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THE PRESIDENT'S MESSAGE. The Gold Standard Supported. " Down With The Trusts i" Great Stress Laid on the Retention of the Philippines?Ouba and Porto Rico Must Have Stable Governments. To tho Sonato and House of Kipreson tatlvos : At tho threshold <?f your dollbora tioiiH, you aro called to mourn with your countrymen ih>. death of Vico President llobart, who pushed from this lifo on tho n.' i nlug of Novombor 21st, last. Iiis groat soul uo'v roata in eternal poaoe. >T ur'./ato lifo was puro and elevated, while his public career waa over distinguished by largo capacity, Btnlnlens integrity and ex alted motives. He baa been romovod from the hlgn ollloo which ho honored and dignified, but his lofty character, his dovotlon to duty, hia houoaty of purpose and noble virtues remain with us as a prlcelcsa legacy and example. The fifty-sixth Congress convenes in Its ?rat regular session with tho emu try in a condition of unusual pros perity, of universal good will among tho people at homo, and in relations of peace and friendship with evory gov ernment of tho world. Our foroign commorco has shown great Increase in volume and valuo. The combined im ports and exports for tho year aro tho largest ever shown by a single year In all our history. Oar f xports for 1899 alono excoed by more man a billion dollars our imports and exports com bined iu 1870. The impor s per capita aro 20 per cent, less than In 1,870, while tho oxporta per capita t?ro 58 per cent, more than in 1870, showing tho en larged capacity of tho United States to Batiafy the wants of its own increas ing population aa well as to contri bute to those of tho peoploa of other nations. Exports of agricultural products wore $784,770,142. Ol manufactured products we exported in valuo $333, 602,140, hotng larger than any previous year. It la a noteworthy fact that the only years in all onr history when tho product; of our manufactories Bold abroad exceeded those bougnt abroad were 1898 and 1899. Government receipts from all sources for tho fiscal year, onding Juno 30, 1809, including $11,708.314 14 part pay ment of tho Central Pooifio Uallroad indebtedness aggregated $010.982,004. 30. Customs receipts woro $200,128, 401.75 and those from Internal revonuo $273,437,101.51. For tho fiscal yoar, tho expenditures woro *700,093,504.02, leaving a deficit of $89,111,549 07. Tho Becretary of tho treasury esti mates that the rcce pts for the current fiscal yoar will aggregate ?010,958,112 and upon the basis of present appro priations tho expenditures will aggro gate $000,958,112, loaving a surplus of $40,000,000,000. For tho ?ecal year onded June 30, 1899, the internal revenue receipts Increased about $100,000,000. The present gratifying strength of the treasury is shown by tho fact that on December 1, 1899, the availablo cash balance was $278,004,837.72, of which $239,744,905.30 was In gold coin and bullion. Tho confidence which prevails throughout tho country has brought gold into rnoro gonoral uso and custom receipts are now almost entire ly paid In that coin. The strong condition of the treasury with rcBpoct to cash on hand and the favorable showing made by tho re venues bavo made It possible for tho secretary of tho treasury to take action undor the provisions of 3094, revlsod statutes, relating to tho sinking fund. Receipts oxceoded expenditures for tho first five months of the current fiscal year by $12,413,380.81 and, as mentioned above, the secretary of the treasury estimates that there will be a surplus of approximately $40,000,000 at tho end of tho yoar. Under such conditions, it was deemed advisable and proper to resume compliance with the provisions of the sinking fund law, which for eighty years has not been dono because of doficlonclos in tho ro venues. Tho treasury department, therefore, olio red to purchase during Novombor $25,00u,000 of tbo 6 per cent, loan of 1904 or the 4 per cent, funded loan of 1907 at the curront market price. The amount offered and pur chased during Novombor was $18,408, 000. The premium paid by tho govern ment on such pure.hii qs was $2,293,521 and the not saving in Interest) was about $2,885,000. Tho success of this operation was sufficient to induce the government to continue the offer to purobaso honda to and including the 23rd day of Dccombor Instant, unless the remainder of tho $25,000,000 called for should bo presented in tho mean time for redemption. , v DEMANDS TUE OOr.D STANDARD. Tbo attention of Congress Is respect fully Invited to this important matter with tho view of ascertaining whether or not such reaeonablo modifications can be <\ade in the national bank act as wi.i render Its servloo in the parti cular here referred to more respon sive to tho peoplo's needs. I again urge that national banks be authorized to organize with a capital of $25,000. I urgently recommend that to sup port tbo existing gold standard and to maintain " the parity In value of tho coins of the two motala (gold and silver), and the equal powor of ovory dollar at all times in tbo market and in the payment of all debts," the secre tary of the treasury bo given addi tional powor ard charged with the duty to seil United States bonds and to employ such other effective moana as may bo necessary to these ends. The authority should Inoludo tho power to sell bonds on long and short time, as conditions may require, and should provide for a rato of. nterest lower than that fixed by the a :t of January 14, 1815. While there la no commercial fright whloh withdraws gold from the government, but on the contrary, suoh widespread contldenoo that gold seeks the treasury demanding paper money In exohange, yet the zery situation points to tho present as the most fitting time, to make adequate provision to insure the oonttnuanoe of the gold standard and of public confidence in the ability and purpose of the govern ment to meet all of its obligations In tho money which, the olvlll/.od world reeognlzos as the best. The financial transatlons of the government are con ducted upon a gold hauls. We receive gold when we soil United States bonds and uso gold for their payment. We are maintaining the parity of all the money Issued or oolned by the au thority of the government. We are doing theso things with iho means at hand. Happily at tho present timo we aro not compelled to resort to loans to supply gold. It has been done in tho past, however, and may have to bo dono In tho future It behooves us, therefore, to provide at once tho best moans to meet tho emergency when