(. 1b marked only by th>; shifting waters Of the Rio Grando. Many thousands of Mexicans are rosld lng upon our side of the line and It Is estimated that over 10,000 Americans ara resident In Mexican territory and that American Investments In Mexico amount to over 1700,000,000. "Tho extraordinary Industrial and com mercial prosperity of Mexico hua been greatly promoted by American enter prise and Americans are sharing largely In Its results. . The foreign trade of the republic already exceeds $240,000,000 per annum, and of this two-thirds both of exports and Imports aro exchanged with the United t'tates. Under these circum stances numerous questions necessarily arise between tho two countries. These questions are always approached and dis posed of in a spirit of mutual courtesy and fair dealing. Americans carrying on business in Mexico testify uniformly to the kindness and consideration with which they are treated and their sense of the security of their property and en terprises ur.der the wise administration of the great statesman who has so long held the office of chief magistrate of that republic. ; "The two governments have : been unit ing ' their ¦ efforts' for a -. considerable time pant -to aid Central America in attaining the degree of peace and order which have madn '; possible \ the •'.: prosperity of ¦:•¦•; the northern \ parts of „ the „ continent. After the .; peace " : between" Guatemala, . Hondu ras i and . Salvador,', ; celebrated i wider;; the circumstances ( described •In . my last i moo-" sage. a L new war broke , out -' between", the republics " ! ; of ) Nicaragua, Honduras f and Salvador. The effort to compose this new difficulty has resulted hi the accep tance of the Joint suggestion of the presidents ct Mexico and of the United States for a general peace conference between all the countries of Central America. "On the 17th day of September last a protocol was signed between tin; repre sentatlves of tlie five Central American countries accredited to this government agreeing upon v conference to be held in the city of Washington "In order to dcvlsu tho moans of preserving tho gorui relations ~mong said republics and bringing about permanent peace la those countries." Tho protocol includes the expression of a wish that the presidents of the United States and Mexico should appoint 'Topreeentatives to lend then- Rood and Impartial Qfßcea in n purel.i friendly way toward the realization of the objects of the conference." The con ference is now in session and will ha\. our best wishes and, wlier.j it is prac ticable, our friendly assistance. AMERICAN REPUBLICS • "One of the results of yie Pan American conference- at Rio Janeiro In the sum mer of 1906 has been' a. "groat Increase' In the activity and usefulness of the Inter national :' bureau of American republics. That Institution, which includes all 1 the American republics' -In ' Its 'membership and I brings all j their '. representatives to. gether, is ujing a reahy valuable . work in Informing the people ;of ¦: the United States about the other republics and In making the United States known to them. Its action 'is now limited by appropria tions determined .' when', it , was I doing it work on a much (mailer seal« nnd ren dering . much . less -valuable service. • l recommend, that- tin: contribution of this government to the expenses of the bureau be made commensurate With its Increased work. ¦ THEODORE ROOSEVELT.." • The White House, Docembe; 1 3, 1907. . 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