Read Ebook: A Supplement to A Compilation of the Messages and Papers of the Presidents: William McKinley by McKinley William Richardson James D James Daniel Editor

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Under such circumstances the citizens of these States look for the co-operation and support of the National Government in relieving the pressing cases of destitution for food, clothing, and shelter, which are beyond the reach of local efforts. The authorities who have communicated with the Executive recognize that their first and most energetic duty is to provide as far as possible the means of caring for their own citizens; but nearly all of them agree in the opinion that after their resources have been exhausted a sum aggregating at least 0,000 and possibly 0,000 will be required for immediate use.

Precedents are not wanting that in such emergencies as this Congress has taken prompt, generous, and intelligent action, involving the expenditure of considerable sums of money, with satisfactory results. In 1874 0,000 was appropriated, and in 1882 0,000 was also appropriated for relief in same direction, besides large sums in other years.

The citizens' relief committee of Memphis has taken prompt action, has already cared for from 6,000 to 7,000 refugees from the flooded districts, and they are still arriving in that city in large numbers daily. Supplies and provisions have been sent to the various points in Arkansas and Mississippi by this committee, but the utmost that can be done by these efforts is to partly relieve the most acute cases of suffering. No action has yet been taken for the great majority of the inhabitants living in the interior, whose condition has already been described.

Under these conditions and having exerted themselves to the fullest extent, the local authorities have reluctantly confessed their inability to further cope with this distressing situation unaided by relief from the Government. It has therefore seemed to me that the representatives of the people should be promptly informed of the nature and extent of the suffering and needs of these stricken people, and I have communicated these facts in the hope and belief that the legislative branch of the Government will promptly re-enforce the work of the local authorities in the States named.

WILLIAM McKINLEY.

I transmit herewith for the consideration of the respective Houses of the Congress, a report of the Secretary of State representing the appropriateness of early action in order that the Government of the United States may be enabled to accept the invitation of that of the French Republic to participate in the Universal Exposition to be held at Paris in 1900.

The recommendations of this report have my most cordial approval, and I urge upon the Congress such timely provision for this great international enterprise as will fittingly respond to the widely testified wish and expectation of our inventors and producers that they may have adequate opportunity again, as in the past, to fortify the important positions that have won in the world's competitive fields of discovery and industry. Nor are the traditional friendships of the United States and France and the mutual advantages to accrue from their enlarged commercial intercourse less important factors than the individual interests to be fostered by renewed participation in a great French exposition, especially when it is remembered that the present display is projected with a degree of completeness and on a scale of magnificence beyond any of the European exhibitions that have marked the close of the century.

It is proper that I should emphasize the need of early action, for if the present session pass without suitable provision being made, the postponement of the matter for nearly a year longer could not but operate greatly to the disadvantage of the United States, in view of the elaborate preparations already making by other governments, and of the danger that further delay may result in an inadequate allotment of space to this country as well as an incomplete organization of the American exhibit.

WILLIAM McKINLEY.

I transmit a report from the Secretary of State reciting the circumstances attending the lynching at Hahnville, La., on the night of August 8, 1896, of three Italian subjects, named Salvatore Arena, Giuseppe Venturelia, and Lorenzo Salardino, and I recommend the appropriation by Congress, without admitting the liability of the Government of the United States in the premises, of the sum of ,000, to be paid by the Secretary of State to the Government of Italy, and to be distributed by that government in such manner as it may deem proper among the heirs of the three Italian subjects above named.

WILLIAM McKINLEY.

I transmit herewith, in response to the Senate resolution of April 22, 1897, addressed to the Secretary of State, a report from that officer relative to diplomatic and consular reports on postal savings banks systems in foreign countries.

WILLIAM McKINLEY.

Official information from our consuls in Cuba establishes the fact that a large number of American citizens in the island are in a state of destitution, suffering for want of food and medicines. This applies particularly to the rural districts of the central and eastern parts.

The agricultural classes have been forced from their farms into the nearest towns, where they are without work or money. The local authorities of the several towns, however kindly disposed, are unable to relieve the needs of their own people, and are altogether powerless to help our citizens.

