JSS I P I» L E 31 E IV T $ | ̂President's Message. Vjo CORESIDENT M'KINLEY'S third l>5' annual message was not delivered to Congress yntil the second day 'of the session. Tbjc message is oif un usual length, comprising nearly 25,000 words, and is regarded sis one of the most important ever emanating from the White House. The leading features of the mes sage relate to the new dependencies and to the financial' qnestion.' - Sovereignty is to be maintained in. the Philippines until Glopgtv&s deckles a form of gov ernment. Civil government is to .be extehdfcd" fliVougliout the islands as rap idly as possible. Attention is invited to the report of the Philippines commission as to why it is impossible for tin? United State# to part with the islands and as to the great commercial advantages in hold ing them. Civil government in Cuba un der military control is recommended un til some substantial progress has been, *m<te through the ^medium of suffrage toward the establishment of an indepen dent form of government. For Porto Itico he asks the appointment of a civil gov ernor and the election by the people of a council or legislature, property and edu cational qualifications' to be prescribed for voters. Immediate legislation is suggest ed for Hawaii. On the financial question the President recommends that the gold standard be provided for by law, and the interest- bearing obligations of the United States be speciiically made payable in gold. The regulation of trusts and great commer cial combinations so as to prevent the stifling of competition, but' without in any way hami»ering the development of American manufactures and commerce, is urged. The President, in the opening para graph. refers feelingly to the recent death of Vice-President Hobart and then pro ceeds in substance as follows: The Fifty-sixth Congress convenes in its first regular session with the country ,n condition of unusual prosperity, of universal good will' amqjig the people at home, anfi in felattoiis of peace and friendship with every government of the world. Our foreign commerce has shown great, increase in volume and value. The combined imports and exports for the year are the largest ever shown by a sin gle year in all our history. Our exports for 1890 alone exceeded by more than a billion dollars our imports and exports combined in 1870. The imports per cap ita are 20 i>er cent less than in 1870, while the exports per capita are fiS per cent more than in 1870, showing the en larged capacity of the United States to satisfy the wants of its own increasing population, as well as to contribtite to those of the peoples of other nations. Exports of agricultural products were $784,776,142. Of manufactured products we exported in value !jv».'i!l,r>02.148. Gov ernment receipts from all sources for the fiscal year ended June .">0. 181)0, including $11,79S,314.14, part payment of the Cen tral Pacific Railroad indebtedness, aggre gated $<>10.itN2.Oi>4.Customs receipts were $2()(i. 128.4SI .7"). and those from in ternal revenue $27:?,4:;7.1(51.jl. For the fiscal year the expenditures were $700,- 0ftft.5li4.P2. leaving a deficit of $8ft,lll,- <)59.(i7. For the fiscal year ended June 30, 18D9, the internal revenue receipts were increased about .$100,000,000. Condition of the Treasury. The present gratifying strength of the treasury is shown by tho fact that Dec. 1. 1899. the available cash balance was $278.004,Sf>7.72. of which .$2:«J.744.905.:i(; was in gold coin and bullion. The condi tions of confidence which prevail through out the country have brought gold into more general use and customs receipts • re now almost entirely paid in that coin. fThe strong condition of the treasury with tespect to cash on hand and the favorable showing made by the reveuues have made It possible for the Secretary of the Treas ury to take action under the provisions of {ection 3(591, Revised Statutes, relating o the sinking fund. The Treasury De partment therefore offered to purchase during November $25,000,000 of the 5 per cent loan of 1994, or the 4 per cent fund ed loan of 1907, at the current market price. The success of this operation was sufficient to induce the (Jovernment to continue the offer to purchase, bonds to and including the 23d day of December, instant. Increased activity in industry, with its welcome attendant--a larger employment for labor at higher wages--gives to the body of the people a larger power to ab sorb the circulating medium. It is further true that year by year, with larger areas of land under cultivation, the increasing volume of agricultural products, cotton, corn and wheat, calls for a larger volume of money supply. In its earlier history the national bank ing act seemed to prove a reasonable ave nue through which needful additions to the circulation could from time to time be made. Changing conditions have appar ently rendered it now inoperative to that end. The attention of Congress is re spectfully invited to this important mat ter with the view of ascertaining whether or not such reasonable modifications can be made in the national banking act as will render its service more responsive to the people's needs. To Maintain Gold Standard. I urgently recommend that to support the existing jjold standard and to main tain "the parity in value of the coins of the two metals (gold and silver) and the equal power of every dollar at all times in the