ANNUAL MESSAGE
Import
ant Features
the President's
Address. .
of
OUR LATE WAR A FEATURE
So Suggestion Made Regarding the
Government of Oar New Territories
Foreign Relations Generally Satis
factory Hawaiian Annexation.
To the Senate and House of Representa
tives: Notwithstanding the added burdens
rendered necessary by the war, our people
rejoice In a very satisfactory and steadily
Increasing degree of prosperity, evidenced
by the largest volume of business ever
recorded. Every manufacture has been
iproductlve, agricultural pursuits have
yielded abundant returns, labor In the
fields of industry Is better rewarded, rev
enue legislation passed by the present
congress has increased the treasury's re
ceipts to the amount estimated by its
authors, the finances of the government
have been successfully administered and
Its credit advanced to the first rank; while
Its currency has been maintained at the
world's highest standard. Military serv
ice under a common flag and for a
righteous cause has strengthened the
national spirit and served to cement more
closely than ever the fraternal bonds be
tween every Bectlon of the country.
A review of the relations of the United
States to other powers, always appropri
ate, Is this year of primary importance,
in view of the momentous issues which
have risen, demanding In one instance the
ultimate determination by arms and In
volving far-reaching consequences which
will require the earnest attention of the
congress.
In my last annual message, very full
aMpmtion was elven to the question
of the duty of the government of the
iinitoil stutoa toward SDaln and the -u-
ban Insurrection, as being by far the
most Important problem with which we
imra rnllcd moon to deal. The consmeia
tlons then advanced, and the exposition
of the views therein expressed, disclosed
my sense of the extreme gravity of the
situation. , . .
Setting aside, as logically unfounded
or practically inadmissible, recogni
tion of the Cuban insurgents as belliger
ents, recognition of the independence
of Cuba, neutral intervention to end the
war by Imposing a rational compromise
between the contestants, Intervention in
favor of one or the other party and the
forcible annexation of the Island, I con
cluded It was honestly due to our frendly
relations with Spain that she should be
given a reasonable chance to realize her
ovnertntions of reform to which she had
become irrevocably committed. '
Within a few weeks previously she
had announced comprehensive plans
which it was confidently asserted would
be efficacious to remedy the evils so
deeply affecting our own country, so in
jurious to the true interests of the
mother country, as well as to those of
Cuba, and so repugnant to the universal
sentiment of humanity.
Destruction o the Maine.
At this Juncture, on the 16th of Febru
ary last, occurred the destruction of the
Stlehlp Maine, while rightfully lying
In the harbor of Havana on a mission of
International courtesy and good will, a
catastrophe the suspicious nature ana
horror of which stirred the nation s heart
profoundly. It Is a striking evidence of
the poise and sturdy good sense distin
guishing our national character that this
shocking blow, falling upon a generous
people already deeply touched by pre
ceding events in Cuba, did not move them
to desperate resolve to tolerate no longer
the existence of a condition of danger and
disorder at our doors that made possible
such a deed by whomsoever wrought.
Yet the instinct of Justice prevailed, and
the nation anxiously awaited the result
of the searching investigation at once set
r, fnnt Thn findln of the naval board
of inquiry established that the origin of
the explosion was external by a subma
rine mine, and only halted, through lack
of positive testimony, to tlx tne responsi
bility of its authorship.
PREPARATIONS FOR WAR. -
a practicable solution, I felt ft my fluty to
remit the whole question to congress. In
i the message of April 11, 1898, I announced
that with tale last overture in the direc
tion of immediate peace in Cuba and its
disappointing reception by Spain the ef
fort of the executive was brought to an
end. I again reviewed the alternative
course of action which I had prepared,
concluding that the only course consonant
with International policy and compatible
with our firmly set historical traditions
was intervention as a neutral to stop the
war and check the hopeless sacrifice of
life, even .though that resort Involved
"hostile constraint upon ootn parties lu
the contest, as well to enforce a truce as
to provide for eventual settlement."
On April 22 I proclaimed a blockade of
the northern coast of Cuba, including
ports on said coast between Cardenas and
Bahla Honda and the port of Cienfuegos,
on the south coast of Cuba; and on the 23d
I called for volunteers to execute the pur
pose of the resolution.
The Declaration of War.
By my message of April 25, congress was
informed of the situation, and I recom
mended formal declaration of the exist
ence of a state of war between the United
States and Spain. Congress accordingly
voted on the same day the act apnrovea
April 25, 1S9S, declaring the existence of
such war from and Including the 21st day
of April, and re-enacted the provision of
the resolution of April 20, directing tne
president to use all the armed forces of the
nation to carry that act into effect.
Due notification of the existence or war
army under Major-General Shatter landed
at Daiquiri, about IS miles east of Santi
ago. This was accomplished under great
difficulties, but with marvelous dispatch.
On June 23 the movement against Santiago
was begun.
