13
THE MORNING OREGOXIAJi, WEDNESDAY, DECEMBER 5, 1906.
clallsm, and especially of its extreme form
communism, and the destruction of indi
vidual character which they would bring
about, aro in part achieved by the wholly
unregulated competition which results in a
single individual or corporation rising; at the
expanse or all others until his or its rise
-fredtually checks all competition and re
duced former competitors to a position of
utter inferiority ana subordination.
In enacting; and enforcing- such leglsla
tlon as this Congress already has to it
rreau, we are working on a coherent plan.
with the steady endeavor to secure the
needed reform by the Joint action of the
mone rate men, the plain men who do not
wish anything; hysterical or dangerous, but
ho do intend to deal in resolute common-
sense fashion with the real and great evils
or tne present system: The reactionaries
and the violent extremists show symptoms
nr Joining hands against us. Both assert.
for instance, that If logical, we should go
to Government ownership of railroads and
tne like; tne reactionaries, because on sucn
an issue they think the people would stand
with them, while the extremists care rather
to preach discontent and agitation than
to achieve solid results. As a matter of
fact, our position is as remote from thut
of the Bourbon reactionary as from that of
tne impracticable or sinister visionary, we
hold that the Government should not con
duct the business of the. Nation, but that
it snouia exercise sucn supervision un win
Insure its being conducted in the interest
of the Nation. Our aim is, so far as may
be. to secure, for all decent, hard-working
men, equality of opportunity and equality
of burden.
Good and Bad Combination.
The actual working of our laws has shown
that the ettort to prohibit all comoination,
pood or bad, is noxious where It is not Inef
fective. Combination of capital, like com
bination of labor. Is a necessary element of
our present industrial ystem. it Is not pos
sible completely to prevent it; and If It wers
possible, such complete prevention would
do damage to the body politic. What we
need is not vainly to try to prevent all com
bination, but to secure such rigorous and
adequate control and supervision of the
combinations as to prevent their injuring
the public, or existing in such form as
inevitably to threaten injury for the mere
fact that a combination has secured prac
tically complete control of a necessary of
life would under any circumstances show
that such combination was to be presumed
to be adverse to the public Interest. It is
unTortunate that our present laws should
forbid all combinations, instead of sharply
discriminating between those combinations
which do good and those combinations which
do evil. Rebates, for instance, are as often
due to the pressure of big shippers (as was
shown In the investigation of the Standard
Oil Company and as has been shown since
by the Investigation of the tobacco and
tugar trusts) as to the initiative of big rail
roads. Often railroads would like to com
bine for the purpose of preventing a. big
shipper from miUiualning improper advan
tages at the expense of small shippers and
of the general public. Such a combina
tion, instead of being forbidden by law.
should be favored. In other words, it
should be permitted to railroads to make
agreements, jovided these agreements were
sanctioned by the Interstate Commerce
Commission and were published. With these
two conditions compiled with it Is impossi
ble to see what harm such a combination
could do to the public at large. It is a pub
lic evil to have on the statute books a law
incapable of full enforcement because both
Judges and juries realize that its full en
forcement would destroy the business of the
country ; for the result Is to make decent
railroad men violators of the law against
their will, and to put a premium on the be
havior of the wilful wrongdoers. Such a
result In turn tends to throw the decent
man and the wilful wrongdoer into close as
sociation, and in the end to drag down the
former to the latter s level; for the man
who becomes a lawbreaker in one way
unhappily tends to lose all respect for 'law
and to bo willing to break it in many ways.
No more scathing condemnation could be
IM ted upon a law than Is contained in the
words of. the Interstate Commerce Commis
sion when. In commenting upon the fact
that the numerous joint traffic associations
do technically violate the law, they say:
The decision of the United States Supreme
Court in the Trans-Missouri case and the
Joint Traffic Association case "has produced
no practical effect upon the railway oper
ations of the country. Such associations. In
fact, exist now as they did before these
decisions, and with the same general ef
fect. In justice to all parties, we ought
probably to add that It is difficult to see
how our interstate railways could be oper
ated with due regard to the interest of the
snipper and the railway without concerted
action of the kind afforded through these
associations."
This means that the law as construed by the
Supreme Court is such that the business of
the country cannot be conducted without
breaking it. 1 recommend that you give care
lul and early consideration to this subject,
and if you find the opinion of the Interstate
Commerce Commission justified, that you
amend the law so as to obviate the evil dis
closed. Tax Incomes and Inheritance.
"The question of taxation is difficult In any
country, but it is especially dKflcult in ours
with its Federal system of government. Home J
taxes should on every ground be levied in a
mall district for use In that district. Thus
the taxation of real estate is peculiarly one
for the immediate locality In which the real
estate Is found. Again, there is no more legit
imate tax for any State than a tax on the
franchises conferred by that State upon etreet
railroads and similar corporations which oner
ate wholly within the State boundaries, some
times In one and sometimes In several munici
palities or other minor divisions of the State.
Hut there are many kinds of taxes which can
only be levied by the General Government so
as to produce the beet results, because, among
other reasons, the attempt to impose them in
one particular State too often results merely
In driving the coritoratlon or Individual affect- ;
f (I to some other locality or other State. The l
National Government has long derived its chief !
rr venue from a tariff on Imports and from
an Internal or excise tax. In addition to these
there is every reason why, when next our
system of taxation Is revised, the National
Government should Impose a graduated inheri
tance tax, and, if possible, a graduated in-
come tax. The man of great wealth owes a
peculiar obligation to t'c States, because he i
derives special advantages from the mere ex
istence of government. Not only should he
recognize this obligation In the way he leads ,
his daily life and in the way he earns and 1
pends his money, but It should also be rec- !
opnizrd by the way In which he pays for the ,
protection the State gives him. On the one ,
hand, it Is desirable that he should - assume 1
his full and proper share of the burden of
taxution ; on the other hand. It is quite as
jnocesisary that in this kind of taxation, where
the mn who vote the tax pay but little of
it, there should be a clear recognition of the
danger of Inaugurating any such system rave
in a spirit of entire justice and moderation.
Whenever we, as a people, undertake to re- j
model our taxation system along the lines sug
nest Mi, we must make it clear beyond perad- !
venture that our aim is to distribute the
burden of supporting the Government more 1
fqultahly than at present; that we Intend to
treat rich man and poor man on a basis of j
ahsolute equality, and that we regard It as
equally fatal to true democracy to do or per
mit injustice to the one as to do or permit
injustice to the other.