market and in the payment of debts," the Secretary of the Treasury be given, additional power and charged with the duty to sell United States bonds and to employ such other effective means as may be necessary to these ends. The authority should include the power to sell bonds on long and short time, as con ditions may require, and should provide for a rate of interest lower than that fixed by the act of Jan. 14, 1875. The financial transactions of the Government are conducted upon a gold basis. We are maintaining the parity of all the money issued or coined by authority of the Government. We are doing these thing/ with the means at hand. HjTppilv at the present time we are not coitfpeHed to resort to loans to supply gold. It has been done in the past, how ever, and may have to be done in the future. It behooves us, therefore, to provide at once the best means to meet j the emergency when it arises, and the best means are those which are the most I certain «nd economical. Our receipts now equal our expenditures; deficient revenues no longer create alarm. Let us remove , the only remaining cause by conferring the full and necessary power on the Sec retary of the Treasury and imjK>se upon him the duty to uphold the present gold standard and preserve the coins of the two metals on a parity with each oth^r. •which is the rejieatedly declared policy of the United States. , American Merchant Marine. The value of an American merchant marine to the extension of our commer cial trade and the strengthening of oiir -power upon the sen invites the immedi ate act ion of Congress. Qui- national de velopment will be one-sided and unsatis factory so long as the remarkable growth of our inland industries remains uiiaccom panied by progress on the seas. There is no lack of constitutional authority for legislation which shall give to the country maritime strength commensurate with its industrial achievements and with its rank among the nations of the earth. The other great nations have not hesitated to adopt, the required means to develop their shipping as a factor in national defense, and as one of the surest and speediest means of obtaining for their producers a share in foreign markets. I.ike vigilance and effort on our part' cannot fait to im prove our situation. The expense is as nothing compared to the advantage to be achieved. Calls Attention to Trusts. Combinations of capital organized into trusts to control the conditions of trade among our citizens, to stitte competition, limit production and determine the prices of products used and consumed by the people are justly provoking public discus sion, and shoiild early claim the attention of the Congress. The industrial commis sion. created by the act of Congress of Juno 18, 1898, has been engaged in ex tended hearings upon the disputed ques tions involved in the subject of combi nations in restraint of trade and compe tition. They have not yet completed their ..investigation of this subject, and the con clusions and recommendations at which they may arrive are undetermined. It is universally conceded that combina tions which engross or control the market of any particular kind of merchandise or .commodity necessary to the general com munity. by suppressing natural and ordi nary competition, whereby prices are un duly enhanced to .the general consumer, are -obnoxious not only to the common law. but also to the public welfare. There must be a remedy for the evils involved in such organizations. Whatever power the Congress possesses over this most important subject should he promptly as certained and asserted. An act to protect trade and commerce againsts.unlawful restraints and monopo lies was passed by Congress the 2d of July. 1890. The provisions of this stat ute are comprehensive and stringent! It declares every contract or combination in the form of a trust or otherwise, or con spiracy in the restraint of trade or com merce among the several States or with foreign nations, to be unlawful. It tie- nominates as a criminal every person who makes any such contract or engages in any such combination or conspiracy, and provides a punishment by fine or impris onment. It invests the several Circuit Courts of the United States with jurisdic tion to prevent and restrain violations of the act, and makes it the duty of the several United States district attorneys, under the direction of the Attorney Gen eral. to institute proceedings in equity to prevent and restrain such violations. It further confers upon any person who shall be injured in his business or prop erty by any other person,or corporation by reason of anything forbidden or de clared to be unlawful by the act the pow or to sue therefor in any Circuit Court of the United States, without respect, to the amount in controversy, auil to recover three-fold the damages by him sustained and the costs of the suit, including rea sonable attorney fees. It will be jierceiv- ed that the act is aimed at every kind of combination in the nature of a trust or monopoly in restraint of interstate or in ternational commerce. The prosecution by the United States of offenses under the act of 1890 has been frequently resorted to in the federal courts, and notable efforts in the restraint of interstate commerce, such as the Transmissotiri Freight Association and the Joint Traffic Association, have been successfully opposed and suppressed. State