must we be unmindful of the need of improvement among our own citizens, but with the zeal of our forefathers encourage the spread of knowledge and free education. Illiteracy must be banished from the land if we shall attain that high destiny as the foremost of the enlightened nations of the world which, under Providence, we ought to achieve. Reforms in the civil service must go on; but the changes should be real and genuine, not perfunctory, or prompted by a zeal in behalf of any party simply because it happens to be in power. As a member of Congress I voted and spoke in favor of the present law, and I shall attempt its enforcement in the spirit in which it was enacted. The purpose in view was to secure the most efficient service of the best men who would accept appointment under the Government, retaining faithful and devoted public servants in office, but shielding none, under the authority of any rule or custom, who are inefficient, incompetent, or unworthy. The best interests of the country demand this, and the people heartily approve the law wherever and whenever it has been thus administrated.

Congress should give prompt attention to the restoration of our American merchant marine, once the pride of the seas in all the great ocean highways of commerce. To my mind, few more important subjects so imperatively demand its intelligent consideration. The United States has progressed with marvelous rapidity in every field of enterprise and endeavor until we have become foremost in nearly all the great lines of inland trade, commerce, and industry. Yet, while this is true, our American merchant marine has been steadily declining until it is now lower, both in the percentage of tonnage and the number of vessels employed, than it was prior to the Civil War. Commendable progress has been made of late years in the upbuilding of the American Navy, but we must supplement these efforts by providing as a proper consort for it a merchant marine amply sufficient for our own carrying trade to foreign countries. The question is one that appeals both to our business necessities and the patriotic aspirations of a great people. It has been the policy of the United States since the foundation of the Government to cultivate relations of peace and amity with all the nations of the world, and this accords with my conception of our duty We have cherished the policy of non-interference with the affairs of foreign governments wisely inaugurated by Washington, keeping ourselves free from entanglement, either as allies or foes, content to leave undisturbed with them the settlement of their own domestic con cerns. It will be our aim to pursue a firm and dignified foreign policy, which shall be just, impartial, ever watchful of our national honor, and always insisting upon the enforcement of the lawful rights of Ameri can citizens everywhere. Our diplomacy should seek nothing more and accept nothing less than is due us. We want no wars of conquest; we must avoid the temptation of territorial aggression. War should never be entered upon until every agency of peace has failed; peace is prefer

now.

able to war in almost every contingency. Arbitration is the true method of settlement of international as well as local or individual differences. It was recognized as the best means of adjustment of differences between employers and employees by the Forty-ninth Congress, in 1886, and its application was extended to our diplomatic relations by the unanimous concurrence of the Senate and House of the Fifty-first Congress in 1890. The latter resolution was accepted as the basis of negotiations with us by the British House of Commons in 1893, and upon our invitation a treaty of arbitration between the United States and Great Britain was signed at Washington and transmitted to the Senate for its ratification in January last. Since this treaty is clearly the result of our own initiative; since it has been recognized as the leading feature of our foreign policy throughout our entire national history - the adjustment of difficulties by judicial methods rather than force of arms—and since it presents to the world the glorious example of reason and peace, not passion and war, controlling the relations between two of the greatest nations in the world, an example certain to be followed by others, I respectfully urge the early action of the Senate thereon, not merely as a matter of policy, but as a duty to mankind. The importance and moral influence of the ratification of such a treaty can hardly be overestimated in the cause of advancing civilization. It may well engage the best thought of the statesmen and people of every country, and I cannot but consider it fortunate that it was reserved to the United States to have the leadership in so grand a work.