1 am well aware that such a subject as this
needs long and careful study in order that
the people may become familiar with what Is
proposed to be done, may clearly see the
necessity of proceeding with wisdom Hnd self
restraint, and may make up their minds just
how far they aro willing to go In the mat
ter; whilo only trained legislators can work
out the project In necessary detail. But I feel ;
that In the near futude our national legisla- !
tors should enact a law providing for a gradu
ated .inheritance tax by which a steadily in
cifajlng rate of duty should be put upon all
moneys or other valuables coming by gift, be
quest, or devise to any Individual or corpora
tion, it may be well to make the tax heavy
ln proportion as the individual benefited is
r remote of kin. In any event, in my judgment
the pro rata of the tax should Increase very
heavily with the Increase of the amount left
to any one Individual after a certain point
liafl been reached. It 1a most 'desirable to en
courage thrift and ambition, and a potent
source of thrift and ambition is the desire on
the part of the breadwinner to leave his chil
dren well off. This object can be attained by
maiting the tax very small on moderate
amounts of property left; because the prime
object should bo to put a constantly Increas
ing burden on the Inheritance of those awollen
fortunes which It 16 certainly of no benefit to
this country to perpetuate.
Hiatory Glvea Precedents.
There can be no question of the ethical
propriety of the Government thus determining
the conditions upon which any gift or Inheri
tance should be received. Exactly how far
the inheritance tax would, as an incident,
have the effect of limiting the transmission
by devise or gift of the enormous fortunes in
question It La not necessary at present to dis
cuss. It is wiee that progress In this direc
tion should be gradual. At first a permanent
national inheritance tax, while it might be
more substantial than any such tax has hither
to been, need not approximate either in
amount or in extent of the increase by gradu
ation, to what uch a tax should ultimately be.
This species of tax has again and again been
Imposed, although only temporarily, by the
National Government. It was first Imposed
by the act of July 6, 177. when the makers
of the Constitution were alive and at the head
of affairs. It was a graduated tax; though
small in amount, the rate wan Increased with
the amount left to any individual, exceptions
being made in the case ef certain kin. A
eiinllar tax was again Imposed by he act of
July 1, lbGii; a minimum sum of on thou
sand dollars in personal property being ex
cepted from taxation, the- tax then becoming
progressive according to the remoteness- of
kin. The war-revenue act of June I.J, louo,
provided for an inheritance tax on any sum
exceeding the value of ten thousand dollars,
the rate of the tax increasing both In -accord
ance with the amounts left and in accordance
with the legatee's remoteness of- kin. The Su
preme Court has held that the succession tax
imposed at the time of the Civil War was not
a direct tax but an Impost or excise wnicn
was both constitutional and valid. . Morn re
cently the Court, in an opinion delivered by
Mr. Justice White, which contained an ex
ceedingly able and elaborate discussion of the
powers of the Congress to Impose deatn duties.
sustained tne constitutionality or tne innen-
t ante-tax feature of the war-revenue act of
1818.-
Difficulty of Income Tax:.
In its incidents, and apart from the main
purpose of raising revenue, an income tax
stands on an entirely different footing from
an inheritance tax; because it involves no
question of the perpetuation of fortunes
swollen to an unhealthy size. The ques
tion is in its esst-nce a question of the
proper adjustment of burdens to benefits.
As the law now stands it la undoubtedly
difficult to devise a National income tax
which shall be -constitutional. But whether
It Is absolutely impossible is another ques
tion; and K possible it is most certainly
desirable. The first purely income-tax law
was passed by the Congress in 1861, but the
most important law dealing with the sub
ject was that of 1S04. This, the court held
to be unconstitutional.
The question Is undoubtedly very intri
cate, delicate and troublesome. The crecis
ion of the court was only reached by one
majority. It is the law of the land, and of
course is accepted as such and loyally
obeyed by all good citizens. Nevertheless,
the hesitation evidently felt by the court
as a whole in coming to a conclusion, when
considered together with the previous de
cisions on the subject, may perhaps Indi
cate the possibility of devising a consti
tutional income-tax law which shall sub
stantially accomplish the results aimed at.
The difficulty of amending the Constitution
is so great that only real necessity can
Justify a resort thereto. Every effort should
be made In dealing with this subject, as with
the subject of the proper control by the
National Government over the use of cor
porate wealth In interstate business, to de
vise legislation which without such action
shall attain the desired end; but if this falls
there will ultimately be no alternative to
a constitutional amendment.
Technical Training In Schools.
It would be impossible to overstate
( though it is of course difficult quantita
tively to measure) the effect upon a Na
tion's growth to greatness of what may be
called organised patriotism, which neces
sarily includes the substitution of a Na
tional feeling for mere local pride; with as
a resultant a high ambition for the whole
country. No country can develop its full
strength so long as the parts which make
up the whole each put a feeling of loyalty
to the part above the feeling of loyalty to
the whole This Is true of sections and it
Is just as true of classes. The industrial
and agricultural classes must work together,
capitalists and wageworkers must work to
gether, if the best work of which the coun
try is capable Is to be done. It Is prob
able thut a thoroughly efficient system of
education comes next to the influence of
patriotism In bringing about National suc
cess of this kind. Our Federal form of
government, so fruitful of advantage to our
people in certain ways, in other ways un
doubtedly limits our National effectiveness.
It is not possible, for instance, for the -National
Government to take the lead x in
technical Industrial education, to see that
the public school system of this country
develops on all Its technical. Industrial, sci
entific and commercial sides. This must be
left primarily to the several states. Never
theless, the National Government has con
trol of the schools of the District of Co
lumbia, and it should see that these schools
promote and encourage the fullest develop
ment of the scholars in both commercial
and industrial training. The commercial
training should In one of .Its branches deal
with foreign trade. .The industrial training
is even more important. It should be one
of our prime objects aa a Nation, so far as
feasible, constantly to work toward putting
the mechanic, the wageworker who- works
with his hands, on a higher plane of ef
ficiency nnd reward, so as to increase his
effectiveness In the economic world, and the
dignity, the remuneration and the power of
his position in the social world. Unfortu
nately, at present the effect of some of the
work In he public schools is In the exactly
opposite direction. If boys and girls are
trained merely in literary accomplishments.
to the total exclusion of Industrial, manual
and technical training, the tendency is-to
unfit them for industrial work and to make
them reluctant to go into it, or unfitted to
do well if they do go into it. This is a
tendency which should be strenuously combated.-
Our industrial development depends
largely upon .technical education. Including
In this term all industrial education, from
that which fits a man to be a good mechanic,.
a good carpenter, or blacksmith, to that
which fits a man to do the greatest engi
neering feat. The skilled mechanic, the
skilled workman, can best becqme such by
technical industrial education. The far
reaching usefulness of institutes of tech
nology and schools of mines or of engineer
ing, is now universally acknowledged, and
no less far-reaching is the effect of a good
building or mechanical trades school, a tex
tile or watchmaking or engraving school.
All such training must develop not only
manual dexterity, but industrial Intelli
gence. Tn international rivalry this country
does not have to fear the competition of
pauper labor as much as it has to fear the
educated labor of specially trained compet
itors; and we should have the education of
the hand, eye and brain, which will fit us
to meet such competition.
