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Nf-.tfi:.' !.i m ; 4, #»«+ ts*$tih with Questions of Vast p. ?*"'toportincc to the Nitiofr-f - j§*»j - * " fe m tRusii AND THE TARIFF DEALT WITH Jfcftfiif Cfctoses of Import Duties a menace to tlie Business Interests of the Country -- Reciprocity „ Treaties Desirable -- Monetary Legislation--Rela­ tions of Labor and Capital. To the fi«natt and,House o( Represen- tutives: TVe still continue tn a period o! S&F*"'r '.Unbounded prosperity. This prosperity s§Kinot the creature of law. but undoubt- t <> ; , 6dly the laws under which we work have g^5! .';?•? - ' fcten instrumental in creating the condi- 'v.- 'Sons which made it possible, and toy un- |;v! Vise legislation it would be eaay enough to destroy it. There will undoubtedly i ̂ 'tie periods of depression. The wave will »cede: but the tide will advance. This <£' v \ nation Is seated on a continent flanked two ffre*t oceans. It is composed r"\of men the descendants of pioneers, or "* )n a sense, pioneers themselves: of men _ y "$rinnowed out from among the nations Jps the old world by the energy, boldness. *'*••• . *?and l°ve of adventure found in their own eager hearts. Such a nation, so placed, *§£ '%/•- will surely wrest success from fortune, gp As a people we have played a large 1^" !' in the world, and we are bent upon *'1, ^making our future even larger than the .'past. In particular, the events of the last S$j|:f2v'Vr- Jl®ur years have definitely decided that, If^yIjor woe or for weal, our place must be PsH"-'. - \ '• i#reat among the nations. We may either -*V' V' ^tall greatly or succeed greatly; but we Lit-• cannot avoid the endeavor from which fifi-'. either great failure or great success must come. Even if we would, we can- •••, not play a small part. If we should try, all that would follow would be that we should play a large part ignobly and ^V"'- ' Shamefully. |H-ify' •' No country has ever occupied a higher I P : ' : 3 > l a n e o f m a t e r i a l w e l l - b e i n g t h a n o u r s v ".%t the present moment. This well-being ' 5 te due to no sudden or accidental causes. V • -, *>ut to the play of the economic forces IP?'iY'lP this country for over a century; to • ;^ur laws, our sustained and continuous % jpolicies: above all, to the high individ- |fi?y, average of our citisenship. Great |i3'.' \ .fortunes have been won by those who 'J-r- itiave taken the lead in this phenomenal , 'industrial development, and most of these vi"" • <" -- fortunes have been won not by doing X", , 'jtvll, but as an incident to action which fch • ^ C '3*as benefited the community as a whole. 0^y|>.-- Kever before has material well-being • * ' |>een so widely diffused among our peo- -Sr»*' " '*• r< |> le- Great fortunes have been accum- ,1?- , £ . plated and yet in the aggregate these cy s 'r fortunes are small indeed when com- %'i}' Jv: pared to the wealth of the people as a " •IP'hole. The plain people are better off aftf ( ,than they have ever been before. The f • • ' Insurance companies, which are prac- % •ilcally mutual benefit societies--especially 5» helpful to men of moderate means--rep- I ' 'iff*" resent accumulations of capital which are ^ r^S)^unong the largest in this country. There *are more deposits in the savings banks. 'S;.:, -tnore owners of farms, more well-paid « *$&4?.?iirage workers in this country now than ) 'J']- ever before in our history. Of course, ftiis $Sfc&*.When the conditions have favored the . M" growth of so much that was good, they *%^ave also favored somewhat the growth ^"'tof what was evil. It is eminently neces- '• ; feary that we should endeavor to cut out 'iA-Sir this evil, but let us keep a due sense of ; ; , proportion; let us not in fixing our gaze t w-r;-> • Upon the lesser evil forget the greater J'r i" ' good. The evils are real and some of ' f:' ' j•'"ilhem are menacing, but they are the iS^^v-'i'^v'-iputgrrowth, not of misery or decadence. *, t>ut of prosperity--of the progress of our ^.t ̂ '^A-feigantic industrial development. This \ Industrial development must not be &} / f'l wChecked, but side by side with it should :-v ;5go such progressive regulation as will U& '""fdiminish the evils. We should fail in duty if we did not try to remedy the $<• t '• '.^tjevils. but we shall succeed only if we 0%P, S^??ri|>roceed patiently, with practical common •• :• ^jft^'-sense as well as resolution, separating ps'l'v.'* ^^r^the good from the bad and holding on to ^ the former while endeavoring to get rid '•^•V^of the latter. National Action -to Control Trusts. fp£' K, ' In my message to the present Congress $&: ' at its first session I dtecussed at length K-* vf ithe question of the regulation of those '^r^.rbig corporations commonly doing an In- jrfif- - V." terstate business, often with some ten- j l^dency to monopoly, which are popularly • ,^'iknown as trusts. The experience of the »^«p»st year has emphasized, in my opin- '.^,^ion, the desirability of the steps I then . ^fproposed. A fundamental base of civil- :'%;'ization is the inviolability of property; ffigivj iS^r^but this Is in no wise inconsistent with "ithe right of society to regulate the ex- Pr ^ ii* • ercise of the artificial powers which it jp/y f confers upon the owners of property, un- C<; s. * der the name of corporate franchises, in &Q • such a way as to prevent the misuse ." f" of these powers. Corporations, and espe- sdjp 'jsf'V cially combinations of corporations, ^ > should be managed under public regula- tlon. Experience has shown that under lyfeV' ,?"> our system of government the necessary Pv • • ' | |rg, '^supervision cannot be obtained by state action. It must therefore be achieved *5$" '-iMt-'V. •riby national action. Our aim is not to do k./. away with corporations; on the contrary. y. S i' m- fe£.