On the 24th the first serious engagement
took place in which the First and Tenth
cavalry and the First volunteer cavalry,
General Young's brigade of General
Wheeler's division, participated, losing
heavily. By nightfall, however, ground
within five miles of Santiago was won.
The advantage was steadily increased.
On July 1 a' severe battle took place, our
forces gplnlng the outer works of Santiago,
and El Caney and San Juan were taken
after a desperate charge and the invest
ment of the city was completed. The
navy co-operated by shelling the town
and the coast forts.
Destruction of the Armada.
On the day following this brilliant
achievement of our land forces, July 3,
occurred the decisive naval combat of the
war. The Spanish fleet, attempting to
leave the harbor, was met by the Ameri
can squadron under command of Commo
dore Sampson. In less than three hours
all the Spanish ships were destroyed.
Two torpedo-boats were sunk and the Ma
ria Teresa, Almirante Oquendo, Vlzcaya
and Cristobal Colon were driven ashore.
The Spanish admiral and over 1300 men
were taken prisoners. While the enemy's
loss of life was deplorably large, some
200 perishing, on our side but one man
was killed and one man seriously wounded.
Although our ships were repeatedly struck.
I not one was seriously Injured. The men
could not be accepted, the only reply be
ing to present as a virtual ultimatum a
draft of the protocol, embodying the pre
cise terms tendered to Spain in our note
of July 30, which added stipulations of
details as to the appointment of com
missioners to arrange for the evacuation
of the Spanish Antilles. On August 12.
M. Cambon announced his receipt of full
powers to sign the protocol as submitted.
Terms of the Protocol.
Accordingly, on the afternoon of August
12, M. Cambon as the plenipotentiary of
Spain and the secretary of state, as me
Dlenipotenrinry of the United States,
signed the protocol providing:
Article 1. SDaln will rellnquisn an
claim ot sovereignty over and title to ; tne wnole subject with the aim of making
Cuba. , plans and surveys for a canal by the most
as aforesaid was given Aprl 25 by tele- ; a)s0 conspcuousiy distinguished them-
graph to all the governments with which
the United States maintained relations, in
order that their neutrality might be as
sured during the war. The various govern
ments responded with proclamations of
neutrality, each after Its own method. It
Is not among the least gratifying incidents
of the struggle that the obligations of
neutrality were impartially discharged by
all, often under delicate and difficult cir
cumstances. The national defense fund of $50,000,000
was expended in large part by the
army and the navy, and the objects for
Which It was used are fully shown in the
reports of the several secretaries. It was
a most timely appropriation, enabling the
government to strengthen Its defenses and
to make preparations greatly needed In
case ot war. This fund being Inadequate
to the requirements of equipment and for
the conduct of the war, the patriotism of
congress provided the means In the war
revenue act of June 13 by authorizing a
3 per cent popular loan, not to exceed
$100,000,000, and by levying additional Im
posts and taxes. Of the authorized loaiv,
$200,000,000. was offered and promptly taken,
the subscriptions so far exceeding" the
call as to cover it many times over.
While preference was given to the small
er bids, no single allotment exceeded
$5000. This was a most encouraging and
significant result, showing the vast re
sources of the nation and the determina
tion of the people to uphold their coun
try's honor.
PROGRESS OF THE CONFLICT.
Brilliant
Series of Victories for
American Arms.
Congress' Appropriation of Fifty Mil
lions for National Defense.
AH those things carried conviction to
thn most thoughtful, even before ' the
finding of the naval court, that a crisis
in our relations with Spain and toward
Cuba was at hand. Br strong was this
belief that it needed but a brief execu
tive su&cestlon to congress to receive lm-
mediate answer to the duty of making
instant provision for the possible and per
haps speedily probable emergency of war,
and the remarkable, almost unique, spec
tacle was presented of a unanimous vote
of both houses on the 9th of March ap
propriating $50,000,000 "for the national de
fense and for each and every purpose eon
neeted therewith, to be expended at the
discretion of the president."
That this act of provision came none
too soon was disclosed when the appllca-
. tlon of the fund was sundertaken. Our
ports were practically undefended; 'our
navy needed large provision for increased
ammunition and supplies, and even num
bers to cope with any sudden attack from
the navy of Spain, which comprised mod
ern vessels of the highest type of conti
nental perfection. Our army also re
ouired enlargement of men and' muni
tlons. The details of the hurried prepa
rations for the decided contingency is told
in the reports of the secretaries of war
and of the navy, and need not be repeated
bere.
It is sufficient to say that the outbreak
ot war, when it did come, found our na
tion not unprepared to meet the conflict,
nor was the apprehension of coming strife
confined to our own country. It was felt
by the continental powers, which, on April
6, through their ambassadors and envoys.
addressed to the executive an expression
of hope that humanity and moderation
might mark the course of this govern
tnent and people, and that further nego
tiations would lead to an attempt, which,
while securing the maintenance of peace,
would affirm all necessary guarantees for
the re-establishment of order in Cuba,
Troposal of an Armistice.
