PKIISBI
Full Text of the Chief Exec
utive's Address to
Congress.
To the Senate and House of Representa
tives: It gives me pleasure to extend
greeting to the 55th congress assembled
In regular session at the seat of govern
ment, with many of whose senators and
representatives I have been associated
In the legislative service. The meeting oc
curs under felicitous conditions, justify
ing sincere congratulation and calling for
our grateful acknowledgment to a be
neficent providence which has so signally
Messed and prospered us as a nation.
Peace andgood will with all the nations
of the earth continue unbroken.
A matter of genuine satisfaction Is tne
arrowing feeling of fraternal regard and
unification of all sections of our country,
.he Incompleteness of which has too long
delayed realization of the highest blessings
of the Union. The spirit ot patriotism is
universal and Is ever Increasing In fervor.
The public qufstlons which now most en
gross us are lifted far above either par
tisanship, prejudice or former sectional
differences. They affect every part ot
our common country alike and permit of
no division on ancient lines. Questions of
foreign policy, of revenue, the soundness
of tho currency, the Inviolability of na
tional obligations, the Improvement of the
jiubllc service, appeal to the individual con
science of every earnest citizen, to what
ever party he belongs, or in whatever sec
tion of the country he may reside.
The extra session of this congress which
closed during July lust, enacted Important
legislation, and, while Its full effects have
not been realized, what it has already ac
complished araureg us of Its timeliness and
wisdom. To test Its permanent value
further time will be required, and the peo
ple, satisfied with Its operation and re
sults thus far, are In no mind to withhold
from It a fair trial.
TUB t'lHRKNCV O.I ESTION.
ateceaally of Puttlnsr Onr Finances
I poo a Mound Rasls.
Tariff legislation having been settled by
the extra session of congress, the question
next pressing for consideration Is that o(
the currency. The work of putting our
finances upon a sound basis, difficult as It
may seem, will appear when we recall
the financial operation of the government
lnce 16. On the iWth day of June of
that year, we had outstanding demand
liabilities In the sum of (728,808,417 41. On
the 1st day of July, 1879, these liabilities
had been reduced to $443,X.S9,4!I5 88. Of our
Interest-bearing obligations, the figuns
are even more striking. On July 1, ltM,
the principal of the Interest-bearing debt
of the government was :,:i:,3:!l,i"H. On
the 1st day of July, Mill, this sum had
tieen reduced to JM, 037,100, or an aggre
gate reduction of $1,747,21)4.108. The Interest-hearing
debt of tho United States on
the 1st day of December, 18!)7, was J817,.
866,62(1. The government money now out.
landing (December 1) consists of :i4f,-
Cfl.OIS of Untied States notes; l7.7!3.2hO
of treasury notes Issued by authority of.
the act of 1S90; :i84.'.iti.1,5ol of s.lver ctrtlll
cate and $ijl,i!X0,7til of standard sliver
dollars.
With the great resources of tho govern
nent and with the time-honored example
of the past before us, we should not heal
Jat lo enter upon a currency revision
which will make our demand obligations
lesa onerous to the government and re
lieve our llnunrlal laws tiom ambiguity
and doubt.
,J"he brief review of what was accom
plished from the close of the war until
18U1 makes unreasonable and grounuiens
any distrust either of our financial abil
ity or soundness; while the situation from
MM lo 1897 must admonish congress of the
Immediate necessity for so legleltttllig us
to make in leturn of" the conditions then
gold reserve? ,If no further legislation
Is had and the policy of selling bonds is
to be continued, then congress should give
the secretary of the treasury authority to
sell bonds at long or short periods, bearing
a less rate of Interest than is now author
ized by law. I earnestly rtcommend, as
soon as the receipts of the government
are quite sufficient to pay all the expenses
of the government, that when any of the
United States notes are presented for re
demption in gold and areredeeemed in gold,
such notes shall be kept and only paid out
In exchange for gold. This is an obvious
duty. If the holderof theUnited States note
prefers gold from thegovernment, he should
not receive back from the government
a United States note without paying gold
In exchange for it. The reason tor this Is
made all the more apparent when the gov
ernment Issues an interest-bearing debt
to provide gold for the redemption of
United States notes a nonlnterest-bearlng
debt. Surely It should not pay them out
again except on demand and for gold. If
they are put out in any other way they
may return again to be followed by an
other bond issue to redeem them another
interest-bearing debt to redeem a non-interest-bearing
debt.
In my view, It Is of tho utmost Import
ance that the government should be re
lieved from the business of providing for
all the gold required for exchange or ex
port. This responsibility is alone borne
by the government without any of the
usual and necessary banking powers to
help Itself. The banks do not feel the
strain of the gold redemption. Tne
whole strain rests upon the government,
and the size of the gold reserve in the
treasury has come to be, with or with
out reason, the signal of danger or of se
curity. This ought to be stopped.
If we are to have an era of prosperity
In the country with sufficient receipts for
tho expenses of the government, we may
feel no Immediate embarrassment from
our present currency; but the danger still
exists, and will be ever present, menacing
us a long as the existing system con
tinues. And, besides, it is In times of
adequate revenues and business tran
quillity that the government should pre
pare for the worst. We cannot avoid,
without serious consequences, the wise
consideration und prompt solution of this
question.
Plan of Secretary Gave.