- fe- * r kM'- Kb '.J" ;^v. . • •' ' '• ' ^development of modern Industrialism, and effort to destroy them would be futile V#^ jjufdesa accomplished in ways that would -work the utmost mischief to the entire ^ " body politic. We can do nothing of good in the way of regulating and supervising these corporations until we fix clearly in our minds that we are not attacking the corporations, but endeavoring to do away "'i-" '/; with any evil in them. We are not hos­ tile to them; we are merely determined that they shall be so handled as to sub­ serve the public good. We draw the line against misconduct, not against wealth. The capitalist who. alone or in conjunc­ tion with his fellows, performs some great industrial feat by which he wins money is a welldoer, not a wrongdoer, provided only he works in proper and legitimate lines. We wish to favor such a man when he does well. We wish to supervise and control his actions only to prevent him from doing ill. Publicity can do no harm to the honest corpora­ tion; and we need not be overtender about sparing the dishonest corporation. The Necessity for Care. In curbing and regulating the combina- . tlons of capital which are or may become •'fev'ji'ii injurious to the public we must be careful not to stop the great enterprises which have legitimately reduced the cost of pro­ duction, not to abandon the place which our country has won in the leadership of the international industrial world, not to strike down wealth with the result of closing factories and mines, of turning the wage-worker Idle in the streets and leaving the farmer without a market for what he grows. Insistence upon the im­ possible means delay in achieving the possible, exactly as. on the other hafid. the stubborn defense alike of what Is good and what is bad in the existing sys­ tem. the resolute effort to obstruct any attempt at betterment, betrays blind­ ness to the historic truth that wise evolu­ tion is the sure safeguard against revo­ lution. Importance of the Subject. No more Important subject can come Ibetore the Congress than this of the regulation of Interstate business. The country cannot afford to sit supine on the plea that under our peculiar system •f government we are helpless in the presence of the new conditions, and un­ able' to grapple with them or to cut out whatever of evil has arisen in connec­ tion wtth them. The power of the Con- (l«as to regulate interstate commerce Is an absolute and unqualified grant, and without limitations other than those pre­ scribed by the constitution. The Con­ gress has constitutional authority to make all laws necessary and proper for executing this power, and I tun satisfied that this power hasi not been exhausted by any legislation now on the statute books. It is evident, therefore, that evils restrictive of commercial freedom entail­ ing restraint upon national commerce fall within the regulative power of the Con­ gress. and that a wise and reasonable law would be a necessary and proper ex­ ercise of congressional authority to the end fhat such evils should be eradicated. Evils Can Be Done Away With. I believe that monopolies, unjust dis­ criminations. which prevent or cripple competition, fraudulent overcapitaliza­ tion. and other evils In trust organiza­ tions and practices which injuriously af­ fect Interstate trade, can be prevented under the power of the Congress to "regu­ late commerce with foreign nations and among the several states" through regu­ lations and requirements operating di­ rectly upon such commerce, the Instru­ mentalities thereof, and those engaged therein. I earnestly recommend this subject to the consideration of the Congress with a view to the passage of a law reasonable in its provisions and effective in its oper­ ations. upon which the questions can be Anally adjudicated that now raise doubts as to the necessity of constitutional amendment. If it prove Impossible to ac­ complish the purposes above set forth by such a law, then, assuredly, we should not shrink from amending the constitu­ tion as to secure beyond peradventure the power sought. The Tariff Question. One proposition advocated has been the reduction of the tariff as a means of reaching the evils of the trusts which fall within the category I have describ­ ed. Not merely would this be wholly ineffective, but the diversion of our ef­ forts in such a direction would mean the abandonment of all intelligent attempt to do away with these evils. Many of the largest corporations, many of those which should certainly be included in any proper scheme of regulation, would not be affected In the slightest degree by a change in the tariff, save as such change interfered with the general pros­ perity of the country. The only relation of the tariff to big corporations as a whole is that the tariff makes manufac­ tures profitable, and the tariff remedy proposed would be in effect simply to make manufactures unprofitable. To re­ move the tariff as a punitive measure di­ rected against trusts would inevitably re­ sult in ruin to the weaker competitors who are struggling against them. Our aim should be not by unwise tariff changes to give 'foreign products the advantage over domestic products, but by proper regulation to give domestic com­ petition a fair chance; and this end can­ not be reached by any tariff changes which would affect unfavorably all do­ mestic competitors, good and bad alike. The question of regulation of the trusts stands apart from the question of tariff revision. Fitful Tariff Changes Decried. Stability of economic policy must al­ ways be the prime economic need of this country. This stability should not be fossilizatlon. The country has acquiesced in the wisdom of the protective tariff principle. It is exceedingly undesirable that this system should be destroyed or that there should be violent and radical changes therein. Our past experience shows that great prosperity in this coun­ try has always come under a protective tariff; and that the country cannot pros­ per under fitful tariff changes at short intervals. Morever. if the tariff laws as a whole work well, and If business has prospered under them and is pros­ pering, it is better to endure for a time slight inconveniences and inequalities in some schedules than to upset business by too quick and too radical changes. It is most earnestly to be wished that we could treat the tariff from the stand­ point solely of our business needs. It Is, perhaps, too much to hope that partisan­ ship may be entirely excluded from con­ sideration of the subject, but at least It can be made secondary to the busi­ ness interests of the country--that Is. to the interests of our people as a whole. Unquestionably these business Interests will best be served if together with fixity of principle as regards the tariff we combine a system which will permit us from time to time to make the neces­ sary reapplication of tW^-inclple to the shifting national needs. We must take scrupulous care that the reapplication shall be made In such a way that It will not amount to dislocation of our sys­ tem, the mere threat of which (not to speak of the performance) would pro­ duce paralysis In the business energies of the community. The first considera­ tion In making these changes would, of course, be to preserve the principle which underlies our whole tariff system--that is. the principle of putting American busi­ ness interests at least on a full equal­ ity with Interests abroad, and of always allowing a sufficient rate of duty to more than cover the difference between the la­ bor cost here and abroad. The