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To the Congress of the United "States: In obedience to a constitutional require­ ment I herein submit to the Congress cer­ tain information concerning national af­ fairs with the suggestion of such legisla­ tion as in my judgment is necessary and expedient. Ontrace1' *n Turkey. At the outset of a reference to the more important matters affecting our re- lations with foreign powers it would afford me satisfaction if I could assure the Congress that the disturbed condition in Asiatic Turkey had during the last year assumed a less hideous aspect, and that either as a consequence of the awak­ ening of the Turkish Government to the demand of humane civilization, or as the result of decisive action on the part of the great nations having the right by treaty to interfere for the protection, of those exposed to the rage of mad bigotry and cruel fanaticism, the shocking fea­ tures of the situation had been mitigated. Instead, however, of welcoming a soft- -ened--disposition" oF protective interven­ tion, we have been afflicted by continued and not infrequent reports of the wanton destruction of homes and the bloody butchery of men, women and children, made martyrs to their profession of Chris­ tian faith. While none of our citizens in Turkey have thus far been killed or wounded, though often in the midst of dreadful scenes of danger, their safety in the future is by no means as­ sured. Our government at home and our minister at Constantinople have left noth­ ing undone to protect our missionaries in Ottoman territory, who constitute nearly all the individuals residing there who have a right to claim our protection on the score of American citizenship. Our efforts in this direction will not be re­ laxed, but the deep feeling and sympathy that have been aroused among our people ought not to so far blind their reason and judgment as to lead them to demand im­ possible things. The Cuban Rebellion. The insurrection iu Cuba still contin­ ues with all its perplexities. It is diffi­ cult to perceive that any progress has thus far been made towards the pacifica­ tion of the island or that the situation of affairs as depicted in my last annual mes­ sage has in the least improved. If Spain still holds Havana and the seaports ami all the considerable towns, the insurgents still roam at will over at least two-thirds of the inland country, lr the determina­ tion of Spain to put down the insurrec­ tion seems but to strengthen with the lapse of time, and is evinced by her un­ hesitating devotion of largely increased military and naval forces to the task, there is much reason to believe that the insurgents have gained in point of num­ bers and character and resources, and are none the less indexible in their re­ solve not to succumb without practically securing the great objects for which they took up arms. If Spain has not yet re­ established her authority, neither have the insurgents yet made good their title to be regarded as an independent state. The spectacle of the utter ruin of an ad­ joining country, by nature one of the most fertile and charming the globe, would engage the serious attention" of the gov­ ernment and the people of the United States in any circumstances. In point of fact, they have a concern which is by no means of a wholly sentimental or philanthropic character. It lies so near to us as to be hardly separated from our territory. Our actual pecuniary interest in it is second only to that of the people and Government of Spain. These inevitable entanglements of the United States with the rebellion in Cuba, the large American property interests af­ fected and considerations of philanthropy and humanity in general have led to a vehement demand in various quarters for some sort of positive intervention on the part of the United States. It was at first proposed that belligerent rights should be accorded to the insurgents--a proposition no longer urged because un­ timely and in practical operation clearly perilous and injurious to our own inter­ ests. It has since been and is now some­ times contended that the independence of the insurgents should be recognized. But imperfect and restricted as the Spanish Govenffeient of the island may be, no other exists there--unless the will of the military officer in temporary command of a particular district can be dignified as a species of governments It is now also suggested that the United States should buy the island--a suggestion possibly. worthy of consideration if there were any evidence of a desire or willingness on the part of Spain to entertain such a pro­ posal. It is urged, finally, that, all other methods failing, the existing interncine strife in Cuba should be terminated by our intervention, even at the cost of a war between the United States and Spain--a war which its1 advocates Con­ fidently prophesy could he neither large in its proportions nor doubtful in its issue. The correctness of this forecast need be neither affirmed nor denied. The Unit­ ed States has nevertheless a character to maintain as a nation, which plainly dic­ tates that right and not niight-shonld be_ the rule of its conduct. It is in the assumed temper and dispo­ sition of the Spanish Government to rem­ edy its grievances, fortified by indica­ tions of influential public opinion in Spain that this Government has hoped to dis­ cover the most promising and