In every possible way we should help the
wageworker who tolls with his hands and
who must (we hope in a constantly increas
ing measure) also toil with his brain. Un
der the Constitution the National Legis
lature can do but little of direct importance
for his welfare save where he la engaged
in work which permits It to act under the
interstate commerce clause of the Consti
tution; and this is one reason why I so
earnestly hope that both the legislative and
judicial branches of the Government will
construe this clause of the Constitution in
the broadest possible manner. We can.
however, in such a matter as inrfustrial
training. In such & matter as child labor
and factory laws, set an example to 'the
states by enacting the most advanced legis
lation that can wisely be enacted for the
District of Columbia.
Nation' Help to Farmem,
The only other persons whose welfare is
as vital to the. welfare of the whole country
as Is the welfare of the wageworkers are
the tillers of the boll, the farmers. It is
a mere truism to say that no growth of
cities, no growth of wealth, no industrial
development can atone for any falling off
in the character and standing of the farm-
ng population. LMirlng the last few de
cades this faot has been recognized with
ever-Increasing clearness. There is no longer
any failure to realize that farming, at least
in certain branches, must become a tech
nical and scientific profession. This means
that there must be open to farmers the
chance for technical and scientific train
ing, not theoretical merely, but of the most
severely practical type. The farmer repre
sents a peculiarly high type of American
citizenship, and he must have the same
chance to rise and develop as other Ameri
can citizens have. Moreover, it is- exactly
as true of the farmer, as it is of the business
man and the wageworker, that the ultimate
success of the Nation of which he forms a
part must be founded not alone on material
prosperity, but upon high moral, mental and
physical development. .This education of the
farmer--self-education by preference, but
also education from the outside, as with all
other men is peculiarly necessary here in
the united Mates, where the frontier con
ditions even In the newest states have now
nearly vanished, where there must be a sub
stitution of a more Intensive system of cul
tivation for the old, wasteful farm -management,
and where there must be a better
business organization among the farmers
themselves.
Widen Farmer' Education.
Several factors must co-operate In the
improvement of the farmer's condition. He
must have the chance to be educated In
the widest possible sense in the sense
which keeps ever in view the intimate re
lationship between the theory of education
and the facts of life. In all education we
should 'widen our alms. It is a good thing
to produce a certain number of trained
scholars and students; but the education
superintended by the State must seek rath
er to produce a hundred good citizens than
merely one scholar, and it must be turned
now and then from tne class book to tne
study of the great book of nature Itself.
This Is especially true, of the farmer, as
has been pointed out again and again by all
observers most competent to pass practical
Judgment on the problems of our country
lire. All students now realize that educa
tion must seek to train the executive pow
ers of young people and to confer more
real significance upon the phrase, - "dignity
of labor." and to prepare the pupils so
that In addition to each developing tn the
highest degree his individual capacity for
work, they may together help create a
right public opinion, and show in many
ways social and co-operative spirit. Organ
isation has become necessory In the busi
ness world; and It has accomplished much
lor good in the world of labor. It Is no
less necessary for farmers. Such a move
ment as the grange movement is good in
liseu and is capable of a well-nigh, infinite
further extension for good so long as it is
kept to its own legitimate business. The
benefits- to be derived by the association of
farmers for mutual advantage are partly
economic and partly sociological.
Moreover, while in the long run voluntary
effort will prove more efficacious than
government assistance, while the farmers
must primarily do most for themselves, yet
the Government can also do much. The
Department of Agriculture has broken new
ground in many directions, and year by year
it finds how it can Improve its methods and
develop fresh usefulness. Its constant ef
fort is to give the governmental assistance
In the most effective way; that Is, througa
associations of farmers rather than to or
through individual farmers. It is also
striving to co-ordinate its work with the
agricultural departments of ' the several
states, and so far as its own work is educa
tional, to co-ordinate It with the work of
other educational authorities. Agricultural
education Is necessarily based upon general
education, but our agricultural educational
institutions are wisely specializing them
selves, making their courses relate to the
actual teaching of the agricultural and
kindred sciences to young country people
or young city people who wish to live in
the country.
Great progress has alreadv been made
among farmers by the creation of farmers
Institutes, of dairy associations, of breed
ers' associations, horticultural associations
and the like. A striking example of now
the Government and the farmers can co
operate Is shown in connection -with the
menace offered to the cotton growers of the
Southern States by the advance of the boll
weevil. The Department is doing all It can
to organize the farmers In the threatened
districts, just as It has been doing all it
can to organize them In aid of Its work to
eradicate the cattle fever tick in the Soutn.
The Department can and will co-operate
with all such associations, and it must have
their help if its own work is to be done in
the most efficient style.
Irrigation and Forestry.
Much Is now being done for the states
of the Rocky Mountains and the great
plains through the development of the na
tional policy of . irrigation and forest pres
ervation; no Government policy for the bet
terment of our internal conditions has been
more fruitful of good than this. The forests
of the White Mountains and Southern Ap
palachian regions should also be preserved;
and they can not be unless the people of
the states in which they He, through their
representatives In the Congress, secure vig
orous action by the National Government.
I Invite the attention of the Congress
to the estimate of the Secretary of War for
an appropriation to enable him to be
gin the ' preliminary work for the
construction of a memorial amphitheater
at Arlington. The Grand Army of the
Republic in its national encampment has
urged the erection of such an amphithea
ter as necessary for the proper observance
of Memorial Day and as a fitting monument
to the soldier and sailor dead buried there.
In this I heartily concur and commend the
matter to the favorable consideration of the
Congress.
Katlounl Marriage and Divorce Law.
I am well aware1 of how difficult it is to
pass a. constitutional amendment. Never
theless in my judgment tne wnole question
of marriage and divorce should be rele
gated to the authority of the National Con
gress. At present the wide differences in
the laws of the different states" on this
subject result in scandals and abuses; and
surely there is nothing so vitally essential
to the welfare of the Nation, nothing around
which the Nation should so bend Itself to
throw every safeguard, as the home life
of the average citizen. The change would
be good from every standpoint. In partic
ular it would be good because it would con
fer on the Congress tne power at once to
deal radically and efficiently with nolyg
amy ; and this should be done whether or
not marriage and divorce are dealt with.
It Is neither safe nor proper to leave the
question of polygamy to be dealt with by
the several states. Power to deal with it
should be conferred on the National. Gov
ernment. When home ties are loosenedwhen men
and women cease to regard a worthy fam
ily life, with all Its duties fully performed.
and all Its responsibilities lived up to, as the
life best worth living; then evil days for
the commonwealth are at hand. There are
regions in our land, and classes of our popu
lation, wnere the birth rate has sunk be
low the death rate. Surely it should need
no demonstration to show that wilful steril
ity is, from the standpoint of the Nation.
from the standpoint of the human race, the
one sin for which the penalty Is national
death, race death, a sin for which there is
no atonement; a sin which ,1s the more
dreadful exactly in proportion as the men
and women guilty thereof are in other re
spects, in character; and bodily and mental
powers, those whom for the sake of the
state it would be well to see the fathers
and mothers of many healthy children, well
brought up in homes maae nappy by tneir
presence. No man, no woman, can shirk
the primary duties of life, whether for love
of ease and pleasure, or for any other cause.
and retain his or her self-respect.