It arisos and tho best moans aro those which are the moet eortalu and econ omical. Those now authorized have tho virtuo notthor of directness nor econ omy. Wo havo alroady eliminated ono of ihe causes of our financial plight and ornhirrassment during tho years of 1893, 18114, 1895 and 189?. Our re ceipts now tquai our expenditures; de licient revenue no longer creates alarm. Let ue remove tho only ro maiuing cuuso hy conferring tho full necessary power upon tho secretary of tho treasury and Impose upon tho duty to uphold the prcsont gold standarJ and presorve the coins of the two metals on a parity with each other which is the repeatedly declared policy of tho United States. In this connection, 1 repeat my form er recommendations, that a portion of the gold holdings shall be placed In a trust fand from which greenbacks shall bo redeemed upon presentation, but when onco redeemed thall not thereafter bo paid out except for gold. DENOUNCES TUB TRUSTS. Combinations of capital organized iuto trusts to control tbo conditions of trade among our oltizens, to stille competition, limit production and do turnilno the prices of products used and consumed by the people, are justly provoking public discussion and should early claim tho attention of tho Con gress. Tho Industrial commission created by tho uet of Congress of Juno 18, 181)8, has been engaged in extended hearings upon the disputed question Involved In tho subject of combination In re- 1 strahlt of trade anJ competlon. Thoy have not yc? completed their iuvesti- 1 gatlon of this subject, and the conclu sion und recommeudutions at which they may arrive are undetermined. Tho subject Is one glvlag rise to many 1 dlvorgcnt vlows as to the naturo and variety or cause and extent of the in juries to tho public which may result 1 from largo combinations concentrat ing moro or less numerous enterprises 1 aud establishments which previous to I tho formation were carried separate- 1 ly. < It Is universally conceded that com binations which engross or control tho i market of any particular kind of mer chandise or commodity necessary to i tho general community, by suppress- i lng natural and ordinary competition, ! whereby prices are unduly enhanced < to tho goneral consumer, are obnoxious i not only to the common law, but also 1 to tho public welfare. There must be i a remedy for tbo evils involved in such i organizations. If the present law can ' bo extended moro certainly to control ?< or cheok these monopolies or trusts, ( It should be done without delay. What- i over power the Congress possesses i over this most important subject should t bo promptly ascertained and asserted. President Harrison, in his annual , message of December 2, 1889, says : , " Earnest attention should be given , by Congress to consideration of tbo , question bow far the restraint of those , combinations of capital commonly , called 'trusts' Is matter of Federal , jurisdiction. When organized, as they , often are, to crush out all healthy , competition and to monopolize the pro- , ductlon or sale of an article of com- | meroe and general necessity, they are , dangerous conspiracies against tho , public good, and should be made the , subject of prohibitory and even penal | lcgt-latlon." An act to protect trade and com- , merco against unlawful restraints and , monopolies was passod by Congress on . the 2d of July, 1890. The provisions of ( this statute are comprehensive and stringent. It declares every contract , or combination, in the form of a trust . or otherwise, or conspiracy In the re- ' stralnt of trado or commerce among . the sevoral states or with foreign na tions, to bo unlawful. It denominates as a criminal evory person who matces , any such contract or engages In any such combination or conspiracy, and provides a punishment by fine or ira- 1 prison merit. It invests the several elr cult courts of the United States with jurisdiction to prevent and restrain violations of tho act, and makes it the duty of tho several United States dis trict attorneys, under the direction of the attorney general, to institute pro ceedings In equity to prevont and re strain suoh violations. It further con fers upon any person who shall bo la jured in his business or property by any other person or corporation by roason of anything forbidden or de clared to bo unlawful by the act tho power to sue therefor in any circuit court of the United States without re spent to the amount in controversy and to recover three-fold tho damages by til in suatalncd and tho costs of the suit, Including reasonable attorney feos. It will bo perceived that the act is aimed at evory kind of combination in the nature of a trust of monopoly in re straint of interstate ot international com meroe. Proaeoutlon by the United States of Offensen under the act of 1890 has been I frequently resorted to In the Federal courts, and notable efforts la the re straint of interstate commoroe, suoh as the trans-Missouri Freight associa tion and tho Joint Traino association, have keen successfully opposed and suppressed. President Cleveland in hin annual 1 message of December 7, 1896?more than six years subsequent to the en actment of this law?after stating the evils of the trust combinations says: " Though Congress has attempted to deal with this matter bj legislation, tbo laws passed for the purpose thus far have proved lnoffeetlve, not be eauao of any luck of disposition or at tempt to enforce them, but simply be cause the laws themselves as inter Sreted by the courts do not reach the iffloulty. If the insufficiencies of ex isting laws oan be remedied by further legislation, It should be done. Tho fa it must be recognized, however, that all Fedoral legislation on this subjeot may fall short of its purpose, hoeau.o of 1 uheront obstacle* and also because of tbo complex oharautor of our gov ornmootal system, which, while mak ing tho Federal authority nunrurao within ite sphoro, had carefully limited that sphere by metcB ar? bounds which cannot bo transgressed. The decision of our highest court on this precise question renders it quite doubt ful whether tho ovils of trusts aid monopolies can bo adequately treated through federal action, unless they Beek directly and purposely to include in their objects transportation or In tercourse between Stales or between tho United StatOB and foreign cour tries. It does not follow, however, that this is tho limit of tho remedy that may bo applied. Even though it may bo found that Federal authority Is not broad enough to fully roaeh tho case, there can