The secretary of the trensury has out
lined a plan In great detail lor the pur
pose of removing threatened recurrence
of a depleted gold reserve and se ving us
from future embarrassment on that ac
count. To this plan I Invite your care
ful consideration. I concur with the sec
retary of the treasury In his recommenda
tion that national banks be allowed to
Issue notes to the face value of the
bonds which they deposited for circula
tion, and that the tax on circulating
notes, secured by the deposit of such
bonds, be reduced to one-half of one per
cent per annum. I also Join him In
recommending that authority be given for
tho establishment of national banks with
a minimum capital of $25,000. This will
enable the smaller villages and agricul
tural regions of tho country to be sup
plied with currency to meet their de
mands. I recommend that the Issue of
national bank notes be restricted to the
denomination of $10 and upwards. If the
suggestions I have herein made shall
have the approval of congress, then I
would recommend that national banks be
required to redeem their notes In gold.
rests and long Imprisonment awaiting
trial of pending protracted Judicial pro
cedures. I felt It my first duty to make
instant demand for the release or speedy
trial of all American citizens under ar
rest. Before the change of the Spanish
cabinet, In October, 22 prisoners, citizens
of the United States, had been given
their freedom.
For the relief of our own citizens suf
fering because of the conflict, the aid oi
congress was sought in a special mes
sage, and under the appropriation of April
4, 1897, effective aid has been given to
American citizens In Cuba, and many of
them, at their own request, have been
returned to the United States.
Instructions to Minister Woodford.
"5? jvalllnn Impossible,
There re many plans proposed as a
remedy for the evil, lb-fore we can find
the true remedy we must appreciate the
teal evil. It Is not that our currency of
very kind Is not good, for every dollar
of It Is good; goud lii-cauae the govtrn
tnent'g pledge la out tn keep II so, and
that pledge will not be broken. How
aver, the guaranty of our purpiwe to keep
the pledge will be best shown by ndvane.
Ing toward la fulfillment.
y l lh Present alem.
' The evil of the present system Is found
In the great coat to the government of
malnlainltig the parity of our different
forms of money; Unit In, keeping all of
them al par With gold. We surely cannot
t longer needles of Ihe burden this im.
noses HiHin Ihe people, gvrn under fairly
bruaiH-roiM conditions, while the pant lour
aara have ilimonst rated that II Is not
only an pnlv charge upon the gov
ernment, Im! a dangerous uu-nace lo the
national credit.
It la manifest that we must devise some
elan In protect the government against
timid Issues for relo-atcd redemptions, We
must elthi-r curtail Ihe opportunity for
piculsllon. made rimy by the multiplied
redemptions of our demand ubllgaiiona, or
lncre Ihe gold twrrvf for their re
demption. We have $m.nm,i of currency
which the government, by Wimn enaet
anenl. ha undertaken lo keep at par wllh
gjold. Nolavdy IS obliged lo redeem 111
gold but Ihe government. The banks are
nut requital lo redeem m gold. The gov
ernment is obliged lo keep equal with
gold all Its) outstanding currency and coin
obligations. While Us receipt are not rr
oa red lo b paid III gold. They sr psid
In every kind of money Put gold, Slid in
only mean by which th government can.
with certainty, gel g.d-l is by la.rrowlng.
It cn get H In i other sir when II most
tieeds II The government without any
Hied gold revenue Is pledged lo maintain
aold redemption, whl.h II bsa steadily and
faithfully done, and which, under the au
thority now given, a old lotiilmie lo do
Th It much requires Ihe government,
fur hevlrg redeemed lis hole, i.i pay
them out agnin as current fun. I .1. insets
constant replenishment of the gold re.
serve This Is eH-,'ialiy so In limes of
tiusioeas panic and whn Ihe revenue are
Insnftb lent lo meed Ihe ene of the
gsv emtio nt. At u. h limes Ihe govern,
tnenl list no other way to supply Ha def
ied and mania n tel. mptinn Pul through
the Im rra-s of It bonded debt, dur ng
Ihs aitmti titration i-t y predecessor.
hen Hi .15 M of t't per rent 1-uH ll
were l..e. and sold and Ihs ,r.-.ts
used lo l-sir (lie pcne ef Ihs govern
nent In ev of th revenues and smis'n
the k -ld fe-'rv. Whi II is true Inst
the gn aiar art of the pro. se.ts of these
tr.l were toe J to supply den. lent rev.
sum. a eonsidt rsM portion req uired
ts maintain Ihs gold .(serve,
Heslenlakleg tho (.old Keserv.
t 1 1 H our revenue r-xjl to sue tpenses,
tker would l- .!. H fe-H rmg th I a- i
. of t-c Itol if ths g.od refv 1
fall I ! w I -Ken, hnm w II II b r '
pU-wbthed let by Selling Worlds j
la i her any r r pis- u l w-ier
listing la T 1h rio.s qwesilon Ihea j
M, small iil i us Ihe putt, y mat has ;
Vie p irsued W the past that la. When ths ,
ld leseivs rs. low ts point mt danger,
anor ton-Is and supply th )ld ,
fjutd t shall w pees id olhee mesas I
tat prsvtal Ihts r. urrlng dralkt upo '
till. AM) SPAIN.
Attitude of the Administration In
the- Present Ilrbelllon.
The most Important problem with which
this country Is now called upon to deal,
that pertaining to Its foreign rela
tions, concerns Its duty toward Spain and
th Cuban Insurrection. Problems and
conditions more or less In common with
those now existing have confronted this
government at various times In the past.