Approves Ship Subsidy Bill.
Let me once again . call the attention of
the Congress to two subjects concerning
which I have frequently before communi
cated with them. One is the question of
developing American shipping. I trust that
a law embodying in substance the views,
or a major part of the views, expressed In
the report on this subject laid before the
House at its last session will be passed. I
am well aware that In former years objec
tionable measures have been proposed in
reference to the encouragement of American
shipping; but it seems to me that the pro
posed measure is as nearly unobjectionable
as any can be. It will, of course, benefit
primarily our seaboard states, such a
Maine, Louisiana and Washington; but what
benefits part of our people In the end ben
efits all; Just as Government aid to irriga
tion ana rorestry in tne west is really of
benefit, not only to the Rocky Mountain
states, but to all our country. If it prove
impracticable to enact a law for the en
couragement of shipping generally, then at
least provision should be made for bet
ter communication with South America,
notabl for fast mail lines to ''the chief
South American ports. It is discreditable
to us that our business people, for lack of
direct communication in the shape of lines
of steamers with South America, should in
that great sister continent be at a dis
advantage compared to the business people
of Europe.
Currency Reform Weeded.
I especially call your attention to the
second subject, the condition of our cur
rency laws. The National bank act has ably
served a great purpose in aiding the enor
mous business development of the country.
and within ten years there has been an in
crease In circulation per capita from $-1.41
to $33.08. For several years evidence haj
been accumulating: that additional legis
lation is needed. The recurrence of each
crop season emphasizes the defects of the
present laws. There must soon be a re
vision of them, because to leave them as
they are means to incur liability of busi
ness disaster. Since your body adjourned
there has been a fluctuation In the Interest
on call money from 2 per cent to 30 per
cent, and the fluctuation was even greater
during the preceding six months. The Sec
retary of the Treasury had to step in and
by wise action put a stop to the most vio
lent period of oscillation. Even worse than
such fluctuation is the advance In commer
cial rates and the uncertainty felt in the
sufficiency of credit even at high rates. All
commercial interests suffer during each crop
period. Excessive rates for call money in
New York attract money from the interior
banks Into the speculative field; this de
pletes the fund that would otherwise be
available for commercial uses, and commer
cial borrowers are forced to pay abnormal
rates; so that each Fall a tax, In the shape
of increased interest charges, is placed on
the whole commerce of the country.
The mere statement of these facts shows
that our present system is seriously defect
ive. There is need of a change, unfortu
nately, however, many of the proposed
changes must be ruled from consideration
because they are complicated, are not easy
of comprehension and tend to disturb ex
isting rights and interests. We must also
rule out any plan which would materially
impair- the value of the United States 2 per
cent bonds now pledged to secure circula
tion, the issue of which was made under
conditions peculiarly creditable to the Treas
ury. I do not press "any especial plan.
Various plans have recently been proposed
by expert committees of bankers. Among the
plans which are possibly feasible and which
certainly should receive your- consideration
is that repeatedly brought to your attention
by the present Secretary of the Treasury,
the essential features of which have been
approved by many prominent bankers and
business men. According to this plan. Na
tional banks should be permitted to issue
a specified proportion of their capital in
notes of a given kind, the issue to be taxed
at so high a rate as to drive the notes back
when not wanted n legitimate trade. This
plan would not permit the Issue of cur
rency to give banks additional profits, but
to meet the emergency presented by times
of stringency.
Avoid Spasms and Speculation. '
I do not say that this is the right system.
I only advance it to emphasize my belief
that there Is need for the adoption of some
systora which shall be automatic and open
to ail sound banks, so as to avoid all possi
bility of discrimination and favoritism. Such
a plan would tend to prevent the spasms of
high money and speculation which now ob
tain In the New York market; for at pres
ent there is too- much currency at certain
seasons of the year, and its accumulation
at New York tempts bankers to lend it at
low rates for speculative purposes; whereas
at other times when the crops are being
moved there is urgent need for a large but
temporary increase in the currency supply.
It must never be forgotten that this ques
tion concerns business men generally quite
as much as banker; especially is this true
of stockmen, farmers and business men in
the West; for at present at certain seasons
of the year the difference in interest rates
between the East and the West is from 0
to 10 per cent, whereas in Canada the cor
responding difference is but 2 per cent. Any
plan must, of course, guard the interests of
Western and Southern bankers as carefully
as It guards the Interests of New York or
Chicago bankers; and must be drawn from
the standpoints of the farmer and the mer
chant no less than from the standpoint of
the city banker and the country banker.
The law should be amended so as specifi
cally to provide that the funds derived
from customs duties may be Treated by tne
Secretary of the Treasury as he treats funds
obtained under the internal revenue laws.
There should be a considerable increase In
bills of small denominations. Permission
should be given banks, if necessary under
settled restrictions, to retire their circula
tion to a larger amount than $3,000,000 a
month.
Free Trade for Philippines.
X most earnestly hope that the bill to pro
vide a lower tariff for or else absolute fres
trade In Philippine products will become a
law. No" harm will come to any American
Industry; and while there will be some small
but real material benefit to the Filipinos,
the main benefit will come by the showing
made as to our purpose to do all in our
power for their welfare. So far our action
in the Philippines has been abundantly Jus
tified, not mainly and indeed not primarily
because of the added dignity it has given
us as a Nation by proving that we are ca
pable honorably and efficiently to bear the
International burdens which a mighty peo
ple should bear, but even more because of
the Immense benefit that has come to the
people of the Philippine Islands. In these
islands we are steadily introducing both
liberty and order, to a greater degree than
their people have ever before . known. We
have secured justice. We have provided
an efficient police force and have put down
ladronism. Only in the islands of Leyte and
Samar is the authority of our Government
resisted and this by wild mountain tribes
under the superstitious inspiration of fak
irs and pseudo-religious leaders. We are
constantly increasing the measure of liberty
accorded the islanders, and next Spring, if
conditions warrant, we shall take a great
stride forward in testing their capacity for
celf-g vernment by summoning the first Fil
ipino legislative assembly; and the way in
which they stand this test will largely de
termine -whether the self-T0vernment thus
granted will be Increased or decreased; for
if we have erred at all in the Philippines
It has been in proceeding too rapidly In the
direction of granting a large measure of
self-government. We are building roads. We
have, for the Immeasurable good of the peo
ple, arranged for the building of railroads.
Let us also see to it that they are given
free access to our markets. This Nation
owes no more imperative duty to itself and
mankind than the duty of managing the
affairs of all the islands under the Ameri
can flag the Philippines, Porto Rico and
Hawaii so as to make it evident that it is
in every way to their advantage that the
flag should fly over, them.
Make Porto Rlcans Citizens.
American citizenship should be conferred
on the citizens of Portq Rico. The harbor
of San Juan in Porto Rico should be dredged
and improved. The expenses of the Federal
Court of Porto Rico should be met from
the Federal Treasury. The administration
of the affairs of Porto Rico, together with
those of the Philippines, Hawaii and our
other Insular possessions, should all be di
rected under one executive department; by
preference, the Department of State or the
Department of War.
