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ROOSEVELT TO CONGRESS His Annual Communication Upon Questions of Importance to the Nation. VIEWS ON THE TRUSTS AND TARIFF A Lowering of Import Duties Would Not Remedy the Evils of Monopoly—Believes in a Tariff Com mission—Much That Is Good in Labor Unions and Corporations—Many Needs of the Nation. To the Senate and House of Representa tives: We still continue in a period of unbounded prosperity. This prosperity is not the creature of law, but undoubtedly the laws under which we work have been instrumental in creating the conditions whleji made it possible, and by unwise leg isHitign it would be easy enough to destroy U. There will undoubtedly be periods of depression. The wave will recede; but the tide will advance. This nation is seated on a continent flanked by two great oceans. It is composed of men the descendants of pioneers, or in a s^ense, pioneers them selves; of men winnowed out from among the nations of the old world by the energy, boldness, and love of adventure found in their own eager hearts. Such a nation, so placed, will surely wrest success from for tune. As a people we have played a large part In the world, and we are bent upon making our future even larger than the past. In particular, the events of fhe last four years have definitely decided that, for woe or for weal, our place must be great among the nations. We may either fail greatly or succeed greatly; but we cannot avoid the endeavor from which either great fail ure or great success must come. Even if we would, we cannot play a small part. If we should try, all that would follow ■w ould be that we should play a large part ignobly and shamefully. Causes of Prosperity. No country has ever occupied a higher plane of material well-being than ours at the present moment. This well-being is due to no sudden or accidental causes, but to the play of the economic forces in this country for over a century; to our laws, our sustained and continuous policies; above all. to the high individ ual average of our citizenship. Great fortunes have been won by those who have taken the lead in this phenomenal industrial development, and most of these fortunes have been won not by doing evil, but as an incident to action which has benefited the community as a whole. Never before has material well-being been so widely diffused among our peo ple. Great fortunes have been accum ulated. and yet in the aggregate these pared to the wealth of the people as a whole. The plain people are better off than they have ever been before. The Insurance companies, which are prac tically mutual benefit societies—especial ly helpful to men of moderate means— represent accumulations of capital which are among the largest in this country. There are more deposits in the savings banks, more owners of farms, more well paid wage workers in this country now than ever before in ourhistory. Of course, when the conditions have favored the growth of so much that was good, they have also favored somewhat the growth of what was evil. It is eminently neces sary that we should endeavor to cut out this evil, but let us keep a due sense of proportion; let us not in fixing our gaze upon the lesser evil forget the greater good. The evils are real and some of them are menacing, but they are the outgrowth, not of misery or decadence, but of prosperity—of the progress <5f our gigantic industrial development. Tills Industrial development must not lie checked, but side by side with it should go such progressive regulation as will diminish the evils. We should fail in our duty if we did not try to remedy the evils, but we shall succeed only if we proceed patiently, with practical common sense as well as resolution, separating the good from the bad and holding on to the .former while endeavoring to get rid • of the latter. THE TRUSTS. They Can Be Controlled Only by Na tional Action. In my message to the present congress at its first session I discussed at length the question of the regulation of those big corporations commonly doing an in terstate business, often with some ten dency to monopoly, which are popularly known as trusts. The experience of the past year has emphasized, in my opin ion, the desirability of the steps I then proposed. A fundamental requisite of social efficiency is a high standard of Individual energy and excellence; but this is in no wise inconsistent with pow er to act in combination lor aims which cannot so well be achieved by the indi vidual acting alone. A fundamental base of civilization is the inviolability of prop erty; but this is in no wise inconsistent with the right of society to regulate the exercise of the artificial powers which it confers upon the owners of property, un der the name of corporate franchises, in such a way as to prevent the misuse of these powers. Corporations, and espe cially combinations of corporations, should be managed under public regula tion. Experience has shown that under our system of government the necessary supervision cannot he obtained by state action. It must therefore be achieved by national action. Our aim is not to do away with corporations; on the contrary, these big aggregations are an Inevitable development of modern industrialism, and the etfort to destroy them Would be futile unless accomplished in ways that would work the ufmost mischief to the entire body politic. We can do nothing of good In the way of regulating and supervising these corporations until we fix clearly in our minds that we are not attacking the corporations, but endeavoring to do away with any evil in them. We are not hostile to them; we are merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth. The capitalist who, alone or in conjunc tion with his fellows, performs some great industrial feat by which he wins money is a welldoer, not a wrongdoer. province oniv ne worKs in proper and legitimate lines. We wish to favor such a man when lie does well. We wish to supervise and control his actions only to prevent him from doing ill. Publicity can do no harm to the honest corpora tion; and we need not be overtender about sparing the dishonest corporation. Must Exercise Care. In curbing and regulating the combina-. tior.s of capital which are or may become injurious to the public we must be careful not to stop the great enterprises which have legitimately reduced the cost of pro duction, not to abandon, the place which our country has won in the leadership of the international industrial world, not to 6trike down wealth with the result of clos ing factories and mines, of turning the wage-worker idle