Still animated by tne hope of a peace
ful solution and obeying the dictates of
duty, no effort was relaxed to bring about
a speedy ending of the Cuban struggle.
Negotiations to this effect continued
actively with the government of Spain
looking to the immediate conclusion of
six months' armistice in Cuba with
view to effect the recognition of her peo
ple's right to Independence. Besides this,
the instant revocation of the order of re-
concentration was asked, so that the suf-
ftvers, returning to their homes and
aided by united American and Spanish
effort, might be put in a way to support
themselves, and by orderly resumption of
the well-nlgb destroyed productive ener
gies of the leland contribute to the res
toration of its tranquillity and well-being,
Anthorlty to Intervene.
Grieved and disappointed at this barren
outcome of my sincere endeavors to reach
It Is not within the province of tnts
message to narrate tne nisiory or. wie
extraordinary war that followed the
Spanish declaration of April zi, dui a
hHef recital of its more salient features
appropriate. The first encounter oi tne
war in point oi oaie iou pin-te
27, when a detachment of the blockading
squadron made a reconnolssance in force
at Matanzas, shelled the harbor fortifica
tions and demolished several new works
In. construction.
Dewey at Manila.
The next engagement was destined to
mark a memorable epoch In maritime war
fare. The Pacific fleet, under commo
dore George Dewey, had lain for some
weeks at Hong Kong. Upon the colonial
proclamation of neutrality being Issued
and the customary 24 hours' notice being
given, it repaired to Mirs bay, near Hong
Kong, whence it proceeded to tne rniup
pine Islands under telegraphic orders to
capture or destroy the formidable Span
ish fleet then assembled at Manila. At
daybreak on May 1 the American force
entered Manila bay, and after a few hours'
engagement effected the total destruction
of the Spanish fleet, consisting or iv war
ships and a transport, besides capturing
the naval station and forts at Cavite, thus
annihilating the Spanish naval power in
the Pacific ocean and comp.eteiy control
ling the bay ef Manila, with the ability
to take the city at will. Not a life was
lost on our ships, the wounded number
ing only seven, while not a vessel wag
materially Injured. For this gallant
achievement congress, upon my recom
mendation, fitly bestowed upon the actors
preferment and substantial reward.
No uiviaeu victory.
Only reluctance to cause needless loss
of life and property prevented the early
storming and capture or tne city, ana
therewith the absolute military occupation
of the whole group. The insurgents,
meanwhile, had resumed the active hos
tilities suspended by the uncompleted
truce of December, 1897. Their forces in
vested Manila on the northern and east
ern side, but were constrained by Admiral
Dewey and General Merritt from attempt
ing an assault. It was fitting that what
ever was to be done In the way of de
cisive operations In that quarter should be
accomplished by the strong arm of tne
United States alone.
Obeying the stern precept of war, which
enjoins the overcoming of the adversary
and the extinction of his power wherever
assailable as the speedy and sure means
to win a peace, divided victory was not
permissible, for no partition of the rights
and responsibilities attending the enforce
ment of a just and advantageous peace
could be thought of.
Following the adoption of a comprehen
sive scheme of general attack, powerful
forces were assembled at various points oil
our coast to invade Cuba and Porto Kico.
Meanwhile, naval demonstrations were
made at several exposed points. May 11
the cruiser Wilmington and torpedo-boat
Wlnslow were unsuccessful in an attempt
to silence the batteries at Cardenas, In
Matanzas, Ensign Worth Bagley and four
seamen falling. These grievous fatalities
were strangely enough among the very
few which occurred during our naval
operations in this extraordinary conflict.
Hobson's Heroism.
The next act in the war thrilled not
alone the hearts of our countrymen, but
the world, by its exceptional heroism.
On the night ot June 8 Lieutenant Hob
son, aided by seven devoted volunteers,
blocked the narrow outlet from Santiago
harbor by sinking the collier Merrtmac In
the channel under a fierce Are from the
shore batteries, escaping with their lives
as by a miracle, but falling into (he
hands of the Spaniards. It is a most grat
ifying incident of the war that the brav
ery of this little band of heroes was cor
dially appreciated by the Spaniards, who
sent a flag of truce to notify Admiral
Sampson of their safety and to compli
ment them upon their daring act. They
were subsequently exchanged, July 7.
By June 7 the cutting of the last Cuban
cable isolated the island. Thereafter the
Invasion was vigorously prosecuted. June
10, under a heavy protecting fire, a land
ing fore of 600 marines from the Oregon,
Marblehead and Yankee was effected at
Guantanamo bay, where It had been de
termined to establish a cable station. This
important and essential port was taken
from the enemy after severe fighting by
the marines, who were the first organized
force of the United States to land in Cuba.
The position so won was held, despite the
desperate attempts to dislodge our forces.
By June If additional forces were landed
and strongly intrenched.