well-be­ ing of the wage-worker, tike the well- being of the tiller of the soli, should be treated as en essential In shaping our whole economic policy. There must never be any change which will jeopardize the standard of comfort, the standard of wages of the American wage-worker. For Reciprocity Treaties. One way in which the readjustment sought can be leau'ied Is by reciprocity treaties. It is greatly to be desired that such treaties may be adopted. They can be used to widen our markets and to give a greater field for the activities of our producers on the one hand, and on the other to secure In practical shape the lowering of duties when they are no longer needed for protection among our own people, or when the minimum of damage done may be disregarded for the sake of the maximum of good accom­ plished. If It prove impossible to ratify the pending treaties, and If there seem to be no warrant for the endeavor to execute others, or to amend the pending treaties so that they can be ratified, then the same end--to secure reciprocity- should be met by direct legislation. For Expert Tariff Commission. Wherever th^ tariff conditions ars such that a needed change cannot with ad­ vantage be made by the application of the reciprocity idea, then It can be made outright by a lowering of duties on a given product. If possible, such change should be made only after the fullest consideration by practical experts, who should approach the subject from a business standpoint, having In view both the particular Interests affected and the commercial well-being of the people, as a whole The machinery fpr providing such careful Investigation can readily be supplied. The executive department has already at its disposal methods of col­ lecting (sets and figures; and if the con­ gress desires additional consideration to that ffhleh Win be given the subject by its own committees, then a commission of bualliess experts can be appointed whose duty It should be to recommend action by the Congress after a deliberate and scientific examination of the various schedules as they ar« affected by the changed and changing conditions. The unhurried and unbiased report of this commission would show what changes should be made in the various schedules, and how far these changes could go without also changing the great pros­ perity which this country is now enjoy­ ing, or upsetting It* fixed economic pol­ icy. The cases in which the tariff can pro­ duce a monopoly are so few as to con­ stitute an inconsiderable factor In the question; but of course if in any case it be found that a given rate of duty does promote a monopoly which works ill, no protectionist would object to such reduction of the duty as would equalize competition. In my Judgment, the tariff on anthra­ cite coal should be removed, and anthra­ cite put actually, where It now Is nom­ inally, on the free list. This would have no effect at all save in crises; but in crises it might be of service to the peo­ ple. Monetary legislation. . Interest rates are a potent factor in business activity, and In order that these rates may be equalized to meet the vary­ ing needs of the seasons and of widely separated communities, and to prevent the recurrence of financial stringencies which injuriously affect legitimate busi­ ness. it Is necessary that there should be an element of elasticity in our mone­ tary system. Banks are the natural ser­ vants of commerce, and upon them should be placed, as far as practicable, the burden of furnishing and maintaining a circulation adequate to supply the needs of our diversified industries and of our domestic and foreign commerce: and the issue of this should be so regulated that a sufficient supply should bo al­ ways available for the business interests of the country. It would be both unwise and unneces­ sary at this time to attempt to recon­ struct our financial system, which has been the growth of a century: but some additional legislation is, I think, desir­ able. The mere outline of any plan suffi­ ciently comprehensive to meet these re­ quirements would transgress the appro­ priate limits of this communication. It is suggested, however, that air "future legislation on the subject should be w 'th the view of encouraging th» use of such instrumentalities as will automatically supply every legitimate demand of pro­ ductive Industries and of commerce, not only in the amount, but in the character of circulation; and of making all kinds of money Interchangeable, and. at the will of the holder, convertible into tne established gold standard. & Relation* of Labor and Capital. How to secure fair treatment alike for labor and for capital, how to hold in check the unscrupulous man, whether employer or employe, without weakening individual Initiative, without hampering and cramping the industrial development of the country, is a problem fraught with' great difficulties and one which it is of the highest importance to solve on lines of sanity and far-sighted common sense as well as of devotion to the right. This Is an era of federation and combination. Exactly as business men find they must often work through corporations, and as It is a constant tendency of these cor­ porations to grow larger, so it is often necessary for laboring men to work in federations, and these have become im­ portant factors of modern industrial life. Both kinds of federation, capitalistic and labor, can do much good, and as a neces­ sary corrollary they can both do evil. Opposition to each kind of organization should take the form of opposition to whatever is bad In the conduct of any given .corporation or union--not of at­ tacks upon corporations as such nor upon unions as such; for some of the most far-reaching beneficent work for our peo­ ple has been accomplished through both corporations and unions. Each must re­ frain from arbitrary or tyrannous inter­ ference with the rights of others. Organ­ ized capital and organized labor alike should remember that in the long run the Interest of each must be brought Into harmony with the interest of the general public; and the conduct of each must conform to the fundamental rules of obe­ dience to the law. of Individual freedom, and of Justice and fair dealing toward all Each should remember that In addition to power. It must strive after the realization of healthy, lofty and generous Ideals. Every employed, every wage worker, must be guaranteed his liberty and his rlgh,t to do as he likes with his property or his la­ bor so long as he does not infringe upon theright of others. It Is of the highest im­ portance that employer and employe alike should endeavor to appreciate each the viewpoint of the other and the sure dis­ aster