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President McKinley Re* iv-T-'^rr**. . . . ... views Our W^j>With Spain. siy id my. / jjMT Also Urges The Establishment of a r Lager Army and Navy. OUR NEW POSSESSIONS, ? ? L Tiieir Future Government Will Await the Rat* jfication of the Peace Treaty? The Gov* ~ (prmncnt of ttic Philippines Is Left to Con* gross to Settle? Military Rule is Urged in ail Possessions Uutll legislation has been Carried Through? It Is Suggested that the l Cubans be Aided After Treaty Is Ratifed Witb a View to Giving Them Free Govern ment? 100,000 Standing Army. ' WAsnisaTOs, D. C. (Spcclal).? President j McKinley's soooud nuuual messago, ndocu mont of unusual length, was read to the ! two Houses of Congress Immediately after they assembled for the thlrd .and oloslug sossdon of tho Fifty-fifth Congress: To tho Benato and House of Itepretenta , tives: Notwithstanding tuo added burdens ten dered necessary by the war. our people re joice In a very satisfactory and steadily tn i creasing degree of prosperity, evidenced by ; the largest volume of pnslness ever record ed. Manufaettrre hai been productive, i agricultural pursuits have yielded abun dant returns, labor in all field* of iu? ! dustry is better rewarded, revenue 'legislation passed by tbe present Congress has increased tbe Treas ury receipts to the &moun?^stimated by its authors, tbe fljMmoee ot the Government have Been successfully administered and its credit advanoed to tho first rnuk, while its currency has been maintained at the world's highest stan dard. Military service under a common flag and for a righteous cause has strength ened the national spirit and served to cemcnt moro closely than everjthe fraternal bonds between every Moction of -the coun try. A review of the relation of tue United States to -other powers, always approprl ntQj.is thtfc year of primary importance, in view of the momentous issues which have arisen, demanding in one instance the ulti mate determination by arms and involving : far-reaching consequences wbleh will re ; quire the earnest attention of the Congress. Spanish Mitral* in Cuba* | In my Inst annnnl message very full con ? eideratlon was given to the quoation of the ? doty of the Government of the Vnlted i States toward Spain and tlw Cuban insur ' reotion us being by far the most important ? problem with which we ware then called upon to deal. The considerations then ad vanced, nnd the exposition of the views therein expressed, disclosed my sense of the extreme gravity of the situation. Bet ting aside, as logically unfounded or prac tically inadmissible, the recognition of the independence of Cuba, neutral intervention {to and the war by imposing n rational com I promise between Ihe contestants, In terven ? tion In favor of oaie or the other party, and 'forcible annexation of the island, I con | oluded It was honestly due to our friendly xelatlons.wlth Spain that she should be given ? reasonable ohanee to realize her ex pectations of reform, to wbtoh she had be oome Irrevocably committed. Within a few weeks previously she bad announoed com . prehensfve plans, whloh It was coufl Jsntly ! asserted would b* efficacious to remtfy the evils so deeply affecting our own country, 110 Injurious to the true tntereste of the ? mother country as well as to those of Cuba, . and so repugnant to the universal sent' ? ment of humanity,' - I The ensuing month brought little sign of !reel progress toward the paclfloatlon of Cuba. The autonomous administrations set up in the capital and some of the prln ?' dnal cities appeared not to gain the favor. : of thalohabltant* nor to be able to extend thelrioflueoce to the large wxtent of ter ritory held by the Insurgents, while the Itivif -NVIU ?HV iuvwiqwumi wuaiw ?uw military arm, obviously unable to oope_wlth e reb obi no 'Of the Government that had pre Ho taifftble relief was afforded of vahappy- reoon . tbe mi. tof the Itery arm, obviously unable to oope_wlth still active rebellion, continued many the troirf objectionable mad offensive I w vf ^ 1/iv in ?lg.M Destruction of tho Maloa, At this juncture, on tho lA.-h ditv of P.?h. , ro'ir.v last, occurred u?e destruction of tho ?h? h?rht ?1"h" w"n" ? I iyi.? lS ,r i 0,1 11 m's-don of Ml. : tnrnationa) courtesy and gofd will? u on. tastropho, tho suspicions nnturo and hor (ouulw T? 1"rt0,X thM ^tloKhu^t pro. poise and Jh.rV!, '?"* ?vljonoa of tho iLi ? i ^ sturdy good sons.) dlsUm-uN-i. ln? blow^faSilTK d?*per?trt ro?f.|v? ?-? t.-v^v.M?A ... >nstant, of n, ooii(H?:!v? '*? tolerate tho existence (loo-- thoV ^ ? danger an i disorder at our ? Powlble such ft deed. I,v IohJ OA^. >rAvr?Uk'ht' tho instinct of awii?S* ?? J 1 nn tho nat'01* anxiously tlffA MoJ tOSU of tUo 6??^h'u? InvrtH. | tlgatlon at once set on foot. Tho finding that fh?aoH iB?arlw0f I?n?trv established nal bv a ?n h rt,f tho explosion was exter fhrAiioW i??.L,KS,nft mtne, and only halted, tha Ji /Li? 'Positive testimony, to tlx tho responsibility of its authorship. ! Preparations For War. m?J carried conviction to tho most thoughtful, even before tho finding ?oMi,a I,RVAl 00Urt. that ft orUls tn our re atlons with Spain and toward Cuba was J1 nJ J 80 st,'onff whs this belief that it needed but ft brief exeoutlve suggestion to i no r,ongross to receive immediate nriHwor ?. duly of making Instant provision if r tno possible and perhaps speed II v prob able cmorgnncy of war, and the remurk nolo, almost unique, spootaole was pro ?0nted of a unanimous voto or both houses ?? *'i? ?,f M?.rch, appropriating $50. 