June 22 the advance of the invading
Rear-Admiral John G. Walker, appointed
July 24, 1897, under the authority of a,
provision In the sundry civil act of June 4,
of that year, has nearly completed Its
labors, and the results of Its exhaustive
inquiry Into the proper route, the feasibil
ity and the cost of construction of ai. ln
teroceanlc canal by the Nicaragua route,
will be laid before you. Irf the perform
ance of its work the commission received
all possible courtesy and assistance from
the governments ot Nicaragua and Costa
Rica, which thus testified their apprecia
tion of the Importance of giving a speedy
and practical outcome of the project that
has for so many years engrossed the at
tention of the respective countries.
As the scope of recent inquiry embraced
selves, from the commanders to the gun
ners and the unnamed heroes in -the
boiler-rooms, each and all contributing
toward the achievement of this astound
ing victory, for which neither ancient nor
modern history affords a parallel in the
completeness of the event and the marvel
ous dterjroDortion of casualties. It would
be invidious to single out any for special
honor. Deserved promotion has rewarded
the mere conspicuous actors the nation's
Drofoundest gratitude is due to an or tnose
brave men who by their skill and devo
tion In a few short hours crushed the sea
power of Spain and wrought a triumph
whose decisiveness and far-reaching ef
fects can scarcely be measured. Nor can
we be unmindful of the achievements of
our builders, mechanics and artisans for
their skill in the construction of our war-
Rhlns.
With the catastropne oi Bamrngu,
Rnnin's effort unon the ocean virtually
ceased. A spasmodic effort toward the
end of June to send her Mediterranean
fleet, under Admiral Camara, to relieve
Manila was abandoned, the expedition be
ing recalled after it had passed through
the Suez canal.
Snrrrmler of Snntlanro,
The caDitulation ot Santiago followed,
The cltv was closely besieged by land,
while the entrance of our ships Into the
harbor cut off all relief on that side. After
a truce to allow of the removal of the
noncombatants, protracted negotiations
continued from Julv 3 until July 15, when,
under menace of Immediate assault, the
preliminaries of surrender were agreed
imnn On the 17th General Shatter occu
pied the city. The capitulation embraced
the entire eastern end of Cuba. The num
ber of Spanish soldiers surrendered was
22,000, all of whom were subsequently con
veved to Spain at the charge of the
United States. The story of this success
ful campaign is told in the report of the
secretary of war which will be laid be
fore you.
Invasion of Porto Rico
With the fall of Santiago, the occupa
tion of Porto Rico became the next strat
egic necessity. General Miles had pre
viouslv been assigned to organize an ex
nedltion for that purpose. Fortunately,
he was already at Santiago, where he had
arrived on the 11th of July with reinforce
ments for General Shafter's army. With
these trooDS. consisting of 3415 infantry
and artillery, two companies of engineers
and one company of the signal corps, Gen-
oral Miles left Guantanamo July 21, hav
ing nine transports convoyed by the fleet
under Captain Higginson, with the Mas
sachusetts (flagship), Dixie, Gloucester,
Columbia and Yale, the two latter carry
ing troops: The expedition landed at
Guanlca, July 25, which port was entered
with little opposition. Here the fleet was
Joined by the Annapolis and Wasp, while
the Puritan and Amphltrlte went to San
JUan and Joined the New Orleans, which
was engaged in blockading that port. The
major-general commanding was subse
quently reinforced by General Schwann's
brigade of the Third army corps, by Gen
eral Wilson with a part of his division,
and also by General Brooke, with a part
of his corps, numbering In all 16,973 officers
and men. On July 27 he entered Ponce,
one of the most important points In the
Island, from which he thereafter directed
operations for the capture of the island.
As a potent Influence toward peace, the
outcome of the Porto Rican expedition
is due to those who participated in.lt.
Last Rattle of the War.
The last scene of the war was enacted
at Manila, Its starting place. On August
16. after a brief assault upon the works
by the land forces, In which the squadron
assisted, the capital surrendered uncondi
tionally. The casualties were compara
tively few. By this conquest of the Phil
ippine islands, virtually accomplished
when the Spanish capacity for resistance
was destroyed by Admiral Dewey s vie
tory of the first of May, the result of the
war was formally sealed. To General
Merritt, his officers and men, for their un
complaining and devoted services, for their
gallantry in action, the nation is sincerely
grateful. Their long voyage was made
with singular success, and the soldierly
conduct of the men, of whom many were
without previous experience In the mili
tary service, deserves unmeasured praise.
Total Casualties.
The total casualties in killed and wound
ed In the army during the war was as fol
lows: Officers kHled, 23; enlisted men killed,
257; total, 280; officers wounded, 113; en
listed men wounded, 1464; total, 1577.
Of the navy, killed, 17; wounded, 67;
died as result of wounds, 1; Invalided from
service, 6; total, 91.
"Article 2. SDaln will cede to the United
States the island of Porto Rico and other j
islands now under Spanish sovereignty in
the West Indies, and also an island In
the Ladrones to be selected by the United !