The story of Tuba for many years has
been one' al unrest; growing discontent;
nn effort toward the larger enjoyment of
liberty and self-conlroi; of orgTinlxed re
sistance to the mother country; or oppres
sion and warfare nnd of Ineffectual set
tlement to be followed by renewed re
volt. For no enduring period since the
'enfranchisement of the continental pos
sessions of Spain In the Western conti
nent bus the condition of Cuba or the
policy of Spain toward Cuba not caused
concern to the Untied States.
The prospect from time to time that
the weakness of Spain's bold upon the
Island and the political vicissitudes and
embarrnssments of Ihe home government
might lead to the transfer of Cuba to a
'ontlnental power called forth, between
PO Olid 18(10, various emphatic declara
tions of tho United State lo permit no
disturbance of Culm's connection with
Spain unless In Ihe direction of Independ
ence or acquisition by Ihe United States
through purchase, nor has there been nny
rlmnge of this declared policy since upon
the part of this government.
The revolution which began In isf.s
lusted for 1(1 years, despite the strenuous
efforts of the successive peninsular gov
ernment to suppress II. Then, ns now,
th government of the United Slates les
tllled lis grave concern and offered Its aid
to put nil end to bloodshed In Cuba. The
overtures made by llenernl (Irani were
refused, nnd Ihe war dragged on. entail
ing great loss of life and treasure, and
Increased injury lo American Interests,
beside throwing enhanced burdens of
neutrality upon this government. In 1878,
pence was hrouirht about by Ihe truce
of .union, obtained by negotiation t--tsvei-n
the Spanish commander, Martinet
do Campos, ami the Insurgent lenders.
Ilvlllard (ode of War Disregarded.
The present Insurrection broke out In
February. W!. Il I not my purimse. at
this time, to recall Its remarkable Increase
or to chariii terUe lis lenaclous resistance
ugnlnst the enormous forces massed
sgiilnst It by Spain. The revolt nnd the
efforts lo sulMlue II carried destruction to
every quarter of Ihe Island, developing ,
wld proportions Rm defying Ihe effort
of Spain for It suppression. The elvills d
code of war has been disregarded, no
less so by the Sptiulitrd Hum by the
Cuban. The etlstlng eondllli.n cinnol ,
but rill (hi government and the Amerl- '
can pwole with the gravest apprehen
sion. There Is no vire on Ihe part of
our people to pinftl by the misfortunes
of Spain, We have only Ihe desire lo i
see the Cubans prosperous and contented.
eoSovlng Hint measure of self control
sthuh la the Imiliennbl right of man. )
prom ted tn their rtiiht lo te..;i the bene-
III of the rthauslliSs Measures t in. ir ;
iiointry
The offer made bv my pt. ! . ss..r In
April, lm. tendering the friendly offlves :
of this government, failed, and media- .
lion on Mir pari rod accepted In
brief, th answer read There Is no ef
(.. .j..l wav to pacify Cut, unless tt Iss.
gins with th s.lual submission, of the
rebel to the molh.r couiitrv Then oniv
can S;.ln set In the pr..mled direction
of br own motion and after her own
plan.
t wweewlrallwa I f tersslsallow.
Ths cruel policy of oru titration was
ttiltiatr.t Kebrualf I, !- Tb produc
tive districts controlled wf 'he Spanish
armies wr depopulated and th agri
cultural Inhabitants wet herded In and
about th garrison towna, (heir lands b'd
wasi and Iheir dwellings destroyed Thi
poll, y th 11 rbltt of Soalil Joalihed
a a v measure of war sn.l a a
means of culling efl supplies from lh
Insurgents
i II ha utterly failed as war measure,
i It was not lllit4 wsrfar 11
lermmsites
Ass tot this abiM ef h rights of rf
k fH cans! rained, on repeated oc
casion, la enter th rm and P'
ll wf thi government. Ther ws a h
vt luKlit eomtemnalloa of lh lrlmnt
wf Asskaa rills na by alleged Illegal ar
The instructions given to our new min
ister to Spain, before his departure for
his post, directed him to impress upon
that government the sincere wish of tha
United States to lend its aid toward end
ing the war in Cuba, by reaching a peace
ful and lasting result, just and honor
able alike to Spain and the Cuban people,
These instructions recited the' character
and duration of the contest, the wide
spread losses It entails, the burdens and
restraint it imposes upon us, with con
stant disturbance of national interests
and the injury resulting from an Indefinite
continuance of this state of things. It
was stated that at this Juncture our gov
ernment was constrained to seriously in
quire if the time was not ripe when Spain,
of her own volition, moved by her own in
terests and every sentiment of humanity,
should put a stop to this destructive war
and make proposals of settlement honor
able to herself and Just to her Cuban
colony. It was urged that, as a neigh
boring nation with large interests In
Cuba, we could be required to wait only
a reasonable time for the mother coun
try to establish Its authority and restore
peace and order within the borders of the
island; that we could not contemplate an
indefinite period for the accomplishment
of these results.