legislation for relief from the evils of trusts has failed to accomplish fully that object. This is probably due to a great extent to the fact that the dif ferent States take different views as to the proper way to discriminate between evil and injurious combinations and those associations which are beneficial and nec essary to the business prosperity of the country. It is apparent that uniformity of legislation upon this subject in the sev eral States is much to be desired. It is to be hoped that such uniformity may be ob tained and that means may be found for the Congress within the limitations of its constitutional power so to supplement an effective code of State legislation as to make a complete system of laws throughout the United States adequate to compel a general observance of the salu tary rules to which I have referred. Review of Koreittn Kclntiont*. A review of our relations with foreign states is presented with such recommend ations as are deemed appropriate. In my last annual message I adverted to the claim of the Austro-Hungarian Gov ernment for indemnity for the killing of certain Austrian and Hungarian subjects by the authorities of the State of Penn sylvania, at Lattimer, while suppressing an unlawful tumult of niiuers, Sept. 10. 1897. In view of the verdict of acquit tal rendered by the court before which the sheriff and his deputies were tried for murder, and following the established doctrine that the Government may not be held accountable for injuries suffered by individuals at the hands of the public authorities while acting in the line of duty in suppressing disturbances of the public peace, this Government was con strained to decline liability to indemnify the sufferers.; The Belgian Government has mitigated the restrictions on the importation of cat tle from the United States, to which 1 re ferred in my last annual message. A convention of extradition with Brazil, signed May 14, 1897, has been ratified by the Brazilian Legislature. The claim growing out or the seizure of the American-owned newspaper, the Pan ama Star and Herald, by the authorities of Colombia has been settled, after a con troversy of several years. The good will of Colombia toward our country has been testified anew by the cordial extension of facilities to the Nil - araguan canal commission in their ap proaching investigation iof the Panama canal and other projected routes acroas I the Isthmu* of Darien. I Nicaragua Ship Canal. | The contract of the Maritime Canal I Company of Nicaragua was declared for- j feitcd by the Nicaraguun Government the i 10th of October, ou the grouud of yon- ! fulfillment within the ten years'term stip- | ulated in the contract* The Maritime Canal Company has lodged a protest against this action, alleging rights in the premises which appear worthy of consid eration. This (Jovernment expects that Nicaragua will , afford the protestantS a full and fair hearing upon the merits of the case. The Nicaraguan canai commission, •which had been engaged upon the .work of examination and survey, for a ship ciinal route across Nicaragua, haying eosnplet- ' ed its labors and made its report, wrtfc j dissolved May 31, and June 10 a new | commission, known as the isthmian canal I commission, was organized under the terms of the act approved March 3. 1899, for the purpose of examining the Ameri can isthmus with a view to determining the moBt practicable and feasible route for a ship canal across that isthmus; with its probable cost und other essential details. ... This commission,Minder the presidency of Rear Admiral John (J. Walker, U. 8. N. (retired), entered promptly upon the work intrusted to it, and is now carrying on examinations in Nicaragua along the route of the Piuiama c&nal, and in Du- rien from the Atlantic, in the neighbor hood of the Atrato river, to the Bay of Panama, on the Pacific side. The great importance of this work cannot be too often or too strongly pressed upon the at- tention of the Congress. 1 Chili Shown Friendship. A pleasing incident in the relations of this Government with that of Chili oc curred in the generous assistance givpn to the warship Newark when in distress in Chilian waters. Not alone in this way has the friendly disposition of Chili found expression. That country has acceded to the convention for the establishment of the bureau of the American republics, in which organization every independent state of tin; continent now shares. American interests in China. The interests of our citizens in that vast empire have not boon neglected dur ing the last year. Adequate protection has been seen mi for our missionaries and some injuries to their property have been redressed. In my message to Congress of Dec. 5, 1S98, 1 urged that ilie recom mendation which had been made to the Speaker of the House of Representatives by the Secretary of the Treasury the 14th of June. 1S9S, for an appropriation for a commission to study the commercial and industrial conditions in the Chinese Empire and report as to the opportunities for. and obstacles to, the enlargement of markets in China for the raw products and manufactures of t>.e United States, should receive at your hands the consid eration which its importance and time liness merited, but the Congress failed to take actiou. I now renew this .recom mendation., Paris Exposition of 19Q0. Preparations for the representation of the