The needs cf Hawaii are peculiar; every
aid should be given the islands; and our
efforts should be unceasing to develop them
along the lines of a community of small
freeholders, not of great planters with
coolie-tilled estates. Situated, as this terri
tory is, in tht middle of the Pacific, there
are duties Imposed upon this small com
munity which do not fall in like degree
or manner upon any other American com
munity. This warrants our treating It dif
ferently from the way In which we treat
territories contiguous to or surrounded by
sister territories or other states, and justi
fies the setting aside of a portion of our
revenues to be expended for educational and
internal Improvements therein. Hawaii Is
now making an effort to secure immigra
tion fit in the end to assume the 'duties and
burdens of full American citizenship, and
whenever the leaders In the various indus
rles of those islands finally adopt our ideals
and heartily join our administration in en
deavoring To develop a middle class of sub
stantlal citizens, a way will then be found
to deal with the commercial and industrial
problems which now appear to them so
serious. The best Americanism is that '
which alms for stability and permanency of
prosperous citizenship, rather than immedi
ate returns on large masses of capital.
Reorganize Rule In Alaska.
Alaska's needs have been partially met,
but there must be a complete reorgan
ization of the governmental system, as I
have before indicated to you. I ask your
especial attention to this. Our fellow cit
izens who dwell on the shores of Puget
Sound with characteristic energy are ar
ranging to hold in Seattle the Alaska Yu
kon Pacific EiLposlt ion. Its special alms
include the upbuilding of Alaska and the
development of American commerce on the
Pacific Ocean. This exposition, in its pur
poses and scope, should appeal not only to
the people of the Pacific slope, but to the
people of the United States at large. Alas
ka since it was bought has yielded to the
Government $11,000,000 of revenue, and has
produced nearly $300,000,000 in gold, furs
and fish. When properly developed It, will
become in large degree a land of homes.
The countries bordering the Pacific Ocean
have a population more numerous than' that
of all the countries or Europe; their annual
foreign commerce amounts to over $3,000,
000.000, of which the share of the United
States is some $700,000,000. If this trade
were thoroughly understood and pushed by
our manufacturers and producers, the In
dustries not only of the Pacific slope, but
of Vll our country, and particularly of our
cotton growing states, would be greatly
benefited. Of course, in order to get these
benefits, we must treat fairly the countries
with which we trade.
Morality Among; Nations. '
It is a mistake, and it betrays a spirit
of foolish cynicism, to maintain that all
international governmental , action is, and
must ever be. based upon mere selfishness,
and that to advance ethical reasons for such
action Is always a sign of hypocrisy. This
is no more necessarily true of the action
of governments than of the action of in
dividuals. It is a sure sign of a base nature
always to ascribe base motives for the ac
tions of others. Unquestionably no nation
can afford to disregard proper considerations
of self-interest, any more than a private
individual can so do. But It is equally true
that the average private Individual in any
really decent community does many actions
with reference to other men in which he
Is guided, not by self-interest, but by pub
lic spirit, .by regard for the rights of others,
by a disinterested purpose to do good to
others, and to raise the tone of the com
munity as a whole. Similarly, a really
great naiion must often act, and as a mat
ter of fact often does act, toward other
nations-in a . spirit not in the least of mere
self-interest, but paying heed chiefly to eth
ical reasons; and as the centuries go by this
disinterestedness in International action,
this tendency of the Individuals compris
ing, a nation to require that nation to act
with Justice toward Its neighbors, steadily
grows and strengthens. It is neither wise
nor right for a nation to disregard its own
needs, and it is foolish and may be wicked
to think that other nations will disregard
theirs. But it Is wicked for a nation only
to regard Its own interest, and foolish to
believe that such Is the sole motive that
actuates any other nation. It should be
our steady aim -to raise the ethical standard
of national action Just as we strive to raise
the ethical standard of individual action.
Not only must we treat all nations fairly,
but we must treat with Justice and good
will all immigrants who come here under
the law. Whether thy are Catholic or
Protestant, Jew or Gentile; whether they
come from England or Germany, Russia,
Japan or Italy, matters nothing. All we
have a right to question Is the man's con
duct. If he Is honest and upright In his
dealings with his neighbor and with the
State, then he is entitled to respect and
good treatment: Especially do we need to
remember our duty to the stranger within
our gates. It Is the sure mark of a low civ
ilization, a low morality, to abuse or dis
criminate ogalnst or in any way humiliate
such stranger who has come here lawfully
and who i conducting- himself properly.
To remember this Is incumbent on every
American citizen, and It la of course pecu
liarly Incumbent on every Government offi
cial, whether of the Nation or of the sev
eral states.
Praise for Japanese.
I am prompted to say this by the atti
tude of hostility here and there assumed
toward the Japanese in this country. This
hostility Is sporadic and is limited to a
very few places. Nevertheless, it Is most
discreditable to us as a people, and it may
be fraught with the gravest consequences
to the Nation. The friendship between the
United States and Japan has been con
tinuous since the time, over half a century
ago, when Commodore Perry, by his expe- j
j dltion to Japan, first opened the Islands
i to western civilization. Since then the
growth of Japan has been literally astound
ing. There is not only nothing to parallel
it, but nothing to approach it in the his
tory of clvlzlled mankind. Japan has a
glorious and ancient past. Her civilization
Is older than that of the nations of north
ern Europe the nations from whom the
people of the United States have chiefly
sprung. But 50 years ago Japan's devel
opment was still that of the middle ages.
During that 50 years the progress of the
country in every walk of life has been a
marvel to mankind, and she now stands as
one of the greatest . of civilized nations,
great In the arts of war and tn the arts
of peace ; great In military. In industrial,
in artistic development and achievement.
Japanese soldiers and sailors have shown
themselves equal in combat to any of whom
history makes note. She has produced great
generals and mighty admirals; her fighting
men, afloat and ashore, show all the heroic
courage, the unquestioning, unfaltering loy
alty, the rd I en did Indifferent tn hnrd-
'ship and death, which marked the Loyal
Konins; and they show also that they pos
sess the highest Ideal of patriotism. Jap
anese artists of very kind see their products
eagerly -sought for in all lands. The in
dustrial and commercial development of
Japan has been phenomenal; greater than
that of any other country during the same
period. At the same time the advance in
science and philosophy is no less marked.