be no doubt of tho power of tho several States to act effectively in tho premises, and thoro should bo no reason to doubt their willingness to judiciously oxerciuo such power." The State legislation to which Pres ident Clovoland looked for rollof from the evils of the trusts has failed to ac complish fully that object. This is probably duo to a great extent to tho fact that different States take dlfforent views as to tbo proper way to discri minate between evil and injurious com binations and those associations which are beneficial necessary to tho business prosperity of tho country. The great , diversity of treatment in ditToront States arising from this causo and the . Immediate relations of all parts of tho | country to each other without regard- < Ing State lines in tho conduct of busl- < ness have made the enforcement of < State laws dilllcult. It is apparent that uniformity of legislation upon this subject in tho several States Is much to be desired. It is to be hoped that Buch uniformity founded in a wise and just discrimina tion betsvoen what is injurious and what is useful and necessary in busi ness operations may bo obtained and that means may bo found for the Con gress within the limitations of its constitutions I powor bo to supplement an effective code of State legislation so as to muko a complete system of laws throughout tho United States adequate to compel a general obser vance of the salutary rules to which we have referred. The whole question is so Important and far-reaching that I am sure no part of It ?will bo lightly considered but every phase of of it will hayo the studied deliberation of Congress, re sulting in wise and judicious action. THE TENSION HOLL. On tho 30th of June, 1899, the pen sion roll of the United Statos num bered 991,519. Those include the pen sioners of the army and navy in all our wars. The number added to the toIIb during the year was 40,991. Tho num ber dropped by reuson of death, ro marrlage, minors by legal limitation, failure to claim within three years and other causes were 43,180, and tho num ber of claims disallowed was 107,919. During the yoar 89,034 pension certifi cates wore issued, of which 37,077 were for new or original ponslons. The amount disbursed for army aud navy ponslons during the year was $138,355, 052.95, which was $1,051,401.01 less than the sum of appropriations. The Grand Army of the Republic, at Its recent national encampment, held at Philadelphia, has brought to my attention and to that of the Con- ? gross the wisdom and justice of a modi- < tic tiou of the third section of tho act >f ? ' one 27,1890, which provides pen- ( 5ions for the widows of officers and on- { listed men who serve ninety days or | moro during the war of tke rebellion ', and wero honorably discharged, pro- ; rlded that such widows are without , >tber means of support than their | lally labor and were married to tho | soldier, sailor or marine, on account of \ whose service they claim pension prior | to the date of tho act. The prosont holding of tho depart- i meat is that if the widow's income, i aside from her dally labor, does not sxceed In amount what hor pension : would be, to-wit, $90 per annum, she I would be deemed to be without other 1 means of support than her dally labor, < and would be entitled to a ponslon 1 under this act, while If the widow's in- 1 some, independent of the amount re ' solved by her as the result of her dally i labor, sho would not be pensionable < ander the act. 1 am advised by the i commissioner of pensions that tho 1 ?mount of tho Income allowed beforo < title to ponslon would bo barred has ! varied widely under different arrange- < ments of tho pension office, as well as | luring dlfferont periods of tho same 1 administration and has been the cause 1 )f just complaint and criticism. With the approval of the seorotary i :>f the interior, the commissioner of pensions recommendd that in order to make practice at all times uniform < and to do justice to tbo dependent , widow the amount of Income allowed Indepeudent of the proceeds of her dally labor should be not less than $250 . per annum, and be urges that the Con gress shall so amend tbo aot as to per- , mit the pension office to graut fen- , Blonable status to widows under tho terms of the third seotion of the aot of June 27, 1890, whoso Income, asido from the proceeds of dally labor, Is not in excess of $250 por annum. I believe this to be a simple aet of justice and heartily recommend It. The Dawes commission reports that gratifying progress has boon made In Its work during the preceding year. The Hold work Of enrollment of four of the nations has boon completed. I recommend that Congress at an early day make liberal appropriation for educational purposes In tho Indian territory. ?HE TWELFTH CENSUS. Ia accordance witb the act of Con gress approved March 3, 1899, the pre liminary work in connection with the twelfth census is now fully under way. The officers required for the proper ad ministration of the duties imposed hav e been selected. The provision for secur ing a proper enumeration of the popu lation as well as to secure evidence of the Industrial growth of the nation Is I broader and more comprehensive than I any similar legislation In tke past. The d lrector advises that every needful effort Is belngtmado to push this great wore to completion In the time llmltod | by the statute. It Is believed that the twelfth census will emphasize our re* markable advance in all that pertalas to national progress. Under tho authority of the act of Congress approved July 7, 1808, the commission, consisting of the secretary ol tho treasury, the attorney general and the secretary of the interior, has made an {agreement of settlement, I which had my approval, of the lndebt I r Iness to the government growing out o" the issuo of bonds to aid in tho con struction of the Central Pacific and Western Padfio railroads. The agree ment secures to the government tho principal and Interest of said bonds amounting to $58,812,715,48. There has been paid thereon $11,762,543,12, whloh has been covered into the trea sury and the remainder payable within ton years, with Interest at thu rato of .'I pur cent, per annum, payable sotnl-an uually, la secured by tbo depoait of an equal amount ol lirst mortgage bonds of tho Pacific rail way companies. The amounts paid and secured to bo pall to the government on account of tho l'aelllc railroad subsidy claim are: Unior Paolflo, cash $58,448,223,74; Kansas Pacific, oash ,$(> 303,000: Oen tral and W^btorn PauiQo cash $11,798, 314,14; notos, aecurel $ 17,000.172,:i0: Kansas City dividends, for detlciency duo United States, cash $S2I 807. 