industries, arts and"products of the United States, at the world's exposition to be held in Paris next year continue on an elaborate and comprehensive scale, thanks to the generous appropriation pro vided by Congress and to the friendly in terest the French (jovernment has shown in furthering a typical exhibit of Ameri can progress. There has been allotted to the United States a considerable addition of space. The American exhibit at Paris should, and I am confident will, be an open volume, spreading abroad a' clearer knowledge of the worth of our produc tions and the justice of our claim to an important place in the marts of the world. Cordial Relatione* with Germany. Our relations with Germany continue to l>e most cordial. The Increasing intimacy of direct association lias been marked dur ing the year by the granting permission In April for the landing on our shores of a cable from Borkum. Kmdcm, on the North Sea, by way of the Azores, and also by the conclusion (Sept. 2 of a parcels post conven tion with the (Jernian Empire. The several governments of the empire seem reluctant to admit the natural excellence of our food products and-to accept the evidence we con stantly tender of the care with which their purity Is guarded by rigid Inspection from the farm, through the slaughter-house and the packiug establishments, to the port of shlurtient. It Is to be hoped that In t ime the t\yo governments'will act in common accord toward the realization of their common pur posV> to safeguard the public health and to • he Insuring of the purity and wholesome, uess of all food products Imported bjr either country *from the other. Joint High Commission. In wjr last annual message I referred to the pending negotiations with Great Britain In respect to the Dominion of Canada. Hy means of an executive agreement a joint high commission has been created for the purpose of adjusting all unsettled quest tons iietwee.ii the I 'nlted States and Canada, em bracing twelve subjects, among which were she questions of fur seals, the tisheiien of the coast and contiguous inland waters, the Alaskan boundary, the transit of merchnn- lise In bond, the alien labor laws, milling rights, reciprocity in trade, revision of the igreement respecting naval vessels in the great takes, a more complete marking of parts of the boundary, provision for the conveyance of criminals and for wrecking and salvage. Much progress has been made by the com mission towards the adjustment of many ot these questions when it became apparent that an irreconcilable difference of view was entertained respecting the delimitation of the Alaskan boundary. An adjournment was taken until the boundary should be adjusted by the two governments. The sub ject has been receiving the careful attention which its importance demands, with the re sult that a uiodus vlvendi for provisional demarcations In the region about the head of Lyrfh Canal has been agreed upon. Neutrality in Boer War. This government has maintained an atti tude of neutrality in the unfortunate con test (tetween Great Britain and the Boer States of Africa. We have remained faithful to the precept of avoiding entangling alll- •inces :is to affairs not of our direct con cern. Had circumstances suggested that the parties to the quarrel would have welcomed my kindly expression of the hope of the American people that war might be averted :ood offices would have been gladly ten dered. I 'pon the withdrawal ofvtlic British agent from Pretoria the United Spates consul was authorized, upon the request of the British overnment and with the assent of the South African and Orange Free State Govern ments, to exercise the customary good offices of a neutral for the care of British Interests. In the discharge of this function I am happy to say that abundant opportunity has been offered to show the Impartiality of this gov- '•rninent toward both the combatants. Lynching of Aliens. For the fourth time In the present decade ?uestion has arisen with the government of tnly In regard to the lynching of Itulian subjects. The latest of these deplorable '•vents occulted at Tallulah. La., whereby fl. e unfortunates of Itall in or 'gin were taken re > I and hanged. 'I he authorities of t«e. State and a representative of the Italian' embassy having separately investigated the occuri"uce. with discrepant results, particu larly ;is to the allegod citizenship of the vic tims, and It not appearing that tne State had been able to discover and punish the viola tors of the taw. an independent Investigation : has been set on foot, through the agency of the Department of State, and Is stil l in progress. The recurrence of these distressing mani festations of blind mob fury directed at de pendents or natives of a foreign country sug gests that the contingency has arisen for action by Congress in thc'dlreetlon of con ferring upon the Federal courts jurisdiction In this class of international cases where the ultimate responsibility of the Federal government may be involved. Treuty with Japan. The treaty of commerce and navigation be tween the I 'nlted Stfites and Japan Nov. !&!, 1804, took effect Iit accordance with the terms of i ts nineteenth article the 17th of July last, simultaneously with the enforce ment of like treaties with the other powers, except France.