A notable part of the southeasterly coast of Liberia between the

Cavally and San Pedro rivers, which for nearly half a century has been

generally recognized as belonging to that Republic by cession and

purchase, has been claimed to be under the protectorate of France in

virtue of agreements entered into by the native tribes, over whom

Liberia's control has not been well maintained.

More recently negotiations between the Liberian representative and the

French Government resulted in the signature at Paris of a treaty

whereby as an adjustment certain Liberian territory is ceded to France.

This convention at last advices had not been ratified by the Liberian

Legislature and Executive.

Feeling a sympathetic interest in the fortunes of the little

Commonwealth, the establishment and development of which were largely

aided by the benevolence of our countrymen, and which constitutes the

only independently sovereign state on the west coast of Africa, this

Government has suggested to the French Government its earnest concern

lest territorial impairment in Liberia should take place without her

unconstrained consent.

Our relations with Mexico continue to be of that close and friendly

nature which should always characterize the intercourse of two

neighboring republics.

The work of relocating the monuments marking the boundary between the

two countries from Paso del Norte to the Pacific is now nearly

completed.

The commission recently organized under the conventions of 1884 and

1889 it is expected will speedily settle disputes growing out of the

shifting currents of the Rio Grande River east of E1 Paso.

Nicaragua has recently passed through two revolutions, the party at

first successful having in turn been displaced by another. Our newly

appointed minister by his timely good offices aided in a peaceful

adjustment of the controversy involved in the first conflict. The large

American interests established in that country in connection with the

Nicaragua Canal were not molested.

The canal company has unfortunately become financially seriously

embarrassed, but a generous treatment had been extended to it by the

Government of Nicaragua. The United States are especially interested in

the successful achievement of the vast undertaking this company has in

charge. That it should be accomplished under distinctively American

auspices, and its enjoyment assured not only to the vessels of this

country as a channel of communication between our Atlantic and Pacific

sea-boards, but to the ships of the world in the interests of

civilization, is a proposition which, in my judgment, does not admit of

question.

Guatemala has also been visited by the political vicissitudes which

have afflicted her Central American neighbors, but the dissolution of

its Legislature and the proclamation of a dictatorship have been

unattended with civil war.

An extradition treaty with Norway has recently been exchanged and

proclaimed.

The extradition treaty with Russia signed in March, 1887, and amended

and confirmed by the Senate in February last, was duly proclaimed last

June.

Led by a desire to compose differences and contribute to the

restoration of order in Samoa, which for some years previous had been

the scene of conflicting foreign pretensions and native strife, the

United States, departing from its policy consecrated by a century of

observance, entered four years ago into the treaty of Berlin, thereby

becoming jointly bound with England and Germany to establish and

maintain Malietoa Laupepa as King of Samoa. The treaty provided for a

foreign court of justice; a municipal council for the district of Apia,

with a foreign president thereof, authorized to advise the King; a

tribunal for the settlement of native and foreign land titles, and a

revenue system for the Kingdom. It entailed upon the three powers that

part of the cost of the new Government not met by the revenue of the

islands.

Early in the life of this triple protectorate the native dissensions it

was designed to quell revived. Rivals defied the authority of the new

King, refusing to pay taxes and demanding the election of a ruler by

native suffrage. Mataafa, an aspirant to the throne, and a large number

of his native adherents were in open rebellion on one of the islands.

Quite lately, at the request of the other powers and in fulfillment of

its treaty obligation, this Government agreed to unite in a joint

military movement of such dimensions as would probably secure the

surrender of the insurgents without bloodshed.

The war ship Philadelphia was accordingly put under orders for Samoa,

but before she arrived the threatened conflict was precipitated by King

Malietoa's attack upon the insurgent camp. Mataafa was defeated and a

number of his men killed. The British and German naval vessels present

subsequently secured the surrender of Mataafa and his adherents. The

defeated chief and ten of his principal supporters were deported to a

German island of the Marshall group, where they are held as prisoners

under the joint responsibility and cost of the three powers.

This incident and the events leading up to it signally illustrate the

impolicy of entangling alliances with foreign powers.

More than fifteen years ago this Government preferred a claim against

Spain in behalf of one of our citizens for property seized and

confiscated in Cuba. In 1886 the claim was adjusted, Spain agreeing to

pay unconditionally, as a fair indemnity, $1,500,000. A respectful but

earnest note was recently addressed to the Spanish Government insisting

upon prompt fulfillment of its long-neglected obligation.

Other claims preferred by the United States against Spain in behalf of

American citizens for property confiscated in Cuba have been pending

for many years.