that will come upon both in the long run If either grows to take as habit­ ual an attitude of sour hostility and dis­ trust toward the other. Few people de­ serve better of the country than those representatives both of capital and labor --and there are many such--who work continually to bring about a good under­ standing of this kind, based upon wisdom and upon broad and kindly sympathy be­ tween employers and employed. Above all, we need to remember that any kind of class animosity in the political world is. if possible, even more wicked, even more destructive to national welfare, than sectional, race or religious animos­ ity. We can get good government only upon condition that we keep true to the principles upon which this nation was founded, and judge each man not as a part of a class, but upon his individual merits. All that we have a right to ask of any man. rich or poor, whatever his creed, his occupation, his birthplace, or his residence. Is that he shall act well and honorably by his neighbor and by his country. We are neither for the rich man as such nor for the poor man as such; we are for the upright man, rich or poor So far as the constitutional powers of the national government touch these matters of general and vital mo­ ment to the nation, they should be exer­ cised in conformity with the principles) above set forth. sister republic Just entering1 npon its career of independence. We should al­ ways fearlessly insist upon our rights In the face of the strong, and we should with ungrudging hand do our generous duty by the weak. I urge the adoption of reciprocity with Cuba not only because !t !s eminently for our own interests to control the Cuban market and by every means to foster our supremacy in the tropical lands and waters south of us, but also because we. of the giant repub­ lic of the North, should make all our sis­ ter nations of the American continent feel that whenever they will permit it we desire to show ourselves disinterestedly and effectively their friend. Department of Commerce Needed. It Is earnestly hoped that a Secretary of Commerce may be created, with a seat In the Cabinet. The rapid multipli­ cation of questions affecting labor and capital, the growth and complexity of the organizations through which both labor and capital now find expression. the steady tendency toward the employment of capital In huge corporations, and the wonderful strides of this country toward leadership in the international business world justify an urgent demand for the creation of such a position. Substantial­ ly all the leading commercial bodies In this country have united in requesting its creation. It Is desirable that some such measure as that which has already passed the Senate be enacted into law8 Th creation of such a department would In Itself be an advance toward dealing with and exercising supervision over the whole subject of the great corporations doing an Interstate business: and with this end In view, the Congress should endow the department with large powers, which could be Increased as experience might •bow the need. Cuba Must Hkve Consideration. I hope soon to submit to the Senate a reciprocity treaty with Cuba. On May 20 last the United States kept its promise te the Island by formally vacating Cuban soil and turning Cuba over to those whom her own people had chosen as the first officials of the new republic. Cuba lies at our doors, and whatever affects her for good or for ill affects us also. So much have our people felt this that in the Piatt amendment we definite­ ly took the ground that Cuba must here­ after have closer political relations with us than with any other power. Thus In a sense Cuba has become a part of our international political system. This makes it necessary that In return she should be given some of the benefits of becoming part of our economic system. It Is. from our own standpoint, a short­ sighted and mischievous policy to fall to recognize fh)s need. Moreover. It Is un­ worthy of a mighty and generous nation. International Arbitration. A» civilization grows, warfar becomes less and less the normal condition of for­ eign relations. The last century has seen a marked diminution of wars between civilized powers: wars with uncivilized powers are largely mere matters of Inter­ national police duty, essential for the welfare of the world. Wherever possible, arbitration or some similar method should be employed In lieu of war to settle dif­ ficulties between civilized nations, al­ though as yet the world has not pro­ gressed siifflclently to render It possible, or necessarily desirable, to invoke arbi­ tration In every case. The formation of the international tribunal which sits at The Hague is an event of good omen from which great consequences for the welfare of all mankind may flow. It is far better, where possible, to Invoke such a permanent tribunal than to create spe­ cial arbitrators for a given purpose. It is a matter of sincere congratulation to our country that the United States and Mexico should have been the first to use the good offices of The Hague court. This was done last summer with most satisfactory results In the case of a claim at Issue between us and our sister republic. It Is earnestly to be hop­ ed that this first case will serve as a precedent for others, In which not only the United States, but foreign nations may take advantage of the machinery al­ ready in existence at The Hague. I commend to the favorable considera­ tion of the Congress the Hawaiian fire claims, whloh were the subject of care­ ful investigation during the last aession. Panama Canal Favored. The Congress has wisely provided that we, shall build at once an Isthmian ca­ nal, If possible at Panama. The attorney general reports that we can undoubted­ ly acquire good title from the French Panama Canal Company. Negotiations are now pending with Colombia to se- sure her assent to our building the canal. This work should be carried out as a continuing policy without regard to change of administration; and It should be begun under circumstances which will make it a matter of pride for all administrations to contl&ie the policy. The canal will be of great benefit to America, and of Importance" to all the world. It will be of advantage to us industrially and also as improving our military position. It will be of advan­ tage to the countries of tropical Amer­ ica. It Is earnestly to be hoped that all of these countries will do as some of them have already done with signal success, and will Invite to their shores commerce and Improve their material conditions by recognizing that stability and order are the prerequisites of suc­ cessful development. No independent