States.
"Article 3. The United States will occu
py and hold the city, bay and harbor of
Manila, pending the conclusion of a treaty
of peace, which shall determine the con
trol, disposition and government of the
Philippines." .
The fourth article provided tor tne ap
pointment of joint commissions on the
part of the United States and Spain to
meet in Havana and San Juan, respective
ly, for the purpose of arranging ana cai
rying ' out the details of the stipulated
evacuation of Cuba, Porto Rico and other
Spanish Islands in the West Indies.
The fifth article proviaea iur mo ap
pointment of not more than five commis
sioners on each side to meet at Paris not
later than October 1, and to proceed to
the negotiation and conclusion ui
treaty of peace, subject to rauncauou
cording to the respective constitutional
forms of the two countries.
The sixth and last article provides that
upon the signing of the protocol, hostili
ties between tne iwo bmu "" ,
suspended, and that notice to that effect
u ii Ko o-ivon an soon as possible by
each government to the commanders of
its naval forces.
Immediately upon the conclus on of the
. t tn nroolamatlon OI Au
gust 12, 'suspending hostilities on the part
n- ..... Tiin notaRflnrv Or
el the unuea ouu- ---
ders to that end were at once given by tel
egraph. The blockade of the ports of Cu
JZ nt nr, Tnn de Porto Rico was in
ua . ----- -- - . . , .
manncv rfi'RPfl. Ull AUKUBl AO,
like
muster-out of 100,000 volunteers, or as near
that numDer as was wuim w
v.i nr-riorert On December 1. 101,655 OI-
fice'rs and men had been mustered out and
discharged from the service; 9002 more w.U
. mnoterwl nut hv tne lutn oi me mom-n.
lur n cnrresnotlding numDer OI geneiaia
and general staff officers have been hon
orably discharged from the service.'
The military commissions to uperuuuuu
the evacuation of Cuba, Porto Rico and
the adjacent islands were rortnwitn ap
pointed: For Cuba Major-General James F.
Wade, Rear-Admiral William T. Sampson,
Major-General Matthew C. Butler.
For Porto Rico Major-General John C.
Brooke, ReaivAdmlral Wlnfleld Scott
Schley, Brigadier-General W. Gordon.
They soon afterwards met the Spanish
commissioners at Havana and San Juan,
respectively. The Porto Rico Joint commis
sion speedily accomplished Its task, and
by October 18 the evacuation of the Island
was completed. The United States flag
was raised over the Island at noon that
day. The administration of its affairs has
been provisionally Intrusted to a military
governor until congress shall otherwise
provide. The Cuban joint high commis
sion has not yet terminated Its labors. Ow
ing to the difficulties in the way of remov
ing the large number of Spanish troops
still In Cuba, the evacuation cannot De
eompleted before the 1st of January next.
The Peace Commission.
Pursuant to the fifth article of the pro
tocol, I appointed William R. Day, lately
secretary of state; Cushman K. Davis,
William P. Frye and George Gray, senators
of the United States, and wmteiaw Reia,
to he neace commissioners on the part of
the United States. proceeding in tiue
season to Paris, they there met, on the
1st of October, five commissioners sim
ilarly appointed on the part of Spain. The
negotiations have made hopeful progress,
so that I trust soon to be able to lay a
definite treaty of peace before the senate,
with a review of the steps leading to its
signature. . ,
I do not discuss at this time the govern
ment or the future of the new possessions
which will come to us as the result of the
war with Spain, Such a discussion will
be appropriate after the treaty of peace
shall be ratified. In the meantime, and
until congress has legislated otherwise, it
will be my duty to continue the military
government which has existed since our
occupation and give their people security
In life and property and encouragement
under a Just and beneficent rule.
OUR FOREIGN RELATIONS.
PEACE! NEGOTIATIONS.
Spain's Overtures for sv Cessation of
Hostilities.
The annihilation of Admiral Cervera's
fleet, followed by the capitulation of San
tlago, having brought to the Spanish gov
ernment a realizing sense of the hopeless
ness of continuing a struggle now becom
ing wholly unequal, It made overtures of
peace through the French ambassador,
who, with the assent of his government,
had acted as the friendly epresentative
of Spain's Interests during the war. On
the 26th of July, M. Cambon presented a
communication, signed by the Duke of
Almodovar, the Spanish minister of state,
inviting the United States to state th
terms upon which It would be willing to
make peace. July 30, by a communication
addressed to the Duke of Almodovar, and
handed by M. Cambon, the terms of this
government were announced substantially
In the protocol, afterwards signed. On
August 10, the Spanish reply dated August
7 was handed by M. Cambon to the sec
retary of state. It accepted uncondi
tionally the terms Imposed as to Cuba,
Porto Rico, and an Island pt the Ladrone
group, but appeared to seek to Introduce
Inadmissible reservations In regard to our
demand as to the Philippines.