000 000 for the Iniitloiini defense, au 1 for oach and overv* purpose oonxieoted thcro *?,he p*P*Pded at the discretion of ! the President/' \ i The President th?{n reviews at length tho j various attempts to bring about n peaceful solution of the question, and savs that ho I was grloved and ^"appointed at the bar ren outcome of his sincere endeavors to reabh ft practicable solution. IJe then re lates how he placed tho mat tor in the hands of Congress. Congress Takes Qnlok Action. The response of the Congress, ho con tinues, after nine days of oarnost dellbera tlon, during whioh the almost unnnimons Bentinioiitof your bo(^wji9 developed on jjovory point save aa to too ifcnodtenoy of rooupllng tho proposed notion with a formal recognition of the republio of Cuba as the truo und lawful Oovernmwt of that Islanc -~a proposition which failed of adoption? the Congress, ofter conference, on the 19th ?' April, by a voto of 42 to 33 In tho Senate and 811 to 6 in tho Uouso of Representa tives, passed their memorable Joint resolu tion. c The message continues by saving that a oopy ofthe resolutions was at once oom munloated to the. Spanish Minister at Wash ington, who immediately demanded his passports. They were given to him, and tho Spanish Interests wero left in the pro tection of tho French Ambnssudor and the i Austrian-Hungarian Minister. Simultaneously with the notice of tho | resolutions to the Spanish Minlsfor Its i text was cabicd to General Stewart L. Woodford, the American Minister at Ma<:? ; rid, who was to. communicate it to tim 1 Spanish Government. Before ho could do so the Spanish M'nlstor of State notified him that, upon the President's approval of tho joint resolution, the Madrid Govern, inent, regarding the act as "equivalent to an evident deolaration of war," had or dered Its Minister in Washington to with draw. thereby breaking oft diplomatic re lotions between the two oountries and ceasing all ofllolal communication between theti?espeotlve representatives. General Woodford theroupon demanded his pass ports and qaittod Mndrid tho same day. The President reviews the preparations for tho beginning of hostilities. Spain having initiated the war, a blo<?ltado of the | north oonet of Cuba was proclaimed, and | the call for voluntoors was issued. The various Governments woro notified of the existence of war, in order that their neu trality might be assured. The response to the initial call for 125,000 troops was instant aim oomplete, and a second call for 75 000 additional volunteers was issued. I ,.'^h0 n,lvy referred to, showing its con ?o'tlon. WMen war wns doclaro.i, as well as The means employed to protect tho Atlantic seaboard and the cities lying along tho coast from any possible attack.yaTho cosst Signal Servico was orgauizad^aL^win auxil iary fleet created, which was OTVl<:?red and manned by tho naval militia of th6 several States. Mines wero also laid in the vari ous harbors. ? The work of the Signal Corps is roforred to, it bolug of an important character. Electrical connections of all const fortifi cations were ostublishod, as well as telo phonlo and tolographlo facilities for tho camps at Manila, Santiago and Porto Hlco. Field telegraph lines wero established and maintained under tho enemy's flro at Man ila. A cable ship wns placed in Cuban waters, whloh rendered servico that waa invaluable to the Executive in con ducting tho operations of the array and navv,_ The expenditure of the fGO.OOO.OOOf fund is dwelt upon. It helped tho Government to strengthen tho defenses of the^ country aud to mak?< adequate preparations for war. The pop ular loan of,t200,000,000. whloh wa* sub scribed to so promptly, is mentioned ah showing tho vst resources of tho nation and the determination of tho people to up hold the country's honor.. The President states that it is not within tho provlnoe of the message to nar rate the history of <i lie extraordinary war with Spain, and mentions tho first engage ment, which took place April 27, when a. detachment of the blockading squadron off Cuba shelled the hfcrbor fort and de molished several new works wbiah wore being oonstraoted at Matauzas. The mes sage continues as follows: I)?w?y't Olorloua Victory at Manila. The next engagement was destined to murk, a memorable epoch Idi maritime war fare. The Pacific fleut, under Commodore George Dewey, bad lain for some weeks at Hong Kong. Upon the coloiifkil proclama tion of neutrality being Issued and the ous? totnary twenty-four hours' notice being given. It repaired to Mini Hny. near Hong Kong, whenoe it proceeded to the Philip pine Islands under telegraphed orders to oaptare or destroy the formidable Spanish 'fleet then assembled at Manila. At day break oa tho l5t of May the American force , entered Manila Bay, and after * few hours' engagement effected a total dsttnotlon of ?Mttfhllatlng the SpaaUh naral power In thePanlfla Ocean and completely ooalrol ^a^S?i&2!LS35S? , for thla gallant achlerecaent tbe | ay iiiDBMriilliiJ If MdftliAld |MA tlQ ! m?lntn*t. Apt**!