na­ tion In America need have the slightest fear of aggression from the United States. It behooves each one to main­ tain order within its own borders and to discharge its Just obligations to for­ eigners. When this is done, they can rest assured that, be they strong or weak, they have nothing to dread from outside interference. More and more the Increasing Interdependence and complex­ ity of International political and eco­ nomic relations render it incumbent on all civilized and orderly powers to in­ sist on the proper policing at the world. Pacific Cable Assured. During the fall of 1901 a communication" was addressed to the Secretary of State, asking whether permission would be granted by the President to a corpora­ tion to lay a cable from a point on the California coast to the Philippine islands by way of Hawaii. A Statement of con­ ditions or terms upon which such cor­ poration would undertake to lay and operate a cable was volunteered. Inasmuch as the Congress was shortly to convene, and Pacific cable legislation had been the subject of consideration by the Congress for several years, it seem­ ed to me wise to defer action upon the application until the Congress had first an opportunity to act. The Congress ad­ journed without taking any action, leav­ ing the matter in exactly the same con­ dition in which it stood when the Con­ gress convened. Meanwhile it appears that tlie Com­ mercial Pacific Cable Company had promptly proceeded with preparations for laying its cable. It also made applica­ tion to the President for access to and use of soundings taken by the U. S. S Nero, for the purpose of discovering a practicable route for a trans-Pacific ca­ ble, the company urging that with ac­ cess to these soundings It could complete its cable much sooner than if it wert required to take soundings upon its own account. In consequence of this solicitation o* the cable company, certain condition? were formulated, upon which .the Presi dent was willing to allow access to these- soundings and to consent to the landing and laying of the cable, subject to any alterations or additions thereto Imposed ,by the Congress. This was deemed prop er, especially as It was clear that a cabl connection of some kind with China, foreign country, was a part of the com pany's plan. These conditions prescribed, among other things, a maximum rate for com mercial* messages and that the compan\ should construct a line from the Philip­ pine Islands to China, there being at present, as Is well known, a British ltn< from Manila to Hong-Kong. The representatives of the cable com pany .kept these conditions long undei consideration, continuing, in the mean time, to prepare for laying the cable. They have, however, at length acceded to them, and an all-Amerlcan line be­ tween our Pacific coast and the Chinese empire, by way of Honolulu and the Philippine Islands, is thus provided for. and is expected within a few months to be ready for business. climate and surroundlngS; and under the strain of the terrible provocations which they continually receive from their foes, occasional instances of cruel retaliation^ occurred. Every effort- has been made^ to prevent such cruelties, and finally tl^ese efforts have been completely auc- cessiui. After making all allowance for these misdeeds, it remains true that few Indeed have been the instances in which war has been waged by a civilized power against seml-clvlllzed and barbarous forces where there has been so little Wrongdoing by the victors as in the Phil­ ippine islands. On the other hand, the amount of difficult, important, and bene- ficient work which has beep done .a well-nigh incalculable. Praise for Friendly Filipinos. Taking the work of the army and the civil authorities together, it may be ques- tloned whether imywhere else in modern times tb» world has seen a better exam­ ple of real constructive statesmanship than our people have given in the Philip­ pine islands. High praise should also be given those Filipinos, in the aggregate very numerous, who have accepted the new conditions and'joined with our rep­ resentatives to work with hearty good will for the welfare of the islands. Philippine Policy Vindicated. On July i last, on the one hundred and twenty-sixth anniversary of the declara­ tion of our independence, peace and am­ nesty were promulgated In the Philip­ pine islands. Some trouble has since from time to time threatened with the Mohammedan Moros. but with the late Insurrectionary Filipinos the war has en­ tirely ceased. Civil government has now been Introduced. Not only does each Filipino enjoy such rights to life, liberty and the pursuit of happiness as he has never before known during the recorded history of the islands, but the people taken as a whole now enjoy a measure of self-government greater than that granted to any other orientals by any foreign power and greater than that en­ joyed by any other orientals under their own governments, save the Japanese alone. We have not gone too far in granting these rights of liberty and self- government; but we have certainly gone to the limit that In the Interests of the Philippine people themselves It was wise or Just to ge. To hurry matters, to go faster than we are now going, would en­ tail calamity on the people of the islands. No policy ever entered into by the Amer­ ican people has vindicated Itself In more signal manner than the policy of holding ttie Philippines. The triumph of our arms, above all the triumph of our laws and principles, has come sooner than we had any right to expect. Too much praise cannot be given to the army for what it has done in the Philippines, both in warfare and from an administrative standpoint in preparing the jway for civil government: and similar credit belongs to the civil authorities for the way in yhich they have planted the seeds of self-gov- emment in the ground thus made ready for them. The courage, the unflinching endurance, the high soldierly efficiency and the general kind-heartedness and humanity of our troops have been strik­ ingly manifested. There now remain only some 16,000 troops in the islands. All told, over 100,000 have been sent there Of course, there have been Individual in- National Guard Reorganization. The measure providing for the reor­ ganization of the militia system and for securing the highest efficiency in the na­ tional guard, which has already passed the House, should receive prompt atten­ tion and action. It is of great impor­ tance that the relation of the national guard to the mllltla and volunteer forces of the United States should be defined, and that In place of our present obsolete laws a practical and efficient system should be adopted. - • Irrigation