No solution was proposed to which the
slightest idea of humiliation to Spain
could attach. All that was asked or ex
pected was that some safe way might be
speedily provided and permanent peace
restored. It so chanced that the consid
eration of this offer, addressed to the
Spanish administration, which had de
clined the tenders of my predecessor and
which for more than two years had poured
more .treasure into Cuba in the' fruitless
effort to suppress the revolt, fell to oth
ers. Between the departure of General
Woodford, the new envoy, and his arrival
in Spain, the statesman who had shaped
the policy of his country fell by the hand
of an assassin, and although the cabinet
of the late premier still held office and re
ceived from our envoy the proposals he
bore, that cabinet gave place, within a
few days thereafter, to a new administra
tion under the leadership of Sagasta.
Spain Friendly Iteply.
The reply to our note was received on
the 2nd day of October. It Is in the direc
tion of a better understanding. It appre
ciates the friendly proposals of this gov
ernment. It admits that our country Is
deeply affected by the war In Cuba and
that our desires for peace are Just. It de
clares that the present Spanish govern
ment Is bound by every consideration to a
change of policy that should satisfy the
United States and pacify Cuba within a
reasonable time. To this end, Spain has
decided to put Into effect the political re
forms heretofore advocated by the pres
ent premier, without halting for any con
sideration In the path which, In Its Judg
ment, leads to peace.
The military operations, It Is said, will
continue, but will be humane and con
ducted with all regard for private rights,
being accompanied by political action
leading to the autonomy of Cuba, while
guarding Spanish sovereignty. This, it Is
claimed, will result In Investing Cuba with
a distinct personality, the Island to be
governed by an executive and by a local
council or chamber, reserving to Spain
tho control of the foreign relations, tho
army find navy and the judicial adminis
trations,
To accomplish this, the present govern
ment proposes to modify existing legis
lation by decree, leaving the Spanish
cortes, with the aid of Cuban senators
and deputies, to solve the economic prob
lema and properly distribute the existing
(toli ,
6tt "pain a" Chance.
In Ihe absence of a declaration of the
measures that this government proposes
to take In carrying- out Its proffer of good
offices. It suggests that Spain be left free
to conduct military operations and grunt
political reforms, while the United States,
for its part, shall enforce Its neutral obli
gations, and cut off the assistance which.
It Is asserted, Ihe Insurgents receive from
this country. The supposition of an In
definite prolongation of the war Is de
nied. It Is asserted that the Western
provinces nre already well-nigh re- '
claimed; that the planting of cane and
tobacco therein has been resumed, and
that by force of arms and new and ample
retormij yery eirly and complete pacifi
cation Is hoVd for.
The Immediate amelioration of existing
condition under Ihe new administration
of Cuban affairs Is predicted, and there
withal Ihe disturbance and all occasion
for any change of attitude on the part of
the United Stale.
Discussion of the question of Interna
tional duties and responsibilities of tha
United States as Spain understands them.
I presented with an apparent disposition
to charge us wilh failure In this regard.
This charge Is without any basis In fact.
It could not have been made If Spain had
b.-n cognisant of the constant effort this
, government has made, at the cost of mll
i l.eiis and by the employment of the ad
I tnlnlslrmive machinery at the national
i command, to perform Its full duly accord
ing to the low of nation. Thai It bus
successfully prevented Ihe df part tire of
, single military expedition or armed vessel
i from our shores In violation of our law
would eit lo tie a sufficient answer.
Hut on this siecl of the Spanish not It
la not tiecissary to spenk further now.
Kiim In the convliiion of a wholly per
i f. nmed obligation, due response to thi
! charge hn Urn made In diplomatic Is
iie. Thtoushoiit all Ihese horror and
d.tngr o our own pes.-, tbl govern
no-nt h never In any way abrogated It
sovereign prerogative of reserving to It
self the determination of It policy and
course, in. or. In. g to It own high sense of
right and In consonan.-e with Ihe dearest
Interests and ronvt. tlons of our own pen
; pv, si,. .ill. I the prolongation of the rtrita
so demand.
(if the untried maurw there remain
only ;
' It.-, .ignition of Ihe Insurgent a being
refit, rec ognition of I'te Hub-pen. b in e of
Culm, neutral Intervention lo end th war
by imposing a rational ompromt be
tween the i onl. slants, and lnleiv.ntloii
In favor of one or the oilier pai'j
40t m Uaesllew of Awwetatlaw.
I speak not of f..r. lb annetntlon, f.r
lhal cannot be thoiiitsl of Tlial by our
code of PurHty, would le irtminal ag
gression Hes os nit ion of the t e,i g-r. n. y
of Ihe Cnl-sn insurgent hsa often t - n j
canvssaed s a possll.l If hot tnev Itsl-i
step, both tn regard to the previous l
years' struggle and during trm present
wsr. t am nd unmindful thai ih two
house nf congress, In th sptlng of l t.
epred the opinion, .y corn linen! reso-
lutton, (list a condition of pm.ilc war .
j lsie-1 re-miring or justifying th rec.ni
i lion of a iai of being, rvni y In Cut-.
! an I during th ir ssi.n th serial
1 voted a sow resoiuipin of I k Import,
I whlttt. However. tod tmoaahl to a
' vols In lh house la th prsere- of
I ha esgnirb ant etpreaston of th seen
tnt of I h ivgislaiiva bim h It beh.n.v e
the seculv .t.i 'y to c.e.r th con
d tlona U"ter ah,, k lniiiasl a
Uae must Weed leal (or ; lis! ila t lull.