** wSBlllS ^ I grout*. The Insurants meanwhtlo had *.v i tQiDAd tb^AittTA noillllilM suapeiuron t.\ ! ?hf> uncompleted truce of December, H'iZ j Their foree* Invested Manila from t hp nori n j era and eastern sides, but wero eonstralnod j i>v Admiral Dewey ftu 1 General Morritt i ?n*n? attempting an assault, It whs fl t { I o t* that whatever was to be done in the wav of I decisive operations In tluit quarter should he aocomulishpd by the strong arm of t ho United States alone. Obeying the stern prooept of war which enjoins the overcom* n>H of the adversary aud the extinction or his power wherever a^sallabl^ ae the speedy and sure means to win A peace, divided j vetorv was n6t permissible, for nd parti* ! tion of the right* and responsibilities ut : tending the enforcement of a Just and ad vantageous peace could bo thought of, Tho message continues with a review of the entire land and naval operations. Ho does not treat thorn at length, but refer* the public to the departmental reports for detail*, Hestates that with the destruo tton of Oervera's fleet Spain's efforts ontho ocean virtually eeasBfl, and ends this part of the document by relatiug how the last scene of the war wAt enacted at Manila, the plaoe where It started, He olosed his references to military and naval matters by a tribute to the lighters. VreUe For All Our Fighters It it? fitting that I should bear testimony to the patriotism and devotion of that largo portion of our array which, although eager to bo ordered to the post of greatest exposure, fortunately wa? not required ouMlde *>f the United States. They did thoir whole duty, and like their oomrades ! at the front have earned the gratitude of j tlio nation. In like manner, the officers and men of the army and of tho navy who j remained in their departments and stations I faithfully performing most important du ties connected with the war, and whose re quests lor assignment in tho und at sea I was compelled to rofuae becaulHWjH'lr services were indispensable here, titled to the highest commendation. my regret that there seems to bo no proT vision for their suitable recognition. In tracing those events we are constantly reminded of our obligations to the Divine Master for His watohful oaro ever us aud Ills safe guidance, for whioh the nation makes reverent acknowledgment and of fers humble prayers for th9 contluaauoe of Ills favor. Spain Sues For r?ac*. Spain, having realised that'she had lost, the President states, now ftued for peace. The signing of the protoool is re ferred to, and then tbd^essago relates the details of the negotatlons whioh ended In n suspension of hostilities, the appoint ment of the military commissions to superintend tho evacuation of Cuba, Porto IVjco and the adjacent islands and tho poaco commission. Continuing, ho says: Pence Commission's Work. Pursuant to the fifth arllclo of the proto col, I appoluted William It. Day, latoly Secrotnry of State: Oushman K. Davis, William P. Frye nnd George Gray, Senators of tlm United Statos, and Whitelaw Held to bo the Peaco Commissioners on the part of 'the United 8tates. Proceeding in dun season to rails, tliey there met ou the 1st of October five Commissioners similarly appointed on tho pnrt of Spain, Their negotiations havo made hopeful progress, so ti nt I trust soon to be ablp to lay a ddlnlto treaty of peace before the Senate, with a review of the steps leading to its signature. Government of New Poiieitlnnt. I do not di*cuss at this timo tho govern ment or the future of tho new possessions which will oomo to us as a result of tho war with Spain. Such discussion will be ap propriate after the treaty of peace shall bo ratified. In the meantime, and until Con gress has legislated otherwise. It will be my duty to oontlnuethe military Governments which have existed sinoe our occupation, and give to tho people seourity in lifo and property and enoouragoment under a Just and benefloient rule. Independence Alone For Cuba. As soon as we are in possession of Cuba aud have pacified the island, it will be nec essary to givo old and direction to Its pooplo to form a government for them selves. This should be undertaken at the earliest moment consistent with satMy and assured success. It is important tbfet-.our relations with this people shall be of th6 most friendly oharacter and our commer cial relations eiose and reciprocal. It should be our duty to nfcslst In every prop er way to build up the waste places of tho island, encourage tho Industry of the peo ple. aud assist tbem to form u government which shall be free and independent, stilus ?oalizlng the best aspirations of the Cuban people. Spanish rule must be replaeod by a just, benevolent, and huraaue Government;, croated by the people of Cuba, eapablo of performing all international obligations, and whioh shall encourage thrift, industry and prosperity, and promote peaco aud good will among nii of the inhabitants, whatever may have been their relations in tho past. Neither revenge uov passion should havo u plaoe in tho new Govern ment. Until thore Is a oomplete tran quillity in tho Island and a stable Govern ment inaugurated military occupation will bo continued. Friendly Relations With All Nations. With the one exception of the rnpturo with Spain, the Intercourse of the United States with the great family