It has been the uniform practice of each President to avoid, as far as possible, the convening of Congress in extraordinary session. It is an example which, under ordinary circumstances and in the absence of a public necessity, is to be commended. But a failure to convene the representatives of the people in Congress in extra session when it involves neglect of a public duty places the responsibility of such neglect upon the Executive himself. The condition of the public Treasury, as has been indicated, demands the immediate consideration of Congress. It alone has the power to provide revenues for the Government. Not to convene it under such circumstances I can view in no other sense than the neglect of a plain duty. I do not sympathize with the sentiment that Congress in session is dangerous to our general business interests. Its members are the agents of the people, and their presence at the seat of Government in the execution of the sovereign will should not operate as an injury, but a benefit. There could be no better time to put the Government upon a sound financial and economic basis than now. The people have only recently voted that this should be done, and nothing is more binding upon the agents of their will than the obligation of immediate action. It has always seemed to me that the postponement of the meeting of Congress until more than a year

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after it has been chosen deprived Congress too often of the inspiration of the popular will and the country of the corresponding benefits. It is evident, therefore, that to postpone action in the presence of so great a necessity would be unwise on the part of the Executive because unjust to the interests of the people. Our action now will be freer from mere partisan consideration than if the question of tariff revision was postponed until the regular session of Congress. We are nearly two years from a Congressional election, and politics cannot so greatly distract us as if such contest was immediately pending. We can approach the problem calmly and patriotically, without fearing its effect upon an early election.

Our fellow-citizens who may disagree with us upon the character of this legislation prefer to have the question settled now, even against their preconceived views, and perhaps settled so reasonably, as I trust and believe it will be, as to insure great permanence, than to have further uncertainty menacing the vast and varied business ́interests of the United States. Again, whatever action Congress may take will be given a fair opportunity for trial before the people are called to pass judgment upon it, and this I consider a great essential to the rightful and lasting settlement of the question. In view of these considerations, I shall deem it my duty as President to convene Congress in extraordinary session on Monday, the 15th day of March, 1897.

In conclusion, I congratulate the country upon the fraternal spirit of the people and the manifestations of good will everywhere so apparent. The recent election not only most fortunately demonstrated the obliteration of sectional or geographical lines, but to some extent also the prejudices which for years have distracted our councils and marred our true greatness as a nation The triumph of the people, whose verdict is carried into effect to-day, is not the triumph of one section, nor wholly of one party, but of all sections and all the people. The North and the South no longer divide on the old lines, but upon principles and policies; and in this fact surely every lover of the country can find cause for true felicitation. Let us rejoice in and cultivate this spirit; it is ennobling and will be both a gain and a blessing to our beloved country. It will be my constant aim to do nothing, and permit nothing to be done, that will arrest or disturb this growing sentiment of unity and co-operation, this revival of esteem and affiliation which now animates so many thousands in both the old antagonistic sections, but I shall cheerfully do everything possible to promote and increase it.

Let me again repeat the words of the oath administered by the Chief Justice which, in their respective spheres, so far as applicable, I would have all my countrymen observe: "I will faithfully execute the office of President of the United States, and will, to the best of my ability, preserve, protect, and defend the Constitution of the United States."

This is the obligation I have reverently taken before the Lord Most High. To keep it will be my single purpose, my constant prayer; and I shall confidently rely upon the forbearance and assistance of all the people in the discharge of my solemn responsibilities.

MESSAGES.

EXECUTIVE MANSION, March 15, 1897.

To the Congress of the United States:

Regretting the necessity which has required me to call you together, I feel that your assembling in extraordinary session is indispensable because of the condition in which we find the revenues of the Government. It is conceded that its current expenditures are greater than its receipts, and that such a condition has existed for now more than three years. With unlimited means at our command, we are presenting the remarkable spectacle of increasing our public debt by borrowing money to meet the ordinary outlays incident upon even an economical and prudent administration of the Government. An examination of the subject discloses this fact in every detail and leads inevitably to the conclusion that the condition of the revenue which allows it is unjustifiable and should be corrected.