At the time Spain's title to the Caroline Islands was confirmed by

arbitration that Government agreed that the rights which had been

acquired there by American missionaries should be recognized and

respected. It is sincerely hoped that this pledge will be observed by

allowing our missionaries, who were removed from Ponape to a place of

safety by a United States war ship during the late troubles between the

Spanish garrison and the natives, to return to their field of

usefulness.

The reproduced caravel Santa Maria, built by Spain and sent to the

Columbian Exposition, has been presented to the United States in token

of amity and in commemoration of the event it was designed to

celebrate. I recommend that in accepting this gift Congress make

grateful recognition of the sincere friendship which prompted it.

Important matters have demanded attention in our relations with the

Ottoman Porte.

The firing and partial destruction by an unrestrained mob of one of the

school buildings of Anatolia College, established by citizens of the

United States at Marsovan, and the apparent indifference of the Turkish

Government to the outrage, notwithstanding the complicity of some of

its officials, called for earnest remonstrance, which was followed by

promise of reparation and punishment of the offenders.

Indemnity for the injury to the buildings has already been paid,

permission to rebuild given, registration of the school property in the

name of the American owners secured, and efficient protection

guaranteed.

Information received of maltreatment suffered by an inoffensive

American woman engaged in missionary work in Turkish Koordistan was

followed by such representations to the Porte as resulted in the

issuance of orders for the punishment of her assailants, the removal of

a delinquent official, and the adoption of measures for the protection

of our citizens engaged in mission and other lawful work in that

quarter.

Turkey complains that her Armenian subjects obtain citizenship in this

country not to identify themselves in good faith with our people, but

with the intention of returning to the land of their birth and there

engaging in sedition. This complaint is not wholly without foundation.

A journal published in this country in the Armenian language openly

counsels its readers to arm, organize, and participate in movements for

the subversion of Turkish authority in the Asiatic provinces. The

Ottoman Government has announced its intention to expel from its

dominions Armenians who have obtained naturalization in the United

States since 1868.

The right to exclude any or all classes of aliens is an attribute of

sovereignty. It is a right asserted and, to a limited extent, enforced

by the United States, with the sanction of our highest court. There

being no naturalization treaty between the United States and Turkey,

our minister at Constantinople has been instructed that, while

recognizing the right of that Government to enforce its declared policy

against naturalized Armenians, he is expected to protect them from

unnecessary harshness of treatment.

In view of the impaired financial resources of Venezuela consequent

upon the recent revolution there, a modified arrangement for the

satisfaction of the awards of the late revisory claims commission, in

progressive installments, has been assented to, and payments are being

regularly made thereunder.

The boundary dispute between Venezuela and British Guiana is yet

unadjusted. A restoration of diplomatic intercourse between that

Republic and Great Britain and reference of the question to impartial

arbitration would be a most gratifying consummation.

The ratification by Venezuela of the convention for the arbitration of

the long-deferred claim of the Venezuelan Transportation Company is

awaited.

It is hardly necessary for me to state that the questions arising from

our relations with Hawaii have caused serious embarrassment. Just prior

to the installation of the present Administration the existing

Government of Hawaii had been suddenly overthrown and a treaty of

annexation had been negotiated between the Provisional Government of

the islands and the United States and submitted to the Senate for

ratification. This treaty I withdrew for examination and dispatched

Hon. James H. Blount, of Georgia, to Honolulu as a special commissioner

to make an impartial investigation of the circumstances attending the

change of government and of all the conditions bearing upon the subject

of the treaty. After a thorough and exhaustive examination Mr. Blount

submitted to me his report, showing beyond all question that the

constitutional Government of Hawaii had been subverted with the active

aid of our representative to that Government and through the

intimidation caused by the presence of an armed naval force of the

United States, which was landed for that purpose at the instance of our

minister. Upon the facts developed it seemed to me the only honorable

course for our Government to pursue was to undo the wrong that had been

done by those representing us and to restore as far as practicable the

status existing at the time of our forcible intervention. With a view

of accomplishing this result within the constitutional limits of

executive power, and recognizing all our obligations and

responsibilities growing out of any changed conditions brought about by

our unjustifiable interference, our present minister at Honolulu has

received appropriate instructions to that end. Thus far no information

of the accomplishment of any definite results has been received from

him.

Additional advices are soon expected. When received they will be

promptly sent to the Congress, together with all other information at

hand, accompanied by a special Executive message fully detailing all

the facts necessary to a complete understanding of the case and

presenting a history of all the material events leading up to the

present situation.