of nations lias been marked with cordiality, and the close of the eventful year finds most of the is sues tftat necessarily arise in the complex relations of sovereign States adjusted or presenting no serlons obstacle to a just and Honorable solution by amicable agreement. The President dwells at some length on tho long unsettled boundary dispute be tween the Argentine Bepublio and Chile, and expresses pleasure that his efforts to induce thom to resort to arbitration have been eueoessful. He also refers to the strong hope he has that the rates charged ou the cables of Amerloan Corporations in tho transmission between Buenos Ayrcs and the cities of Uruguay, Brazil and the Atlantlo cities of South America jiav b? freed from an almost prohibitory discrimin ation. He favors an international agree ment for an interchange of messages over connecting cables. Then taking up home topl?t he ways: Austria and the I<ntt)lmr Strike. On the 10th day of September, 1(197, a conflict tcolt place at Lattlmer, Poun., be tw?OQ h body of striking miners a^uitho Sheriff of Luzerne County and his- depu ties, tn wnlch twenty-two miners were killed and forty-four wounded, of whom ten of the killed and twelve of the wound ed, were Austrian and Hunrfhrlan sabjects. The deplorable event naturally aroused the aolleltndf 01 tke Anatro-Hangariab Government. which, on the assumption that the Mlttnff and woundtni involved the unjustifiable attraae of authority, euimed nspacaUon for the sufferer* . .Apart from the aenru&in* lnrastl^atlon and paced! ptocy aation of the authorities ?of rmsjirmi. i in fniisiai topK ifpiiyihh duty to spuM Isrw pad ' wmk^ES^ i >'wia*U tMlh inC tks Deoaxttaent ef mSSsgSSSSm fl^t of Juno 4 of that your, ha* nn.irly com plated lit. labors, luJ tho ivaults o f it-, hausttve Inquire Into tho pro, -tor route, 1 1 ? feasibility unci tho oost of oousMmo'to'u of an intoroc^&nlo 0!?nnl by a Njcuraguau ruulo will bti laid be'oco nou. lu tho pm : formauoe or its task trio commissi >n ro. caivo I nil the possible courtesy ami iis<ist | nneo irom the OovHrntuonts of *uu?w?K'ti.i I and Costa Iiloa, which thus testified tioii j appreciation of tho Importance or g.tiug a speedy and practical outcome to the gtvat project that . a* for ?o tunny years en grossed tho attention of tho rospcc:ivo countries, As the scope of tho recant Inquiry em braced tho whole subject, with tho aim <>t niaktntf f.laus ami eUrveva for a caiiil l>\ tho most convenient routo, It necessarily Included a review of tho results of previous survey* and plans, ami la particular those adopted by tho Maritime Oanal Company under*}fo existing concessions from Xlca raguasmd C >staBica, so that to this oxtent those granta necessarily held as o-sonllal j a part lu the deliberations aud conclusions j ot tho Oaual Commission as they have held i aud must of need bold In tho discussion of ; the matter by the Congress. V?nl ?>r these circumstances, and In view of overtures made to tho Governments of Nioarngu t and Costa Rloa by other parlies for a now oanal concession, predicated on the as sumed approaching lapse of the doniraots of the Maritime Oaual Company with those States, l Imve not hesitated to express my conviction that considerations of exoe II i euoy and International pollev as hot wean j tlie several Governments interested In tho j construction and control of an lnt??roce:in?c. j canal by this route require tho niainten meo ; of the status quo until tho Cana I Commls sion shall have roporrod an I the United Statos Congress shall bave had the oppor tunity to pass Ouauolallv upon tho whole matter during tho present session without j prejudloo by reason oi any change in the ! existing conditions, Nevertheless, jt appears that the Gov ernment of Nicaragua, as one of Its last soverol^u acts before merging Its powers lu those of the nowly formed l.'nlte 1 Stains of Central America, has granted an optional oonoesslon to another association, to be oome effective on tho expiration of tho | present grant. It does not appear what j surveys have been made or what roulo Is proposed under this contingent trrant: so that an examination of the feasibility of Its plans is neoessartlv not embraced "in tho renort of the Canal Commission. All these i circumstances suggest the urgency of soum definite action by tho Congress at this session, If the labors of the past are to bo utilized and the linking of the Atlantlo and Paclllo oceans by a practical waterway I* to be realized. That tho construction of such a maritime highway is now more than over indispensable to that intimate and roadv intorco nmnoIcqMon between our oasterp and western. seaboards domanded by tWV annexation of ttiq Hawaiian Islands and the prospective oxpausfOn ot our in fluence and commerco In tho Pacific, and that our national policy now moro Impora tlvoly than ever calls for its control by t li i - Government, aro propositions which, I doubt not. the Coi.groas w ill duly approolato | and wisely act upon. Open i.oor In China. ThojUnited States has not been an Indif ferentlspectator of tho oxt raordinary events transpiring in th*4Chiue.so empire, t hoProsi dent remarks, whereby portions of Its mart, tiaio provinces are pa-sing under the con trol of various European powers; but the prospect that the vast commerce which tho