in, the streets and leav ing the farmer without a market for what he grows. Insistence upon the impossible means delay in achieving the possible, ex actly as, on the other hand, the stubborn defense alike of what is good and what is bad in the existing system, the resolute ef fort to obstruct any attempt at betterment, betrays blindness to the historic truth that wise evolution is the sure safeguard against revolution. No more important subject can come be fore the congress than this of the regula tion of interstate business. This country cannot afford to sit supine on the plea that ■under our peculiar system of governiner.t ■we are helpless in the presence of the new conditions, and unable to grapple with them or to cut ouf whatever of evil has arisen in connection with them. The power of the congress to regulate interstate commerce Is an absolute and unqualified grant, and without limitations other than those pre scribed by the constitution. The congress has constitutional authority to make all laws necessary and proper for executing this power, and I am satisfied that this fiower has not been exhausted by any leg slation now on, the statute books. It is evident, therefore, that evils restrictive of commercial freedom entailing restraint ■upon national commerce fall within the regulative power of the congress, and that a wise and reasonable law would be a neces sary and proper exercise of congressional authority to the end that such evils should eradicated I believe that monopolies, unjust (dis criminations, which prevent or cripple competition, fraudulent overcapitalization, and other evils in trust organizations and practices which injuriously affect inter state trade can be prevented under the pow er of the congress to “regulate commerce with foreign nations and among the sev eral states” through regulations and re quirements operating directly upon such commerce, the instrumentalities thereof, and those engaged therein. I earnestly recommend this subject to the consideration of the congress with a view to the passage of a law reasonable in its provisions and effective in its operations, upon which the questions can be finally adjudicated that now raise doubts as to the necessity of constitutional amendment. If It prove Impossible to accomplish the purposes above set forth by such, a law, then, assuredly, we should not shrink from amendiing the constitution so as to secure beyond peradventure the power sought. THE TARIFF. It Is a Subject That Stands Apart from the Trusts. One proposition advocated has been the reduction of the tariff as a means of reach ing the evils of the trusts which fall with in the category 1 have described. Not merely would this be wholly ineffective, but the diversion of our efforts in such a direction would mean the abandonment of all intelligent attempt to do away with these evils. Many of the largest corpora tions, many of those which should cer tainly be included In any proper scheme of regulation, would not be affected in the slightest degree by a change in the tariff, save as such change Interfered with the general prosperity of the country. The only relation of the tariff to big corpora tions as a whole is that the tariff makes manufactures profitable, and the tariff remedy proposed would be in effect sJmpty to make manufactures unprofitable. To remove the tariff as a punitive measure directed against trusts would inevitably re sult in ruin to the weaker competitors who are struggling against them. Our aim should be not by unwise tariff changes to give foreign products the advantage over domestic products, hut by proper regula tion to give domestic competition a fair chance; and this end cannot be reached by any tariff changes which would affect un favorably all domestic competitors, good and bad alike. The question of regulation of the trusts stands apart from the ques tion of tariff revision. Stability of economic policy must always be the prime economic need of this country. This stability should not be fossiilzation. The country has acquiesced in the wisdom ot the protective-tariff principle. It is ex ceedingly undesirable that this system should be destroyed or that there should be violent and radical changes therein. Our past experience shows that great prosper ity in this country has always come under a protective tariff; and that the country cannot prosper under fitful tariff changes at short intervals. Moreover, if the tarJff laws as a w hole work well, and if business has prospered under them and is prosper ing, it is better to endure for a time slight inconveniences and inequalities In some schedules than to upset business by too quick and too radical changes. It is mo«t the tariff from the standpoint solely of our business needs. It is. perhaps, too much to hope that partisanship may he entirely ex cluded from consideration of the subject but ,at least it can be made secondary to the business interests, of the country—that is, to the interests of our people as a whole Unquestionably these business interests will best lie served if together with fixity of principle as regards the tariff we com bine a system which will permit us from time to time to make the necessary reap plication of the principle to the shifting na tional needs. We must take scrupulous care that the reapplication shall be made in such a way that it will not amount to a dislocation of our system, the mere threat of which (not to speak of the per formance) would produce paralysis, in tlie business energies of the community. The first consideration in making these changes would, of course, he to preserve the prin cip.e which underlies our whole tariff sys tem—that is. the principle of putting Amer ican business, interests at least on a full equality with interests abroad, and of al ways allowing a sufficient rate of dutv to more than cover the difference bet ween The labor cost here and abroad. The well-be lRg of the wape-worker, like the well-be inp of the tiller of the soil, should be treat ed! as an essential in shaping our whole economic policy. There must never be any change winch will jeopardize the standard of comfort, the standard of wages of the American wage-worker. One way in which the readjustment sought can be reached is by reciprocity treaties. It is greatly to be desired that such treaties may be adopted. They can be used to widen our markets and to give a greater field for the activities of our producers on the one hand, and on the other to secure in practical shape the lowering of duties when they are no longer needed for protection among our own people, or when the minimum of