It Is to be seriously considered whether
the Cuban insurrection possesses, beyond
dispute, the attributes of statehood which
alone can demand the recognition of bel
ligerency in Its favor. Possession short
of the essential qualifications of sover
eignty by the insurgents, and the conduct
of the war by them according to the rec
ognized code of war, are no less important
factors toward the determination of the
problem of belligerency than are the in
fluences and consequences of the struggle
upon the internal policy of the recogniz
ing nation. The utterances of President
Grant In his memorable message of 1875
are signally relevant to the present situa
tion in Cuba, and it may be wholesome
now to recall them. At that time a
serious conflict had for seven years wasted
the neighboring island. During all those
years an utter disregard of the laws of
civilized warfare and of the Just demands
of humanity, which called forth expres
sions of condemnation from the nations
of Christendom, continued unabated.
Desolation and ruin pervaded that pro
ductive region, enormously affecting the
commerce of all commercial nations, but
that of the United States more than any
other, by reason of proximity and larger
trade and intercourse.
General Grant's Words.
At that Juncture General Grant uttered
these words, which now, as then, sum up
the elements of the problem:
"A recognition of the independence of
Cuba being in my opinion impracticable j
and Indefensible, the question which next I
presents itself is that of the recognition
of belligerent rights In the parties to the
contest. In a former message to congress
I had occasion to consider this question
and reached the conclusion that the con
flict in Cuba, dreadful and devastating as
were its incidents, did not rise to the
fearful dignity of war. It is pos
sible that the acts of foreign powers and
even acts of Spain herself of this very
nature might be pointed to In defense of
such recognition. But now, as in its
past history, the United States should
carefully avoid the false lights which
might lead it ir.to the mazes of doubt
ful law and of questionable propriety
and adhere to the rule which has been
Its guide, of doing only that which Is
right and honest and o1' good report.
The question of according or of with
holding rights of belligerency must be
Judged in every case in view of the. par
ticular attending facts. Unless Justified
by necessity, it is always, and Justly, re
garded as an " unfriendly act and as a
gratuitous demonstration of moral sup
port to the rebellion. It Is necessary and
It is required when the Interests and
rights of another government, or its peo
ple, are so far affected by pending civil
conflict as to require a definition of its
relations to the parties thereto. But this
conflict must be one which will be recog-
onerous code of neutrality would only be
Influential within our own Jurisdiction
of land and sea and applicable by our
own instrumentalities. It could impart
to the United States no Jurisdiction be
tween Spain and the insurgents. It would
give the United States no right of Inter
vention to enforce the conduct of the
strife within the paramount authority of
Spain according to the international code
of war.
For these reasons, I regard the recog
nition, of the belligerency of the Cuban
Insurgents as now unwise and therefore
inadmissible. Should that step hereafter
be deemed wise, as a measure of right
and duty, the executive will take It.
Intervention upon humane grounds bas
been frequently suggested, and it has not
failed to receive -my most anxious and
earnest consideration. But should such
a step be now taken when It is apparent
that a hopeful change has supervened in
the policy of Spain toward Cuba?
Pledges of the New Government.
A new government has taken office In
the mother country. It is pledged in ad
vance to the declaration that all the ef
fort In the world cannot suffice to main
necessity for such action will be so clear
as to command the support aid approval
of the civilized world.
ANNEXATION
Urges tlie
OP HAWAII.
euate to Accomplish the
Union.
By a special message dated the 16th day
of June last, I laid before the senate of
the United States a treaty, signed that day
by the plenipotentiaries of the United
States and of the republic of Hawaii, hav
ing for Its purpose the incorporation ot
the Hawaiian islands as an integral part
of the United States and under its sov
ereignty. The senate having removed
the Injunction of secrecy, although the
treaty is still pending before that body,,
the subject may be properly referred to
In this message, as the necessary action
of congress Is required o determine by
legislation many details of the eventual
union, should the fact of annexation be
accomplished, as I believe it should be.
While consistently disavowing from a
very early period any aggressive policy
of absorption in regard to the Hawaiian
group, a long series of discussion through
tain peace in Cuba by the bayonet; that j three-fluarters of a century has pro-
vague promises of reform after subjuga
tion afford, no solution of the insular
problem; that with a substitution of com
manders must come a change of the past
system of warfare for one in harmony
with a new policy which shall no longer
aim to drive the Cubans "to the horrible
alternative of taking to the thicket or
succumbing in misery;" that reforms must
be instituted In accordance with the needs
and circumstances of the time, and that
these reforms, while designed to give full
autonomy to the colony and to create a
claimed the vital interest of the United
States in the Independent life of the
islands and their intimate commercial de
pendency upon this country. At the same
time It has been repeatedly asserted that
in no event could the entity of Hawaiian
statehood cease by the passage of the is
lands under the domination or influence of
another power than the United States.
Under these circumstances the logic of
events required that annexation, before
offered but declined, should, in the ripe
ness of time, come about as the natural
virtual entity and self-controlled admin- i result of strengthening the ties that bind
istration, shall yet conserve and affirm
the sovereignty of Spain by a Just distri
bution of powers and burdens upon a
basis of mutual Interest untainted by
methods of selfish expediency.
The first acts-of the new government
He in these honorable paths. The policy
of cruel rapine and extermination, that
eo long shocked the universal sentiment
of humanity, has been reversed. Under
the new military commander, a broad
clemency is proffered. Measures have al
ready been set on foot to relieve the hor
rors of starvation. The power of the
Spanish armies, it Is asserted, Is to be
used, not to spread ruin and desolation,
but to protect the resumption of peaceful
agricultural pursuits and productive In
dustries. That past methods were futile
to force a peace by subjugation, Is free
ly admitted, and ruin without concilia
tion must inevitably fall to win for Spain
the fidelity of a discontented dependency.