-whose convention did not go Into operation until Aug. 4. the United States being, however, granted up to that date ali the privileges and rights accorded to Preach citizens under the old French treaty. Cable to Philippines. •_' The Japanese government has sho^ri a lively Interest in the proposition of the Pa cltic Cable Company to add to its projected cable lines to Hawaii. Guam and the Phil ippines a branch connect ion with the coast of Japan. Without repeating the observa tions of my special message of Feb. 10, 18!W, concerning the necessity of a cable to Ma liiia. I respectfully Invite attention to It . 1 recommend that, in case the Cijiigrcss should not take measures to bring about this result by direct action of the government, the post master general be authorized to invite com petitive bids for the establishment - of a cable. Mexican Extradition Treaty. Following the termination Jan. 1!0. \$W, by Mexico of the convention of extrad tlon of Dec. 11, 1S61. a new treaty more In accord ance with the ascertained needs of both countries was signed Feb. 21!. 1KW. and ex changed In the City of Mexico the IT-M of April last. I ts operation thus far has been effective and satisfactory. The new Lreaty stipulates that neither government shall as sume Jurisdiction In the punishment ot crimes committed exclusively within the ter ritory of the other. Rio (irande Boundary. The International-water boundary commis sion; organized by the convention'of March 1, lSStl, for the adjustment of questions af fecting the llio Grande frontier, has not yet completed its labors. • Claims growing out of the seizure of American sealing vessels In Bering Sen have been under discussion with the gov ernment of Kussia for several years, with the recent happy result of an agreement to submit them tt^ the decision of a single arbitrator. Events in Samoa. Important events have occurred in the Samoa n Islands. The election, according to the laws and customs of Samoa, of a suc cessor to the late king, Malietoa Eaupepa. developed a contest as to the validity of the result, which issue, by the term's of the general act, was to be decided'by tlie chief justice. I 'pon his rendering a judg ment in favor of Malietoa Tanu, the rival chief, Mataafa, took up arms. The active intervention of American and British war ships became imperative to restore order, at the cost of sanguinary encounters. In this emergency a Joint commission of rep resentatives of, the United States, Germany, and Great Britain was sent to Samoa to Investigate the situation and provide a tem porary remedy. By its active efforts a peaceful solution was reached for the time being, the kingship being abolished and a provisional government established. Recommendations unanimously made hy the commission for a permanent adjustment of 1 lie Saiuoan question were taken under consideration by the three powers parties to the general act. But the more they were examined the more evident It became that a radical change was necessary In the rela tions of the powers to Samoa. A satisfactory arra.-ftzeiuont was concluded between the governments of Germany and England, by virtue of which England re tired from Samoa iti view of compensations In other directions, and both powers re nounced in favor of the Fnlted States all their rights and claims over and in respect to that portion of the group lying to the cast of the 171st degree of west longitude, embracing the islands of Tutuiia, Ofoo, Oioseuga and Manna. I transmit to the Senate, for its constitu tional action thereon, a convention, which, besides the provisions above mentioned, also guarantees us the same privileges and con ditions In respect to commerce utid commer cial vessels in all of the Islands of Samoa as those possessed by Germany. Treaty with Spain. My annual message of last year was neces sarily devoted in great part to a considera tion of the Spanish war, and of the results It wrought and the conditions it imposed for the future. I am gratified to aunoiince that the treaty of peace has restored friendly re lations between the two powers. Effect has beeu givcii to its most important provis ions. Home Rule for Cuba. The withdrawal of the authority of Spain from the Island of Cuba was effected by the 1st of January, so that the full re-establish ment of peace found the relinquished terri tory held by us in trust for the Inhabitants, maintaining, under the direction of the ex ecutive, such government and control therein as should conserve public order, restore the productive conditions of peace, so long dis turbed bv the instability and disorder which prevailed for the greater part of the preced ing three decades and build up that tranquil development of the domestic state whereby alone can be realized the high purpose, as proclaimed In the Joint resolution adopted by the Congress the ll»th of April , 38!»8, by which the I l i l ted States disclaimed anv dis position or Intention to exercise soverefgnty, Jurisdiction or control over Cuba, except 'for the pacification thereof, and asserted Its do termination when that was accomplished to leave the government and control of the Isl and to Its people. The pledge contained In this resolution is of the highest honorable obligation and must be sacredly kept. America's Great Responsibility. This nation has assumed before the world a grave responsibility for the future good government of Cuba. We have accepted a fust, the fulfillment of which calls for the sk Jest integrity of purpose and