damage done may be disregarded for the sake of the maximum of good accom plished. If it prove impossible to ratify the pending treaties, and if there seem to be no warrant for the endeavor to execute others, or to amend the pending treaties so that they can be ratified, then the same end—to secure4 reciprocity should be met by direct legislation. \eed of a Tariff Commission. Wherever the tariff conditions are such that a needed change cannot with ad vantage be made by the application of the reciprocity idea, then it can be made outright by a lowering of duties on a given product. If possible, such change should be made only after the fullest consideration by practical experts, who should approach the subject from a busi ness standpoint, having in view both the particular interests affected and the com mercial well-being of the people as a whole. The machinery for providing such careful Investigation can readily be sup plied. The executive department has al ready at its disposal methods of collect ing facts and figures: and if the con gress desires additional consideration to that which will be given the subject by its own committees, then a commission of business experts can be appointed whose duty it should be to recommend action by the congress after a deliberate and scientific examination of tho various schedules as they are affected by the changed and changing conditions. The unhurried and unbiased report of this commission would show what changes should be made in the various schedules, and how far these changes could go without also changing the great pros perity which this country is now enjoy ing, or upsetting its fixed economic pol icy. The cases in which the tariff can pro duce a monopoly are so few as to con stitute an inconsiderable factor in the question; but of course if in any case it be found that a given rate of duty does promote a monopoly which works ill, no protectionist would object to such reduction of the duty as would equalize competition. In my judgment, the tariff on anthra cite coal should be removed, and anthra cite put actually, where it now is nom inally, on the free list. This would have iiu ciimi ui mi save in crises; Dut in crises it might be of service to the peo ple. Needed Financial Legislation. Interest rates are a potent factor In business activity, and In order that these rates may be equalized to meet the vary ing needs of the seasons and of widely separated communities, and to prevent the recurrence of financial stringencies which injuriously affect legitimate busi ness, it Is necessary that there should be an element of elasticity In our monetary system. Banks are the natural servants of commerce, and upon them should be placed, as far as practicable, the burden of furnishing and maintaining a circu lation adequate to supply the needs of our diversified Industries and of our do mestic and foreign commerce; and the issue of this should be so regulated that a sufficient supply should be always available for the business interests of the country. It would be both unwise and unneces sary at this time to attempt to recon struct our financial system, which has been the growth of a century; but some additional legislation is, I think, desir able. The mere outline of any plan suffi ciently comprehensive to meet these re quirement^ would transgress the appro priate limits of this communication. It is suggested, however, that all future legislation on the subject should be with the view of encouraging the use of such instrumentalities as will automatically supply every legitimate demand of pro ductive industries and of commerce, not only in the amount, but in the character of circulation: and of making all kinds of money Interchangeable, and, at the will of the holder, convertible into the estab lished gold standard. THE LABOR PROBLEM. Unionism Contains Much That In Good and Some Bad. How to secure fair treatment alike for labor and lor capital, how to hold in check the unscrupulous man, whether employer or employe, without weakening Individual initiative, without hampering und cramping the industrial development of the country, is a problem fraught with great difficulties and one which it Is of the highest importance to solve on lines of sanity and far-sighted common sense as well as of devotion to the right. This Is an era of federation and combination. Exactly as business men find they must often work through corporations, and as It is a constant tendency of these cor porations to grow larger, so It is often necessary for laboring men to work In federations, and these have become Im portant factors of modern Industrial life. Both kinds of federation, capitalistic and labor, can do much good, and as a nec essary corrollary they can both do evil. Opposition to each kind of organization should take the form of opposition to whatever is bad in the conduct of any given corporation or union—not of at tacks upon corporations as such nor upon unions as such; for some of the most far-reaching beneficent work for our peo ple has been accomplished through both corporations and unions. Each must re frain from arbitrary or tyrannous Inter ference with the rights of others. Or ganized capital and organized labor alike should remember that in the long run the Interest of each must be brought Into harmony with the Interest of the general public; and the conduct of each must conform to the fundamental rules Of obedience to the law, of Individual freedom, and of justice and fair dealing toward all. Each should remember that In addition to power It must strive after the realization of healthy, lofty and gen erous Ideals. Every employer, every wage worker, must be guaranteed his liberty and his right to do as he likes with his property or his labor so long as he does not infringe upon the rights ui uiiicia. ii oi me nigncsc impor tance that employer and employe alike should endeavor to appreciate each the viewpoint of the other and the sure dis aster that will come upon both in the long run if either grows to take as habit pal an attitude of sour hostility and dis trust toward the other. Pew people de serve better of the country than those representatives both of capital and labor —and there are many such—who work continually to bring about a good under standing of this kind, based upon wisdom and upon broad and kindly sympathy be tween employers and employed. Above all, we need to remember that any kind of class animosity in the political’world Is, if possible, even more wicked, even more destructive to national welfare, than sectional, race or religious animos ity. We can get good