The Reforms for Cuba.
Decrees in application of the foreshad-
owed reforms have already been pro-
nized In the sense of International law aa i mulgated. The full text of these decrees
T . I 1 . V,,,. ne ln-nloliD In
war.
"Belligerency, too, Is a fact. The mere
existence of contending armed bodies and
their occasional conflicts do not consti
tute war in the sense referred to. Apply
ing to the existing condition of affairs in
Cuba the tests recognized by publicists
and writers on International law, and
which have been observed by nations of
dignity, honesty and power when free
from sensitive or selfish and unworthy
motives, I fall to find In the insurrection
the existence of such a substantial polit
ical organization, real, palpable and mani
fest to the world, as having the forms
and capable of organization, the functions
of ordinary government toward Its own
people and to other states, with courts
for the administration of justice, with a
local habitation, possessing such organiza
tion of force, such material, such occupa
tion of territory as to take the contest
out of the category of a mere rebellious
Insurrection, or occasional skirmishes, and
place it on the terrible footing of war,
to which a recognition or belligerency
would aim to elevute It.
"The contest, moreover, la solely on
land; the insurrection has not possessed
itself of a single seaport whence it may
send forth Its Hug. nor has It any means
of communication wt'h foreign powers,
except through the military lines of Its
adversaries. No apprehension of any of
these sudden and difficult complications
has not been received, but, as furnished in
a telegraphic summary from our minister,
the reforms are:
All civil and electoral rights of penin
sular Spaniards are, by virtue of the exist
ing constitutional assembly, forthwith
extended to colonial Spaniards. A scheme
of autonomy has been proclaimed by de
cree to become effective upon ratification
by the cortes., It creates a Cuban parlia
ment, which, with the insular executive,
can consider and vote upon all subjects
affecting local order and Interests, pos
sessing unlimited powers save as to mat
ters ofstate, war and the navy, as to
which the governor-general acts by his
own authority as the delegate of the cen
tral government. This parliament re
ceives the oath of the governor-general
to preserve faithfully the liberties and
privileges of the colony, and to It the
colonial secretaries are responsible. It has
the right to propose to the central gov
ernment, through the governor-general,
modifications of a charter and to invito
new projects of law or executive meas
ures in the interest of the colony. Be
sides its local powers, It is competent
nrst, to reguinic electoral regisiraiion anu ,
procedure and prescribe the qualifications ,
i of electors and the manner of exerc sing
us to those islands and be released by the
free will of the Hawaiian state.
That treaty was unanimously ratified
without amendment by the senate and
president of the republic of Hawaii on the
10th of September last, and only awaits
the favorable action of the American sen
ate to effect the complete absorption of the
Islands into the domains of the United
States. What the conditions of such a
union shall be, the political relation thereof
to the United States, the character of the
local administration, the quality and de
gree of the elective franchise of the in
habitants, the extension of the federal
laws to the territory or the enactment of
special laws to fit the peculiar condition
thereof, the regulation and needs of labor
therein, the treaty has wisely relegated to
congress.
If the treaty Is confirmed, as every con
sideration of dirnity and honor requires,
the wisdom of congress will see to It that,
avoiding abrupt assimilation of elements
perhaps hardly yet fitted to share in tha
highest franchises of citizenship, and hav
ing due regard to the geographical con
ditions, the Just provisions for self-rule
in local matters with the largest political
liberties as an Integral part of our nation
will be accorded to the Hawallans.
No less is due to a people who after
nearly five years of demonstrated capacity
to fulfill the obligations of self-governing
elatehood, come of their free will to
merge their destinies in our body politic.
The Dispute With Japan.
The questions which have arisen between
Japan and Hawaii by reason of the treat
ment of Japanese laborers emigrating to
the Islands under the Hawaiian-Japanese
convention of 1888, are in a satisfactory
stage of settlement by negotiation. Thls
government has not been Invited to medi
ate, and on the other hand has sought no
Intervention in that matter further than
to evince Its kindliest disposition toward
such a speedy and direct adjustment be
tween the two sovereign states in Interest
as shall comport with equity and honor.
It Is gratifying to learn that the appre
hensions at first displayed on the part of
Japan lest the cessation uf Hawaii's na
tional life through, annexation might im
pair her privileges, lo which Japan prop
erly laid claim, have given place to up
righteousnesa In the government and sin
cerity of Its purpose to deal with all pos-
whlch a war upon the ocean Is apt to pre
cl-jltate upon the vesselB, both, commer
cial and naval, and upon the consular
officers of other powers, calls for the
definition of their relutlon to the parties ,
to the contest. Considered as a question
of expediency, I regard the accordance of
belligerent rights still to be as unwise
and premature a I regard It to be, at
present. Indefensible as a measure of
right. I
"Such recognition entails upon the roun-
try according the rights difficult and com-
plicated duties, and requires the exaction i
from the contending parties of the strict
observance of their rights nnd obllga- i
Hon. It confers Ihe right of search up- :
on the hleh sens by vessels of both pur-
ties; It would subject the carrying or arms
and munitions of war. which now may be 1
transported freely una witnoui interrup
tion In vessels of the United Slate, lo
detention nnd possible selgure; It would
give rise lo countless vexatious questions;
It would relieve Ihe present government of
responsibility for acls done by Ihe insur
gents, and would Invest Spain with the
right to exercise the supervision recog
nised by our treaty of U'.5 over our com
merce on the high sens, a very large
part of which. In It truffle between the
Atlantic and the (lulf stales gnd between
all of them and the slate on the Pacific,
pusses through the waters which wash '
the shore of Cuba. The exercise of this
supervision could scarce fail to lead. If
pot lo abuses, certainly lo collisions, per
ilous lo the peaceful relation of the two
stale. There ran be Utile duubt as lo
what result such supervision would be
fore long draw this nation. It would
lie unworthy of the Untied Stale to In
augurate Ihe possibility of such result by
a measure of questionable right or ex
pediency, or by any Indiscretion."
