The fourth section of the Tariff Act approved July 24, 1897, appears to

provide only for commercial treaties which should be entered into by the

President and also ratified by the Senate within two years from its

passage. Owing to delays inevitable in negotiations of this nature, none of

the treaties initiated under that section could be concluded in time for

ratification by the Senate prior to its adjournment on the 4th of March

last. Some of the pending negotiations, however, were near conclusion at

that time, and the resulting conventions have since been signed by the

plenipotentiaries. Others, within both the third and fourth sections of the

act, are still under consideration. Acting under the constitutional power

of the Executive in respect to treaties, I have deemed it my duty, while

observing the limitations of concession provided by the fourth section, to

bring to a conclusion all pending negotiations, and submit them to the

Senate for its advice and consent.

Conventions of reciprocity have been signed during the Congressional recess

with Great Britain for the respective colonies of British Guiana, Barbados,

Bermuda, Jamaica, and Turks and Caicos Islands, and with the Republic of

Nicaragua.

Important reciprocal conventions have also been concluded with France and

with the Argentine Republic.

In my last annual message the progress noted in the work of the diplomatic

and consular officers in collecting information as to the industries and

commerce of other countries, and in the care and promptitude with which

their reports are printed and distributed, has continued during the past

year, with increasingly valuable results in suggesting new sources of

demand for American products and in pointing out the obstacles still to be

overcome in facilitating the remarkable expansion of our foreign trade. It

will doubtless be gratifying to Congress to learn that the various agencies

of the Department of State are co-operating in these endeavors with a zeal

and effectiveness which are not only receiving the cordial recognition of

our business interests, but are exciting the emulation of other

Governments. In any rearrangement of the great and complicated work of

obtaining official data of an economic character which Congress may

undertake it is most important, in my judgment, that the results already

secured by the efforts of the Department of State should be carefully

considered with a view to a judicious development and increased utility to

our export trade.

The interest taken by the various States forming the International Union of

American Republics in the work of its organic bureau is evidenced by the

fact that for the first time since its creation in 1890 all the Republics

of South and Central America are now represented in it.

The unanimous recommendation of the International American Conference,

providing for the International Union of American Republics, stated that it

should continue in force during a term of ten years from the date of its

organization, and no country becoming a member of the union should cease to

be a member until the end of said period of ten years, and unless twelve

months before the expiration of said period a majority of the members of

the union had given to the Secretary of State of the United States official

notice of their wish to terminate the union at the end of its first period,

that the union should continue to be maintained for another period of ten

years, and thereafter, under the same conditions, for successive periods of

ten years each.

The period for notification expired on July 14, 1899, without any of the

members having given the necessary notice of withdrawal. Its maintenance is

therefore assured for the next ten years. In view of this fact and of the

numerous questions of general interest and common benefit to all of the

Republics of America, some of which were considered by the first

International American Conference, but not finally settled, and others

which have since then grown to importance, it would seem expedient that the

various Republics constituting the Union should be invited to hold at an

early date another conference in the capital of one of the countries other

than the United States, which has already enjoyed this honor.

The purely international character of the work being done by the bureau and

the appreciation of its value are further emphasized by the active

co-operation which the various Governments of the Latin. American Republics

and their diplomatic representatives in this capital are now exhibiting and

the zealous endeavors they are making to extend its field of usefulness, to

promote through it commercial intercourse, and strengthen the bonds of

amity and confidence between its various members and the nations of this

continent.

The act to encourage the holding of the Pan-American Exposition on the

Niagara frontier, within the county of Erie or Niagara, in the State of New

York, in the year 1901, was approved on March 3, 1899.

This exposition, which will be held in the city of 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

Hemisphere. Satisfactory assurances have already been given by the

diplomatic representatives 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 progress during the

century which is about to close.

The law provides an appropriation Of $500,000 for the purpose of making an

exhibit at the exposition by the Government of the United States from its

Executive Departments and from the Smithsonian Institution and National

Museum, the United States Commission of Fish and Fisheries, the Department

of Labor, and the Bureau of the American Republics. To secure a complete

and harmonious arrangement of this Government exhibit a board of management

has already been created, and charged with the selection, purchase,

preparation, transportation, arrangement, and safe-keeping of the articles

and materials to be exhibited. This board has been organized and has

already entered upon the performance of its duties, as provided for by the

law.

I have every reason to hope and believe that this exposition will tend more

firmly to cement the cordial relations between the nations on this

continent.