By a concurrent resolution passed by the Senate February 14, 1890, and

by the House of Representatives on the 3d of April following the

President was requested to "invite from time to time, as fit occasions

may arise, negotiations with any government with which the United

States has or may have diplomatic relations, to the end that any

differences or disputes arising between the two governments which can

not be adjusted by diplomatic agency may be referred to arbitration and

be peaceably adjusted by such means." April 18, 1890, the International

American Conference of Washington by resolution expressed the wish that

all controversies between the republics of America and the nations of

Europe might be settled by arbitration, and recommended that the

government of each nation represented in that conference should

communicate this wish to all friendly powers. A favorable response has

been received from Great Britain in the shape of a resolution adopted

by Parliament July 16 last, cordially sympathizing with the purpose in

view and expressing the hope that Her Majesty's Government will lend

ready cooperation to the Government of the United States upon the basis

of the concurrent resolution above quoted.

It affords me signal pleasure to lay this parliamentary resolution

before the Congress and to express my sincere gratification that the

sentiment of two great and kindred nations is thus authoritatively

manifested in favor of the rational and peaceable settlement of

international quarrels by honorable resort to arbitration.

Since the-passage of the act of March 3, 1893, authorizing the

President to raise the grade of our envoys to correspond with the rank

in which foreign countries accredit their agents here, Great Britain,

France, Italy, and Germany have conferred upon their representatives at

this capital the title of ambassador, and I have responded by

accrediting the agents of the United States in those countries with the

same title. A like elevation of mission is announced by Russia, and

when made will be similarly met. This step fittingly comports with the

position the United States hold in the family of nations.

During my former Administration I took occasion to recommend a recast

of the laws relating to the consular service, in order that it might

become a more efficient agency in the promotion of the interests it was

intended to subserve. The duties and powers of consuls have been

expanded with the growing requirements of our foreign trade.

Discharging important duties affecting our commerce and American

citizens abroad, and in certain countries exercising judicial

functions, these officers should be men of character, intelligence, and

ability.

Upon proof that the legislation of Denmark secures copyright to

American citizens on equal footing with its own, the privileges of our

copyright laws have been extended by proclamation to subjects of that

country.

The Secretary of the Treasury reports that the receipts of the

Government from all sources during the fiscal year ended June 30, 1893,

amounted to $461,716,561.94 and its expenditures to $459,374,674.29.

There was collected from customs $205,355,016.73 and from internal

revenue $161,027,623.93. Our dutiable imports amounted to $421,856,711,

an increase of $52,453,907 over the preceding year, and importations

free of duty amounted to $444,544,211, a decrease from the preceding

year of $13,455,447. Internal-revenue receipts exceeded those of the

preceding year by $7,147,445.32. The total tax collected on distilled

spirits was $94,720,260.55, on manufactured tobacco $31,889,711.74, and

on fermented liquors $32,548,983.07. We exported merchandise during the

year amounting to $847,665,194, a decrease of $182,612,954 from the

preceding year. The amount of gold exported was larger than any

previous year in the history of the Government, amounting to

$108,680,844, and exceeding the amount exported during the preceding

year by$58,485,517.

The sum paid from the Treasury for sugar bounty was $9,375,130.88, an

increase over the preceding year of $2,033,053.09.

It is estimated upon the basis of present revenue laws that the

receipts of the Government for the year ending June 30, 1894, will be

$430,121,365.38 and its expenditures $458,121,365.28, resulting in a

deficiency of $28,000,000.

On the 1st day of November, 1893, the amount of money of all kinds in

circulation, or not included in Treasury holdings, was $1,718,544,682,

an increase for the year of $112,404,947. Estimating our population at

67,426,000 at the time mentioned, the per capita circulation was

$25.49. On the same date there was in the Treasury gold bullion

amounting to $96,657,273 and silver bullion which was purchased at a

cost of $126,261,553.

The purchases of silver under the law of July 14, 1890, during the last

fiscal year aggregated 54,008,162.59 fine ounces, which cost

$45,531,374.53. The total amount of silver purchased from the time that

law became operative until the repeal of its purchasing clause, on the

1st day of November, 1893, was 168,674,590.46 fine ounces, which cost

$155,930,940.84. Between the 1st day of March, 1873, and the 1st day of

November, 1893, the Government purchased under all laws 503,003,717

fine ounces of silver, at a cost of $516,622,948. The silver dollars

that have been coined under the act of July 14, 1890, number

36,087,285. The seigniorage arising from such coinage was

$6,977,098.39, leaving on hand in the mints 140,699,760 fine ounces of

silver, which cost $126,758,218.

Our total coinage of all metals during the last fiscal year consisted

of 97,280,875 pieces, valued at $43,685,178.80, of which there was

$30,038,140 in gold coin, $5,343,715 in silver dollars, $7,217,220.90

in subsidiary silver coin, and $1,086,102.90 in minor coins.