effective means of ending the present strife with honor and advantage to Spain and with the achievement of all the reasona­ ble objects of the insurrection. It Was in­ timated by this Government to the Gov­ ernment of Spain some months ago that if a satisfactory measure of home rule were tendered the Cuban insurgents and would be accepted by them upon a guar­ anty of its execution* the United States would endeavor to find a way not ob­ jectionable to Spain of furnishing such guaranty. While no definite response to this intimation has yet been received from the Spanish Government, it is believed to be not altogether unwelcome, while, as already suggested, no reason is per­ ceived why it should not "be approved by the insurgents. Whatever circum­ stances may arise, our policy and our in­ terest would constrain us to object to the acquisition of the island or an interfer­ ence with its control by any other power. It should be added that It cannot be rea- onably assumed that the hitherto expect­ ant attitude of the United States will be indefinitely maintained. When the ina­ bility of Spain to deal successfully with the insurgents has become manifest and it is demonstrated that her sovereignty is extinct in Cuba for all purposes of its rightful existence, and when a hopeless struggle for its re-establishment ,has de­ generated into a strife which means noth­ ing more than the useless sacrifice of human life and the utter destruction of the very subject matter of the conflict, a situation will be presented in which our obligations to the sovereignty of Spain ,will be superceded by higher obligations, which we can hardly hesitate to recog­ nize and discharge. Treasury Information. The Secretary of the Treasury reports that during the fiscal year ended June 30, 1896, the receipts of the Government from all sources amounted to $409,475,- 408.78. During the tame period it* ex­ penditures were $434,678,654.48, the ex­ cess of expenditures over receipts thus amounting to $25,203,245.70. The ordi­ nary expenses during the year were $4,- 015,S52.21 less than during the preceding fiscal year. Of the receipts mentioned there was derived from customs the sum of $180,021,751.67, and from internal rev­ enue $146,830,615.66. The receipts from customs show an increase of $7,863,134.22 over those from the same source for the fiscal year ending June 30, 1895, and the receipts from internal revenue an increase of $3,584,537.91. The value of our imported dutiable mer­ chandise during the last fiscal year was $369,757,470, and the value of free goods imported $409,967,470, being an increase of $6,523,675 in the value of dutiable goods and $41,231,034 in the value of free goods over the preceding year. Our imports of merchandise, foreign and domestic, amounted in value to $882,606,938, being an increase oyer the preceding year of $75,068,773. The average ad valorem duty paid on dutiable goods imported dur­ ing the year was 39.94 per cent, and on free and dutiable goods taken together 20.55 per cent. The cost of collecting our internal revenue was 2,78 per cent., as against 2.81 per cent, for the fiscai year ending June 30, 1895. The total produc­ tion of distilled spirits, exclusive of fruit brandies, was 86,588,703 taxable gallons, being an increase of 6,639.108 gallons over the preceding year. There was also an increase of 1,443,676 gallons of spirits produced from fruit as compared witih the preceding year. The number of barrels of beer produced was 35,859,250, as against 33,589,784 prodjiced in the preced­ ing fiscal year, being an increase of 2,269,- 466 barrels. The total amount of gold exported dur­ ing the last fiscal year was $112,409,947 and of silver $60,541,670, being an in­ crease of $45,941,466 of gold and $13,- 246,384 of silver over the exportations of the preceding fiscal year. The imports of gold were $33,525,065 and of silver $28,- 777,186, being $2,859,095 less of gold and $8,566,007 more of silver than during the preceding year. The total stock of metallic money in the United States at the close of the last fiscal year ended the 30th day of June, 1896, was $1,228,326,- 035, of which $599,597,964 was in gold and $628,728,071 in silver. On the 1st day of November 1896, the total stock of money-of_ffir~kihds in the country was $2,285,410,590 and the amount in circula­ tion, not including that in the treasury holdings, was $1,627,055,641, being $22.63 per capita upon an estimated population of 71,992,000. The production of the precious metals in the United States dur­ ing the calendar year 1895 is estimated to have been 2,254,760 fine ounces of gold, of the value of $46,610,000, and 55,727,000 ounces of silver, of the commercial value of $36,445,000 and the coinage value of $72,051,000. The estimated production of these metals throughout the world dur­ ing the same period was 9,688,821 fine ounces of gold, amounting to $200,285,700 in value, and 169,189,249 fine ounces of silver, of the commercial value of $110,- 654,000, and of the coinage value of $218,- 738,100 according to our ratio. The coin­ age of these metals in the various coun­ tries of the world during the same cal­ endar year amounted to $232,701,438 in gold and $121,995,219 in silver. The total coinage at the mints of the United States during the fiscal year ending June 30, 1896, amounted to $71,188,468.52, of which $58,878,490 was in gold coins and $12,309,978.52 in standard