energy of our citizen^ and the necessit y of our staplo productions for Chinese uses has built up In those regions may not be preju diced through any exclusive treatment bv tho now ocoupauta, has obviated tho nood j of oj?r'6ftuntry- becoming an actor lu the i scelie. Our position among nations, hav ing a largo Pacific coast, and a constantly oxpandlug-^Urect trado with tho farther Orient, gives us the equitable olalm to con sideration and friondly treatment in thia regard and It will bo my aim to subservo our large Interests in that quarter by all means app-oprlate to tho constant policy of our Government. Warshloj have beeu stationed at Tion-Tsin for moro ready ob bcrvation of tbo disorders which have ln vadod even the Chinese capital, so as to be in a position to aot should need arise, while a guard of marines has boon sent to Pokftt' to afford tho Minister tho same measure of 1 authoritative protection as the representa tives of othcrnations havo boen constrained to "employ. The message states that tho diplomatic rupture between Italy aud Colombia is no longer in an acute state, thauka to efforts on our part. I'hvI* ICipotltlou In lOOO. There is now ever/ prospeot, continues tho President, that tbo participation of tho United States in the Univerclal Exposition, | to Do hold held in Paris in 1900, will bo on a scale commensurate wltn tho advanced position held by our products an^Hndustries I in the world's chief marts. Hy aprovisin lu tho Sundry Civil Appropriation aot of July 1, 18*J3, a Bum not to oxuuud 3050,000 was allottod for tho or* gnuizatlon_>i>t. a commission to care for tho pro'pwe preparation and In stallation of American exhibits. I ap pointed Mr. Ferdinand W. Peck, of Chi cago, Comtnlsbloner-General. Mr. Peck's rouort will be laid beforo you. In my Judgment Its recommendations will call Tor your early consideration, especially as regards an increase of the appropriation to at least 61,000,000 in all, so that not only may the assigned space be fully taken up by the best possible exhibit* in every class, but the preparation and Installation bo on so perfect a scale as to rank among the first In that unparalleled competition of artistic and lnventlvo production, and thus counterbalance the disadvantage with which we start aB compared with other counurlel whose appropriations are on a more generous scale, and whose propara tlons are In a state ot much greater for wardnoss than our own. 'The dooument next refers to our trado agreements with the European nations and the efforts that aro being made to remove the embargoes on our products, and thon devotes a paragraph to our rotations with Great Britain: England*! Cordiality. Our relations with O *eat Britain havo continued on the moat friendly footing. Assenting to our request, tho protection of Americans and tbolr int<sr**ts in 8pnul<ih jurisdiction was assured by tho diplomatic und consular representatives of Great Aritalu, who fulfilled tholr delicate and ar duous trust with ta<jt and seal, eliciting high commendation. 1 may. be allowed to m;ilc? fitting allusion., to the Instance of Mr. IUmsden, Her Majesty's Consul at Man tlago de Cuba, who^ untimely death after distinguished service and uatlring effort* during the siege of that otty was slnosraly lamented. Mention Is ttaea made of tho ssossot of tha ftiMdlin flowtnaent to allow four United State* revenaa cutters to pass from the fraat lakes to tbo Atlantic OoasTby way of tbs Canadian ousts aad the ft, Lawrence lifuf. "It wtll gtrs tho Flwri; dsat Mrt plaasors la so?ibslsstlsg to OssgjMM a Tho aaasxatloa of HaaraH Is sofsfld to. Farsoaat to rho tanas of tho Mat nsoln fSSST^Sfcrn 'S& afc*?f&S Tin* f?>port of t'?<i f'> nmls*i whioh now co.nj leted u ii' I will '?? laid l ?t? f*> i*?? C ju? urcst tt( tin early date. The ? ' t f Ty r ?.? u o i* l"* t\YOi>n Hawaii and 'irisi'nif ?>nt of alleco d in 1st rent mem of .1 ip.Vieso luimi* Ui'aula, win iruicutilv ad,iu?it-' I hv t.ao pav? n.i'Mt ?>f a l.vi-iMUl >1'* ihdOlllliiiy t > I a> tiOYOmilOlH of J It I'll II ? Too niessnwo then f? i ? tho notion of tho \lo\io.\u Go\u rainent In K'vin J noiicO ; nil .liuoi uy 'J 1. (to taxo ??iV*? 't a year I liuai t 'nit Uutol, of liit* ter'lunatlon of t > t T:\-triuliiioii t\in\ontloit of December yk ISol. ' I to l\v tin* Governments of ' * I Vnltod Mates anil t'anndu. In coutuiqt.o'i (herewith I'io President asks fovauamen 1? meiu i<f tho ?* \ 1 y 1 1 n l; extra lltMn statute, The ?mij^e-tlon I* then nia^o that Con* KI'i'-ih uut lorlao a cv>nforon'*? of le.'roaoiu* uiivi'.i ??i ti; >> I'nite I States an t Mexico I Consider t Tio problem of tho Mexican free zone, it beinv! provocative \? f s;noici'liu Into t hi* (finuii i </ along an extensive mi l tlilnlv iril ii led lii'ul It >r.l??i. The Government ?f Peru hai given no. .1 i?jo of its intention to a!?ro4f ito i io treaty Of friendship, commerce 1 nnvigutlo i oonoiude I wit a \!ii? iKiimtry, Antra*: Ul, lSs'7. , J \ i nn prono*.H.ef VliftC '. ir for n c.onferon'o ,-n dt?cu?s i ?v? ' ffAn.'r :il VO-liVcHon of t ? vast inllliarv establishments of I ho world !-> r ferro.l to. Ilis Majesty was at on ? 1 in formed oi the synpathv of on i' Uoveni* rn?MU ami ot thu readiness of I t'n i <? I | States to lake part in liio conference. It is also stated t 1 at t'l11 'l.ii n< ot oxYivtii'J of American ?