In accordance with an act of Congress approved December 21, 1898, and under

the auspices of the Philadelphia Commercial Museum, a most interesting and

valuable exposition of products and manufactures especially adapted to

export trade was held in Philadelphia from the 14th of September to the 1st

of December, 1899. The representative character of the exhibits and the

widespread interest manifested in the special objects of the undertaking

afford renewed encouragement to those who look confidently to the steady

growth of our enlarged exportation of manufactured goods, which has been

the most remarkable fact in the economic development of the United States

in recent years. A feature of this exposition which is likely to become of

permanent and increasing utility to our industries is the collection of

samples of merchandise produced in various countries with special reference

to particular markets, providing practical object lessons to United States

manufacturers as to qualities, styles, and prices of goods such as meet the

special demands of consumers and may be exported with advantage.

In connection with the exposition an International Commercial Congress was

held, upon the invitation of the Philadelphia Commercial Museum,

transmitted by the Department of State to the various foreign Governments,

for an exchange of information and opinions with the view to the promotion

of international trade. This invitation met with general and cordial

acceptance, and the Congress, which began its sessions at the exposition on

the 13th of October proved to be of great practical importance, from the

fact that it developed a general recognition of the interdependence of

nations in trade and a most gratifying spirit of accommodation with

reference to the gradual removal of existing impediments to reciprocal

relations, without injury to the industrial interests of either party.

In response to the invitation of His Majesty, the Emperor of Russia,

delegates from twenty-six countries were assembled at The Hague on the 18th

of May, as members of a conference in the interest of peace. The commission

from the United States consisted of the Hon. Andrew D. White, the Hon. Seth

Low, the Hon. Stanford Newel, Captain Alfred T. Mahan, of the United States

Navy, Captain William Crozier, of the United States Army, and the Hon.

Frederick W. Holls, secretary. The occasion seemed to be opportune for the

serious consideration of a plan for the pacific adjustment of international

differences, a subject in which the American people have been deeply

interested for many years, and a definite project for a permanent

international tribunal was included in the instructions to the delegates of

the United States.

The final act of the conference includes conventions upon the amelioration

of the laws and customs of war on land, the adaptation to maritime warfare

of the principles of the Geneva Convention of 1864, and the extension of

judicial methods to international cases. The Convention for the Pacific

Settlement of International Conflicts embodies the leading features of the

American plan, with such modifications as were rendered necessary by the

great diversity of views and interests represented by the delegates. The

four titles of the convention provide for the maintenance of general peace,

the exercise of good offices and mediation, the formation of commissions of

inquiry, and international arbitration.

The mediation provided for by the convention is purely voluntary and

advisory, and is intended to avoid any invasion or limitation of the

sovereign rights of the adhering States. The commissions of inquiry

proposed consists of delegations to be specifically constituted for

particular purposes by means of conventions between the contesting parties,

having for their object the clear understanding of international

differences before resorting to the use of force. The provision for

arbitration contemplates the formation of a permanent tribunal before which

disputed cases may be brought for settlement by the mutual consent of the

litigants in each separate case. The advantages of such a permanent

tribunal over impromptu commissions of arbitration are conceived to be the

actual existence of a competent court, prepared to administer justice, the

greater economy resulting from a well-devised system, and the accumulated

judicial skill and experience which such a tribunal would soon possess.

While earnestly promoting the idea of establishing a permanent

international tribunal, the delegation of the United States was not

unmindful of the inconveniences which might arise from an obtrusive

exercise of mediation, and in signing the convention carefully guarded the

historic position of the United States by the following declaration:

Nothing contained in this convention shall be so construed as to require

the United States of America to depart from its traditional policy of not

intruding upon, interfering with, or entangling itself in the political

questions or policy or internal administration of any foreign state; nor

shall anything contained in the said convention be construed to imply a

relinquishment by the United. States of America of its traditional attitude

toward purely American questions. Thus interpreted, the Convention for the

Pacific Settlement of International Conflicts may be regarded as realizing

the earnest desire of great numbers of American citizens, whose deep sense

of justice, expressed in numerous resolutions and memorials, has urged them

to labor for this noble achievement. The general character of this

convention, already signed by the delegates of more than twenty sovereign

States, further commends it to the favorable action of the Senate of the

United States, whose ratification it still awaits.