silver dollar, subsidiary coins and minor coins. National Banks. . The number of national banks organ­ ized from the time the law authorizing their creation was passed, up to Oct. 31, was 5,051, and of this number 3,679 were at the date last mentioned in active oper­ ation, having authorized capital stock of $650,014,895, held by 288,902 sharehold­ ers, and circulating notes amounting to $21,412,620. The total outstanding circu­ lating notes of all national banks Oct. 31, 1896, amounted to $234,553,807, in­ cluding unredeemed but fully secured notes of banks insolvent and in process of liquidation. The increase in national bank circulation during the year ending on that day was $21,099,429. Oct. 6, 1896, when the condition of- national banks was last reported, the total re­ sources of the 3,679 active institutions was $3,263,685,313.83, which included $1,- 893,258,839.31 in loans and discounts and $362,165,733.85 in money of all kinds on hand. Of their liabilities $1,597,891,- 058-03 was due to individual depositors and $209,944,019 consisted of outstand­ ing circulating notes; Imminratldn. The numberof immigrants arriving in the United States during, the fiscal year was 343,267, of whom 340,468 wtere per- mtited to land and 2,799 were debarred on various grounds prescribed by law and returned to the countries whence they came at the expense of the steamship companies by which they were brought in. The increase in immigration over the preceding year amounted to 84,731. It is reported that with some exceptions the immigrants of the last year were of a hardy laboring class, accustomed and able to earn a support for themselves, and it is estimated that the money brought with them amounted to at least $5,000,000, though it was probably much in excess of that sum, since only thoso haying less than $30 are required to dis­ close the exact amount, and it is known that many brought considerable sums of money to buy laud and build homes. The War Department. The report of the Secretary of War ex­ hibits satisfactory conditions in the sev­ eral branches of the public service in­ trusted to his charge. The limit of our military force as fixed by law is con­ stantly and readily maintained. The present discipline and morale of our army are excellent, and marked progress and efficiency are apparent throughout its en­ tire organization. With the exception of delicate duties in thejsuppression of slight Indian ddsturbancesmlong our southwest­ ern boundary, in which the Mexican troops co-operated, and the compulsory but peaceful return, with tihe consent of Great Britain, of a band of Cree Indian* from Montana to British possessions, no active operations have been required of-- the army during the year past. r£ea Coast Defense. During the last year rapid progress has been made toward tihe completion of the scheme adopted for the erection and arma­ ment of fortifications along our sen coast, while equal progress has been made in providing tihe material for submarine de­ fense in connection with these works. This improved situation is largely due totherecentgenerous response of Congress to the recommendations of the war de­ partment. Thus we shall soon have com­ plete about one-fifth of the comprehensive system, the first step in which was noted in my message to the Congress of Dec. 4, 1893. When it is understood that a ma­ sonry emplacement not only furnishes a platform for the heavy modern high-power gun, but also in every particular serves the purpose and takes the place of the fort of former days, the importance of the work accomplished is better compre­ hended. ^ Pees of Federal Officers. It is most gratifying to note the satis­ factory results that have followed the Inauguration of the new system provided for by the act of May 28, 1896, under which certain Federal officials are com­ pensated by salaries instead of fees. The new plan was put in operation on July 1, 1896, and already the great economy it enforces, its prevention of abuses, and its tendency to a better enforcement of the laws are strikingly apparent. Detailed evidence of the usefulness of this long- delayed but now happily accomplished reform, will be found clearly set forth in the Attorney General's report. The Postal Service. Our Postofflce Department is in good condition, and the exhibit made of its operations during the fiscal year ended June 30, 1896, if allowance is made for imperfections in the laws applicable to it, is very satisfactory. The total receipts during the year were $82,499,208.40. Tho total expenditures were $90,626,296.84, exclusive, of $1,559,898.27, which was earned by the Pacific Railroad for trans­ portation and credited on their debt to the Government. There was an increase of receipts over the previous year of $5,- 516,080.21, or 7.1 per cent., and an in­ crease of expenditures of $3,836,124.02, or 4.42 per cent. The deficit was $1,- $79,956.19 less than that of the preceding Tear. The average revenue from each pound of first-class matter was 93 cents. From each pound of second-class, 8^ mills. (Of the second-class, ^ 52,348,297 was counted free matter.) From each pound of third-class, 13.1 cents. From each pound of forth-class, 15.4 cents. The growth of weight of second-class matter has been from 299,000,000 pounds in 1894 to 312,000,000 an 1895, and to almost 349;« 000,000 in 1896, and it is quite evident this increasing drawback is far outstrip