the exer cise of the highest wisdom. The new Cuba yet to arise l 'rom the ashes of the past must neds be bound to us by. t ies of singular In timacy and strength If i ts enduring welfare is to be assured. Whether those ties shall be organic or conventional, the destinies of Cuba are in some rightful form and manner irrevocably linked with our own. but how and how far is for the future to determine In the ripeness of events. Whatever be the outcome, we must sc>e to It that free Cuba be a reality, not n name: a perfect euilrv, not a hasty experiment bearing within it self the elements of failure. By the treaty of peace the Spanish people on the island have until April 11. ll»oo. to elect whether they will remain citizens of Spain or become citizens of Cuba. Until then it cannot l>e definitely ascertaiufd who shall be entitled to participate In the for matlon of the government of Cuba. Bv that time the results of the census will ' have been tabulated and wo shall proceed to pro vide for elections which will commit the municipal governments of the Island to the officers elected by tho people. Meantime and so long as we exercise control over the island the products of Cuba should have a market In the United States on as good terms and with as favorable rates of duty us are given to the West India Islands under treaties of reciprocity which shall be tuade. • Diplomatic Relations Resumed. . Following the exchange of ratifications of the treaty of peace the two governments accredited ministers to each other. Spain S(#.ding to Washington the Duke of Areos, au eminent diplomatist, previously stationed in Mexico, while the United States trans ferred to Madrid Bellamy Storer, Its minis ter at Brussels. This was followed by the respective appointment of consuls, thereby fully resuming the relations interrupted by the wpr. J u d i c i a l intercourse between the coiirts of Cuba and I 'orto ltico and of Spain has been established, as provided by the treaty ot peace. The Cuban political prisoners In Spanish penal stations have, been and are being released and returned to their homes la accordance with article 6 of the treaty. Negotiations are about to be had for defining' the, conventional relations between the two' countries, which fell into abeyance by rea son of the war. I trust that those will In clude a favorable arrangement for commer cial reciprocity under the terms of sections S and 4 of the current tariff act. Claims Agaiast Turkey. The United States minister to Tilrkey con tinues. under instructions, to press "for ai money payment in satisfaction ofthe Jnst1 claims for injurly* suffered by American citi zens in the disorders of several years past; and for wrongs done to them bv the Ottoman^ authorities. In the Turkish Kmplre the sit uation of our cit teens remains unsatisfac tory. Our efforts during nearly fortv year* to bring about a convention of naturalisa t ion seem to be ou the brink ofv t innl failure. Veneznelu Boundary Award. The international commission of arUltra-, tlon, appointed under the Anglo-Venezuela*[ treaty of lss>7. rendered an award. Oct. 5| last, whereby the boundary line, betweeni Venezuela and British Guiana Is determined,! thus ending a controversy which has ex isted for the greater part of the eentury.i Tho award, as to which the arbitrators were' unanimous, while not meeting the extrem®i •contention of either party, gives to Great] Britain a large share oV the interior terri tory in dispute and to Venezuela the cntirei mouth of the Orinoco, including Bar)ma Point and the Caribbean littoral for somef distance to the eastward. The dec Won *£•( pears to be equally satisfactory, to both1 parties. Treaties Under Tariff AcU The fourth "section of the tariff act. ap-. proved July "4, 1887. appears to provide only for commercial treaties which should bo entered Into by the President and also ratl-i fled by the Senate within two years front! Its passage. Owing to delays, Inevitable in negotiations of this nature, none of ^the treaties Initiated under that section could1 be concluded in time for ratification by the Senate prior to its adjournment the 4th of March fast. Some of the pending negotia tions. however, were near conclusion at that time, and the resulting conventions have since been signed by the plenipotentiaries. Conventions of reciprocity have heen signed during the congressional recess witli> Great Britain for the respective colonies of British Guiana. Barbados. Bermuda. Ja maica and Turks and Caieos Islands, and with the licpubllc of Nicaragua. Important reciprocal conventions have also been concluded with France and with the Argentine Kepublie. The interest taken by the various States forming the International Unl u of Amer can Republics in the work of i ts organic bureau, is evidenced by the fact that for the first t luie since its creation in 1S1K) ail the repub lics of South and Central America are now represented In It. Its maintenance is there fore assured for the next ten years. Pan-American Exposition. The act to encourage the holding of the Pan-American (exposition on the Niagara frontier, within the county of Erie or Niag ara. in the State of New York, in the year l ' . tOl, was approved March it, IS!fit . This exposition, which will lie held ill the city ot Buffalo, in the near vicinity of the great Niagara cataract, and within a day's Journey of which reside .40.000,000 of our people, will be confined entirely to the western hem isphere. Satisfactory assurances have al ready been given by* the diplomatic repre sentatives of Great Britain, -Mexico, the Central and South American republics and most of the States of the United States that these countries and States will make an unique, interesting and Instructive exhibit, peculiarly illustrative of their material prog ress during the ceil try which is about to close. Philadelphia Commercial ConicreM. In accordance with an act of Congress, approved Dec. I ' l . 