government only upon condition that we keep true to the principles upon which this nation was founded, and judge each man not as a part of a class, but upon his individual merits. All that we have a right to ask of any man. rich or poor, whatever his creed, his occupation, his birthplace, or his residence, is that he shall act well and honorably by his neighbor and bv his country. We are neither for the rich man as such nor for the poor man as such; we are for the upright man. rich or poor. So far as the constitutional powers of the national government touch these matters of general and vital mo ment to the nation, they should be exer cised in conformity with the principles above set forth. Recommends Department of Com merce. It is earnestly hoped that a secretary of commerce may be created, with a seat in the cabinet. The rapid multiplication of questions affecting labor and capital, the growth and complexity of the organizations through which both labor and capital now find expression, the steady tendency to ward the employment of capital in.'huge corporations, and the wonderful strides of this country toward leadership in the in take advantage of the machinery al ready in existence at The Hague. I commend to the favorable considera tion of the congress the Hawaiian fire claims, which were the subject of care ful Investigation during the last session. THE PANAMA CANAL. French Company Offers a Good Title to Its Property. The congress has wisely provided that we shall build at once an Isthmian canal, If possible at Panama. The attorney gen eral reports that we can undoubtedly ac quire good title from the French Panama Canal company. Negotiations are now pending with Colombia to secure her assent to our building the canal. This canal will be one of the greatest engineering feats of the twentieth century; a greater engineer ing feat than has yet been accomplished during the history of mankind. The work should be carried out as a continuing policy without regard to change of administra tion; and It should be begun under circum stances Which will make It a matter of pride for all administrations to continue the policy. The canal will be of great benefit to Amer ica, and of Importance to all the world. It will be of advantage to us Industrially and also as improving our military position. It will be of advantage to the countries of tropical America. It Is earnestly to be hoped that all of these countries will do as some of them have already done with sig nal success, and will invite to tnelr shores commerce and Improve their material con ditions by recognizing that stability and order are the prerequisites of successful development. No independent nation In America need have the slightest fear of aggression from the United States. It be hooves each one to maintain order within *ts own borders and to discharge Its just obligations to foreigners. When this Is done, they can rest assured that, be they strong or weak, they have nothing to dread from outside Interference. More and more the increasing Interdependence and com plexity of international political and eco nomlc relations render It Incumbent on all civilized and orderly powers to Insist on the proper policing of the world. The Pacific Cable. During the fall of 1901 a communication was addressed to the secretary of state, asking whether permission would be granted by the president to a corpora fj°n t° lay a cable from a point on the California coast to the Philippine islands by way of Hawaii. A statement of con ditions or terms upon which such cor poration would undertake to lay and operate a cable was volunteered. Inasmuch as the congress was shortly to convene, and Pacific cable legislation had been the subject of consideration by the congress for several years, It seemed to me wise to defer action upon the ap plication until the congress had first an opportunity to act. The congress ad journed without taking any action, leav ing the matter in exactly the same con dition In which it stood when the con gress convened. Meanwhile It appears that the Com mercial Pacific Cable company had promptly proceeded with preparations for laying its cable. It also made applica tion to the president for access to and use of soundings taken by the U. S. S. Nero, for the purpose of discovering a practicable route for a trans-Pacific cable, the company urging that with ac cess to these soundings it could complete its cable much sooner than if it were required to take soundings upon Its own account. Pending consideration of this subject, It appeared important and de sirable to attach certain conditions to the permission to examine and use the soundings, if it should be granted. In consequence of this solicitation of the cable company, certain conditions were formulated, upon which the nr^sl PRESIDENT ROOSEVELT. ternattonal business world justify an ur gent demand for the creation of such a po sition. Substantially all the leading com mercial bodies in. this country have united in, requesting its creation. It is desirable that some such measure as that which has already passed the senate be enacted Into law. The creation of such a department would in itself be an advance toward deal ing with and exercising supervision over the whole subject of the great corporations doing an Interstate business; and with this end in view, the congress should endow the department with large powers, which could be increased as experience might show the need. CUBAN RECIPROCITY. President Insists the Island Should Have Consideration. I hope soon to submit to the senate a reciprocity treaty with Cuba. On May 20 last the United States kept its promise to the island by formally vacating Cuban soil and turning Cuba over to those whom her own people had chosen as the first officials of the new republic. Cuba lies at our doors, and whatever af fects her for good or for ill affects, us also. So much have our people felt this that in the Platt amendment we definitely took the ground that Cuba must hereafter have closer political relations with us than with any other power. Thus in a sense Cuba has become a part of our international po litical system. This makes it necessary that in return she should be given some of the benefits of becoming part of our eco nomic system. It is, from our own stand point, a short-sighted and mischievous pol icy to fail to recognize this need. More over, it is unworthy of a mighty and gen erous nation, itself the greatest and most successful republic in history, to refuse to stretch out a helping hand to a young and weak sister republic Just entering upon its career of Independence. We should al ways fearlessly insist upon our rights in the face of the strong, and we should with ungrudging hand do ou£,generou9 duty by the wealc. 