Since my last annual message, and in obedience to the acts of the Congress

of April 22 and 26, 1898, the remaining volunteer force enlisted for the

Spanish War, consisting Of 34,834 regulars and 110,202 volunteers, with

over 5,000 volunteer officers, has been discharged from the military

service. Of the volunteers, 667 officers and 14,831 men were serving in the

Philippines, and 1,650 of the regulars, who were entitled to be mustered

out after the ratification of the treaty of peace. They voluntarily

remained at the front until their places could be filled by new troops.

They were returned home in the order in which they went to Manila, and are

now all of them out of the service and in the ranks of citizenship. I

recommend that the Congress provide a special medal of honor for the

volunteers, regulars, sailors, and marines on duty in the Philippines who

voluntarily remained in the service after their terms of enlistment had

expired.

By the act of March 2, 1899, Congress gave authority to increase the

Regular Army to a maximum not exceeding 65,000 enlisted men, and to enlist

a force of 5,000 volunteers, to be recruited from the country at large. By

virtue of this authority the Regular Army has been increased to the number

of 61,999 enlisted men and 2,248 officers, and new volunteer regiments have

been organized aggregating 33,050 enlisted men and 1,524 officers. Two of

these volunteer regiments are made up of colored men, with colored line

officers. The new troops to take the places of those returning from the

Philippines have been transported to Manila to the number of 581 officers

and 26,322 enlisted men of the Regular Army and 594 officers and 15,388

enlisted men of the new volunteer force, while 504 officers and 14, 119 men

of the volunteer force are on the ocean en route to Manila.

The force now in Manila consists Of 905 officers and 30,578 regulars, and

594 officers and 15,388 of the volunteers, making an aggregate of 1,499

officers and 45,966 men. When the troops now under orders shall reach

Manila the force in the archipelago will comprise 2,051 officers and 63,483

men. The muster out of the great volunteer army organized for the Spanish

War and the creation of a new army, the transportation from Manila to San

Francisco of those entitled to discharge and the transportation of the new

troops to take their places have been a work of great magnitude well and

ably done, for which too much credit cannot be given the War Department.

During the past year we have reduced our force in Cuba and Puerto Rico, In

Cuba we now have 334 officers and 10,796 enlisted men; In Puerto Rico, 87

officers and 2,855 enlisted men and a battalion of 400 men composed of

native Puerto Ricans; while stationed throughout the United States are 910

officers and 17,317 men, and in Hawaii 12 officers and 453 enlisted men.

The operations of the Army are fully presented in the report of the

Secretary of War. I cannot withhold from officers and men the highest

commendation for their soldierly conduct in trying situations, their

willing sacrifices for their country, and the integrity and ability with

which they have performed unusual and difficult duties in our island

possessions.

In the organization of the volunteer regiments authorized by the act of

March 2, 1899, it was found that no provision had been made for chaplains.

This omission was doubtless from inadvertence. I recommend the early

authorization for the appointment of one chaplain for each of said

regiments. These regiments are now in the Philippines, and it is important

that immediate action be had.

In restoring peaceful conditions, orderly rule, and civic progress in Cuba,

Puerto Rico, and, so far as practicable, in the Philippines, the

rehabilitation of the postal service has been an essential and important

part of the work. It became necessary to provide mail facilities both for

our forces of occupation and for the native population. To meet this

requirement has involved a substantial reconstruction. The existing systems

were so fragmentary, defective, and inadequate that a new and comprehensive

organization had to be created. American trained officials have been

assigned to the directing and executive positions, while natives have been

chiefly employed in making up the body of the force. In working out this

plan the merit rule has been rigorously and faithfully applied.

The appointment of Director-General of Posts of Cuba was given to an expert

who had been Chief Post-Office Inspector and Assistant Postmaster-General,

and who united large experience with administrative capacity. For the

postmastership at Havana the range of skilled and available men was

scanned, and the choice fell upon one who had been twenty years in the

service as deputy postmaster and postmaster of a large city. This principle

governed and determined the selection of the American officials sent not

only to Cuba, but to Puerto Rico and the Philippines, and they were

instructed to apply it so far as practicable in the employment of the

natives as minor postmasters and clerks. The postal system in Cuba, though

remaining under the general guidance of the Postmaster-General, was made

essentially independent. It was felt that it should not be a burden upon

the postal service of the United States, and provision was made that any

deficit in the postal revenue should be a charge upon the general revenues

of the island.

Though Puerto Rico and the Philippines hold a different relation to the

United States, yet, for convenience of administration, the same principle

of an autonomous system has been extended to them. 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

systems, and has given the people mail facilities far greater and more

reliable than any they have ever before enjoyed. It is thus not only a

vital agency of industrial, social, and business progress, but an important

influence in diffusing a just understanding of the true spirit and

character of American administration.