1S!W. and under the aus pices of the Philadelphia Commercial Muse um, a most Interesting and-valuable exposi tion of products and manufactures especially adapted to export trade was held In Phila delphia from the Uth of September to th« 1st off December, 1&P0. Peace Congress at The Hagne. In response to the invitation of bis maj esty the Emperor of Kussin, delegates front twenty-six countries were assembled at The Hague May 18, as members of a conference In the Interest of peace. The flnal act of the conference includes conventions upon the amelioration of the laws and customs of war on laud, the adaptation to maritime warfare of the principles of the Geneva con vention of ISCt and the extension of judi cial methods to International cases. The convention for the pacific settlement of In ternational conflicts embodies the loading features of tho American plan, with such modifications as were rendered necessary by the great diversity of Views and interests represented by the delegates. While ear nestly promoting the Idea of establishing a permanent International tribunal, the dele gation of the United States was not unmind ful of the inconveniences which might arise from au obtrusive exercise of mediation, and In signing the convention carefully guarded the historic position of the United States - Increase in Army. Since tqy last annual message and In Obe- dlence to the acts of the Congress of April 21! and 2»>, 1M»S, the remaining volunteer force enlisted for the Spanish war, consist ing of :14,8. '!4 regulars and 110.201! volunteers, with over .r>,000 volunteer officers, has beea discharged from the military service. By the act of March lSJKi. Congress gave au- • thorlty to Increase the regular army to a maximum not exceeding Oo.iK't • enlisted me* and to enlist a force of STi.OOO volunteers, to be recruited from the country at laarso. By virtue of this authority the regular army has been increased to the number of Ol.iKW eulisted men and l!.24S officers, and new vol. unteer regiments have been organized aggre gating IW.OoO enlisted men and 1,.">1M officers. Two of these volunteer regiments are made up of colored fnen, with colored Hue officers. Tlie new troops to take the places of those returning from the Philippines have beeil transported to Manila to the number of 581 officers and Uti. . '12'i enlisted men of the regu lar army, and ."i!M officers and lo/t-Sti enlisted men of the new volunteer force, while 504 officers and 14,119 men ofthe volunteer force are on tjie ocean en route to Manila. Tho force now in Manila consists of 905 officers and :i0.. r i7S regulars and .104 officers and 15,:!X8 of the volunteers, tnnking an agr gregate of l,4!ft> officers and 4o,!t(i0 men. When the troops now under orders shall reach Manila, t l ie force in the archipelago will comprise li.Ool officers and tilf,483 mea. During the last year we have reduced our force in Cuba and Porto Itico. Postal Ncc«Ih in Islands.^! In restoring peaceful conditions, orderly rule and civic progress in Cuba, Porto Rico and, so far as practicable, In the Philippines, the rehabilitation of the postal service haa been an essential and Important part of tbi» work. American trained officials have bee* assigned to the directing and executive posi tions. while natives have been chiefly em ployed in making up the body of the force. The development of the service in all of the islands has been rapid and successful. It has moved forward on American lines, with free delivery, money order and registry sys tems. and has given the people mail facili t ies far greater and tuore reliable than an^i they have ever before enloyed. Domestic Postal Service. Tlie domestic postal service continues io grow with extraordinary rapidity. The ex penditures and the reveuues will each ex ceed .$100,(MK).000 during tlie current year. Fortunately, since the revival of prosperous times the revenues have grown much faster than the expenditures, and there is every- indication that a short period will witaess the obliteration of the annual deficit . Re forms suggested in the report of the Post master General, woukl, in Ills opinion, not only put the postal service at once ou a self-sustaining basis, and I commend the subject to the consideration «f the Congress. Naval Prestige Muiutuined. The navy has maintained the spirit and high efficiency which have always charac terized that service, and has lost none of tho gallantry In heroic action which has sig nalized its brilliant and glorious past. The nation lias equal pride in its early and later achievements. Its habitual readiness for every emergency has won the confidence and admiration of the country. The people are Interested in the continued preparation and prestige of the navy und will Justify liberal, appropriations for Its maintenance and I so-* provement. I lieariily concur iu the k#>