ot a Time for It ecoaeltloa.
Turning lo the practical aspects of a
recognition of belllgrrency and reviewing
II inconvenience ard possible danger,
further pertinent consideration ni..r.
In Ihe rode of nation, tl-er I no ucn
thing a a nuked re.-ognltlon of belliger
ency iinaecompnnlc-d by th assumption
of national neutrality. 8m h recognition
(Wl-bout ncuiialiiy will not confer upon
citt er pnrtv to a domestic confflct a statw
not therefore actually pwesrd, or f-
fe. t the relation of cither pariy to other
slate. The act
take ihe form of a .iii mn prociamitlon ;
of t.eiitrslltv which recti. the d facto
.oii.lltlon of belligerency as Us motive. It
announce a .bun. sue lw of neutrality
In Ihe declaring ' ile It assume ihe In.
ternattomil obligation of a neutral In th
pr.eeitie of public stale of war, ll
w.ims all cliiieii nnd other within th
Jurisdiction "f th latreani lhal Hiey v o.
Ul lho r'gnrou bi n . il Inns at their
nwn pent and l armol e.e. t so be shield,
ed from tb rnnsequem The right of
visit and search and Isur of vessel
n, isr(os and i . ' rst-..nd of war un
I. r.s.lini'aity law must under In'erna
llonal la Ins admitted a legiilma'
conseqnenc of a proclamation of riitgr
rm y W hll cording equal bliig!-enl
right defined by public law. to . h par
ty in our porta, disfavor would I"- lmpo
!H to bcth, which, while tTi-mirislly
eon a I. would weigh heavily In behalf of
Hpiib, brelf, -....esit g a havy and
i la mtng th porta of Cub, her maritime
riahta it. old I assorted, not only for
the mlliiary Investment of th liand.
but up to Hi margin of our own terri
torial waters, and a e..r..lni..a of thing
w oil.1 ssist frwhi h th Cuban could tt
hop tie feats a parallel, whll aid from
.within our domain would hm even mora
lrciNsiti than now, with lh addlibmal
el. I astron of Intern llonal nu!riiiy
whh h w would perforce aim
Th hf.rctmm of this nlar(4 r4
nlVrnirai easttA f rt nrffonUa firtlirta iif
! Justice with native Judges from membera , "Me ulterior questions In the broadest
of the local bar; third, to franle the In- Pint of friendliness.
1 sular budget, both as to expenditures and
1 revenues to meet the Cuban shnre of the
i national budget, which latter will be voted
I by the national cortes with the assist
ance of Cuban senators and deputies;
fourth, to Initiate or take part In the ne-
1 gotlntlons of the national government ;
for commercial treaties which may affect j
Cuban Interests; fifth, to accept or re- i
Ject commercial treaties which the nation- ;
al government may have concluded with- j
, out the participation of the Cuban govern
ment; sixth, to frame the colonial tariff,
acting In accord with the peninsular gov
ernment In scheduling articles of m ituul
commerce between the mother country
and the colonies, tlefore Introducing or
voting upon a bill the Cuban g ivernment
or the chambers will lay the project be
fore Ihe central fcoverrment nnd hear Its
opinion thereon; all the corres; ondenc
In such regard being made public. Fi
nally, all conflicts of Jurisdiction arlslrg
between the d:fferent municipal, prov.n
clai nnd Insular nssrmbl.es, or bet we' n
the latter and the Insular executive pow-
CKNTIl AL AMERICAN STATES.
Representation of Onr Government
la the Greater Republic.
Ai to the representative of this govern
ment to Nicaragua. Bulvador and CosXa
Rica. 1 have concluded that Mr. William
I,, Merry, conlirmed as minister of the
United States to the slates of Nicaragua,
Salvador and Costa ltica, shall proceed
to San Jose, Costa Rica, and there tempo
rarily stablish the headquarters of the
United States to those three states. 1
took this action fur what 1 regarded as th
paramount Interests of this country. It
was developed, upon an Investigation by
the secretary of state, that the government
of Nicaragua, while not unwilling 10 re
ceive Mr. Merry In his diplomatic capac
ity, was unable to do so on account of tn
compact concluded June 20. 1W5, whereby
that republic and those of Salvador and
Honduras, forming what Is known as th
(inaur Republic of Central America, .iad
surrendered to the representative diet
er. und which, from their nature, may i (hereof their right to receive and tend
r.ot be referable to the central govern- ujI,omatic agents. The dirt was not wlll
mrnt for decision, shall be submitted lo lnif , ,c(.(.r,i him because he waa not se
ttle courts.