The domestic postal service continues to grow with extraordinary rapidity.

The expenditures and the revenues will each exceed $100,000,000 during the

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 witness the obliteration of the annual

deficit. In this connection the report of the Postmaster-General embodies a

statement of some evils which have grown up outside of the contemplation of

law in the treatment of some classes of mail matter which wrongly exercise

the privilege of the pound rate, and shows that if this matter had been

properly classified and had paid the rate which it should have paid,

instead of a postal deficit for the last fiscal year of $6,610,000, there

would have been on one basis a surplus of $17,637,570, and on another Of

$5,733,836. The reform thus suggested, in the opinion of the

Postmaster-General, would not only put the postal service at once on a

self-sustaining basis, but would permit great and valuable improvements,

and I commend the subject to the consideration of the Congress.

The Navy has maintained the spirit and high efficiency which have always

characterized that service, and has lost none of the gallantry in heroic

action which has signalized its brilliant and glorious past. The Nation has

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

and will justify liberal appropriations for its maintenance and

improvement. The officers have shown peculiar adaptation for the

performance of new and delicate duties which our recent war has imposed.

It cannot be doubted that Congress will at once make necessary provision

for the armor plate for the vessels now under contract and building. Its

attention is respectfully called to the report of the Secretary of the

Navy, in which the subject is fully presented. I unite in his

recommendation that the Congress enact such special legislation as may be

necessary to enable the Department to make contracts early in the coming

year for armor of the best quality that can be obtained in this country for

the Maine, Ohio, and Missouri, and that the provision of the act of March

3, 1899, limiting the price of armor to $300 per ton be removed.

In the matter of naval construction Italy and Japan, of the great powers,

laid down less tonnage in the year 1899 than this country, and Italy alone

has less tonnage under construction. I heartily concur in the

recommendations for the increase of the Navy, as suggested by the

Secretary.

Our future progress and prosperity depend upon our ability to equal, if not

surpass, other nations in the enlargement and advance of science, industry,

and commerce. To invention we must turn as one of the most powerful aids to

the accomplishment of such a result. The attention of the Congress is

directed to the report of the Commissioner of Patents, in which will be

found valuable suggestions and recommendations.

On the 30th of June, 1899, the pension roll of the United States numbered

991,519. These include the pensioners of the Army and Navy in all our wars.

The number added to the rolls during the year was 40,991. The number

dropped by reason of death, remarriage, minors by legal limitation, failure

to claim within three years, and other causes, was 43, 186, and the number

of claims disallowed was 107,919. During the year 89,054 pension

certificates were issued, of which 37,077 were for new or original

pensions. The amount disbursed for army and navy pensions during the year

was $138,355,052.95, which was $1,651,461.61 less than the sum of the

appropriations.

The Grand Army of the Republic at its recent national encampment held in

Philadelphia has brought to my attention and to that of the Congress the

wisdom and justice of a modification of the third section of the act of

June 27, 1890, which provides pensions for the widows of officers and

enlisted men who served ninety days or more during the War of the Rebellion

and were honorably discharged, provided that such widows are without other

means of sup, port than their daily labor and were married to the soldier,

sailor, or marine on account of whose service they claim pension prior to

the date of the act.

The present holding of the Department is that if the widow's income aside

from her daily labor does not exceed in amount what her pension would be,

to wit, $96 per annum, she would be deemed to be without other means of

support than her daily labor, and would be entitled to a pension under this

act; while if the widow's income independent of the amount received by her

as the result of her daily labor exceeds $96, she would not be pensionable

under the act. I am advised by the Commissioner of Pensions that the amount

of the income allowed before title to pension would be barred has varied

widely under different administrations of the Pension Office, as well as

during different periods of the same administration, and has been the cause

of just complaint and criticism.

With the approval of the Secretary of the Interior the Commissioner of

Pensions recommends that, in order to make the practice at all times

uniform and to do justice to the dependent widow, the amount of income

allowed independent of the proceeds of her daily labor should be not less

than $250 per annum, and he urges that the Congress shall so amend the act

as to permit the Pension Office to grant pensionable status to widows under

the terms of the third section of the act of June 27, 1890, whose income

aside from the proceeds of daily labor is not in excess of $250 per annum.

I believe this to be a simple act of justice and heartily recommend it.

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