70: making a total of $124 421,007,95. Tho whole indebtedness was about $i:i0,0t0,000, moro than half of which conalsted of accrued interest, for which Bum the government has realized tho entire amount, 'ess about $0,000,000, within a period o? two years. AGRICULTURE. Tho department of agriculture is constantly consulting thu neuJs of the producers In all tho States and Territo ries. It is introducing seeds and plants of great value and promoting fuller diversification of crops. Grains, grasses, fruits, legumes and vegetables aro imported for all parts of tho United States. Under this oncouragemcut the sugar beet factory multiplies in tho North and far West, eeml-troplles plants are sent to the South, and conge nial climates are sought for tho choice productions of tho far Kaot. Thohybri- . di/Jng '-ult trees and grains is con- . ducted ^ ?no search for varieties ad- J aptod to tho exacting conditions. Tho j introduction of tea gardens in tho t ?Southern States promises to provide , amployment for idle hands, as well as to ? ?upply the homo market wi'h tea Tho j subject of Irrigation, whero It Is of ? vital importance) tothopcoplo, is being carefully studied; stops aro being tak en to reclaim injured and abandoned lands, and information for tbe people along these lines is being printod and distributed. Markotsaro being sought and opened up for surplus farm and factory products in Europe aud Asia. Tho outlook for tho education of tho young farmer through agricultural col leges and oxporiment stations, with opportunity givon to speciall/.3 in tho department o.' agriculture, is very pro mlslng. Tho people of Hawaii, Porto Rico and the Phllippino islands should bo helped by the establishment of ex periment stations to a moro seiontillc knowledgo of tbe prosecution of coffee, India rubber and other tropical pro ducts, for which thero is a demand in tho United Statos. Thero is wide spread interest In tho productlcn of our highways at tho prosent time, and tho department of agriculture is co-oper ating with tho people in each locality in making tho host possible roads from local material and in experimenting with steol tracks. A moro Intelligent systom of managing tho forests of tho country is being put into operation and a careful study of tho whole forestry problem is being conducted throughout tho United States. A very extensive and comploto exhibit of tho agricul tural and horticultural products of tho United States Is being prepared for tho Paris oxposltion. T1IK PHILIPPINE ISLANDS. History of Their Purchase, the incur reel Ion ami McKinley'? Recommen dation?. On the 10th of December, 1898, the treaty of peace between the United States and Spain was signed. It pro vided among other things that Spain should deed to the United States tho Archipelago known as tho Philippine islands, that tho United States should pay to Spain tbo sum of twenty mil lions of dollars, and that the civil right and political status of the native in habitants of tho territories thus ceded to tho United should bo dotormlnod by the Congress. The troaty was ratified by the Senate on tho 0th of February, 1899, and by tho government of Spain on the 19th of Marcli following. Tho ratifications -wore exchanged on the Uth of April, and the treaty publicly proclaimed. On the 2d of March the Congress votod tho sum contemplated by the treaty and the amount was paid over to tho Spanish government on the 1st of May. In this manner tho Philippinen caice to the Unltod Statos. The Islands were codod by the govern ment of Spain, which had beon in un disputed possession of them for centu ries. They woro accoptod not merely by our authorized agents In Paris un ier tho dlroctlon of the oxecutlvo, but by the constitutional and well consider ed action ot the representatives of the people In both housos of Congross. I had evory reason to believe and I stli. believe that this transfer of sovereignty was in accordance with tho wishes and aspirations of the great massos of tho Philippine peoplo. From tho earliest moment, no oppor tunity was lost of assuring tho people of the Islands of our ardont deslro for tholr welfare and of tho intention of this government to do everything pos sible to advance thoir Interests. In my order of the 19th of May, 1898, the commander of the military expedition dispatched to the Philippines was in structed to declaro that wo came not to make war upon tho people of that country, " nor upon any party or fac tion among them, but to protect them in their homos, In their employments and In thoir porsonal and religious rights "; that there should bo no doubt as to tho paramount authority there, on the 17th of August it was directed that " there must bo no joint occupa tion with the Insurgents ; that tho United Statos must preserve tho peace and protect persons and property with tbo territory occupied by their military and naval forces ; that the insurgents and all othors must rocogni'/e tbo mili tary occupation and authority of tho United States." As oarly as Decem ber 2-lth, before tho cossloa and in anti cipation Of that event, the commander In Manila was urged to restore peace and tranquillty and undortako the es tablishment of a boneflcont govern ment which should afford tbo fullest security to life and property. On tho 21st of December, aftor tho treaty was signed, the commander of the forces of occupation was instructed I " to announco and proclaim in tho most fmblie mannor that we oame, not as n vadorn and conquerors, but an frlonds, to protect tho natives in their homes, in tholr employments and In their per sonal and religious rights." On the samo day, while ordering General Otis to see that tho peace should be preserved in Hollo, he was admonished that " it Is most important that there should be no conflict with the insurgents. On the 1st day of January, 1899, urgent orders were reit erated that tho kindly Intentions of this government should be in every possible way oommunioated to the in surgents. On tbe 21st of January, I announced my inaction of dispatching to Manila a ooramlss' u composed of three gentlemen of tL- highest oha.