In the Went• Few subjects of more lmpcrtaoce hare beeis taken up by the Congress In 'recent years than the Inauguration cf the •ystem of nationally aided Srrlgatioa for the arid reg?ons of the far Wast. A gxiod t'Pffinnlng therein hao been made. Now that this poilcy of national Irrigation hao been adopted, the need of thorough and sci­ entific forest protection will grow more rap­ idly than ever throughout the public-land states. So far as they are available fori agriculture, and to whatever extent they may be reclaimed under the national irrigation law, the remain­ ing public lands should be held rigidly for tW' home builder, the settler who lives on his land, and for no one else. In their actual use the desert-land law, the timber and stone law, and the commutation clause of the home­ stead law have been so perverted from the in­ tention with which they were enacted as to permit the acquisition of large areas of the public • domain for others than actunl settlers and the consequent prevention of settlement. The sound and steady development of the West depends upon the building up of homes therein. Much of our prosperity as a nation has been due to the operation of the homestead law. On the other hand, we should recogDize the fact that in the grazing region the man who cor­ responds to the homesteader may be unable to settle permanently If only allowed to use the same amount of pasture land that bis brother, the homesteader. Is allowed to use of arable land. One hundred and sixty acres of fairly rich and well watered soil, or a much smaller amount of irrigated land, may beep a family in plenty, whereas no one could get s living from 160 acres of dry pasture land capable of supporting at the outside only one head of cattlp to every ten acres. In the past great tracts of the public domain have been fenced In by persons having no title thereto, in direct defiance of the law forbidding the maintenance or construction of any such unlawful Inclosure of public land. For various reasons there has been little Interference with such inclosures in the past, but ample notice has now been given the trespassers, and all the resources at the command of the government will hereafter be used to put a stop to such trespassing. Pressing Needs of the Navy. For the first time In our history naval ma­ neuvers on a large scale are being held nnder the Immediate command of the admiral of the navy. Constantly increasing attention Is being paid to the gunneoyof the navy, but It is yet far from what it^snould be. I earnestly urge that the Increase asked for by the Secretary of the Navy In the appropriation for Improv­ ing the marksmanship l>e granted. In battle the only shots that count are the shots that hit. It Is necessary to provide ample funds for practice with the great guns in time of peace. These funds must provide not only for the purchase of projectiles, but for allowances for prizes to encourage the gun crews, and espe­ cially the gun pointers, and for perfecting an intelligent system uuder which alone It is possible to get good practice. There should be no halt In tbe work of build­ ing up the navy, providing every year addi­ tional fighting craft. We are a very rich coun­ try, vast in extent of territory and great in population; a country, moreover, which has an army diminutive Indeed when compared with (hat of any other first-class power. We have deliberately made our own certain foreign poli­ cies which demand the possession of a first- class navy. The isthmian canal will greatly Increase the efflclency^f our navv If the navy is of sufficient size; but Sf we have au Inade­ quate navy, then the building of the canal would be merely giving a hostage to any power of superior strength. The Monroe doctrine should be treated as the cardinal feature of .Wnerican foreign policy; but it would be worse than Idle to assert It unless we intended tc hack It up. and it can be backed up only by thoroughly good uavy. A good navy not a provocative of war. It is tbe surest guaranty of peace. itself the greatest and most successful republic in history, to refuse to stretch i stance# of wrongdoing among them out a helping hand to a young and weak | They warred under fearful difficulties of More 8ailors Called For. 1 call your special attention to the need of providing for the manning of the ships. Se­ rious trouble threateus us If we cannot do bet­ ter than we are now doing as regards securing tbe services of a sufficient number of the high- st type of sallormen. of sea mechanics. It Is no more possible to improvise a crew than it Is possible to Improvise a warship. To build the finest ship, with the deadliest battery, and to send It afioat with a raw crew, no matter how brave they were Individually, would be to insure disaster If a toe at average capacity were encountered. Neither ships nor men csn be improvised when war has begun. We need a thousand additional officers In order to properly man tbe ships now provided for and under construction. The classes at the naval school at Annapolis should be greatly enlarged. At tbe same time that we thus add the officers where we need tbem, we should facilitate tbe retirement of those at tbe head of tbe list whose usefulness has become impaired. Promotion must be fostered If the service Is to be kept efficient. There Is not a cloud on tbe horizon at pres­ ent. There seems not tbe slightest chance of trouble with a foreign power. We most ear­ nestly hope that tbts state of things may con­ tinue; and the way to Insure its continuance is to provide for a thoroughly efficient navy. Tbe refusal to malntalo aucn a navy would Invite trouble, and if trouble came would in­ sure disaster. Fatuous self-complacency or vanity, or short-sightedness In refusing to pre­ pare for danger. Is both foolish und wicked In such a nation aa ours; and past experience has shown that such fatuity In refusing to rec­ ognize or prepare for any crisis in advauce is usually succeeded by a mad panic of hysterical fear once the crisis has actually arrived. - Rural Free Delivery a 8uccess. The striking Increase In tbe revenues of the postofllce department shows clearly tbe pros­ perity of our people and tbe Increasing activ­ ity of tbe busluess of tbe country. The receipts of the postofflce department for tbe fiscal year ending June 30 last amounted to $121,848,047.26, an Increase of $10,216,853.87 over the preceding year, the largest Increase known In tbe history of tbe postal service. Tbe mag­ nitude of this increase will t>eBt appear front the fact that the entire postal receipts for the year 18(0 amounted to but )8,518,047. Rural free delivery service is no longer in the experimental stage; It has