We find by the reports of the Secretary of the Treasury that the revenues for the fiscal year ending June 30, 1892, from all sources were $425.868,260.22, and the expenditures for all purposes were $415,953,806.56, leaving an excess of receipts over expenditures of $9,914,453.66. During that fiscal year $40,570,467.98 were paid upon the public debt, which had been reduced since March 1, 1889, $259,076,890, and the annual interest charge decreased $11,684.576.60. The receipts of the Government from all sources during the fiscal year ending June 30, 1893, amounted to $461,716,561.94, and its expenditures to $459.374,887.65, showing an excess of receipts over expenditures of $2.341,674.29. Since that time the receipts of no fiscal year, and with but few exceptions of no month of any fiscal year, have exceeded the expenditures. The receipts of the Government, from all sources, during the fiscal year ending June 30, 1894, were $372,802,498.29, and its expendi tures $442,605,758.87, leaving a deficit, the first since the resumption of specie payments, of $69,803, 260. 58. Notwithstanding there was a decrease of $16,769, 128.78 in the ordinary expenses of the Government, as compared with the previous fiscal year, its income was still not sufficient to provide for its daily necessities, and the gold reserve in the Treasury for the redemption of greenbacks was drawn upon to meet them. But this did not suffice, and the Government then resorted to loans to replenish the reserve.

In February, 1894, $50,000,000 in bonds were issued, and in November following a second issue of $50,000,000 was deemed necessary.

The sum of $117,171,795 was realized by the sale of these bonds, but the reserve was steadily decreased until, on February 8, 1895, a third sale of $62,315,400 in bonds, for $65,116,244, was announced to Congress. The receipts of the Government for the fiscal year ending June 30, 1895, were $390,373,203.30, and the expenditures $433,178,426.48, showing a deficit of $42,805,223.18. A further loan of $100,000,000 was negotiated by the Government in February, 1896, the sale netting $111,166,246, and swelling the aggregate of bonds issued within three years to $262,315,400. For the fiscal year ending June 30, 1896, the revenues of the Government from all sources amounted to $409,475,408.78, while its expenditures were $434,678,654.48, or an excess of expenditures over receipts of $25,203, 245.70. In other words, the total receipts for the three fiscal years ending June 30, 1896, were insufficient by $137,811,729.46 to meet the total expenditures.

Nor has this condition since improved. For the first half of the present fiscal year, the receipts of the Government, exclusive of postal revenues, were $157,507,603.76, and its expenditures, exclusive of postal service, $195,410,000.22, or an excess of expenditures over receipts of $37,902,396.46. In January of this year, the receipts, exclusive of postal revenues, were $24,316,994.05, and the expenditures, exclusive of postal service, $30,269,389.29, a deficit of $5.952,395.24 for the month. In February of this year, the receipts, exclusive of postal revenues, were $24.400,997.38, and expenditures, exclusive of postal service, $28,796,056.66, a deficit of $4,395,059.28; or a total deficiency of $186,061,580.44 for the three years and eight months ending March I, 1897. Not only are we without a surplus in the Treasury, but with an increase in the public debt there has been a corresponding increase in the annual interest charge, from $22,893,883.20 in 1892, the lowest of any year since 1862, to $34,387,297.60 in 1896, or an increase of $11.493.414.40.

It may be urged that even if the revenues of the Government had been sufficient to meet all its ordinary expenses during the past three years, the gold reserve would still have been insufficient to meet the demands upon it, and that bonds would necessarily have been issued for its repletion. Be this as it may, it is clearly manifest, without denying or affirming the correctness of such a conclusion, that the debt would have been decreased in at least the amount of the deficiency, and busi ness confidence immeasurably strengthened throughout the country.

Congress should promptly correct the existing condition. Ample revenues must be supplied not only for the ordinary expenses of the Government, but for the prompt payment of liberal pensions and the liquidation of the principal and interest of the public debt. In raising revenue, duties should be so levied upon foreign products as to preserve the home market, so far as possible, to our own producers; to revive and increase manufactures; to relieve and encourage agriculture; to increase our domestic and foreign commerce; to aid and develop mining