* aoter and distinction, thoroughly ao qualnted with tho Orient, who In asso ciation with Admiral Dewey, and Ma jor General Oils, were lnstruoted to " faollitate the most humane and ef teotlve extension of authority through* out tho ialauda und to si cure with the least pussiblo delay tho benefits of u wiso und generous proteotlon of life und property to ttio inhabitants." Those gentlemen wero Dr. Jacob G. Schurman, president of Cornell Uul vorslty ; Hon. Charles Dcnby, for many years minister to China, and I'rof. D -an Worcester, of tho University of Michigan, who hud made a moat care ful study of life In tho i'hilipplncs V/hilo the treaty of peace was under consideration In tho iSeDato these com missioners set out on their mission of I pood will und liberation. Their char acter was sufliclont guaranty of the bcnclieient purpose Jwlth which tboy wont, ovon if they had not borne tho positive Instructions of this jrovcrn nif nt, which made their errand pre eminently one of peace and friend ship. But before their arrival at Manila tho sinister ambition of a few loaders of tho Filipinos had created a situation full of omburrassmcat lor tho United States and most grievous in its conso quonces to themsolvos. Tho clear and Impartial preliminary report of the commissioners, which I transmit I "re with, gives bo lucid and oomprohei ve a history of tho present lnsurrec.on ary movomont that tho story need not bo here repeated. It Is not enough to say that the clulm of the robol louder thnt ho was promised independence by any olll ?er in th3 United States in return for his ussistance has no fouudatiou iu fact ind is categorically denied by tUo very witnesses who were called to prove It. The most tho insurgent leader hoped or when ho camo to Manila was tbo iboratlon of tho islands from thn Spanish control, which thoy had boon laboring for years without success to throw off. The prompt accomplishment of this work by the American army and navy gave him other idoas and ambitions, and insidious suggestions from various quartors porvorted tho purposes and intentions with which ho had taken up arms. No sooner had our army captured Manila than tho Filipino forces began to assume an attitude of suspicion uud hostility which tho utmost efforts of our ofllcers and troops woro unable to discern or modify. Their kindness and forboaranco wore taken as proof of cowardice. Tho aggroesions of tho Filipinos continually lncrouscd until finally, just before tho time sot by tho Senate of tho United Slates for a vote upon tho treaty, an attack:, ovldonlly prepared lu advance, was made all along the American linos, which re sulted In a terribly destructive and sanguinary repulse of tho Insurgents. Ten days later an order of tho insur gent government was Issued to its ad herents who had remained in Manll; of which General Otis justly observes that " for barbarous Intent It is ua equalled in modern times." It directs that at 8 o'clock on the tight of Febru ary 15th, tho territorial military shall come together In the streotB of San Pedro, armed with their bolos, with guns and ammunition where conveni ent, that Filipino families shall be respected, but that all other Individ uals, of whatevor raco they may bo, shall be exterminated without any , compassion, after the extermination of tho army uf occupation, and adds: " Brothers, wo must avomjo ourselvoc on the Americans and exterminate, that wo may take our rovongo for the , Infamies and treacheries committed upon us. Bavo no compassion upon them ; attack them with vigor." A 3opy of this fell, by good fortune, into . the hands of our ofllcerB and thoy woro Able to take measures to control tho rising which was actually attempted on tho night of February 22, a week later than was originally contemplated. A considerable numbor of armed la- i ?urgonts entered tho city by watarivayi snd swamps and In concert with eon federates Inside, attempted to destroy Manila by uro. Tuoy were kept in , meek during tho night and the next lay driven out of tho city with hoavy loss. This was the unhappy condition , d affairs which confronted our com missioners on their arrival In Manila. , They had come with the hope and In- , lentlon of eo operation with Admiral Dewey and Major General Otis la es tablishing peace and order in tho ar- ' 3hlpelago, and the largest measure of ? ielf-governmont compatible with tho true welfare of the people. What they , actually found can be best set forth Id their own words : " Deplorable as w.. ? I Is, the one In which wo aro now > - , gaged was unavoidable by us. We wero attacked by a bold, adventurous end enthusiastic army. No alterna tive was loft to us except ignominious retreat.- , " It Is not to bo conceived that any ( American would have sanctioned tho surrender of Manila to the Insurgents. Our obligations to othe.* nations and tho friendly Filipinos and to ourselves and our flag demanded that force should be met by force. Whatevor tbo future of tho Philippines may be, there Is no course open to us now oxcopt tho prosecution of tho war until tho lr.sur Roots are reduced t > submission. The commission Is of the oplnlo i that there has been no time s'nee tho destruction of the Spanish squadron by Admiral Dewey when It was possible to with draw our forces from tho lalanus, either with honor to ourselves or with safety to the inhabitants." Tho course thus cloarly indicated has been unflinchingly pursued. Tho rebellion must bo put down. Givll gov ernment cannot be thoroughly estab lished until orderod it restored. With a devotion and gallantry worthy of Its most brilliant history, the army ably and loyally assisted by the navy, has carried on this unwelcome but most righteous campaign with richly do servod success. Tho noblo solf-sacrlflco with which our soldiers ani sallois whoso terms of service had oxpirod, refused to avail themselves of their right to roturn homo as long as thoy were nocded at tho front, forms ono of the brightest pages In our annals. Although thoir operations have boon somewhat interrupted and checked by a rainy soason of unusual violence and duration, they have galnod ground steadily in every direction and now look forward confidently to speedy oompl/tion of their task. Tho unfavor able (lrcumetancos connocted with an active campaign have not boon per mlttod to interforo with the equally Important work of reconstruction. A notable beginning has boon made In tho establishment of a govornmont In tho Island of Nogroa, which is de serving of special consideration. This was tho first island to accept American sovereignty. Its citizens unreservedly proclaimed allegiance to the United States and adopted a constitution look ing to the establishment of a popular governmont. It was Impossible to guarantee to the people of NegroB that the constitution so adopted should be the ultimate form of government. Such a quoetloa under