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fws Ml p Delivered by The N I The Occasion of H Outline of His P and Forcibly I \ ; My Fellow Citizens: Jc Any one who takes the oath 1 ' have just taken must feel a heavy " weight of responsibility. If not, he P has no conception of the powers and duties of the office upon which ho is c about to enter, or he is lacking in a 5 proper sense of the obligation which ti the oath imposes. I should be untrue to myself, b to my premises and to the declara- a tions of the party platform upon ti which I was elected to office, and to may distinguished predecessor n whose reforms are conspicuous if I 11 did not make the maintennnee anil en- b forcement of those reforms a most b important feature of my administra- a tioa. They were directed to the sup- a pression of the lawlessness and e abuses of power of the great com- 1' binations of capital invested in rail- h roads and in industrial enterprises t< carrying on interstate commerce. The t! steps which my predecessor took and n the legislation passed on his recom- n mendation have accomplished much, a have caused a general halt in the * vicious policies which created pop- tl ular alarm, and have brought about n in the business affected, a much high- | a er regatd for existing law. ? To render the reforms lasting. F however and to secure at the same c time freedom from alarm on the part f of those pursuing proper and pro- t gressive business methods, further o legislative and executive action are needed. Relief of the railroads from t certain restrictions of the anti-trust | c law have been urged bv my predeces- i aor and will be urged by me. On t the other hand, the administration is ' pledged to legislation looking to a proper federal supervision and re- 1 Klriction to prevent excessive issues 5 of bonds and stocks by companies i owning and operating interstate com- ' merce railroads. < Then, too. a reorganization of the 1 Department of Justice, of the Bu- J reau of Corporations in the Department of Commerce and Labor and of the Interstate Commerce Commis- , aion looking to effective co-operation { / of these agencies, is needed to secure j a more rapid and certain enforce- j ment of the laws affecting interstate f ? railroads and industrial eombina- j tions. I hope to be able to submit, at the ' first regular session of the incoming r Congress, in December next, definite ~ suggestions in respect to the needed t amendments to the anti-trust and the j interstate commerce law. and the s ehcrges required in the executive de- ^ partments concerned in tbeir enforce- c ment. c Such plans must be formulated as ^ rill include the right of the people to avail themselves of those method", of c combining capital and effort deemed w necessary to r*.ach the highest de- _ gree of economic efficiency, at the p same time differentiating between j combinations based upon legitimate C( economic reasons and those formed ' u with the intent of creating monopo- i .1 ues and artificially controlling prices. J j| The work of formulating into prac- i j tical sbnpe such changes in creative work of the highest order, re- aj quires nil the deliberation possible sj in the interval. I believe that the amendments to be proposed are just as necessary in the protection of legitimate business as in the clinching of the reforms which properly bear the name of my predecessor. 'f Revision of the Tariff. J*' A matter of most pressing importance is the revision of the tariff. In |r aecordanco with the promise of the o) platform upon which I was elected. I shall call Congress into extra ses- ^ sion, to meet on the 15th day of March, in order that consideration n may be at once given to a bill re- Q' vising the Dinglev Act. This should J aeeure an adequate revenue and adjuat the duties iu such a manner as ^ to afford to labor and to all industries in this country, whether of the farm, mine or factory, protection bv K / g tariff equal to the difference between the eost of production abroad and 1 the cost of production here, and have | provision which shall put in force upon executive determination of ccrtain facts, a higher or maximum j' tariff against those countries whose \ jj trade policy toward us equitably re- j quires such discrimination. It is j thought that the tariff above stated p will permit the reduction of rates in certain schedules and will require the o. advancement of few, if any. J It is iraparatively necessary that a M tariff bill be drawn in good faith in accordance with promises made be- C( ' fore the election by party in power, n] and as promptly passed as due consid ration will permit. It is not that the ( tariff is more important in the long j, run than the perfecting of the re- ^ forms in respect to anti-trust legisBt Wtion nod interstate commerce regu- n lation. bot the need for action when the revision of the tariff lias been n \ iriarmincd upon is more immediate ^ Is avoid embarrassment of business. # Urn<taj, IWRBS ew President Upon lis Inauguration 'olicies Clearly Set Forth. ontinue, snd the framers of the ariff bill must of course have in lind the total revenues likely to be iroduced by it, and so arrange