Result Will dues ne Known.
That the government of S ig.ista hns en-
tend upon a course from which recession
with honor l Impossible, can hardly be ,
questioned: that In the few weeks It hai ,
existed It h made earnest of the sin- j
eerily of II profession Is undeniable. I '
shall not Impugn Its sincerity, nor shou'd
Impatience be aufTi red lo emburras It
In the task It ha undertaken, it hon
estly due to Spain and to our friendly ;
relation with Spain that she should be
given a reasonable chance to realise her
expectations and to prove Ihe its, rled ef
ficiency of Ihe new order of things to
which she stands Irrevocably committed.
She has m ulled Ihe command, r wls-s
brutal ord' r Inflamed th American m ml
and shocked the clvlllxid worl I. She hS
modified Ihe horrible order of c-mrrntra-tion
and h undertaken Ihe car of Ihe
helples. and pctmli those who dis'r to
resume the cultlvntlon of ihelr flebt 10
do o and assure them of the protection
of the Spun h government In their lawful
neriipatlons. She has Just released th
Competitor prisoners, hiretofor en
t r d to disth. and who have been the
subject of repealed diplomatic eorre-siotul.-nce
during both th' and Ihe pre-
f recognition usually i .,,!;,, administration. Not a sing e
American i itlsen 1 r.ow under nrrest or In
cftitflmrnent in Cuba .f whom this gov-
rnmitit has any know'.!..,
Th near fulqr i; rtnu.iitrv whe'h- ,
er the mdlspepsah e comllt on of a rleht- j
eon peace. Just ap.k lo th Cubans r,. .
to Spam. Well sa eq-llla' I lo sll our
Inii rests, so inllmati ly involved In lh j
welfare of Cuba, I to be alt ilne.l If pot.
the ex'.g.n. y of further a1.! ether action ,
l.y ih l'nlld Pistes will reman to b
tkni When that tin comes, that so- !
lion will lie determined In the lire nf In
d.spulsble right and duly. It will b
fmul without ml-g'v ng or hesltanrv. n
the light of Ihe obligation th! government
owe lo Hself. to the tnpl who har con.
fbie l lo II th protection of their Inter!
and hor, and to humanity, j
All! Iwtr Wfcea rmrf. j
Sur of Ih right, keeping free from all
Offeree ourselves. i tllsle l only bv UP '
r.gM and patriot c crs Vration moved ;
pen her hr pasei.ia nor mhne. th
government will ronllnu It wiehful
' car over tk right and property of
Amer'raa cl tsen and Will sbvt nor, of
p. effort ( burg about hy pef il
gen. le a peace w h
, end endur ng If It hU hereafter be a
, duty imied hr our higiio lo our
at la civil ti.n ar.d humanity l
Intervene with fore. H h'l b tiheut
fault en ur pari, and nly bu lh
credited to that body. I could not ac
credit him to that body because the appro
pr.atlon law of congress did not permit.
Mr. IJaker, the present minister at Man
agua, has been directed to present tin
letters of recall.
Mr. (lodfrey Hunter ha likewise been
accredited to lh government of (laute
niala and Honduras, the same as his pred
ecessor. Guatemala Is not a member of
the Greater Republic of Central America,
hut Honduras is. Should this latter gov
ernn.ent decline to receive him, he has
been Instructed to report this fact to hia
government and awa.l Ha further Instruc
tions. The Mearagna Canal,
A subject of large Importance to our
country and Im-reaiing pprc,ailon on th
part of the people 1 Ihe completion of the
great hlghwy of trede between the At
lantic and Pacific known as th Nicara
gua canal. 11 vslu to American com
merce i unlv rwally admitted. The com
mission appointed under date of July It
last "lo continue Ih survey and exam
, (nation authned by the act approve,!
March I. 1V, In rcgsrl to the proper
rout, feasibility and cost of eotisiruc
linn of ihe Nlcarsgua canal, with a view
of mak.rtg complete plans for th enure
work of construction of such ranal." la
now employed in th undertaking, tn Ih
future I shall tk occasion to transmit
to consne th report of thi mm i on,
i making at Ih m urn uch further
' suggestions as may then seem a.!isbl.
I'l of
Payne !"t
THR IllwKTttMC t OHwiailiH.
l allsre wf Ik Mission of Ike Special
ailv !:.
Under th pfovlslcaa of Ih act of MIS.
gres approved Mr- h I. 1T, for Ihe pro
motion of an international agreement re
al! ting bimeiali.m. I appointed on
Anrli II. IWT. lion, rdward o. Vvoleoii.
of Colorado: Hon. Ad'l F. Stevensm
llllnwia. and Hun. Charles 1.
of klssssi hnsella. a le, lal nvi) lo
represent Ih United State. They have
bn diligent In their effort to secure th
concurrence and co-t.pertlon of Kuro
pn count rie la Ih International set
tlement of th question, but tip to thi
t im rtsv hoi ween able to swur an
agreement contemplated by their mission.
The grtlfylng a. Hon of our great is
lr rspubltr of r"rncw In Joining thta
country in th attempt to bring gj-oul th
h shall b hinorh1 i grirnt between th principal rem-
rne. lal nation of Kurop. whrly a
Used and relstsv valu between gold and
iirr shall b cured, furnish assur
ance ths! w ar not alone among tha
larger aallun ! Ih world In rwiisJng