<i'irl it? vessels for so./.uro l>\' Russian <*iu l-.'i-i in Pi-'Mnir Sea ur?? btMn.j pressed to a si'ttl'i'iii'iit . Vvnci'sotnu Itouu.lary Arbitration. 'l'ho arbitral trl'oinil a ?p ilnto I in It t lio tii' it v of Po'inru y '2, 1 1?:?7 , bet .vimii CliH it Britain an t Voni'itnula to ? t ??: n r -n i i ?< t ho hoantlarv lino l)?>two'?a tiio latter an I tlio colony of British tiiiiimn H to onivi'iiii nt ParU iliirin^ ttia |irt'?'?nt mont'i, in I I Ito Pri'sidrt'it i'xr>ri*??pti mii^ti prat itloatloa tlinro.it. II ?? also hh.vm t hit t lio o\ o^rliMi 'in of tlm last year having lirou^Ut for?'ll?ly homo to iih n SHimoof tiio l>ni'<lons anil tli ? wiiRto of w?r wo doalro, la eoiii'uou with oiviil^oil uutloii#, to r? luae to tlio lowest possiblo point the dtvnitifo ?nstiilnt?.l in tiin? of war hy poaooabla triulo h i I oo o tnoroo. il ? thoroforo nr<o.< Ilia oulllti..; of an antl-prlvatoorlui? coaforoaoo. National Flnanc^i. On the suMwot of nntional flnancng thn mos-'nijo dotaiU th? (Jovornntont's rooolptu anil exonmlltaros, and than saya that tho "provi.slonH (iia In for sttvatjlhonin? tho ro? RoiircuA of tho Tronsnrv In oonuwotion with tho war havq k! v?n Inci'DHitxl oontldonno In tho purpOHO and powor of tho Govern mont to maintain tho pr^Hunt Htandnrd, and have established mora ll fin ly than over tho nn< tlonal <?rodlt at Jiomo and abroad. T A marked ovldanoo of this Is found In th^ ln? flow of nold to the Tronsnry." Tiio l'ro-ddout rouow-i his ro3om aiJuda? tlon. of l)oc| nbor, 1S'.I7, iih follows; That , any of tlia Unite I States notes aro presontod for rodompl Ion In K?ld. sneli notes shall bo k'^it and sot apart and only i>aid <?ut in "xerui'vifa for irold. Thl* Is an obvivnis ilul y . It tli" holder of the United states not?* profurs th>? ifol I an I K<-ts It f io n tho Government li? should not re eeivo lia"k fi<?'ii i ho (loviinnno'it a United Mates not" Without paving L,'old in ex. ^hnniro for it. Tho reason for this is ma l*i all the more apparent when the Govern nent issues an iiiti'rest -bearing debt t-"> urovido uold for tho ro leinption of Unltod states notes ? a non-Interest bearing d?bt, Purely it should not pav than out aKaln ?x?opt on demand and for uold. It th?yp ire put out In any other way, they may re? * urn iiK'aln, to be followed bv another oond .<4.suo to rodoom them? another intorost lenrinif. debt to redeem a non-Interest* soaring debt. On thn itniiiiia of (O'tmibitcUi. This reoo^timendfttlon was made In tho bo llef that siu-l^ provlsiona of law would lusure to h k' rente r dexreo the safety of tho present elni.dft d, and bettor protect our currency from tho ('aiiKora to whioh It Is Riit.jee.te.d from a dlsturbanco In tho general busmoi** conditions of the country: In my Judgment, tho present coudltlou of the Treasury amply Justifies the Imiuedlato ennet rnent of tho leKl^latlou recommondod one year azo, under which a portion of tho pold holdings should ho placed in a trust fund from which yreenhacks should be re doomod upon presentation, but whon ouco redeemed should not thereafter he paid out, except for ?rold. it is not to be inlerred that other legislation relntlug to our cur rency is not requited; on tho contrary, iliero la un ohYlous demund for it. J'ruilo Wtili Our New IhIuihI*. Tho annexation of H i\v ill and I ho clmnijod gelations of tho United S'tit'M t > On bu.l'orto 111- ? and 1 ho Philippines result ? ItiK from I ho war compel the prompt ad >p tlon of a maritinin policy by tho United -Hntos. There should bo established rej^ti larand frequent sti*ani6>ip communication, encoiifU^ed by tho Unite 1 States, undor the American flu r, with tho newly acquired islandd. Spain Iurnlsh?d it:> colonics, al an annual cost of about two millions of dol ars, steamship ila^n communicaiinK with a portion of the world's market as >vell as with trade centres of the hOrr.o tlsvernmont. Tho Unltod State will not undertako to do this. Iliiourdiilv o furnish the people of Hawaii with aollltlos, under national control, for their ?xport and Import trade. It will ho oon ?eie.t that tho present situation calls for egislat-lou whioh s mil he prornf?t. durable ind liberal. The part which American nercliaut vessels aud their seamen pnr (ormo i in the war with Spain demonftt r ites that this service, furnlsulnpr both pickets iml tho second lino of defense, is a na tional noceasltv, and shonld bs enoouracfod ii overv constitutional way. Tho President renews his recommcnda Ion that suitable appropriation ha inado to ?rovido for a oomipisslon of experts to ippointod to iuvdltlifalti the causa and /rovention of yellow fever. A Army Wanted. An Increase of t!i? nruy la nrifirf, Hn 'resident doiMnriui? that t!i?>re mh I>?j no ? ii (Mt Ion that lit tMi (lino, mi l probnbly or ho mo tlino In rfi? fiiturw, 100,013 ri?" n vlll l?o nou>) too many to moot tli?i no23?sl of t lit) altuV.lon. Tneu follow paragraph*! rslatiiif? to th? Tnlon Prtilflo Xlatlw-iy, a no# building f-?r m Dopartmtnt of Juatloe, ttio innjaqniitit (?rtom-i>oilHti'>iiH provldu.l for Urn .Hupre-rie lourt in t Im (Jnpltol, tlio poat.it durvlco of rift country uni Us lunor* rt'irln^ Hi?, v.ir, n? woll as the po?tofTlees whicli went -*tabll<*h?*d |r? Cab*. Port*> end tl??