the utics as to secure an adequate inome. Should it be impossible to do o by import duties, new kinds of fixation must be adopted, and among liese I recommend a graduated ineritancc tax. as correct in principle nd as certain and easy of collecion. The obligation on the part of those esponsible for the expenditures lade to cany on the government, to e as economical as possible, and to ?!,. JL. L - biyc me Diiraen of taxation as light s possible, is plain nn?l should be ftirmed in every declaration of govrnraent policy. This is especially rue when we are face to face with a eavy deficit. But when the desire a win the popular approval leads to he cutting off of expenditures pally needed to make the governlent effective, and to enable it to ccomplish its proper objects, the reult is as much to be condemned as he waste of government funds in unecessarv expenditure. The scope of modern government in what it can nd ought to accomplish for its peoile has widened far beyond the priniples laid down bv the old laissez aire school of political writers, and his widening has met popular tpproval. In the Department of Agriculture. ItC I'SO of rntprp'Un ^" 4 ~ in a large scale, and the spread of nformation derived lioui tiieui lot he improvement of general agriculure. must go on. The importance of supervising justness of great railwavs and indusri.nl combinations, and the necessary investigation and prosecution of tnlawful business methods, are antther necessary tax upon government vhich did not exist half a century tgo. Conservation of Our Resources. The putting into force of laws vhich shall secure the conservation if onr resources, so far as they may >e within the jurisdiction of the j rederal Government, including the cost important work of saving and estcring cur forests, and the great mprovement of waterwavs. are all i iroper government function* whteL cust involve large eiT>*n?itnres if iroperiv performed. While some of hem. .'ike the reclamation of and ands. are made to pay for liemelves. others ar?- of suce sr. indirect enetit that this cannot be expect d of them. A permanent improvement. like the Panama Canal. *boaid \ e treated a* a distinet enterprise, nd should be paid for by the pro- i eeds of bonds, the issue of which ' rill distribute its eosi between the regent and future generation* in J ecordance with the benefits derived, t may well he submitted to t*e ?rious consideration of ConeTess hether the deepening and control of je channel of a trreat river system, ke that of the Ohio or of the Mis- . ssippi. when definite and practical I lans for the enterprise have been pproved and determined upon, lould not be provided for in the ime way. The Army and the Navy. Then, too. there are expenditures P government absolutely necessary ' our country is to maintain its roper place among the nations of ic woild. and is to exercise its procr influence in defense of its own ade interests, in the maintenance f traditional American policy gainst the colonization of Europe*.,! lonareliies in this hemisphere, and i the promotion of peace and interational morality. T refer to the cost f maintaining a proper Army, a roper Navy and suitable fortificaons upon the mainland of the XTnit[1 States and in its dependencies. We should have an Army so oranized. and so officered as to be capble in time of emergency, in coperation with the National Militia, nd under the provisions of a proper ntional volunteer law. rapidly to exHtl/1 inlrt ? ^ 00 ...... n iuree siiincieni to resist I] probable invasion from abroad nd to furnish a respectable expedionarv force, if necessary, in the inintenance of our traditional Ameran policy which bears the name of resident Monroe. Our fortifications are yet in a state f only partial completeness, and the umber of men to man them is inifficient. In a few years, however, le usual appropriations for our ?ast defenses both on the mainland nd in the dependencies, will make lem sufficient to resist all direct ttaek. and by that time we may ope that the men to man them will e provided as a necessary adjunct. What has been said of the Army lav be affirmed in even a more mphatic way of the Navy. A modern aw cannot be improvised. It roust e built and in existence when the menteney arises which calls for its so and operation. My distinguished iredeeesaor has in many speeches nd aeeuageo set ont with grant force I -- and stnkiag langWf tbm uiuwitj for adblaiii?f a strong nary oom mtnnrtU witk the eoaat line, the governmental resources and the for eign trade of our nation; and I wiai to reiterate all the reasons which h< has presented in favor of the policy of maintaining a strong navy as th< best conservator of our peace with other nations and the best means o 1 securing respect for the assertion oi our rights, the defense of our interests and the exercise of our influence in international matters. Tho Maintenance of Peace. Our international policy is alwayi to promote peace. We shall enter into any war with a full consciousness of the awful consequences that it always entails, whether successful or not, and we, of course, shall make j every effort, consistent with national I honor and the highest