become s fixed policy. The results following Its Introduction bsve fully Justified tbe Congress In the large appropriations made for Its establishment and extension. The average yearly increase in pest- oUce receipts in the rural dlatrlcta of the country Is about two per cent. We are now able, b? actual results, to show that where rural free delivery service baa been established to such an extent as to enable us to make comparisons the yesrly increase has been up­ ward of ten per cent. On Nov. 1, 1902, 11,<60 rural ttm delivery rentes bad been established sad were la opera­ tion, covering about one-third of the territory of the UMted States available fer rural free delivery service. There are now awaiting the action of the department petitions and appli­ cations for the estsbll8bment of 19.7M addi­ tional routes. This showa conclusively the want which the establishment of the service has met and the need of further extending it as rspldly as possible. It is justified both by the financial results and by the practical bene­ fits to our rural population; It brings the men whs live on the Boll Into close relations with the active business world; it keeps the farmer In dally touch with tbe markets; it is a po­ tential educational fotce; it enhances the value of farm property, makea farm life far pleas- anter and less Isolated, and will do much to check the undesirable current from country to city. It is to be hoped that the Congress will mske liberal appropriations for tbe continuance of the service already established and for its further extension. Need of Legislation for Alaska> 1 especially urge npon the Congress tbe need of wise legislation for Alaska. It is not to our credit as a nation that Alaska, which has been ours for thirty-five years, should still havo as poor a system of laws as la the case. Aliaka needs a good land law and such pro­ visions for homesteads and pre-emptions aa wllk encourage permanent settlemwt. We should shsps legislation with a view not te tbe «• plotting and abandoalag of 0s tetritanr. tall batldlng up of homes there!®. The tsne uld be liberal In type, so as to bold oat' llMlnccments to the actual settler whoui wsxttost desire to nee take itossession of the country. The forests of Alaska should be pro­ tected. and. as s secondary but still Impor­ tant matter, the game also, and at tbe ssins time It Is lmDeratlve that the aettlera »hnulit be allowed to cut timber, under proper regu­ lations, for their own use. Alaska should have a delegate in tbe Congress. It would be well If a congressional committee could visit Alaska and investigate Its ateto,<%, the grated. Ths Indian Problem. ..'v In dealing with the Indians our altn Wotild tie their ultimate absorption Into the body of our people. But In many cases this absorption must and should be very slow. The first and most important step toward the absorption of tbe Indian is to teach him to earn bis living; jet it is not necessarily to be assumed that In each community all Indians must become either tillers of the soil or stock raisers. Their Industries may properly be diversified, and those who show special desire or adaptability for industrial or even commercial pursuits should be encouraged so far as practicable to tellew oat each his own bent. 8cientifis Aid to Farmer*. In no department of governmental work in recent years hss there been greater success than liP that of giving scientific aid to the farming population, thereby showing them how most efficiently to help themselves. There is no need of Insisting upon Its importance, for the welfare of the farmer is fundamentally necessary to the welfare of the republic as a whole. In addition to such work as quaran­ tine against animal and vegetable plagues, and warring against them when here introduced, much efficient help has been rendered to the farmer by tbe Introduction of new plants spe­ cially fitted for cultivation under the peculiar conditions existing in different portions of the country. In the Southwest the posuiblllty of re-grasslng overstocked range lands has been demonstrated; In the North many new forage crops hnve been introduced, while in the Sast It has been shown that soms of our choicest traits can be stored and shipped In sech a •ay ss to 4nd a profitable market abroad. Needs of Washington. Tbe District of Colombia is the only part of one territory in which the national govern­ ment exercises local or municipal functions, and where in consequence tiie government bas a free band In reference to certain types of social and economic legislation which must be essentially local or municipal in their charac­ ter. The government should see to It, for in­ stance, that the hygienic and sanitary legis­ lation affecting Washington Is of a high char­ acter. The city should be a mo4el In every respect for all tbe cities of the country. More­ over, while Washington Is not a great indus­ trial city, there Is some industrialism here, and our labor legislation, while it would not be important in Itself, might be made a model for the rest of the nation. We should pass, for Instance, a wise employer's-llablllty act for the District of Columbia, and we need such an act in our navy-yards, ttallroad compulse is the district ought to be required by law to block their frogs. Protection for Railway Men. The safety-appliance law, for the better pro­ tection of the lives and limbs of railway em­ ployes, which was passed in 1893, went into full effect Aug. 1, 1901. It bas resulted In averting thousands of casualties. Experience shows, however, the necessity of additional leg­ islation to perfect this law. A bill to pro­ vide for this passed the Senate at the last session. It is to be hoped that some sncb measure may now be enacted Into law. Gratifying progress has been made during tbe year In the extension of the merit system of making appointments in the government serv ice. It is much to be desired that our con­ sular system be established by law oa a basis providing for appointment and promotion only In consequence of proved fitness. Restoration of the White House. Through a wise provision of the Congress at its last session the white house, which has become disfigured by incongruous additions and changes, has now been restored to what It was planned to be by Washington. The white house is the property of the nation, and so far as Is compatible with living therein it should be kept as It originally was, for the same reasons that we keep Mount Vernon as It originally was. It la a good thing to preserve such buildings as historic monuments which keep alive oui sense of continuity with tbe nation's past. Tbe reports yf the several executive depart­ ments are submitted to