During the calendar year 1892 the production of precious metals in the

United States was estimated to be 1,596,375 fine ounces of gold of the

commercial and coinage value of $33,000,000 and 58,000,000 fine ounces

of silver of the bullion or market value of $50,750,000 and of the

coinage value of $74,989,900.

It is estimated that on the 1st day of July, 1893, the metallic stock

of money in the United States, consisting of coin and bullion, amounted

to $1,213,559,169, of which $597,697,685 was gold and $615,861,484 was

silver.

One hundred and nineteen national banks were organized during the year

ending October 31, 1893, with a capital of $11,230,000. Forty-six went

into voluntary liquidation and 158 suspended. Sixty-five of the

suspended banks were insolvent, 86 resumed business, and 7 remain in

the hands of the bank examiners, with prospects of speedy resumption.

Of the new banks organized, 44 were located in the Eastern States, 41

west of the Mississippi River, and 34 in the Central and Southern

States. The total number of national banks in existence on October 31,

1893, was 3,796, having an aggregate capital of $695,558,120. The net

increase in the circulation of these banks during the year was

$36,886,972.

The recent repeal of the provision of law requiring the purchase of

silver bullion by the Government as a feature of our monetary scheme

has made an entire change in the complexion of our currency affairs. I

do not doubt that the ultimate result of this action will be most

salutary and far-reaching. In the nature of things, however, it is

impossible to know at this time precisely what conditions will be

brought about by the change, or what, if any, supplementary legislation

may in the light of such conditions appear to be essential or

expedient. Of course, after the recent financial perturbation, time is

necessary for the reestablishment of business confidence. When,

however, through this restored confidence, the money which has been

frightened into hoarding places is returned to trade and enterprise, a

survey of the situation will probably disclose a safe path leading to a

permanently sound currency, abundantly sufficient to meet every

requirement of our increasing population and business.

In the pursuit of this object we should resolutely turn away from

alluring and temporary expedients, determined to be content with

nothing less than a lasting and comprehensive financial plan. In these

circumstances I am convinced that a reasonable delay in dealing with

this subject, instead of being injurious, will increase the probability

of wise action.

The monetary conference which assembled at Brussels upon our invitation

was adjourned to the 30th day of November of the present year. The

considerations just stated and the fact that a definite proposition

from us seemed to be expected upon the reassembling of the conference

led me to express a willingness to have the meeting still further

postponed.

It seems to me that it would be wise to give general authority to the

President to invite other nations to such a conference at any time when

there should be a fair prospect of accomplishing an international

agreement on the subject of coinage.

I desire also to earnestly suggest the wisdom of amending the existing

statutes in regard to the issuance of Government bonds. The authority

now vested in the Secretary of the Treasury to issue bonds is not as

clear as it should be, and the bonds authorized are disadvantageous to

the Government both as to the time of their maturity and rate of

interest.

The Superintendent of Immigration, through the Secretary of the

Treasury, reports that during the last fiscal year there arrived at our

ports 440,793 immigrants. Of these, 1,063 were not permitted to land

under the limitations of the law and 577 were returned to the countries

from whence they came by reason of their having become public charges.

The total arrivals were 141,034 less than for the previous year.

The Secretary in his report gives an account of the operation of the

Marine-Hospital Service and of the good work done under its supervision

in preventing the entrance and spread of contagious diseases.

The admonitions of the last two years touching our public health and

the demonstrated danger of the introduction of contagious diseases from

foreign ports have invested the subject of national quarantine with

increased interest. A more general and harmonious system than now

exists, acting promptly and directly everywhere and constantly

operating by preventive means to shield our country from the invasion

of disease, and at the same time having due regard to the rights and

duties of local agencies, would, I believe, add greatly to the safety

of our people.

The Secretary of War reports that the strength of the Army on the 30th

day of September last was 25,778 enlisted men and 2,144 officers.

The total expenditures of the Department for the year ending June 30,

1893, amounted to $51,966,074.89. Of this sum $1,992,581.95 was for

salaries and contingent expenses, $23,377,828.35 for the support of the

military establishment, $6,077,033.18 for miscellaneous objects, and

518,631.41 for public works. This latter sum includes $15,296,876.46

for river and harbor improvements and $3,266,141.20 for fortifications

and other works of defense.

The total enrollment of the militia of the several States was on the

31st of October of the current year 112,597 officers and enlisted men.

The officers of the Army detailed for the inspection and instruction of

this reserve of our military force report that increased interest and

marked progress are apparent in the discipline and efficiency of the

organization.

Neither Indian outbreaks nor domestic violence have called the Army

into service during the year, and the only active military duty

required of it has been in the Department of Texas, where violations of

the neutrality laws of the United States and Mexico were promptly and

efficiently dealt with by the troops, eliciting the warm approval of

the civil and military authorities of both countries.

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