national interest, to avoid a resort to arms. We favor every instrumentality, like that of The Hague Tribunal and arbitration treaties made with a view to its use in all international controversies, in order to maintain peace and to avoid war. But we should be blind to existing conditions, and should allow ourselves to become foolish idealists, if we did not realize that with all the nations of the world armed and prepared for war, w? must be nnrvolvoK ir> o ? dition in order to prevent other nations from taking advantape of us and of our inability to defend our interests and assert our riphts with a stronp hand. In the international controversies that are likely to arise in the Orient, growing out of the question of the open door and other issues, the United States can maintain her interests intact and can secure respect for h^r just demands. She will not be able to do so. however, if it is understood that she never intends to back up her assertion of right and her defense of her interest bv anything but mere verbal Protest unit T? f utpivuiuuv nui t', r ur these reasons, the expenses of the nrmv and navy and of coast defonses should always be considered as something which the government must pay for. and they should not be cut off through mere consideration of economy. Our Government is able to afford a suitable nimv and a suitable navy. It may maintain them without the slightest danger to the Republic or the cause of free institutions. and fear of additional taxation ought not to change a proper policy in this regard. Protection of Americana in Foreign Lands The policy of the United State in the Spanish War and since, has given it a position of influence among the j nations that it never had before, and i should be constantly exerted to securing to its bona fide citizens, whether native or naturalized, respect for them as such in foreign countries. We should make every effort to prevent humiliating and degrading prohibition against any of our citizens wishing temporarily to sojourn in fore in. countries because ! of race or religion. The admission of Asiatic immigrants who can not be amalgamated with our population has been made the subject either of prohibitory clauses in our treaties and statutes, or of strict administrative regulation secured by diplomatic negotiation. I sincerely hope that we may continue to minimize the evils likely to arise from such immigration without unnecessary friction and by mu .m.i ?iik??ivu( ueiween seil-respeeting governments. Meantime, we must take every precaution to prevent, or. failing that, to punish outbursts of race feeling among our people against foreigners of whatever nationality who may have bv our grant a treaty right to pursue lawful business here and to be protected against lawless assault or injury. Protection, of Foreigners. This leads me to point out a serious defect in the present Federal jurisdiction which ought to be remedied at onco. Having assured to other countries by treaty the protection of our laws for such of thoir subjects or citizens as we permit to come within our jurisdiction, we now leave to a State or a city, not under the control of the Federal Government. the duty of performing our international obligations in this respect. By proper legislation we may, and ought to. place in the hands of the Federal Executive the means of enforcing the treaty rights of such aliens in the courts of the Foderal Government. It puts our government in a pusillanimous position to make definite engagements to protect aliens and then to excuse the failure to perform those engagements by an explanation that the duty to keep them is in States or cities, not within our control. If we would promise, we must put ourselves in a position to perform our promise. We cannot permit the possible failure of justice due to local prejudice in any State or rauniciDal im?i>rmn#nt . - ?? <=*" pone us to the risk of a war which might be avoided if Federal jurisdiction was asserted by suitable legislation by Congress and carried out by proper proceedings instituted by the Executive, in the courts of the National Government. Monetary and Banking. One of the reforms to be carried out during the incoming Administration is a change of our monetary and banking laws, so as to secure greater elasticity in forms of currency available for trade and to prevent I the limitations of law from operate ing to increase the embarrassments I of a financial panic. The Monetary ' r ComniinoB Utaly tpfoioU4 is fi - ing full eowidtntion to ttUtinf w i ditions and to all propoood remedii - and will doubtless suggest <w th t will moot tbo requirements of bn i nets and of public interest. We mi ' hope that the report will emboc i neither the narrow view of those w! i believe that tho sole purpose of tl ' new system should be to secure large return on banking capital < of those who would have greater e pansion of currency with little 1 gard to provisions for its immedia redemption or ultimate securit i There is no subject of economic di cussion so intricate and so likely evoke differing views and dogmal statements as this one. The Coi I mission in studying the general i ? fluence of