The admirable management of the Japanese
Red Cross during the late war, the effl-
' clency and humanity of the Japanese offi
cials, nurses and doctors, wen the respect
ful admiration of all acquainted with the
facts. Through the Red Cross the Jap
ane-se people sent over S 100.000 to the suf
ferers of San Francisco, and the gift was
accepted with gratitude by our people. The
courtesy of the Japanese, nationally and
Individually, has become proverbial. To no
otner country nas mere been such an in
creasing number of visitors from this land
as to Japan. In return, Japanese have
come here in great numbers. They are
welcome, socially and Intellectually, in all
our colleges and Institutions of higher
learning, in all our professional and social
bodies. The Japanese have won In a single
generation the right to stand abreast of the
foremost and most enlightened peoples of
Europe and America ; they have won on
their own mecits and by their own exer
tions the right to treatment on a basis of
full and frank equality. The overwhelming
mass of our people cherish a lively regard
and respect for the people of Japan, and
In almost every quarter of the Union the
stranger from Japan is treated as he de
serves; that is, he is treated as the stranger
from any part of civilized Europe is and
deserves to be treated. But here and there
a most unworthy feeling has manifested It
Belf toward the Japanese the feeling that
has been shown in shutting them
out from the common schools in
San Francisco, and in mutter-
Ings against them in one or two other
places, because of their efficiency as work
era. To shut" them out from the public
schools Is a wicked absurdity, when there
are no first-class colleges in the land, in
eluding the universities and colleges of
California, which do not gladly welcome
Japanese students and on which Japanese
students do not reflect credit, t We have
as much to learn from Japan as Japan has
to learn from us; and no nation is fit to
teach unless it Is also willing to learn
Throughout Japan Americans are well treat
ed, and any failure on the part of Ameri
cans at home to treat the Japanese with a
like courtesy and consideration is by Just
so much a confession of Inferiority In our
civilization.
Measures to Favor Japanese.
Our nation fronts- on the Pacific, just as
It fronts on the. Atlantic. ve hope to play
a constantly growing part in the great ocean
of the Orient. We wish, as we ought to
wish, for a great commercial development In
our dealings with Asia; and It is out of the
question that we should permanently have
such development unless we ireeiy and giaa
ly -extend to other nations the same measure
of justice and good treatment which we expect
to geceiv in return. It is only a very small
body of our citizens that act badly. Where
the Federal Government has power it will deal
summarily with any euch. Where the several
States have power I earnestly ask that they
also deal wisely and promptly with such con
duct, or else this small body of wrongdoers
may bring ehame upon the great mass of
their innocent and right-thinking fellows that
le. upon our nation as a whole.. Good man
ners should be an international "no less than
an Individual attribute. I ask fair treatment
for the Japanese as I would ask fair treatment
for Germans or Englishmen, Frenchmen, Rus
sians, or Italians. I ask it as due to humani
ty and civilization. I ask it as due to our
selves because we must act uprightly toward
all men.
I recommend to the Congress that an act
bo past specifically providing for the naturali
zation of Japanese who come here Intending
to become American citizens. One of the
great embarrassments attending" the perform
ance of our international obligations is the
fact that the Statutes of the United States
are entirely inadequate. They fail to give to
the National Government sufficiently ample
power, through United States courts and by
the use of the Army and Navy, to protect
aliens in the rights secured to them under
solemn treaties which are the law of the
land. I therefore earnestly recommend that
the criminal and civil statutes of the United
States be so amended and added to as to en
able the President, acting for the United
States Government, which Is responsible In our
International relations, to enforce the rights
of aliens under treaties. Even as the law now
Is something can be. done by the Federal Gov
ernment toward this end, and in the matter
now before me affecting the Japanese, every
thing that It is In my power to do will be
done, and all of the forces, military and civil,
of the United States which I may lawfully
employ will be so employed. There should,
however, be no particle of 'doubt as to the
power of the National Government completely
to perform and enforce its own obligations to
other nations. The mob of a single city may
at any time perform acts of lawless violence
against some class of foreigners which would
plunge us into war. That city by itself would
be powerless to make defense against the
foreign power thus assaulted, and if indepen
dent of this Government it would never ven
ture to perform or permit the performance of
the acts complained of. The entire power and
the whole duly to protect the offending city
or the offending community lies in the hands
of the United States Government. It Is un
thinkable that we should continue a policy
under which a given locality may be allowed
to commit a crime against a friendly nation,
and the United States Government limited, not
to preventing the commission of the crime,
but. In the last resort, to defending the people
who have committed it against the conse
quences of their own wrongdoing.
Cuba's Last Chance an Republic.
Tast August an insurrection broke out In
Cuba which it speedily grew evident that the
existing Cuban Government was powerless to
quell. -This Government was repeatedly asked
by the then Cuban (lovernment to intervene,
and finally was notified by the President of
Cuba that he Intended to resign; that his de
cision was irrevocable; that none of the other
constitutional officers would consent to carry
on the Government, and that he was power
less to maintain order. It was evident that
chaos was impending, and there was every
probability that if steps were not Immediately
taken by thia Government to try to restore
order, the representatives of various European
nations In the lsiana wouia apply to tneir
respective governments for armed intervention
in order to protect the Uvea and property of
their citizens. Thanks to the preparedness of
our Navy, I was able Immediately to send
enough ships to euoa to prevent tne situation
from becoming hopeless ; and I f urt hermore
dispatched to Cuba the Secretary of War and
the Assistant Secretary of State, In order that
they might grapple with the situation on the
ground. All efforts to secure an agreement
between the contending factions, by which they
should themselves come to an amicable under
standing and settle upon some modus vlvendi
some provisional government of their own
failed. Finally the President of the Republic
resigned. The quorum of Congress assembled
failed by deliberate purpose of its members, so
that there was no power to act on his resigna
tion, and the Government came to a halt. In
accordance with the . so-called Piatt amend
ment, which was embodied In the constitution
of Cuba, I thereupon proclaimed a provisional
government for the Island, the Secretary of
War acting as provisional governor until he
could be replaced by Mr. Magoon, the late
minister to anama and governor of the Canal
Zone on the Isthmus; troops were sent to sup
port them and to relieve the Navy the expedi
tion being bandied with most satisfactory
speed and efficiency. The insurgent chiefs Im
mediately agreed that their troops should lay
down their arms and disband; and the agree
ment was carried out. The provisional gov
ernment has left the personnel of the old
government and the old laws, so far as might
be, unchanged, and will thus administer the
Island for a few montns untu tranquility can
be restored, a new election properly held, and
a new government inaugurated. Peace has
come in the island; and the harvesting of
the sugar-cane crop, the great crop of the
island. Is about to proceed.
When the election has been held and - the
new government Inaugurated In peaceful and
orderly fashion the provisional government will
come to an end. I take this opportunity of
expressing upon behalf of the American peo
ple, with all possible solemnity, our most ear
nest hope that the people of Cuba will realize
the Imperative need of preserving justice and
keeping order in the Island. The United
States wishes nothing of Cuba except that It
shall prosper morally and materially, and
wishes nothing of the Cubans save that they
shall be able to preserve order among them
selves and therefore to preserve their Inde
pendence. If the elections become a farce,
and if the Insurrectionary habit becomes con
firmed In ths Island, it Is absolutely out of J
the question that the Island should continue
independent; and the United States, which has
assumed the sponsorship before the civilized
world for Cuba's career as a nation, would
again have to intervene and to see that the
go vernmen t was managed in such orderl y
fashion as to secure the safety of life and
property. The path to be trodden by those
who exercise self-government is always hard,
and we should have every charity and pa
tience with the Cubans as they tread this
difficult path. I have the utmost sympathy
with, and regard for, them; but I most ear
nestly adjure them solemnly to weigh their
responsibilities and to see that when their
new government is started it shall run smooth
ly, and with freedom from flagrant dental of
right on the one hand, and from insurrection
ary disturbances on the other. .