1 urge the adoption, of reciprocity vuua iivi umj' uci^tuse 11 id cuuiicjm^ for our own interests to control the Cuban market and by every means to foster our supremacy in the tropical lands and waters south of us, but aleo because we, of the giant republic of the north, should make all our sister nations of the American con tinent feel that whenever they will permit it we desire to show ourselves disinterest edly and. effectively their friend. International Arbitration. As civilization grows warfare becomes less and less the normal condition of foreign relations. The last century has seen a marked diminution of wars be tween civilized powers; wars with unciv ilized powers are largely mere matters of international police duty, essential for the welfare of the world. Wherever pos sible, arbitration or some similar method Ehould be employed in lieu of war to settle difficulties between civilized nations, al though as yet the world has not progressed sufficiently to render It possible, or neces sarily desirable, to invoke arbitration in every case. The formation of the inter national tribunal which sdts at The Hague is an event of good omen from which great consequences for the wel fare of all mankind may flow. It is far better, where poestble, to Invoke such a permanent tribunal than to create spe cial arbitrators for a giyen purpose. It is a matter of sincere congratulation to our country that the United States and Mexico should have been the first to use the good offices of The Hague court. This was done last summer with most satisfactory results in the case of a claim at issue between us and our sister republic. It is earnestly to be hoped that this first case will serve as a prece dent for others, in which not only the United States, but foreign nations may dent was willing to allow access to these soundings and to consent to the landing and laying of the cable, subject to any alterations or additions thereto imposed by the congress. This was deemed prop er, especially as it was clear that a cable connection of some kind with China, a foreign country, was a part of the com pany's plan. This course was, moreover, in accordance with a line of precedents, including President Grant's action in the case of the first French cable, explained to the congress in his annual message of December, 1875, and the instance occur ring in 1879 of the second French cable from Brest to St. Pierre, with a branch to Cape Cod. These conditions prescribed, among other things, a maximum rate for com mercial messages and that the company should construct a line from the Philip pine islands to China, tjhere being at present, as is well known, a British line from Manila to Hong-Kong. The representatives of the cable com pany kept these conditions long under consideration, continuing, in the mean time. to prepare for laying the cable. They have, however, at length acceded to them, and an all-American line be tween our Pacific coast and the Chinese empire, by way of Honolulu and the Philippine islands, is thus provided for, and is expected within a few months to be ready for business. PHILIPPINE ISLANDS. The Policy of Holding Them itai Been Vindicated. On July 4 last, on the one hundred and twenty-sixth anniversary of the declara tion of our independence, peace and am nesty were promulgated in the Philip pine islands. Some trouble has since from time to time threatened with the Mohammedan Moros, but with the late insurrectionary Filipinos the war has entirely ceased. Civil government has now been introduced. Not only does suui iiguia iu me, liberty and the pursuit of happiness as he has never before known during the recorded history of the islands, but the people taken as a whole now enjoy a measure of self-government greater than that granted to any other orientals by any foreign power and greater than that enjoyed by any other orientals under their own governments, save the Japan ese alone. We have not gone too far in granting these rights of liberty and self government; but we have certainly gone to the limit that in the Interests of the Philippine people themselves it was wise or just to go. To hurry matters, to go faster than we are now going, would en tail calamity on the people of the is lands. No policy ever entered into by the American people has vindicated it self in more signal manner than the pol icy of holding the Philippines. The tri umph of our arms, above all the tri umph of our laws and principles has come sooner than we had any right to expect. Too much praise cannot be given to the army for what it has done in the Philippines, both in warfare and from an administrative standpoint in preparing the way for civil government: and similar credit belongs to the civil authorities for the way in which they have planted the seeds of self-govern ment in the ground thus made ready for them. The courage, the unflinching en durance, the high soldierly efficiency, and the general kind-heartedness and humanity of our troops have been strik ingly manifested. There now remain only some 15,000 troops in the islands. All told, over 100,000 have been sent there. Of course, there have been individual in stances of wrongdoing among them. They warred under fearful difficulties of climate and surroundings; and under the j strain of the terrible provocations which they continually receive from their foes, occasional instances of cruel retaliation occurred. Every effort has been made to prevent such cruelties, and Anally these efforts h ve been completely suc cessful. Every effort has also been made to detect and punish the wrongdoers. After making all allowance for these misdeeds, it remains true that few In deed have been the Instances In which war has been waged by a civilized power agai 1st seml-civilized and barbarous forces where there has been so little wrongdoing by the victors as In the Phil ippine islands. On the other hand, the amount of difficult. Important, and be neAcent work which has been done la well-nigh Incalculable. Taking the work of the army and the civil authorities together, It may be ques tioned whether anywhere else In modern times the world has seen a better exam ple of real constructive statesmanship than our people have given In the Phil ippine Islands. High praise should also be given those Filipinos, In the aggre gate very numerous, who have accepted the new conditions and joined with our representatives to work with hearty good will for the welfare