Conceiving that discussion on this point
could neither be practicable nor profitable,
I directed that. In order to avoid mis
understanding, the matter should be
forthwith closed by proposing the em
bodiment In a formal protocol of the
terms In which the negotiations for peace
were undertaken. The vague and Inex
plicit suggestions of the Spanish note
Aside From Spain We Have Had No
Serioaa Differences With Other
Nations.
With the exception of the rupture with
Spain, the Intercourse of the United States
with the great family of nations nas Deen
marked with cordiality, and the close of
the eventful year finds most of the Issues
that necessarily arise in the complex rela
tions of sovereign states adjusted or pre
senting no serious obstacles to adjust
ment and honorable solution by amicaoie
agreement.
A long-unsettled dispute as to tne ex
tended boundary between the Argentine
republic and Chile, stretching along the
Andean crests, from the southern bor
der of the Atacama desert to the Magel
lan straits, nearly a third of the length
of the South American continent, as
sumed an acute stage In the early part
of the year and afforded this government
occasion to express the hope that the re
sort to arbitration, already contemplated
by existing conventions between the par
ties, might prevail, despite the grave diffi
culties arising in Its application. I am
happy to say that arrangements to tnis
end have been perfected, the questions of
fact upon which the respective commis
sioners were unable to agree being In
course of reference to her Britannic ma
jesty for determination. A residual dif
ference, touching the northern boundary
line across the Atacama desert, for which
existing treaties provided no adequate ad
justment, bids fair to be settled in like
manner by a joint commission, upon which
the United States minister at Buenos
Ayres has been Invited to serve as um
pire In the last resort.
International Cable Agreement.
I have found occasion to approach the
Argentine government with a view to re
moving differences of rate charges Im
posed upon the cables of an American
corooratlon In the transmission between
Buenos Ayres and the cities of Uruguay
and Brazil of through messages passing
from and to the United States. Although
the matter Is complicated by exclusive
concessions by Uruguay and Brazil to
foreign companies, there Is a strong hope
that a good understanding will be reacnea
and that the important channels of com
mercial communication between tne
United States and the Atlantic cities of
South America may be freed from an al
most prohibitory discrimination.
Foreign Exhibitions.
Despite the brief time allotted for prep
aration, the exhibits of this country at
the universal exposition at Brussels In
1897 enjoyed the singular d'stlnctlon of
larger proportion of awards, having re
gard to the number and classes of articles
entered, than those of other countries. The
worth of such a result in making known
our national capacity to supply the world !
markets Is obvious.
The Nicaragua Cans
convenient route, It necessarily included
a review of the results of previous sur
veys and plans, and In particular those
adopted by the Maritime Canal company
under its existing concessions from Nica
ragua and Costa Rica, so that to this ex.
tent these grants necessarily held an es
sential part in the deliberations and con-
elusions of the canal commission as they
have held and must needs hold In the dis
cussion of the matter by congress. Un
der these circumstances, and In view of
overtures made to the governments of
Nicaragua and Costa Rica by other par
ties for a new canal concession predicated
on the assumed approaching lapse of the
contracts of the Maritime Canal Company
with those states, I have not hesitated to
express my convictions that considerations
of expediency and International policy, as
between the several governments inter
ested In the construction and control of
an lnteroceanio canal by this route re
quire the maintenance of the status quo
until the canal commission snail nave re
ported and the United States congress
shall have had the opportunity to pass
finally upon the whole matter during tne
present session without prejudice by rea
son of any change in the existing condi
tions. '
Nevertheless, it appears that tne gov
ernment of Nicaragua, as one of its last
soverelsn acts before merging its pow
ers in those of the newly formed United
States of Central America, has granted an
nntinniil concession to another association
to become effective on the expiration of
the present grant. It does not appear
that surveys have been made ot what
route is proposed under this concession,
so that an examination of the feasibility
of Its plans Is necessarily not embraoed
In the report of the canal commission,
All these circumstances suggest the ur
gency of some definite action by congress
at this session If the labors of the past
are to be utilized and the linking of the
Atlantic and Pacific oceans by a praotlcal
waterway Is to be realized. That the
construction of such a maritime highway
is now more than ever Indispensable to
that intimate and ready intercommuni
cation between our eastern and western
seaboards demanded by the annexation
of the Hawaiian Islands and tne prospec
tive expansion of our Influence and com
merce to the Pacific, and that our .atlonal
policy now more Imperatively than ever
colls for its control by this government,
are propositions which I doubt not con
gress will duly appreciate ana wisely act
upon.
The Paris Exposition.
There Is now every prospect that the
participation of the United States in the
universal exposition to be held In Paris
in 1900 will be on a scale commensurate
with the advanced position held by our
products and Industries In the world B
chief marts. The preliminary report of
Moses P. Handy, who, under the act
approved July 19, 1897, was appointed
special commissioner with a view of se
curing all attainable Information neces
sary to a full and complete understanding
by congress in regard to the participation
by this government In the Paris exposi
tion, was laid before you by my message
of December 6, 1897, and shows the large
opportunities to make known our national
progress In art, science and manufac
tures, as well as the urgent need of Im
mediate and adequate provision to enable
due advantage thereof to be taken. Mr.