the Congress wltb this communication. THEODORE BOOSEVBL/T. White Bouse. Dec. l. 1902. WAS IT A CMPLIMENT? Anyway. Mr. Harking Took Hi# Time ' to Consider It. "John," *aid Mrs. H&rklna, "I heard a nice compliment about you to­ day." Mr. Harklns put down his paper, twisted up the ends of his mus­ tache, looked pleased, and said: "Well, that's nothing so remarkable. I receive compliments nearly every day." Mrs. Harklns went on sipping her tea and her husband waited for her to resume. Finally he said: "Well, why don't you tell ^ne what it was? Who, was it that compli men ted me?" •Oh. you couldn't guess in a week." "Mrs. Deering?" he ventured. "No." "Not Bessie Falllngton?" he rather eagerlv suggested. "No." "Oh, well, of course, If there's any secret about it I don't care to hear what it was or who said It." "There isn't any secret about it," Mrs. Harklns sweetly replied. "Mr. Hannaford told me that every time he and I met he became thoroughly convinced that you were a man of excellent taste." John Harklns then shoved his hands down in his pockets and walk­ ed about to ruminate. An English Millionaire. Sir Albert Rolllt, besides being an M. P. and an English knight, Is a Knight of Portugal, a Knight of Den­ mark, a knight of the order of St. John, B. A., LL. D., D. C. L., R. E., J. P., D. L., ex-sheriff, ex-mayor, presi­ dent or director of half a hundred prosperous corporations,, banker, ex- chairman of the London Chamber of Commerce, Elder Brother of the Trinity House, ex-royal commlsloner for the Chicago exhibition, one of his majesty's lieutenants for the city of London, vice president of the National Fish Culture association and many other things. He is one of the big ship owners In the world and a knight commander of the crown of Italy. He owns palaces in London, Windsor and Paris, is fifty years old and worth 160,000,000. 8EVENTY-FIVE TON# A MINUTER, 0ver( &000 Tons of Iron 0r» Loadef V, In an Hour-*AII Ore Leading Rec* V ords on the Great Lakes Art Broken. 4} Iron ore was loaded yesterday at th§ / Chicago ft North-Western Docks a|; Ashland, Wis., at the tremendous rati of speed of 5,000 tons an hour. Thf , exact figures were 6,202 tons in oni y hour and eight minutes, the ore being » loaded into the steamer James H. Hojfi* . •' which is built with a special view t#-v^ r a p i d l o a d i n g a n d u n l o a d i n g . ? , £ The North-Western Line has two big > ore docks at Ashland, each one of / them about 1-3 of a mile long, and It was at one of these large storage docks that the Hoyt received its load In re'fei. ord-breaking time. Supt. Sampson of i' . the North-Western personally supe*»' > 4 vised the loading, and several newa»" 7 paper men witnessed it and corrob#;. ' rated the correctness of the record ' The last ore was let into the hold, ani*. the lines were cast off in record-break ­ ing time, in f&ct, the engineer of tlrtj boat hardly found time to get the ."5 ter ballast out of the vessel. ? i This rapid work is made possible by ^ the exceptional facilities of the North* Western line. Large capacity cars anfl big docks with large storage capacity have made the handling of tremendoqi quantities of ore possible. The dock*. ' of the North-Western line at Ashland-^ and Escanaba have a -capacity exceed­ ing that of any other line In the Lahi Superior region, to which is to be add­ ed one new building, which, when com* pleted, will increase their capacity al» . m6st 60 per cent and be the largest OM v dock on the Lakes. i As Morgan and Gates closed a littl* deal John said to Pierp: " 'Pears to me I've got a few dollars coming," and Pierp, reaching down in his jeans, brought up a handful of checks and, paid the difference right there. EK wasn't much; only eighteen million dollars. X No- man or woman of the humblest; v sort can really be strong, gentle antf ^ pure and good, without the world be» '*"-'l ing better for it, without somebody. being helped and comforted by th«; . very existence of that goodness.--Phlj* ̂ lips Brooks. > OIL POSITIVELY Ctfra* Rheumatism Neuralgia Backache Headache Feetache All Bodily Achet PAN $ How often wo hoar the remark Want* Religion* ReylyaK Authorities of the Episcopal church have determined on a marked endeav­ or to arouse religious feeling among the churches of New York city and neighborhood. A series of missionary meetings will be held and eminent churchmen from all parts of the coun­ try will participate. Seven American bishops will deliver addresses and the lord bishop of Thetford, England, is expected to take part also. Bishop Potter requests that all members of the denomination will so arrange their affairs as to give as much time as possible to these gatherings. New to Him. "What," asked the visitor from the city, "are those strange yellow things that lie on the ground in yonder field?" "Them?" asked Mr. Meddergrass. "Why, them's pumpklrs.** "Pumpkins? How interesting! I never saw one before." "Well, I do declare! Say, mister, what business are you in, anyway that you never pot a chance to' gi out, an' sea thirds?" ^ ^ that this or that child seemi to be Coram catching every disease that makes its appearance in the community--and agala It is noted that other ehlldmi never MM to be sick. A child whose stomach, bowels. Hver aai kidneys are kept In healthy action bj thai pleasant remedy. Dr. Caldwell's (Laxative) Syrup Pepsin I" L acquires the "sick habit." The child who is continually catching every disease known to children Is the child whose system is in a congested condition. You «an insure your child's health, end save expensive doctor bills end a let et worry, lf yon have a bottle of this laxative in the honse and see that it is osed regularly. ALL DRUGGISTS Soc mnd 01.OO Settles SAMPLE BOTTLE and interesting beeh FREE for the asking. PEPSIB SYRUP CO,, MnnticeHo, Bis. AHUARY BUYIRI . Jprli trait in a" ]••* la Januaiy yoa al- ss&i«?ac»ery burins. The hoi ruth l« over »1 tka early Sprias > yoa al- ay •klf yew erltrt wttk great* greater promptness. Seed li seats TODAY fer our large Oeaetal Catalogue No. 71. ItgWau picture*. detcrlp- Mens aae prices on alm»«* everything, yon eaS. wearer uae. Save >4 to on everything |os purchase by sending your erders to M0HTMKIY WUD t M. 0HI0A80 M The Boose thai Tells the Troth." WHOLE VIEAT F O O D PURE AND |,a PALATABLE^:'# I •' f ree fren aU eMsettsa* able featares el ssaltsd feeds at au 0000 etocm f is cmnrm A P AOJC a • f TRY IT •jjy TrWi?. **** «1TH • Liauor. Tobacoo end Clg»> £J**e Beusediee »llqaid form wtu nee cure, either with e« with oat the jjjj •.a KBITS. Meat • knowledge 1 Me and St. Ou*r*BUed by all draggtats. ITS. OS11 Moaree at.. Toledo. Tafc Wrtte Okie. , ' r> . ..t\ k' 'V:'-- '• ••• *• Z-i *