the treaty with Spain and In accordance with our constitu tion and laws oame exclusively within the jurisdiction of Oongress. The gov I ernment actually set up by tho Inbabi taute of Negroa eventually proved un< satisfactory to tho natives themselves. A. now system was put In force by or der of the major general command ing tho department of which the fol lowing aro the most importaut tie menu : It was ordered that tbe government of tho island of Negros should consist of a military government appointed by t..e United States military governor of tbo 1'uiiipplncB and a civil governor and hd advisory council elected by tho people. The military governor was au thorized to appoint st cretarics of tbe trensurv. Interior, ni'rioiilture. ir..l?lir. Instruction, an attorney general and tin auditor. Tho seat of government was fixed at Haeoiod. The military gover nor exorcises tho suprem? rxecutivo powor. lie is to soo that tho laws a. e executed, appoint to olTieo and till all vacancies In ofliuo not otherwise pro vided fur, and may, with tho approval of the military governor for the Philippines, remove any oflioer from office, The civil governor advises the military governor on all public ques tions, und presides over tho advis ory council. Ho, In goneral, performs the duties whicu are performed by secretaries of state in our own system I of govornmont. Tho advisory council consists of eight members elected by tho people within territorial limits, which are defined in tho order of tbo commanding gen eral. Tbo timo and places of holding elec tions are to bo fixed by tho military governor of tho island of Nogros. The qualifications of voters aro as fol lows : 1. And a voter must boa .ualo citi zen of tho island of Nogros. '2. Of the nvn of twi>nt.?.f n#? i>?. 3. ilo shall bo able to apeak, read and write tho English, Spanish or Vieayaa language, or ho must own real property worth ?500 or pay a rent al on real property of tho valuo of $1,000. 4. Ho must have rcsidod In the Island not loss than one year preceding, and In tho district In which he offers to reglstor as a voter not Iljs than throe months Immediately preceding the tltuo he offers to register. 5. He must register at a time fixed by law before voting. 6. Prior to Puch registration he 6hall have paid all taxes duo by him to tho government, provided that no Insane person eha 1 bo allowed to roglstbr or 70te. Tno military governor has the right to vote all bills or resolutions adopted by the advisory council, and his veto is linal if not disapproved by the mili tary governor of tho Philippines. Tho advisory council discharges all tho or dinary duties of a legislature. The usual duties pertaining to said offices aro to bo performed by the secretary of tho treasury, interior, agriculture, public Instruction, the attorney gtneral and the auditor. Tho judicial powor Is vei ie.'1 In three judges, who aro to bo appointed by the military governor of the island. In ferior courts are to bo est fished. Preo public schools are to be estab lished throughout tho populous dis-1 tricts of the islaad, In which the Eng lish language shall bo taught, and this subject will recolva the careful con sideration of the advisory council. Tbo burden of govcrnmont must be I j distributed equally and equitably among tho people. Tho military aut I thorltlcB will collect and rccolve tho , customs revenue and will control po3tal matters and Philippine inter island trade and ooinmorce. Tho military governmont, subject to I approval of tho military governor of I tho Philippines, dotermlnos all quos tloua not specifically provided for, and I whi h do not come under the jurisdic tion of tho advisory council. I communtcato these facts to the I i Congress for its Information and ac-11 tlon. Rvorything Indicates that with L tho speedy suppression of the Tagalo I < rebellion, lifo in the archipelago will I i soon rcsumo its ordinary course under I the protection of our sovereignty and i tho people of theso favored islands will I enjoy a prosperity and a froedom which I ; they bare nover boforo known. Al-I ready hundreds of schools aro open 11 and filled with children. Ueliglousl freedom Is sacredly assured and en- < joyed. Tho courts are dispensing jus-11 tice. Business is beginning to circulate i in Its accustomed channels. Manila, 11 whoso inhabitants wero fleeing to the 11 country a few months ago is now a It populous tbrUlng mart of commerce. 11 Tho earnest and unremitting endeavors I at tbe commission and the admiral and I! major general commanding the depart-11 ment of the Pacific to assure the peo-11 plo of the benefielrnt Intentions of this government, have had their legitimate offect In convincing the great majority I of them that peace and safety and pros- i perity and stable government can only be. found in a loyal acceptance of the authority of tho Uultod Statos. " THEY ARB OURS " The future government of the Philip-1 Bines rests with the Congross of the I nltsd States. Pow gravor responsi-1 billtlcs have ever beon confided to us. If we accept them in a spirit worthy of our race and our traditions, a great op-1 portunlty comes with thorn. The is lands Ho under tho shelter of our Hag. They are ours by every title of law and equity. Tboy cannot bo abandoned. If I wo dosort them, we leave them at once I to anarchy and finally to barbarism. I Wo fling them, a golden apple of dis cord, among tho rlvl powers, no one of I which COUld permit another to soizo them unquestioned. Their rich plains and valleys would I be the scone of endless strife and blood shed. Tho advent of Dewey's floot Inj Manila bay Instead of being, as wo I hope, the dawn of a now day of free-1 dem and progress, will have boen the beginning of an era of misery and I vlo'ence. worse than any which ha? I dark rued _ the! r unhappy past. Tho I suggestion has boen made that we I could renounce, our authority ovor tbo I islands and giving thorn independence I could retain a protectorate over them. This proposition will not bo found, 1 am suro, worthy of your serious atten tion. Such an arrangement would <n volve at the oulsot a cruol breach of faith. It would place the peaceful and loyal majority who ask for nothing octtor than to accept our authority, at the mercy of tbo minority armed in surgents. It would make us responsi ble for tho acts of the Insurgent lead ers and give us no powor to oontro1 thum. It would ohargo us with tbe t?sk of protecting them aga'nst each other and defending thorn against any foreign power with which they chose to quarrel. In short, It would tako from the Congress of tho United States tbe pov er of declaring war and vest that tremendoas prerogative In the f agalo leader of the hour. ' It does not seem desirable that I should recommend at this time a spool to and final form of government for those Islands. When peace shall be rc3torcd, It will be the du?y of Con g'_9B to const aot a plan of govern I ment whlob ?lall establish and main I tain freedom fend order and peaoe In I the Philippine?. The Insurrection is ?BWBKMKM>MKiaMMMBW,?