Fan-American Conference.
The second international conference of
American Republics, held in Mexico in th
years 1901-2. provided for the holding of the
third conference within five years, and com
mitted the fixing of the time and place and
the arrangements for the conference to the
governing board- of the Bureau of American
Republics, composed of the representatives
of all the American Nations in Washing
ton. That board discharged the duty im
posed upon It with marked fidelity and
painstaking care, and upon the courteous
invitation of the United States of Brazil,
the conference was held at Rio de Janeiro,
continuing from the ri'ld of July to the
29th of August last. Many subjects at com
mon Interest to all the American nations
were discussed by the conference, and the
conclusion reached, embodied In a series of
resolutions and proposed conventions, will
be laid before you upon the coming in of
the final report of the American delegates.
They contain many matters of importance
relating to the extension of trade, the in
crease of communication, the smoothing
away of barriers to free intercourse, and the
promotion of a better knowledge and good
understanding between the different coun
tries represented. The meetings of the con
ference were harmonious and the conclusions
wero reached with substantial unanimity. It
Is interesting to observe that in the suc
cessive conferences which have been held
the representatives of the different Ameri
can nations have been learning to work to
gether effectively, for, while the first con
ference in Washington in 1SS9, and the sec
ond conference in Mexico in 1901-2, occu
pied many months, with much time wasted
In an unregulated and fruitless discussion,
the third conference at Rio exhibited much
of the facility in the practical dispatch of
business which characterizes permanent de
liberative bodies, and completed its labors
within tho period of six weeks originally al
lotted for Its sessions.
Quite apart from the specific value of the
conclusions reached by the conference, the
example of the representatives of all the
American nations engaging in harmonious
and kindly consideration and discussion of
subj-icts of common interest is itself of great
and substantial value for the promotion of
reasonable and considerate treatment of all
international questions. The thanks of this
country are due to the government of Brazil
and to the people of Rio de Janeiro for the
generous hospitality with which our dele
gates. In common with the others, were re
ceived, entertained and facilitated In their
work.
Secretary Root's Tour.
Incidentally to the meeting of the con
ference, the Secretary of Sta.te visited the
City of Rio de Janeiro and was cordially
received by the conference, of which he was
made an honorary president. The announce
ment of his intention to make this visit
was followed by most courteous and urgent
Invitations from nearly all the countries of
South America to visit them as the guest
of their governments. It was deemed that
by the acceptance of these invitations we
might appropriately express the real respect
and friendship in which we hold our sister
republics of the southern continent, and the
Secretary accordingly visited Brazil, Uru
guay, Argentina, Chile, Peru, Panama and
Colombia. He refrained from visiting Para
guay, Bolivia and Ecuador only because fae
distance of their capitals from the seaboard
made it impracticable with the time at his
disposal. He carried with him a message
of peace and friendship, and of strong de
sire for good understanding and mutual
helpfulness; and he was everywhere received
in the spirit of his message. The members
of government, the press, the learned pro
fessions, the men of business and the great
masses of the people united everywhere in
emphatic response to his friendly expressions
and in doing honor to the country and cause
which he represented.
In many parts of South America there has
been much misunderstanding of the attitude
and purposes of the United States toward the
other American republics. An idea had
become prevalent that our assertion of the
Monroe doctrine implied or carried with
It an assumption of superiority and of a
right to exercise some kind of protectorate
over the countries to whose territory that
doctrine applies. Nothing could be farther
from the truth. Yet that impression con
tinued to be a sericus barrier to good un
derstanding, to friendly intercourse, to the
Introduction of American capital and tho
extension of American trade. The impres
sion was so widespread that apparently It
could not be reached by any ordinary means.
Root Dispels False Impression.
It was part of Secretary Root's mission
to dispel this unfounded impression, and
there is just cause to believe that he has
succeeded. In an address to the third con
ference at Rio on the 31st of July an ad
dress of such note that I sena" It In, to
gether with this message he said;
We wish for no victories but those of
peace; for no territory except our own; for
no sovereignty except the sovereignty over
ourselves. We deem the independence and
equal rights of .the smallest and weakest
member of the family of nations entitled
to as much respect as those of the greatest
empire, and we deem the -observance of
that respect the chief guaranty of the weak
against' the oppression of the strong. We
neither claim nor desire any rights or priv
ileges or powers that we do not freely con
cede to every American republic. - We wish
to increase our prosperity, to extend our
trade, to grow in wealth, in wisdom and in
spirit, but our coneeptton of the true way to
accomplish this is not to pull down others
and profit by their ruin, but to help all
friends to a common prosperity and a com
mon growth, that we may all becomo
greater and stronger together. Within a
few months for the first time the recognized
possessors of every foot of soil -upon the
American continents can be and I hope will
be represented with the acknowledged rights
of equal sovereign states in the great World
Congress at The Hague. This will be the
world's formal and final acceptance of the
declaration that no part of the American
continents is to be deemed subject to col
onization. Iet us pledge ourselves to aid
each other in the full performance of the
duty to humanity which that accepted dec
laration Implies, so that In time the weakest
and most unfortunate of our republics may1
come to march with equal step by the side
of the stronger and more fortunate. Iet us
help each other to show that for all the
races of men the liberty for which we have
fought and labored is the twin sister of jus
tice and peace. Let us unite in creating and
maintaining and making effective an all
American public opinion, whoso power shall
influence international conduct and prevent
international wrong, and narrow the causes
of war, and forever preserve our free land
from the burden of such armaments as are
massed behind the frontiers of Europe and
bring us ever nearer to the perfection of or
dered -ttherty. So shall come security and
prosperity, production and trade, wealth,
learning, the arts and happiness for us
all.
South America's Acclaim.
These words appear to have been received
with acclaim in every part of Soth Amer
ica. They have my hearty approval, as I
am sure they will have yours, and I can
not be wrong in the conviction that they
correctly represent the sentiments of the
whole American people. I cannot better
characterize the true attitude of the United
States in its assertion of the Monroe doc
trine than in the words of the distinguished
ex-Minister of Foreign Affairs of Argentina,
No woman who uses "Mother's
and danger incident to birth; tor it robs tne ordeal or its norror
and insures safety to life of mother and child, and leaves her in
a condition more favorable to speedy recovery. The child i3
also healthy, strong and
good natured. Our book
"Motherhood," is worth
its wei frht in Fold to everv
O J m
woman, and will be sent free in plain
envelope by addressing application to
Bradfield Regulator Co. Atlanta, Ga.
Dr. Drago. in his speech welcoming Mr.