* ?tilllppla??. Tlio President approvo* tlio rwonmen* intlonn of the Secretary of t.i? Navy rnla* Ive to tbo increase of tho N ivy in l .-iIh> ir(M that tin 9( A4?irii nH vy? idmlral bo to-npornrlly roviv>; I, to 0s (Him I v olAaer* ?vhoh?v*MDt<clAily <lt*liui*ulsUrtd >*m?elve? la tue wer witn rtpatn. 'f he message thea refer* briefly to tb* velfth census, the laoreasa la the pension oil, tbe condition of the public canals, tlio 1 ? petatloae of the Department of A?rloul ?ire, the PlllagfiXodiaa outbreak aal the ?x^eriraeats with that la he year will itreriwiry-efthofeon^ /aahlogton for the permanent cap! te ftoverameat of the Oritei veeideot aeks aa appropriation for a ?u I ta le aatloaal celebration of the ereat. ?twm A lie* Uk?r Law |.~ la e**elaa(on the . Ia aa*elaafott the me? eye aajj:. The aia* Contract Labor law te aVo win* by^x fA ~ 1ABA ??nHtllOII A II IMSIM.; -r | Tho K^son'.ial Fra'tfres Disposed of ; ? Embodied in figl * Articles. THE GOVERNMENT OF. HAWAII. . Three Bill* I'onmilaloJ f>?r Con/tress ? Sec retary Gage's Annual Report -German Reiclislatj Opens The Hebrew Union. PaMH Hv OjiOIo). ? I'Ho ptuiort treaty (a pi-.iot iCiiliy an accomplished tact. Tuesday'* <-H*sim? dYsrosod of tho ? ? ?; ho lit ml 10?tun;? of Vho tioaty, wliu .h . will tut otuhodiod in lire follow IJK oluht in tides ; Ktr*t ? Ih" customary prefaoe ot treaties, in tl.o injure of iui expression of UHUI.V ami of hupa K>r perpetual 'Tocond ? Tho relinquishment by Spam of hot ?iiVi?ro.tfiity over V " "?? I imd - 1 ho withdrawal of tho > pan i Tho iclit ri'UHhmont by | Spun of hoi- uovoieiguty ovor l uj to i * 'infill --Spain's co.tsion of tlio Philip^j , UU|Vth? Tho withdrawal of tho Span ihIi troops thoro. r t ? | tfevont h? Pnyuiout by tho b ul Votl StutoM of S2it.uu0.iie0 tor tbo i htut '"l 'l^.th-Tlio provision for tho ?'open door" commercial policy 01 tho 1 n 11 V'ho ion^h draft ( f tho treaty, which may ho considerably changed, coyeiB the proposals. It makes a loug ?too runout, winch Senator Cunhtuaii lv. Uavis, of tho United Stale* poueo cum mission, hays will he found to be one of tho moht internating p?|?or? of its character ever written. So completely ore tho details of tho evacuation of tlio Philippine* stipulated, that a Comnns Hiou such a? arranged for tho^pftoiMh withdrawal fioui^ho \\ est ludioa will ho nnnocoHsniy. T lie Government of Hawaii. Washington, ?>? O. (Special). -Tho President I nosday trotiBiuiitod to t on irresa tho report of tho H:\vatian com mission. consisting of SonutorH <. and M oriran, Koprosontntivo not Presidout Dole aud Justice 1? roar, of I i aw at i, together with the text of IjiIIb drawn bv the ciiiniissiou for tlio LMivnrnmont of tho islands as ? portion of tlio United State*. I ho preliminary portion of tho report i?. mainly do nor iptive of tlio Hawaiian Islantts, the inhabitants, tho existing instituliotiH, tlio public domain, prod notions, climate, harbors and shipplug facilities, and various conditions of general in terest. Tho remaining portion is mainly dovotod to n discussion of tho legisla tion proposod by tho commission, mvmg in tho appendix tho various to ports of sub committees and copies of the bill suggested. Throe bills are .formulated for the couBidcratiou/oI Ctfutrress. The first aud prino.pabpuo oQlimos a gonoral | lan of povorutiieut uud tho other two deal with j?hb<j>rdi uate questions. Secretary Gage's Annual Report: Tho annual report of Socrotary <?f tho Troaaurv tiago ba* boon seut to tlio Speaker of tho Hotlne of llepresonta tivrs. The receipts for tho fiscal year amount to S4'J4,3JJ,0U0. 'lhe oxpondi Hires exceed this by *118,000.000. H?? increase in tho military establishment tho expense of tho war, cW 0u0^U0and for tho navy 8"?9,0(;0,000. 1 lie tceelpts compared with tho previoUH year m creased 804.000,000. Tho internal rev enno receipt* increased *.4 000,000. I ho increase in expenses for the tarv establishment was s'4-t, 000,000 and for the navy 1,000, 000. iho WCToa?? in ponsions amounted to 5(5,000,00 ). The Hebrew Union. / Tho sixteenth annual council of tho American liebre* Uongrogatioh*. met at Kichmonri, Vn. , in the House of |)elogates '1 uesday. 1 horo were rep resentatives from all ovor tho couutry. The proceeding* were opened with prayor by Kev. Dr. Calisch, of that citv. President Friedhurg delivered hiB annual address. Mayor J aylor wolcomed the yuiontotbe city aud a permanent organization was effected by electing Mr. ?Julius Strati**, of Rich mond. president; Mr. lollor. o P bile delphia, vice presidjjutr^Mr. Lovv, of (yiuoinnati, secretary, ana Mr. Sigmuud Lovyn, of Buffalo, teoretary. 0 -Jb* draft of Go?. Milan' bill fatfw rMrKtDiu"an of tbo mrmj, prondne for W.OWbm. ?f* tytoWlii >1 1 mania ai iaiaiij? sssrg (icrman Rciclista; Opens. JJekMN (By Cable) ? Tho ne^flion of. tho Dor man reichstag was formally opened Tuesday. '1 be Emperor'* speech forenhadowed tbo introduction of no important hill*. lie ompha*i?