of the Islands. I urgently call your attention to the need of passing a bill providing for a general staff and for the reorganization of the sup ply departments on the lines of the bill proposed by the secretary of war last year. When the young officers enter the army from West Point they probably stard above their compeers In any other military service. Every effort should be made, by training, by reward of merit, by scrutiny Into their careers and capacity, to keep them of the same high relative excellence throughout their careers. The National Guard. The measure providing for the reorgani zation of the militia system and for secur ing the highest efficiency In the national guard, which has already passed thehouse, should receive prompt attention and ac tion. It Is of great Importance that the re lation of the national guard to the militia and volunteer forces of the United States s.wu.u ut uciincu, ana ion in place or our present obsolete laws a practical and ef ficient system should be adopted. NEEDS OF THE NAVY. More Ships and Men Needed to Keep Pace with the Times. For the first time in our history naval maneuvers on a large scale are being held under the Immediate command of the ad miral of the navy. Constantly Increasing attention Is being paid to the gunnery of the navy, but it is yet far from what It should be. I earnestly urge that the in crease asked for by the secretary of the navy in the appropriation for Improving the marksmanship be granted. In battle the only shots that count aj-e the shots that hit. It is necessary to provide ample funds for practice with the great guns in time of peace. These funds must provide not only for the purchase of projectiles, but for allowances for prizes to encourage the gun crews, and especially the gun pointers, and for perfecting an intelligent system under which alone it is possible to get good praotice. There should be no halt in the work of building up the navy, providing every year additional fighting craft. We are a very rich country, vast in extent of territory and great in population; a country, moreover, which has an. army diminutive indeed when compared with that of any other first-class power. We have deliberately made our own certain foreign policies which demand the possession of a first-class r.avy. The isthmian canal will greatly increase the efficiency of our navy if the navy is of suf ficient size; but if we have an inadequate navy, then the bufiding of the canal would be merely giving a hostage to any power of superior strength. The Monroe doctrine should be treated as the cardinal feature of American foreign policy; but it would be worse than Idle to assert it unless we In tended to back it up, and It can be backed up only by a thoroughly*ood navy. A good navy Is not a provocative of war. It is the surest guaranty of peace. Each individual unit of our navy should be the most efficient of its kind as regards both material and personnel that is to be found in the world. I call your special at tention to the need of providing for the manning of the ships. Serious trouble threatens us if we cannot do better than we are now doing as regards securing the services of a sufficient number of the high est type of sailormen, of sea mechanics. The veteran seamen of our warships are of as high a type as can be found in any navy which rides the waters of the world > they are unsurpassed in daring, In resolu tion. in readiness, in thorough knowledge of their profession. They deserve every consideration that can be shown them. But there are not enough of them. It is no more possible to improvise a crew than It is possible to improvise warship. To build the finest ship, with the deadliest battery, and to send It afloat with a raw crew, r.o matter how brave they were in dividually, would be to insure disaster if a foe of average capacity were encountered Neither ships nor men can be Improvised when war has begun. We need a thousand additional officers in order to properly man the ships now pro vided for and under construction. The classes at the naval school at Annapolis should be greatly epjarged. At the same time that we thus add the officers where we need them, we should facilitate the re tirement of those at the head of the list whose usefulness has become impaired. Promotion must be fostered if the serv ice is to be kept efficient. There Is not a cloud on the horizon at present. There seems not the slightest chance of trouble w*ith a foreign power, we most earnestly hope that this state of things may continue; and the way to insure its continuance is to provide for a thoroughly efficient navy. The refusal to maintain such a navy would invite trouble, and if trouble came would insure disaster. Fatuous self-complacency or vanity, or short-sightedness in refusing to prepare for danger, is both foolish and wicked in such a nation as ours; and past experience has shown that such fatuity in refusing to recognize or pre pare for any crisis in advance is usually succeeded by a mad panic of hysterical fear once the crisis has actually arrived. Rural Free Delivery. The striking Increase in the revenues of the post office department shows clear ly the prosperity of our people and the increasing activity of the business of the country. The receipts of the post office depart ment for the nscal year ending June 30 last amounted to $121,848,047.26, an Increase of $10,216,853.87 over the preceding year, the largest increase known in the history of the postal service. The magnitude of this increase will best appear from the fact that the entire postal receipts for the year 1860 amounted to but $8,518,067. Rural free delivery service is no longer in the experimental stage; it has become a fixed policy. The results following its Introduction have fully justified the con gress In the large appropriations made for its establishment and extension. The average yearly increase in post office re ceipts in the rural districts of the coun j “wuuv mu j/ct tcuu m* ary now able, by actual results, to show that where rural free delivery service has been established to such an extent as to enable us to make comparisons the yearly Increase has been upward of ten per cent. On November 1, 1902, 11,650 rural free delivery routes had been established and were in operation, covering about one third of the territory of the United States available for rural free delivery service There are now awaiting the action of the department petitions and applications for the establishment of 10,748 additional routes. This shows conclusively the want which the establishment of the service has met and