Plirrpnnv nn hnulnouu m I of business on currency, hove wise extended their investigations in E i ropean banking and monetary met I ods. The information that they ha derived from such experts as thi have fpund abroad will undoubted be found helpful in the solution ! the difficult problem they have : band . Postal Savings Bank. The incoming Congress shou promptly fulfill the promise of ti Republican platform and pass proper Postal Savings Bank bill., will not be unwise or excessive pate nalism. The promise to repay by tl Government will furnish an indue ment to savings deposits which pi vate enterprise cannot supply, and such a low rate of interest as not i withdraw custom from existii banks. It will substantially increa the funds available for investment capital in useful enterprises. It w furnish the absolute security whit makes the proposed scheme of ge ernment guaranty of deposit so allu ing without its pernicious results. viur xoreign "irace. I sincerely hope that the ineomii Congress will be alive, as it shou be, to the importance of our forcij i trade and of eucouraging it in eve ; way feasible. The possibility of i creasing this trade in the Orient the Pliillipines and in South Ameri are known to everyone who hi ' given the matter attention. The c > rect effect of free trade between tli country and the Phillipines will 1 marked upon our sale of cotton, a ricultural machinery and other ma ufactures. The necessity of the e tablishment of direct lines of steal ers between North and South At erica has been brought to the a 11 tention of Congress by my predece sor. and by Mr. Root before and aft his noteworthy visit to that eoatine and I sineerelv hope that C-mgre may be induced to see the wisdom < a tentative effort to establish su< lines by the use of mail subsidies. The importance which the Depai menf of Agriculture and of Cos . meree and Labor may play in riddii the markets of Europe of prohih tions and discriminations against tl J importation of our products | fully understood, and it is hoped th the use of the maximum and min mum feature of our tariff law to I soon passed will be effective to r move many of those restrictions. The Panama. Canal The Panama Canal will have most important bearing upon tl trade bet wee rj the eastern and tl far western sections of our countr and will {rreatlv increase the faci ties for transportation between tl i eastern and the western seaboat and may possibly revolutionize tl j transcontinental rates with reapei ! to bulky merchanidse. It will al have a most beneficial effect to ii ! crease the trade between the caste seaboard of the United States ai the western coast of South Amcric and, indeed, with some of the ic portant ports on the east const South America reached by rail fro the west coast. The work on tl canal is making most satisfacto progress. The type of the canal n lock canal was fixed by Congre after a full consideration of the co flicting reports of the majority ai minority of the consulting hoard, m efter the recommendation of tl *Var Department and the Executi' upon those reports. Recent suggc tion that something had occurred < the Isthmus to make the lock typ of the canal less feasible tlian it w; supposed to be when the reports we made and the policy determined o led to a visit to the Isthmus of board of competent engineers to e amine the Gatun dam and loci which are the key of the lock typ The report of that board shows th; nothing has occurred in the natui of newly revealed evidence whi< should change the views once from< in the original discussion. The co struction will go on under a mo effective organization controlled I Colonel Goethols and his fellow arn engineers associated with him, ar will certainly be completed early the next Administration, if not b fore. Some type of canal must be coi structed. The lock type has bet selected. We are all in favor of ha ing it built as promptly as possibl We must not now, therefore, kee up a fire in the rear of the agent whom we have authorized to do 01 work on the Isthmus. We mui hold up their hands, and sneakm for the incoming: Administration, wish to say that I propose to devo all the energy possible and undt my control, to the pushing of tht work on the plans which have be? adopted, and to stand behind the m< who sve doing faithful hard woi to bring about the early completic of this, tha greatest constructive e; I terprise of modern times. aBBMM111,1 ^11 t-T v Char Duaidwdw o- Tha ftUMiiiaiMit of oar dapendacm, ei? in Poito Bieo and the Philipat piaaa are procnuiag as favorably ri- as oonld be desired. The prosperity ty of Porto Rieo continues unabated, ly The business conditions in the Philbo ippines are not all that we conld be wish them to be, but with the p?sa sage of the new tariff bill permitting of f*ee trade between the United States x- and the Archipelago, with such limi e tations in sugar and tobacco as shall ,te prevent injury to the domestic iny. terests on those products, we cab is- count on an improvement in business to conditions in tbe Philippines and the ;ic development of a mutually profitable n- trade between this country and the n- Islands. id Position Towards the South. ly