Root at Buenos Ayres. He spoke of
"The traditional policy of the United
States (which) without accentuating supe
riority or seeking preponderance, con
demned the oppression of the nations of
this part of the world and the control of
their destinies by the great powers of Eu
rope." It Is gratifying to know that In the great
city of Buenos Ayres, upon the arches which
spanned the streets, entwined with Argen
tine and American flags for the reception of
our representative, there were emblazoned
not only the names of Washington and
Jefferson and Marshall, but also. In ap
preciative recognition . of their services to
the cause of South American independence,
the names of James Monroe, John Qulmy
Adams, Henry Clay and Richard Rush. We
take especial pleasure In the graceful cour
tesy of the Government of Brazil, which
hem given to the beautiful and stately
building first used for the meeting of tho
conference the name of "Palaclo Monroe."
Our grateful acknowledgements are due to
the governments and the peopla of all the
countries visited by the Secretary of State
for the curtesy, the friendship, and tlie
honor shown to our country in their gen
erous hospitality to him.
No Debt-Collertlnsjr Wars.
In my message to you on the 5th of De
cember. 1003. I called your attention - to
the embarrassment that might.be caused
to thls Government by the assertion by
foreign nations of the right to collect by
force of arms debts due by American repub
lics to citizens of the collecting nations, and
to the danger that the process of compul
sory collection might result in the occupa
tion of territory tending to become perma
nent. I then said:
"Our own Government has always refused
to enforce such contractual obligations on
behalf of I,ts citizens by an appeal to arms.
It Is much to be wished that all foreign
governments would take the same view."
This subject was one of the topics of con
sideration at the conference at Rio and a
resolution was adopted by that conference
recommending to tne respective governments
represented to "consider the advisability of
asking the Second Peace Conference at Tne
Hague to examine the question of the com
pulsory collection of public debts, and in
general, means tending to diminish among
nations conflicts of purely pecuniary origin."
This resolution was supported by the rep
resentatives of the United States in accord
ance with the following instructions:
"It has long been tne established policy
of the United States not to use Its armed
forces for the collection of ordinary con
tract debts due to its citizens by other gov
ernments. We have not considered the use
of force for such a purpose consistent with
that respect for the independent sovereignty
of other members of the family of nations,
which is the most important principle of
International law and the chief protection
of weak nations against the oppression of
the strong. It seems to us that the prac
tice Is Injurious in Its general effect upon
the relations of nations and upon the wel
fare of weak and disordered states, whoe
development ought to be encouroged in the
Interests of civilization: that it offers fre
quent temptation to bullying and oppres
sion and to unnecessary and unjustiriii Me
warfare. We regret that other powers,
whose opinions and sense of Justice we
esteem highly, have at times taken a dif
ferent view and have permitted themselves,
though we believe with reluctance, to col
lect such debts by force. It Is doubtless
true that the non-payment of public debts
may be accompanied by such circumstances
of fraud and wrongdoing or violation of treat
ies as to justify tne use of force. This
Government would be glad to see an inter
national consideration of the subject which
shall discriminate between such cases and
the simple non-performance of a contract
with a private person, and a resolution In
favor of reliance upon peaceful means tn
cases of the latter clans.
It is not felt, however, that the confer
ence at Rio should undertake to make
such a discrimination or to resolve upon
euch a rule. Most of tne American coun
tries are still debtor nations, while the coun
tries of Europe are the creditors. If the
Rio conference, therefore, were to take
such action it would "nave the appearance
of a meeting of debtors resolving how
their creditors should act. and this would
not Inspire respect. The true course Is In
dicated by the terms of the programme,
which proposes to request the Second Hague
Conference, where both creditors and debt
ors will be assembled, to consider tne sub
ject." Mediation in Central America.
Last June trouble which had existed for
some time between the republics of Salva
dor, Guatemala and Honduras culminated in
war a war which threatened to be ruinous
to the countries involved and very destruc
tive to the commercial Interests of Amer
icans, Mexicans and other foreigners who
are taking an Important part In tne de
velopment of these countries. Tlia, thor
oughly good understanding which exists be
tween the United States and Mexico enabled
thin Government and that of , Mexico to
unite In effective mediation between the
warring republics; which .mediation result
ed, not without long-continued and patient
effort. In bringing about a meeting of the
representatives of the hostile powers on
board a 'United States warship as neutral
territory, and peace was there concluded:
a peace which resulted in the saving of
thousands of lives and in the prevention of
an Incalculable amount of misery and the
destruction of ' property and of the means
of livelihood. The Rio Conference passed
the following resolution In reference to this
action:
"That the Third International Amerlrsn
Conference shall address to the Presidents
of the United States of America and of the
United States of Mexico a note In which
the conference whicn Is being held at Rio
expresses Its satisfaction at the happy re
sults of their mediation for the celebration
of peace between the republics of Guate
mala, Honduras and Salvador."
This affords an excellent example of n
way In which the influence of the United
States can properly be exercised for the
benefit of the peoples of the Western Hem
isphere; that is, by action taken in con
cert with other American republics and
therefore free from those suspicions and
prejudice which might attach if the action
wore taken by one alone. In this way it Is
possible to exercise a powerful Influence to
ward the substitution of considerate action
In the spirit of justice for the insurrection
ary or international violence which has
hitherto' been so great a hindrance to tne
development of many of our neighbors.
Repeated examples of united action by sev
eral or many American republics In favor
of peace, by urging cool and reasonable. In
stead of excited and belligerent, treatment
of international controversies, can not full
to promote the growth of a general public
opinion among the American nations which
will elevate the standards of International
action, strengthen the sense of Interna
tional duty among governments, and tell in
favor of the peace of mankind.
I have just returned from a trip to Pan
ama and shall report to you at length Inter
on the whole subject of the Panama canal.
Ratify Aljrerlras Treaty.
The Algeciras Convention, which was signed
by the United States as well as by most of
the powers of Kurope, supersedes the previous
convention of 18R0, which was also signed both
by the United States and a majority of the
Kuropean powers. This treaty confers upon
us equal commercial rights with all European
countries and does not entail a single obliga
tion of any kind u rxm us. and 1 earn est I y
hope It may be speedily ratified. To refuse
to ratify it would merely mean that we for
feited our commercial rights In Morocco and
would not achieve another object of any kind.
In the event of such refusal we would be left
for the first time In a hundred and twenty
years without any commercial treaty with
Morocco: and this at a time when we are
everywhere seeking new markets and outlets
for "trade.
The destruction of the Pribilof Islands fur
seals by pelagic sealing still continues. The
herd which, according to the surveys made In
1874 by direction of the Congress, numbered
A 7OO.04 V). and which, according to the survey
of both American and Canadian commissioners
in 1S01. amounted to I.OOft.OOu! has now been
reduced to about 1 8O.00O. This result has been
brought about by Canadians and some other
And many other painful and serious
ailments from which most mothers
suffer, can be avoided by the use- of
"Mother's Friend " This 'great remedy
H is a God-send to women, carrying
I them through their most critical
B rvrrlpal with safetv and no pain.
Friend" need fear the suffering