184 



CONGRESS. (THE PRESIDENT'S MESSAGE.) 



panic. I can not believe that a people so strong and 

 prosperous as ours will promote such a policy. 



The producers of silver are entitled to just con- 

 sideration, but they should not forget that the 

 Government is now buying and putting out of the 

 market what is the equivalent of the entire product 

 of our silver mines. This is more than they them- 

 selves thought of asking two years ago. I believe it 

 is the earnest desire of a great majority of the people, 

 us it is mine, that a full coin use shall be made of sil- 

 ver iust as soon as the co-operation of other nations 

 can be secured and a ratio fixed that will give circu- 

 lation equally to gold and silver. The business of 

 the world requires the use of both metals ; but I do 

 not see any prospect of gain, but much of loss, by 

 giving up the present system, in which a full use is 

 made of gold and a large use of silver, for one in 

 which silver alone will circulate. Such an event 

 would be at once fatal to the further progress of the 

 silver movement. Bimetallism is the desired end, 

 and the true friends of silver will be careful not to 

 overrun the goal and bring in silver monometallism, 

 with its necessary attendants, the loss of our gold to 

 Europe and the relief of the pressure there for a 

 larger currency. I have endeavored by the use of 

 official and unofficial agencies to keep a close observa- 

 tion of the state of puolic sentiment in Europe upon 

 this question, and have not found it to be such as to 

 justify me in proposing an international conference. 

 There is. however, I am sure, a growing sentiment in 

 Europe in favor of a larger use of silver, and I know 

 of no more effectual way of promoting this sentiment 

 than by accumulating gold here. A scarcity of gold 

 in the European reserves will be the most persuasive 

 argument for the use of silver. 



The exports of gold to Europe, which began in 

 February last and continued until the close of July, 

 aggregated over $70,000,000. The net loss of gold 

 during the fiscal year was nearly $68,000,000. That 

 no serious monetary disturbance resulted was most 

 gratifying, and gave to Europe fresh evidence of the 

 strength and stability of our financial institutions. 

 With the movement of crops the outflow of gold was 

 speedily stopped, and a return set in. Up to Dec. 

 1 we had recovered of our gold loss at the port 

 of New York $27,854,000, and it is confidently be- 

 lieved that during the winter and spring this aggre- 

 gate will be steadily and largely increased. 



The presence of a large cash surplus in the Treas- 

 ury has for many years been the subject of much un- 

 favorable criticism, and has furnished an argument to 

 those who have desired to place the tariff upon a 

 purely revenue basis. It was agreed by all that the 

 withdrawal from circulation of so large an amount of 

 money was an embarrassment to the business of the 

 country, and made necessary the intervention of the 

 department at frequent intervals to relieve threat- 

 ened monetary panics. The surplus on March 1, 

 1889, was $183,827,190.29. The policy of applying 

 this surplus to the redemption of the interest-bearing 

 securities of the United States was thought to be 

 preferable to that of depositing it without interest in 

 selected national banks. There have been redeemed 

 since the date last mentioned of interest-bearing 

 securities $259,079,350, resulting in a reduction of 

 the annual interest charge of $11,684,675. The 

 money which had been deposited in banks with- 

 out interest has been gradually withdrawn and used 

 in the redemption of bonds. 



The result of this policy, of the silver legislation, 

 and of the refunding of the 4i-per-cent. bonds has 

 been a large increase of the money in circulation. 

 At the date last named the circulation was $1,404,- 

 205,896, or $23.03 per capita; while on Dec. 1, 1891, 

 it had increased to $1,577,262,070, or $24.38 per 

 capita. The offer of the Secretary of the Treasury to 

 the holders of the 4i-per-cent. bonds to extend the 

 time of redemption, at the option of the Government, 

 at an interest of 2 per cent., was accepted by the 

 holders of about one half the amount, and the un- 

 extended bonds are being redeemed on presentation. 



The report of the Secretary of War exhibits the re- 

 sults of an intelligent, progressive, and business-like 

 administration of a department which has been too 

 much regarded as one of mere routine. The separa- 

 tion of Secretary Proctor from the department by 

 reason of his appointment as a Senator from the State 

 of Vermont is a source of great regret to me and to 

 his colleagues in the Cabinet, as I am sure it will be 

 to all those who have had business with the depart- 

 ment while under his charge. 



In the administration of army affairs some especially 

 good work has been accomplished. The efforts of 

 the Secretary to reduce the percentage of desertions 

 by removing the causes that promoted it have been 

 so successful as to enable him to report for the last 

 year a lower percentage of desertion than has been 

 before reached in the history of the army. The re- 

 sulting money saving is considerable, but the im- 

 provement in the morale of the enlisted men is the 

 most valuable incident of the reforms which have 

 brought about this result. 



The work of securing sites for shore batteries for 

 harbor defense and the manufacture of mortars and 

 guns of high power to equip them have made good 

 progress during the year. The preliminary work of 

 tests and plans, which so long delayed a start, is now 

 out of the way. Some guns have been completed, 

 and with an enlarged shop and a more complete 

 equipment at Watervliet the army will soon be abreast 

 of the navy in gun construction. Whatever unavoid- 

 able causes of delay may arise, there should be none 

 from delayed or insufficient appropriations. We shall 

 be greatly embarrassed in the proper distribution and 

 use of naval vessels until adequate shore defenses are 

 provided for our harbors. 



I concur in the recommendation of the Secretary 

 that the three-battalion organization be adopted for 

 the infantry. The adoption of a smokeless powder 

 and of a modern rifle equal in range, precision, and 

 rapidity of fire to the best now in use will, I hope, 

 not be longer delayed. 



The project of enlisting^ Indians and organizing 

 them into separate companies upon the same basis as 

 other soldiers was made the subject of very careful 

 study by the Secretary and received my approval. 

 Seven companies have been completely organized 

 and seven more are in process of organization. The 

 results of six months' training have more than real- 

 ized the highest anticipations. The men are readily 

 brought under discipline, acquire the drill with facility, 

 and show great pride in the right discharge of their 

 duties and perfect loyalty to their officers, who de- 

 clare that they would take them into action with con- 

 fidence. The discipline, order, and cleanliness of the 

 military posts will have a wholesome and elevating in- 

 fluence upon the men enlisted, and through them 

 upon their tribes, while a more friendly feeling for 

 the whites and a greater respect for the Government 

 will certainly be promoted. 



The great work done in the Kecord and Pension 

 Division of the War Department by Major Ainsworth, 

 of the medical corps, and the clerks under him, is 

 entitled to honorable mention. Taking up the work 

 with nearly 41,000 cases behind, he closed the last 

 fiscal year without a single case left over, though the 

 new cases had increased 52 per cent, in number over 

 the previous year by reason of the pension legislation 

 of the last Congress. 



I concur in the recommendation of the Attorney- 

 General that the right in felony cases to a review by 

 the Supreme Court be limited. It would seem that 

 personal liberty would have a safe guarantee if the 

 right of review in cases involving only fine and im- 

 prisonment were limited to the circuit court of ap- 

 peals, unless a constitutional question should in some 

 way be involved. 



The judges of the Court of Private Land Claims, 

 provided for by the act of March 3, 1891, have been 

 appointed and the court organized. It is now pos- 

 siole to give early relief to communities long repressed 

 in their development by unsettled land titles, and to 