I look forward with hope to inu creasing the already good feeling bell tween the South and the other secve (ions of the country. My chief pur?y pose is not to effect a change in the ly electoral vote of the Southern States, of Thnt is a secondary consideration, in What I look forward to is an increase in the tolerance of political views of all kinds and their advoId cacv throughout the South, and the he existence of a respectable political a opposition in every State; even more It than this, to an increased feeling on ir- the part of nil the people in the lie South thnt this Government is their ie- Government, and that its officers in ri- their States art their officers. I mv ? * ? at tue tjoutn ana tno negro. to The consideration of this question ig cannot, however, be complete and se full without reference to the negro as race, its progress and its present ill condition. The 13th Amendment serh cured them freedom; the 14th v- Amendment due process of law, proir tection of property and the pursuit of happiness; and the 15th Amendment attempted to secure the negro ig against any deprivation of the privld ilege to vote, because he was a negro. The 13th and 14th Amendments rv have been generally enforced and n- have secured the objects for which in they were intended. While the 15th ca Amendment has not been generally as observed in the past, it ought to be li- observed and the tendency of Southlis em legislation today is toward the be enactment of electoral qualifications g- which shall square with that araendn ment. Of course the mere adoption >s- of a constitutional law is only one n- i step in the right direction. It must n- : he l'airlv and justly enforced as well, t- i In time both will come. Hence it is s- [ clear to all that the domination of er ; an ignorant, irresponsible element nt ; can be prevented by constitutional ss 1 laws which shall exclude from voting of both negroes and whites not having di education or other qualifications I thought to be necessarv for n nrnm>r t- 1 electorate. The danger of the conn ' trol of an ignorant electorate has ig therefore passed. With thiR change, i- s the interest which manv of the Sonbe thern white citizens take in the welis ' fare of the negroes has increased, at The colored men mast base their li- hope on the results of their own inbe dustry. self-restraint, thrift and bnse iness success, as well as upon the aid and comfort and sympathy which they may receive from their white a neighbors of the South. There was be a time when Northerners who symie rathized with the negro in his neces y, r.ary struggle for better conditions li- i sought to give him the sufFrage as a he protection, and to enforce its exer d, I rise against the prevailing sentiment he of the South. The movement proved ct to bo a failure. What remains is so the 15th Amendment to the Constin tution and the right to have statutes r? of States specifying qualifications for id electors subjected to the test of com:a, plianee with that amendment. This n- is a grpnt protection to the negro, of It never will be repealed, and it >m never ought to be repealed. If it had be not been passed, it might be difficult ry now to adopt it; but with it in our as fundamental law, the policy of Soutliss ern legislation must and will tend to n- obey it, and so long as the statutes id of the States meet the test of this id amendment and are not otherwise be in conflict with the constitution and ve laws 01 me united States, it is not s- the disposition or within the prom vince of the Federal Government to es interfere with the regulation by Souns thern States of their domestic affairs, re There is in the South a stronger feeln, ing than ever among the intelligent, a well-to-do and influential element in x- favor of the industrial education of cs the negro and the encouragement of e. the race to make themselves useful at members of the community. The pro-e gress which the negro has made in ;h the last fifty years from slavery, id when its statistics are reviewed, is n- marvelous, and it furnishes every st reason to hope that in the next >y twenty-five years a still greater imiy provement in his condition as a proid ductive member of society, on the in farm, and in the shop and in other e- occupations, may come. The negroes are now Americans. Their ancestors n- came here years ago against their m will, and this is their only country v- and their only flag. They have shown e. themselves anxious to live for it and p to die for it. Encountering the race ts feeling against them, subjected at ir times to cruel injustice growing out it of it, they may well have our protr fniliul flvmna?l?w J 11 * r ... .v.......iiij auu uiu in me svrugI gle they are making. We are chargte ed with the sacred duty of making ?r their path as smooth and easy as we is can. Any recognition of their dis;n tinguished men, any appointment to >n office from among their number, is rk properly taken as an encouragement tn and an appreciation of their progress a- and this just policy shall be pursued. But it may well admit of doubt t IPPIWJPf Ill. r mMber, In ?mi of any race, an af> pointaaaat of on* of their number to a local office