->d oh pooinlly the im nortauce of tbo new mil itary bill, whicb be naid ha remarried an cMMontial to the interest of tho empire. The Emperor in the-apooch said neu? trality in the Ilinpauo- Auierioan w^ J had been conscientiously ogxerved. ? ? One Thousand Cases of Smaltoox. Tlie lato?v- ??1 vices from Hotsruin, Cuba, say there are over 1,000 case* of 'small pox there and at Gabara. It ia alto reported that at a meeting of the board of directors of the Spanish bank, a proposition, advaaoed by several *>y? dioataa^to/ pnrchase all the flri>t mort "cages held" by the bank on municipal properties in Havana, amounting to $6,000,000, was MMg " An aooidont to th* efoaatf^r in tho 11 atorjr bnildinjr at Pino and William atroota. New York city, occupied by thaJQuitod States Fira Inrnrance Com pany. resatted ia Hio deatn^of one of Tbo oompaay'a direelare, the probablo . fatal inior* af another dtranlai aad tha.1 serioaa iajary of * third iaanmaoo | man. '? THE NATION'S I AW -MAKERS. 4 Proceedings of the Senate .-,?J House Day by Day. SENATE. TPesruY. I'lio 11 r-?t note of tho auti* expansion tats v\ n.i b aiiuiml iu tho Sen ate by .^outuor Vewt, of Missouri, who introduced u jmui resolution declaring that, uii'lor tho constitution, tlio h'o'l ? r n goverunibnl lirt'l no authority ti* acquire CuK'ImhI possessions, to bo go* erned a* audi; i Mil thut nil territory ac quired by tho Kovoi iimou! , except sucii ?.i may ha pccossary tor use nsooahutf Btai uiiiN, correction of boundaries and similar purpose*, may bo acquired With the | >U 1 1 m - 1? of organizing territories, suitable in ti itiute)y for admission into tho Union aa ?->tut o?. JUr. -Vent an nounced Ins purpose to address tho Semite on tho resolution at uo early date. A brief discussion of tho uht?}<u? tion Imvn won precipitated by tho consideration of u bill amending those law* by tho addition of u provis ion t fin t foreign (mi li vessels, wrecked in the I'niled .Suites by oitilcut* of thin cou u try and re i unfed to the extent of thioe fourths ot t no value, shall bo sub ject to ftiileituio if they enuago subse quently in the coastwise trade of tho I tilled Si at oh. Senator ilulo intro duced ft joint resolution authorizing tlio secretary of tho .Navy to ereot a monument in iiavaiin, ? uba, to tho nn njuiy of the sailors and murine* who lust their lives by t tie explosion of tho Maine. 1 ho bill in lecnii) mended by the Navy Do |>at tm on t, Senator Hale, of Maine, oha>rmnu of the naval affairs coininitteo, introduced a bill to revive the grades of admiral and vice-admiral of tho navy. HOUSE. Tl'hsdat ? Tho House won in aeasioti Jess than half uo hour wbtou tho deaths of Hepiosentativos North way, of Qliio, and Cove, of Mississippi, wero nnnouueed, and au adjournment wan taken uutil Wednesday, out of respoot to their memory. The custom ary resolution for tho distribution of the l'reKidout's moHsugo to the several committees having jurisdiction was ndonted, and '.lie deficiency bill carry i ii K (be appropriations for the extra ordinary expenses of tho nrrny and nuvy from January 1 to July I, lbM. lho roport of the Hawaiian commission transmitted to the President w^tt laid before the House and referred to^t>ho committee on Territories, together with a bill ottered by Mr. llitt to oarry out tho rocoinuioudutions of tho ootn miuaiou. Among tho bills introduced in the House woro tho follow ing: By Mr. Otoy, of Virginia, to amend tho war rovonno act by directing tho Secretary of the Treasury to redeem at their face value all rove* line H^|i in pm Hold and not cancelled; by Mr. Sfcinner, of North Carolina, to es tablish a term of the cro'tlit court for New lioruo and Elizabetjv City, N. 0. Abandonment of the Teresa. The findings of the court of inquiry coooeriiing the ahaudopinent of the In fanta Maria Teresa during the storm of October Bit has been made public. Tho tludings aro sum mod up id ttio statement that tho court finds that tho abandonment wu? uot due to any fault or negligence on the part of any officers of the navy, and that the oourt does not think auy further proceedings should be iustituted. . > Evacuated by Spanish Troops. Tho following towns lu the province cf Havana, Cuba, have been evacuated by the Spanish troops and have been occupied by i. uhau troops at therequeai of, and uinlor the direct supervision of the respective mayors; .Jibjeoa, Santa CruK <M Aluute, solba do' Agua, fcSJ Antouio de Lws iJanos, Guira de Melo ns, San Antonio de ltion Blanco aod San Pablo Jiauo, and CaaigUHS, on th? Isle of Pineel Given an Orderly Trial and Then Hanfed^ After au orderly trial, lasting several* hours, by tho committee of citizens of Bentou, La., it was decided tiiat two tieKfoes, Hoar n and Kichardaon, who were under arrest thero, were guilty of the mur ler of Larry Vauco, and they were at ouoe taken to tl)e place of exe cution, half atnile north of town, where they were hanged by citizen*. Both died game. The crowd waa Tory, or* derly. ^ ? ma NARROW K8C/P.B0. ' There's a man who has had man jr a narrow escape from boing shot," _ "Indeed! Was he ono of the Kough ."Tldr.rs who rushed up that hill at Caney ?" 'Ao; he was an Adirojt)daok guide for neariv three weeks.' South Caroha and fieorg'a Hailroad Com any. "The Charleston Ltnr^V Bohsdule in offset Rgc. 19 EAST DAtl.T. It Augnrttil 6 ?0 a nr Atlcun 7 08 or KiiiKville 10 10 a nr Columbia 10 05 s ar Charleston 11 00 a wnr WAii.r. It < hsriu*tou 7 10 a It Columbia 7 01 a It Kioff'JIU 7 4?a a r Aiken 1109 a at Att^'U ti ?! a CAST DAILY. It Auguata ft 20 p nr Aiken 4 <)7 p ?r KloctUU 0 20 p or Colombia lOlOp ar Cluiriiitoa t# p om Iff WMU fatawg loan w?vii' WXST DAILY. is; ItK1o?t?11? .*?** ax AIKm t?4> 10 tip r!*5?s