*<?wi i Hi n i i?^ug.<:iaamj,xxJilc-JWI Ii III?II KOI/IL Powder Absolutely pure Makes the food more delicious and wholesome _ROVAl DAKINO POWDER Pp.. NFW YORK. 6till existing and when it terminates further information will be required as tu tho actual condition of affairs be fore inaugurating a permanent scheme of civil government. Tho full report of tbo commission, now in preparation, will contain information and sugges tions which will bo of value to Congress and which I whi transmit as soon as it Is completed. As long as tho Insur rection continues, the military arm must necessarily bo supremo. But thero it no reason why stops should not bo taken from time to time to inaugur ato governments essentially popular In their form as fast as territory is held or joutrollod by our troops. To this e^u, 1 am considering the advisability of the return of tho commission, or such ol t .c members thereof as can be secured, to aid tho existing authorities and facilitate this work throughout the Islands. I have believed that reconstruction should not begin by the establishment of a central government on tho islands with its seat at Manila, butrather that tho work should bo commenced by building up from tho bottom, first es tablishing municipal governments and then provincial governments, a centre I government at last to follow. Until Congress chall have made known tho formal expression of its will, 1 shall use tho authority vested in me hy the constitution und thu statutes to uphold the sovereignty of the United Slates in those distant islands, as wall as in all other places where the flag rightfully floats. 1 shall put at the disposal of the army ant. navy all the means which tho liberality of Congress and tho people have provided to cause this unprovoked and wasteful Insur rection to ceuso. If uuy orders of mine woro tequlredto Inoure the merciful conduct of military and naval opera tions they would not be lacking, but every ttep of progress of our troops has been marked by a humanity which has surprised even the misguided Insur gent,. Tbo truest kindness to them will bo a swift and olTeetive defeat of their present leader. The hour of vic tory will be tho hour of clemency and reconstruction. No ?Hort will be spar ed to build up the waste places deso lated by war and by long years of mis government. Wo shall not wait for the end of dtrife to begin the bene ficent work. We shall continue, as we have begun, to open the schools and the churches, to set tho courts in opera tion, to foster Industry and trade and agriculture and in ovory way la our powor to make these people whom providence has brought within our jurisdiction, feel that It is their liberty and not our power, their welfare and not our gain, wo aro seeking to en hance. Our flag has never waved over any community but In blessing. I bo llevo the Filipinos will rocognize tho fact that It has not lost its gift of bene diction in this world wide journey to their shores. CUBA AND PORTO UICO. We Must Keep Haoretl the rirdge to Qlvo Cuba Her Freedom?Our Iso lations With Spain. My annual message of last year was necessarily dovoted in great part to a consideration of the Spanish war aad jf the rosults it wrought and tho con ditions It imposed for the future. I 1 kin gratlfiod to nnnounco that tho treaty of poaco has restored friendly relations between the two powers. Elect has been givon to Its Important provisions. The evacuation of Porto ( liico having beon already accomplish ad on October 18, 181)8, nothing re mained necessary thoro to continue tho provisional military control of tho Island, until tho Congross should en act a suitable governmont for the uodod territory. Of tho character and loope of the measures to that end I shall treat In another part of this message. Tho withdrawal of tho authority of Spain from tho Island of Cuba was of [ectod by tho first of January so that the full ro-ostahllshmunt of peaco found tho relinquished territory hold by us in trust for tho Inhabitants, maintaining under thu direction of the executive such government and con trol thorein as should conserve public order, restore tho productive condi tions of poaco so long disturbed by tho instability aud disorder which pro vailed for the greater part of the pre ceding threo decades, and build up thai tranquil development of tho do mestic state whereby alone can bo re alized the high purpose as proclaimed In the joint resolution adopted by the Congress on the 19th of April, 1898, by which the United States disclaimed any disposition or control ovor Cuba, except for tho pacification thereof, and asserted Its determination when that was accomplished to lcavo tho governmont and control of the islund to its people. Tho pledgo contained in this resolution is of tho highest hon orable obligation and must be sacredly kopt. 1 boliovo that substantial progress has boon made In this direction. All the administrative measures adopted in Cuba have almod to fit for a regen erated existence by enforcing tho su premacy of law and justice, by placing wherever practicable tho machinery of administration in tho hands of In habitants: by instituting uocded sani tary roforms ; hy sproatMng education ; by fostering Industry and trade; by In culcating public morality, and, In short, by taking overy rational stop to aid tho Cuban people to attain to that piano of solf-oontcious respect and relf rollant unity which tits an enllghtenod community for self govornmont within its own sphere, while enabling It to fulfill all outward obligations. This nation has assumed before tho world a grave responsibility for tho future good govornmont of Cuba. Wo have accepted a trust tha fulfillment of which calls for honesty and integrity of perpose and the exorciso ol the highest wisdom. The now comraittuo yot to arise from tho ashes of the past must needs be bound to US by ties of singular Intimacy and strength If its enduring wolfaro Is to be assurod. Whether thoso ties shall ho organic or conventional, tho dottlnlos of Cuba aro in somo rightful form and manner irrevocably linked