the need of further extend ing it as rapidly as possible. It Is Justi fied both by the financial results and by the practical benefits to our rural pop ulation; it brings the men who live on the soil Into close relations with the ac tive business world; It keeps the farmer in daily touch with the markets; It Is a potential educational force; it enhances the value of farm property, makes farm life far pleasanter and less Isolated and will do much to check the undesirable current from country to city. It is to be hoped that the congress will make liberal appropriations for the con tinuance of the service already estab lished and for its further extension. ProgreH of Irrigation. Few subjects of more importance have been taken up by the congress in recent years than the Inauguration of the sys tem of nationally aided Irrigation for the arid regions of the far west. A good be ginning therein has been made. Now that this policy of national irrigation has been adopted, the need of thorough and scientific forest protection will grow more rapidly than ever throughout the public-land states. So far as they are available for agri culture, and to whatever extent they may be reclaimed under the national ir rigation law, the remaining public lands should be held rigidly for the home builder, the settler who lives on his land, and for no one else. In their actual use the desert-land law, the timber and stone law, and the commutation clause of the homestead law have been so perverted from the intention with which they were enacted as to permit the acquisition of large areas of the public domain for oth er than actual settlers and the conse quent prevention of settlement. More over, the approaching exhaustion of the Subtle ranges has of late led to much iscussion as to the best manner of using these public lands In the west which are suitable chiefly or only for grazing. The sound and steady development of the west depends upon the bulKling up of homes therein. Much of oui prosperity as a nation has heen due t<* the opera tion of the homestead law. Cf» the other hand, we should recognize tl® fact that In the grazing region the mail who cor responds to the homesteader «iay be un able to settle permanently If ofcly allowed > to use the same amount of Mature laud I i ' ' • that his brother, the homesteader, Is al lowed to use of arable land. One hun dred and sixty acres of fairly rich and well watered soil, or a much smaller amount of Irrigated land, may keep & family In plenty, whereas no one could get a living from 160 acres of dry pasture land capable of supporting at the out side only one head of cattle to every ten acre*. In the past great tracts of the public domain have Deen fenced in by persons having no title thereto, In direct defiance of the law forbidding the main tenance or construction of any such un lawful Inclosure of public land. For va rious reasons there has been little inter ference with such inclosures In the past, but ample notice has now been given the trespassers, and all the resources at the command of the government will hereafter be Used to put a stop to such trespassing. Alaska Legislation Asked For. I especially urge upon the congress the need of wise legislation for Alaska. It Is not to our credit as a nation that Alaska, which has been ours for 36 years, should still have as poor a system of laws as is the case. No country has a more valuable i possession—in mineral wealth, in fisheries, furs, forests, and also In land available for certain kinds of farming and stock growing. It is a territory of great size and varied re sources, well fitted to support a large permanent population. Alaska needs a good land law and such provisions for homesteads and preemptions as will en courage permanent settlement. We should shape legislation with a view not to the exploiting and abandoning of the territory, but to the building up of homes therein. The land laws should be liberal In type, so as to hold out inducements to the actual settler whom we most de sire to see take possession of the coun try. The forests of Alaska should be protected, and, as a secondary but still important matter, the game also, and at the same time it Is imperative that the settlers should be allowed to cut tim be, under proper regulations, for their own use. Laws should be enacted to protect the Alaskan salmon fisheries against the greed which would destroy them. They should be preserved as a permanent industry and food supply. ■iiieir management ana control snoulcl be turned over to the commission of fish and fisheries. Alaska should have a dele gate In the congress. It would be well if a congressional committee could visit Alaska and Investigate its needs on the ground. The Indiana. In dealing with the Indians our aim should be their ultimate absorption into the body of our people. But in many cases this absorption must and should be very slow. In portions of the Indian territory the mixture of blood has gone on at the same time with progress in wealth and education, so that there are plenty of men with varying degrees of fiurity of Indian blood who are abso utely indistinguishable in point of social, political and economical ability from their white associates. There are other tribes which have as yet made no per ceptible advance toward such equality. To try to force such tribes too fast is to prevent their going forward at all. More over, the tribes live under widely differ ent conditions. Where a tribe has made considerable advance and lives on fertile farming soil it is possible to allot the members lands in severalty much as is the case with the white settlers. There are other tribes where such course is not desirable. On the arid prairie lands the effort should be to induce the Indians to lead pastoral rather than agricultural lives, and to permit them to settle in villages rather than to force them into Isolation. The large Indian schools situated remote from any Indian reservation do a special and peculiar work of great importance. But, excellent though these are, an Im mense amount of additional work must be done on the reservations themselves among the old, and above all among the young, Indians. The first and most Important step toward the absorption of the Indian is to teach him to earn his living; yet it is not neces sarily to be assumed that in each commun ity all Indians must become either tillers of the soil or stock raisers. Their industries may properly be diversified, and those who show special desire or adaptability for in dustrial or even commercial pursuits should be encouraged so far as practicable to