Handy's death soon afterward rendered
It necessary for another to take up and
complete his unfinished work, and Janu
ary 11 last. Mr. Thomas W. Crldler, third
assistant secretary of state, was desig
nated to fulfill that task. His report was
laid before you by my message of June
14, 1898, with the gratifying result of
awakening renewed interest In the pro
jected display. ,
Trade Relations With France and
Germany.
The commercial arrangements made
with France on May 28, 1898, under the
provisions of section 8, of the tariff act
of 1897, went into effect on June 1 follow
ing. It has relieved a portion of our ex
port trade from serious embarrassment.
Further negotiations are now pending
under section 4 of the same act, with a
view to the Increase of trade between
the two countries to their mutual ad
vantage. Negotiations with other, govern
ments, In part Interrupted by the war
with Spain, are In progress under both
sections of the tariff act. I hope to be
able to announce some of the results of
these negotiations during tne present ses
sion of congress.
resting upon you to give sueh shape (fti
the relationship of tliose mid-Paclnc lands,
to our home union as will benefit both tat'
the highest degree, realising the aspira
tions of the community that has cast Its)
lot with us and elected to share our po
litical heritage, while, at the same time.
Justifying the foresight of those who for
three-quarters of a century have looked
to the assimilation of Hawaii as a natural
and inevitable consummation in harmony
with our needs and in fulfillment of our
cherished traditions.
The questions heretofore pending be
tween Hawaii and Japan, growing out of
the alleged mistreatment of Japanese
treaty Immigrants, were, I am pleated
to say, adjusted before the act of trans
fer by the payment of a reasonable in
demnity to the government of Japan.
Under the provisions of the Joint resolu
tion, the existing customs relations of the
Hawaiian islands with the United State
and with other countries remain un
changed until legislation shall otherwise
provide. The consuls of Hawaii, here and
in foreign countries, continue to fulfill
their commercial agencies, while the
United States consulate at Honolulu la
maintained for all proper services per
taining to trade and the revenue. It
would be desirable that all foreign con
suls in the Hawaiian Islands should re
ceive new exequaturs from this government.
New Maritime Policy.
The annexation of Hawaii and tha
changed relations of the United States to,
Cuba, Porto Rloo and the Philippines re
sulting from the war, compel the prompt
adoption of a maritime policy by frequent
steamship communication encouraged by
the United states, under the American flag,
with the newly acquired islands. Spain
furnished to its colonies, at an annual cost
of about $2,000,000, steamship lines com
municating with a portion of the world'
markets as well as with trade centers of
the home government. The United State
will not undertake to do less. It is our
duty to furnish the people of Hawaii with
facilities, under national control, for their
export and import trade. It will be con
ceded that the present situation calls for
legislation which shall be prompt, dur
able and liberal.
ARMY REORGANIZATION.
Standing Force of 100,000 Men Needed:
Under Present Conditions.
Under tha act of congress approved
April 26, 1898, authorizing the president la
his discretion, upon a declaration cf war
by "congress or a declaration by congress
that war exists, I directed the increase
of the regular army to the maximum of
62,000, authorised In said act.
There are now in the regular army 67,-
862 officers and men. In said act it was
provided: "That at the end of any war la
which the United States may become in.
vnlved, the army shall be reduced to
peace basis by transfer in the same,
arm of the service or absorption, by pro
motion or honorable discharge, under
such regulation as the secretary may es
tablish, of supernumerary command offi
cers and the honorable discharge or trans
fer ot supernumerary enlisted men, and"
nothing contained in this act shall be
construed as authorizing the permanent
increase ot the command of enlisted fore
of the regular army beyond that now pro
vided by the law In force prior to the
passage of this act except as to the in
crease ot 25 majors provided lor in section
1 hereof."
The importance of legislation for th
permanent increase of the army is there
fore manifest, and the recommendation,
ot the secretary of war for that purpose
has my unqualified approval There oanj
be no question that at this time and prob
ably for some time in the future 100,00
men will be none too many to meet trie
necessities of the situation. At all events,
whether that number shall be required
permanently or not, the power should be
given to the president to enlist that force) '
if in his discretion it should be neces
sary, and the further discretion should
be given him to recruit within the aoov
limit from the Inhabitants of the Island
with the government of which we art
charged.
Volunteers to Be Sent Home.
It la my purpose to musteSvout the en
tire volunteer army as soon as congres
shall provide for the Increase of the regu
lar establishment. This will be only nt
act of Justice, and will be much appre
ciated by the brave men who left their
homes and employments to help the eoun.
try In Its emergency.