with our own, but how and how far Is for tho future to determlno la tho rlponets of events Whatever be the outcome, wo must soo to It that free Cuba oe a reality, aot a name, a perfeot unity, not a hasty experiment bearing within its .if the elements of failure Our mission, to accomplish which wo took up the wages of battle, \t> aot to be fulfilled by turn'ng adrift any loossly framed common-wealth to face the vicissitudes which too often attond weaker Statos whoso natural wealth and abundant resources aro off - set by tho Incongruities of thoir poll tlcal organization and tho recurring occasions for internal rivalries to sap their strength itnd dissipate their en ergies. The ereatost blessing which can come to Cuba Is the restoration of her agricultural and Industrial pro perlty, which will give employment to Idle men and re-establish tho pur suits of peace This is her chief and Immedlato need. On tho 10th of August, lat, an orders wan made for tho taking of the census In tho Island, to bj completed on the 3th of November. Hy the treaty of peace tho Spanish people on the island have until April 11, 11)00 to elect whether they will remain oltiz 'tis of Soaln or become citizens of Cuba. Until then it cannot be definite ly ascertained who shall be onthlod to participate in the formation of tho government of Cuba. Hy that time tho results of tho census will have baen tabulrted and we shall pr >c od to pro vide for elections which will commit the municipal governments of the la land to tho ofllcors elected hy the peo ple. Tho experience thus acquired ahull prove of great value in toe for mation of a representative convention of the people to draft u constitution and establish a general system of inde pendent government for the island, in the meantime, and BO long us we ex ercise eontrol over tho island, the pro ducts of Cuba should have a market iu the United Stules on as good terms and with as favorable rates of duly as a: e given to tho West India islands under the treaties of reciprocity which shall he made. For the relief of tho distressed in tho I iland of (Juba, tho war department has issued supplies todestitute persona through tho ofliecrsof tho army, which liavo amounted to 6,493,000 rations, at a cost of (1,417,654 87. To promote tho disarmament of the Oubau volunteer army and in the in terest of public peace, and the welfare of tho people tho sum of $75 was paid to each Cuban soldier borne noon tho authenticated rolls, on condition that ho should deposit his arms with the au thorities designed by the United States. The sum thus distributed aggrogated $2,547,750, which was paid from tho em ergency fund provided for by tho act of January 5, 1899, for that purpose. Out of the Cuban island revenues during the six months, ending June 3o, 18DU, $1,718,014.20 was expended for si'.ultution, $293,881 70 for charities and hospitals, and $88,944.03 for aid to tho destitute. Following the oxehange of the rati fications of tho treaty of peace, tho two governments accrodlted ministers to each other, Spain sending to Wash ington the duko d'Arcos, nn eminent diplomatist previously stationed in Mexico, while tho United States trans ferred to Madrid Hon. itolamy Storer, Its clnistor at Brussels. This was followed by tho respective appoint ment of consuls, thereby fully resum ing the relations interrupted by the war. In addition to its consular repre sentation In tho United States the Spanish government has appointed consuls for Cuba, who have been pro visionally recognized during the mili tary administration of affairs of that Island. Judicial lntorcourso between the courts of Cuba and Porto Rico and of Spain has boon established, as providod by tho treaty of peace. Tho C iban political prisoners in Spanish penal stations havo been and are being re leased and returned to tuc'r homes, in accordance with Article v'l of the troaty. Negotiations uro about to be had for defining tho conventional rela tions betwoon the two countries, which foil Into abeyance by reason of the war. I trust thoso will Include a favorablo arrangement for commercial recipro city under tho terms of Sections 3 and 4o the current tarllf net. In these, as In all mattors of international concern, no effort will he spared to respond to the good disposition of Spain, and to cultivate In all practicable ways tho Intimacy which should prevail between two nations whoso past history has so often and In so many ways been marked by sincoro friendship and hy commun ity of lntorests. I would recommend appropriate leg islation In order to carry into execu tion Artloio VII of the treaty of peace with Spain, by which the United States assured the payment of certain, claims for Indemnity of its oit'z ns against Spain. LAWS POH PORTO RICO. I recommend that legislation bi had with reference to tho governing of Porto Rico. Tho time is ripe lor the adoption of a temporary form of gov ernment for tills island and many sug gestions made with reference to Alas ka are applicable to Porto Kico. The system of civil jurisprudence now atloptod by tho people of this Island Is described by competent law yers who are familiar with it, hi thor oughly modern and scientific, so far u-t { it relates to matters of Internal busi ness, trade, production and social aa i private rights In general. The cities of the Island uro governed by charters which probably reuuire very llttlo or no change. So that with relation to mattors of local concern and prlvato right, it Is not probable that much If any legislation Is desirable; but with roforonce to publio adminis tration and the rolation of the Islauds to tho Federal government, there aro many mattors which aro of pressing urgency. Tho sumo necessity oxists for legislation on tho part of Congress to establish Fodoral eourtBund Foieral jurisdiction in the island as has beon provlously pointed out by mo With ref erence to Hawaii. Besides tho admin istration of justice, there aro the onh? j iCts of tho public lands, the control of r'tvors and harbors, the eontro of tho waters of streams not navigable, which under the Spanish law belonged io tho crown of Spain, and have, by the treaty of ceselon, passed to tho United States; the Immigration of people from foreign countries, tho importation of contract labor, the imposition and collection of Internal revenue, tho application of the navigation latfs, tho regulation of the current money, tho establishment of postofile.es and postroads, tho regula tion of tariff ratos on morohandlrio Im ported from the Island Into tho Uultod Continued on Page 4.