CONGRESS. (PRESIDENT'S MESSAGE.) 



191 



holdings on Nov. 1, 1898, were $230,885,102, a* 

 compared with $153,573,147 on Nov. 1, 1897, and 

 an increase of net cash of $207,756,100 Nov. 1, 

 1897, to $300,238,275 Nov. 1, 1898. The present 

 ratio of net Treasury gold to outstanding Gov- 

 ernment liabilities, including United States notes, 

 Treasury notes of 1890, silver certificates, cur- 

 rency certificates, standard silver dollars, and 

 fractional silver coin, Nov. 1, 1898, was 25.35 per 

 cent, as compared with 1(5.90 per cent. Nov. 1, 1897. 



I renew so much of my recommendation of 

 December, 1897, as follows: 



" That when any of the United States notes 

 are presented for redemption in gold and are 

 redeemed in gold, such notes shall be kept and 

 set apart and only paid out in exchange for gold. 

 This is an obvious duty. If the holder of the 

 United States note prefers the gold, and gets it 

 from the Government, he should not receive back 

 from the Government a United States note with- 

 out paying gold in exchange for it. The reason 

 for this is made all the more apparent when the 

 Government issues an interest-bearing debt to 

 provide gold for the redemption of United States 

 notes a noninterest-bearing debt. Surely it 

 should not pay them out again except on demand 

 and for gold. If they are put out in any other 

 way, they may return again, to be followed by 

 another bond issue to redeem them another in- 

 terest-bearing debt to redeem a noninterest-bear- 

 ing debt." 



This recommendation was made in the belief 

 that such provisions of law would insure to a 

 greater degree the safety of the present standard, 

 and better protect our currency from the dangers 

 to which it is subjected from a disturbance in 

 the general business conditions of the country. 



In my judgment the present condition of the 

 Treasury amply justifies the immediate enact- 

 ment of the legislation recommended one year 

 ago, under which a portion of the gold holdings 

 should be placed in a trust fund, from which 

 greenbacks should be redeemed upon presenta- 

 tion, but when once redeemed should not there- 

 after be paid out except for gold. 



It is not to be inferred that other legislation 

 relating to our currency is not required; on the 

 contrary, there is an obvious demand for it. 



The importance of adequate provision which 

 will insure to our future a money standard re- 

 lated as our money standard now is to that of 

 our commercial rivals is generally recognized. 



The companion proposition that our domestic 

 paper currency shall be kept safe and yet be so 

 related to the needs of our industries and internal 

 commerce as to be adequate and responsive to 

 such needs is a proposition scarcely less impor- 

 tant. The subject, in all its parts, is commended 

 to the wise consideration of the Congress. 



The annexation of Hawaii and the changed re- 

 lations of the United States to Cuba, Puerto Rico, 

 and the Philippines resulting from the war, com- 

 pel the prompt adoption of a maritime policy by 

 the United States. There should be established 

 regular and frequent steamship communication, 

 encouraged by the United States, under the 

 American flag, with the newly acquired islands. 

 Spain furnished to its colonies, at an annual cost 

 of about $2,000,000, steamship lines communicat- 

 ing with a portion of the world's markets, as well 

 as with trade centers of the home Government. 

 The United States will not undertake to do less. 

 It is our duty to furnish the people of Hawaii 

 with facilities, under national control, for their 

 export and import trade. It will be conceded 

 that the present situation calls for legislation 

 which shall be prompt, durable, and liberal. 



The part which American merchant vessels and 

 their seamen performed in the war with Spain 

 demonstrates that this service, furnishing both 

 pickets and the second line of defense, is a na- 

 tional necessity, and should be encouraged in 

 every constitutional way. 



Details and methods for the accomplishment 

 of this purpose are discussed in the report of the 

 Secretary of the Treasury, to which the atten- 

 tion of Congress is respectfully invited. 



In my last annual message I recommended that 

 Congress authorize the appointment of a com- 

 mission for the purpose of making systematic 

 investigations with reference to the cause and 

 prevention of yellow fever. This matter has ac- 

 quired an increased importance as a result of the 

 military occupation of the island of Cuba and 

 the commercial intercourse between this island 

 and the United States which we have every rea- 

 son to expect. The sanitary problems connected 

 with our new relations with the island of Cuba 

 and the acquisition of Puerto Rico are no less 

 important than those relating to finance, com- 

 merce, and administration. It is my earnest de- 

 sire that these problems may be considered by 

 competent experts, and that everything may be 

 done which the most recent advances in sanitary 

 science can offer for the protection of the health 

 of our soldiers in those islands and of our citi- 

 zens who are exposed to the dangers of infection 

 from the importation of yellow fever. I there- 

 fore renew my recommendation that the author- 

 ity of Congress may be given and a suitable ap- 

 propriation made to provide for a commission of 

 experts to be appointed for the purpose indicated. 



Under the act of Congress approved April 26, 

 1898, authorizing the President in his discretion, 

 " upon a declaration of w r ar by Congress, or a 

 declaration by Congress that war exists," I di- 

 rected the increase of the regular army to the 

 maximum of 02,000, authorized in said act. 



There are now in the regular army 57,862 offi- 

 cers and men. In said act it was provided that 

 " at the end of any war in which the United 

 States may become involved the army shall be 

 reduced to a peace basis by the transfer in the 

 same arm of the service or absorption by pro- 

 motion or honorable discharge under such regu- 

 lations as the Secretary of War may establish 

 of supernumerary commissioned officers and the 

 honorable discharge or transfer of supernumerary 

 enlisted men; and nothing contained in this act 

 shall be construed as authorizing the permanent 

 increase of the commissioned or enlisted force of 

 the regular army beyond that now provided by 

 the law in force prior to the passage of this act, 

 except as to the increase of 25 majors provided 

 for in section 1 hereof." 



The importance of legislation for the perma- 

 nent increase of the army is therefore manifest, 

 and the recommendation of the Secretary of War 

 for that purpose has my unqualified approval. 

 There can be no question that at this time, and 

 probably for some time in the future, 100,000 men 

 will be none too many to meet the necessities of 

 the situation. At all" events, whether that num- 

 ber shall be required permanently or not, the 

 power should be given to the President to enlist 

 that force if in his discretion it should be neces- 

 sary; and the further discretion should be given 

 him to recruit for the army within the above 

 limit from the inhabitants of the islands with 

 the government of which we are charged. 



It is my purpose to muster out the entire vol- 

 unteer army as soon as the Congress shall pro- 

 vide for the increase of the regular establishment. 

 This will be only an act of justice, and will be 