ANNEXATION OF HAWAII-
Existing Uwi in Force Fendln Ac
tion by Congress.
nankin th ennslderatlon by the senate
of the treaty signed June 18, 1897, by ths
plenipotentiaries of tne unuea mmes
of the republic of Hawaii, providing for
the annexation of the island, Joint rest),
intinn tn nccomnllsh the same purpose by
accepting .the offered cession and Inoor-nn-atino-
the reded territory Into the
TTnir.n ndonted bv congress and ap
tuiv 7. 1X98. I thereupon airecieu
the United States steamer Philadelphia
to convey Rear-Admiral Miner to Hono
lulu nnrt entrusted to his hands this Im
portant legislative act to be oeuverea w
the president of the republio of Hawaii,
otth whom the admiral and the United
States minister were authorized to make
appropriate arrangements for transfer
rinir thn sovereignty of the islands to the
United States. This was simply but Im-
r,lvalv annnmnl shed on August it lasi,
hv the delivery of a certified copy of
the resolut on to presiaeni uoie, wno
thereupon yielded up to the representa
tive of the government oi tne- univeu
ntutna the snverelcnty and public prop
erty of the Hawaiian islands. Pursuant
to the terms of the Joint resolution and
in exercise of authority thereby con
ferred uoon me. I directed that the civil,
judicial and military powers heretofore
exercised by the, omcers or. tne govern
ment of the republic of Hawaii should
continue to be exercised by thoss officers
until congress should provide a govern
ment for the Incorporated territory, sub
ject to my power to remove such officers
and to nil vacancies. Tne preaem. om
cers and troops of the republic thereup
on took the oath of allegiance to the
United StateB, thus providing for the un
lnterruoted continuance ot all the admin
Iterative and municipal functions of ths
annexed territory until congress shall oth
erwise enact. '
Following the further provision of the
lolnt resolution. I appointed the Honor-
ables Shelby M. Cullom, of Illinois; John
T. Morgan, of Alabama; Robert R. llltt,
of Illinois; Banford B. Dole, of Hawaii,
and Walter F. Grler, of Hawaii, as com
mlssioners to confer and recommend to
congress such legislation concerning ths
Hawaiian Islands as they should deem
necessary or proper,
Recommendations of the Commission
Ths commissioners having fulfilled the
mission confided to them, their report
will be laid before you at an early day
It is believed that their recommenda-
tinna will hnva th risrnest consideration
The Nicaragua canal commission, under ( (Jue ,0 tn m(lgnituaB 0f the responsibility
POSTAL SEHVICGX
Extraordinary Growth and Gratifying
Increase In Efficiency.
The postal service of the country ad
vances with extraordinary growth. Within
20 years both the revenues and expendi
tures of the poetoffice department have
multiplied three-fold. In the last 10 year
they have nearly doubled. Our postal
business grows much more rapidly than,
our population. It now Involves an expen
diture of $100,000,000 a year, numbers 73,00a
postofflces and enroll 200,000 employes.
This remarkable extension of a service.
which Is an accurate index of the publl
conditions, presents gratifying evidence of
the advancement of education, ot the In
crease of communication and business
activity and of the Improvement of mam
facilities, leading to their constantly aug
menting use.
The war with Spain laid new ana excep
tional labors on the postoffiee department.
The mustering of the military and naval
forces of the United States required spe
cial mall arrangements for every cam's
and every campaign. The communication)
between home and camp was naturally
eager and expectant. In some ot the
larger places ot rendezvous as many a
60,000 letters a day required handling.
This necessity was met by the prompt
detail ot experienced men from the es
tablished force and by directing all th
instrumentalities of the railway mall and
postoffiee eervlce so far as necessary to
this new need, congress passea an act
empowering the postmaster-general to es
tablish an office or brunch at every miu
tary camp or station, and under this au
thority the postal machinery was speed
ily put Into effectsve operation,
Capital Centennial.
In the year 1900 will occur ths centen
nial anniversary of tha founding ot th
city of Washington for ths permanent
capital of the government oi tne unuea
States by authority of an aot ot con
gress approved July 18, 1790. In May,
1800, ths archives and general offices of th
federal government were removed to mis
place. On the 17th of November, 1S00, th
national congress met here for the first
time and assumed exclusive control of
the federal district and city. This Inter
esting event assumes all the more signifi
cance when we recall the circumstance
attending the choosing of the site, the
naming of the capital In honor of th
father of his country, and the Interest
taken by blm In the adoption of plans for
Its future development on a magnificent
scale.
These orglnal plans have been wrought
out with a constant progress and a sig
nal success, even beyond anything their
trameri had foreseen.
Labor Laws.
The alien contract law Is shown by ex
perience to need some amendment; a
measure providing better protection for
seamen Is proposed; the rightful applica
tion of the eight-hour law for the benefit
of labor and of ths principle of arbitra
tion are suggested for consideration, and
I commend these subjects to the careful
consideration of congress.
WILLIAM M'KINLET.
Executive Mansion, December t, im.