follow out each his own bent. Every effort should be made to develop the Indian along the lines of natural apti tude, and to encourage the existing native Industries peculiar to certain- tribes, such as the various kinds of basket weaving, canoe building, smith work, and blanket work. Above all, the Indian hoys and girls should be given confident command ot cqi» loquial English, and should ordinarily be prepared fox a vigorous struggle with the conditions under which their people live, rather than, for immediate absorption into some more highly devolped community. The officials who represent the govern ment in dealing with the Indians work un der hard conditions, and also under condi tions which render it easy to do wrong and very difficult to detect wrong. Consequent ly they should be amply paid on the one hand, and on the other hand a particularly high standard of conduct should be de manded from them, anti where misconduct can be proved the punishment should be exemplary. Scientific Aid to Parraeri. In no department of governmental work in recent years has there been greater suc cess than dn that of giving scientific aid to the farming population, thereby showing them how most efficiently to help them selves. There is no need of insisting upon its importance, for the welfare of the farmer is fundamentally necessary to tho welfare of the republic as a whole. In ad dition to such work as quarantine against animal and vegetable plagues, ar.d war ring against them when here introduced, much efficient help has been, rendered! to the farmer by the Introduction of new plants specially fitted for cultivation under the peculiar conditions existing in different portions of the country. New cereals have been established in the semi-arid west. For instance, the practicability of produc ing the best types of macaroni wheats in regions of an annual rainfall of only ten Inches or thereabouts has beti^concluslve ly demonstrated. Through the introduc tion of new rices in Louisiana and Texas the production ot rice in this country has been made to about equal the home de mand. In the southwest the possibility of regrassing overstocked range lands has been demonstrated; in the north many new forage crops have been introduced, while in the east it has been shown that s-ojne of our choicest fruits can be stur.d and shipped in such a way as to find a profitable market abroad. The District of Columbia is the only part of our territory in which the national gov ernment exercises local or municipal func tions, and where in consequence the gov ernment has a free hand in reference to certain types of social and economic legis lation which must be essentially local or municipal in their character. The govern ment should see to it, for instance, that the hygienic and sanitary legislation affecting Washington is of a high character. The evils of slum dwellings, whether in the shape of crowded and congested tenement house districts or of the bacg-alley type, should never be permitted to grow up in Washington. The city should be a model in every respect for all the cities of the country. The charitable and correctional systems of the district should receive con sideration at the hands of the congress to the end that they may embody the results of the most advanced thought in these fields. Moreover, while Washington is not a great Industrial cify, there is some indus trialism here, and our labor legislation, while it would not be important in- itself, might be made a model for the rest of the nation. We should pass, for instance, a wise employer’s-liability act for the Dis trict of Columbia, and we need such an act in our navy-yards. Railroad companies in the district ought to be required by law to block their frogs. Protection for Railway Employee. The safety-appliance law, for the better protection of the lives and limbs of rail way employes, which was passed in 1S93, went into full effect on August 1, 1901. It has resulted in averting thousands of casualties. Experience shows, however, the necessity of additional legislation to per fect this Law. A bill to provide for this passed the senate at the last session. It is to be hoped that some such measure may now be enacted into law. Gratifying progress has been made dur ing the year in the extension of the merit system of making appointments in the government service. It should be extended by law to the District of Co lumbia. It is much to be desired that our consular system be established by law on a basis providing for appointment and promotion only in consequence of proved fitness. The X'ew White House. Through a wise provision of the con gress at its last session the white house, which has become disfigured by incon gruous additions and changes, has now been restored to what it was planned to be by Washington. In making the restor ations the utmost care has been exer cised to come as near as possible to the early plans and to supplement these plans by a careful study of such buildings as that of the University of Virginia, which was built by Jefferson. The white house is the property of the nation, and so far as is compatible with living therein it j should be kept as it originally was, for ' the same reasons that we keep Mount | Vernon as it originally was. The state- ! ly simplicity of its architecture Is an ' expression of the character of the period in which it was built, and is in accord with the purposes it was designed to serve. It is a good thing to preserve such buildings as historic monuments which keep alive our sense of contin uity with the nation's past. The reports of the several executive departments are submitted to the con gress with this communication. THEODORE ROOSEVELT, White House, December J, 1902. CATARRH OF LUNGS. A Prominent Chicago Lady Ci’~ed by Pe-ru-na. Miss Maggie Welch, secretary of the Betsey Boss Educational and Benevolent Society, writes from 328 North State street, Chicago, 111., the following glowing words concerning Peruna: “Last fall I caught the most severe cold I ever had in my life. I coughed night snd day, and my lungs and throat became so sore that I was in great distress. All cough remedies Miss Maggie Welch. nauseated me, and nothing afforded me relief until my doctor said rather in a joke, ‘I guess Peruna is the only medicine that will cure you.’ “I told him that I would certainly try it and immediately sent for a bottle. I found that relief came the first day, and as I kept taking it i faithfully the cough gradually dimin ished, and the soreness left me. It is fine.”—Maggie 'Welch. 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