in a community which the raee feeling ia so wide-spread and acnte as to interfere with the ease and facility with which the local government business can be done by the appointee, is of sufficient benefit by way of encouragement to tho race to outweigh the recurrence and increase of race feeling which such an appointment is likely to engender. Therefore, the Executive, in recognizing tho negro race by appointments must exercise a careful ' discretion not thereby to do it more harm than good. On the other hand we must be careful not to encourage the mere pretense of race feeling manufactured in the interest of individual political anV>* Personally I have slii:l < est race prejudice < - .iv. > recognition of its . .! awakens in my hear; pathy for those who !i i or suffer from it, an. i t r ' i> wisdom of a policy which is likely < to increase it. Meantime, if nothing is done to prevent, a better feeling between the negroes and the whites in the South will continue to grow, and more and more of the u:? i- in a. ??_ i? A wimp peupiu win come 10 realize inai the future of the South is to be much benefited by the industrial and intellectual progress of the negro. The exercise of political franchises by those of his race who are intelligent and well-to-do will be acquiesced in, and the right to vote will be withheld only from the ignorant and irresponsible of both races. Labor, and Protection of Employees. There is one other matter to which I shall refer. It was made the subject of great controversy during the election, and calls for at least a passing reforeuee now. My distinguished predecessor has given much attention to the cause of labor, with whose struggle for better things he has shown the sincerest sympathy. At his instance. Congress has passed the bill fixing the liability of interstate carriers to their employes for injury sustained in tho course of employment. abolishing the rule of fellowservant and the common lew rule as to contributory negligence, and substituting therefor the so-called rule of comparative negligence. It has also passed a law fixing the compensation of government employes for injuries sustained in the employ of the government through the negligence of the superior. It also passed a model-child labor law for the District of Columbia. In previous administrations an arbitration law for interstate commerce railroads and their employes, and laws for the ap plication of safety devices to save the lives and limbs of employes of , interstate railroads had been passed. I wish to say that in so far as I can. I hope to promote the enactment of further legislation of this character. I am strongly convinced that the Gorernment should make itself as responsible to employes injured in its employ as an interstate railway corporation is made responsible by federal law of its employes; and I shall be glad whenever any additional reasonable safetv device can be invonted to reduce the loss of life and limb among railway employes, to nrere Congress to require its adoption by interstate railways. Tbo Injunction. Another labor question has arisen which has awakened the most excited discussion. That is in respect to the power of the Federal courts to issue injunctions in industrial disputes. As to that, my convictions are fixed. Take away, from courts, if it co\ild be taken awnv, the power to issue injunctions in labor disputes and it would create a privileged class among the laborers and save the lawless among their number from a most needful remedy available to all men for the protection of their business against lawless invasion. The proposition that business is not n property or pecuniary right which can* be proteoted by equitable injunction is utterly without foundation in precedent or reason. The proposition is usuajlv linked with one to make the secondary boycott lawful. Such a proposition is at variance with the 1 American instinct and will find no support in my judgment when submitted to the American people. The secondary boycott is an instrument of tyranny, and ought not to be made legitimate. The issuing of a temporary restraining order without notice has in several instances been abused by its inconsiderate exercise, and to remedy this, the platform upon which I waa elected recommends the forn"n'r???on in a statute of the conditioi \ ier which such a temporary re. ) n-rvlnr nnrrlif ioona A ?*? rind ought to bo framed to the bfst modem practice. " - bring the subject so closely attention of the court as t n.'i -flj abuses of the process unlike! ;!> future. American people, if I stand them, insist, that the <r of the courts shall be susta . are opposed to any change m f . procedure by which the powers of a court may weakened and the fearless and effective administration of justice be interfered with. Having thus reviewed the questions likely to recur during my Administration. apd having expressed in a summary way the position which . I expect to take in rerommedntions fa to Congress and in my conduct as an 8 Executive, I invoke the considerate 1 sympathy and support of mv fellow * ] citizens, and the aid of Almighty * St" Ood in the discharge of my respon- wfc sible duties ^ J