The latest report of Consul-General Lee estimates six to eight hundred Americans are without means of support. I have assured him that provision would be made at once to relieve them. To that end I recommend that Congress make an appropriation of not less than ,000, to be immediately available for use, under the direction of the Secretary of State.

It is desirable that a part of the sum which may be appropriated by Congress should, in the discretion of the Secretary of State, also be used for the transportation of American citizens who, desiring to return to the United States, are without means to do so.

WILLIAM McKINLEY.

On the 15th ultimo all the buildings of the immigration station at Ellis Island, New York, excepting the heating plant and lighting apparatus, were destroyed by fire.

I transmit herewith a letter from the Secretary of the Treasury, which states the fact and explains the need of rebuilding.

In order that there may be no delay in this important work, I recommend that an appropriation be made at once of 0,000, the sum estimated by the Secretary of the Treasury as required for this purpose.

WILLIAM McKINLEY.

I transmit herewith a report from the Acting Secretary of State, with an accompanying paper, in response to the resolution of the Senate of July 12, 1897, requesting the Secretary of State to send to the diplomatic representatives of the United States abroad a circular letter, similar to the one sent by Secretary Elaine on May 20, 1881, instructing them to obtain from the several foreign governments to which they are accredited as full information as possible as to the nature and practical workings of the postal telegraphs, telephones, and postal savings banks of such countries as have adopted the same.

WILLIAM McKINLEY.

In my message convening the Congress in extraordinary session I called attention to a single subject--that of providing revenue adequate to meet the reasonable and proper expenses of the Government. I believed that to be the most pressing subject for settlement then. A bill to provide the necessary revenues for the Government has already passed the House of Representatives and the Senate and awaits executive action.

Another question of very great importance is that of the establishment of our currency and banking system on a better basis, which I commented upon in my inaugural address in the following words:

Our financial system needs some revision; our money is all good now, but its value must not further be threatened. It should all be put upon an enduring basis, not subject to easy attack, nor its stability to doubt or dispute. The several forms of our paper money offer, in my judgment, a constant embarrassment to the Government and imperil a safe balance in the Treasury.

Nothing was settled more clearly at the late national election than the determination upon the part of the people to keep their currency stable in value and equal to that of the most advanced nations of the world.

The soundness of our currency is nowhere questioned. No loss can occur to its holders. It is the system which should be simplified and strengthened, keeping our money just as good as it is now with less expense to the Government and the people.

The sentiment of the country is strongly in favor of early action by Congress in this direction, to revise our currency laws and remove them from partisan contention. A notable assembly of business men with delegates from twenty-nine States and Territories was held at Indianapolis in January of this year. The financial situation commanded their earnest attention, and after a two days' session the convention recommended to Congress the appointment of a monetary commission.

I recommend this report to the consideration of Congress. The authors of the report recommend a commission "to make a thorough investigation of the monetary affairs and needs of this country in all relations and aspects, and to make proper suggestions as to any evils found to exist and the remedies therefor."

This subject should receive the attention of Congress at its special session. It ought not to be postponed until the regular session.

I therefore urgently recommend that a special commission be created, non-partisan in its character, to be composed of well-informed citizens of different parties who will command the confidence of Congress and the country because of their special fitness for the work, whose duty it shall be to make recommendations of whatever changes in our present banking and currency laws may be found necessary and expedient, and to report their conclusions on or before the 1st day of November next, in order that the same may be transmitted by me to Congress for its consideration at its first regular session.

It is to be hoped that the report thus made will be so comprehensive and sound as to receive the support of all parties and the favorable action of Congress. At all events, such a report cannot fail to be of value to the executive branch of the Government, as well as to those charged with public legislation, and to greatly assist in the establishment of an improved system of finance.

WILLIAM McKINLEY.

FIRST ANNUAL MESSAGE.

It gives me pleasure to extend greeting to the Fifty-fifth Congress, assembled in regular session at the seat of Government, with many of whose Senators and Representatives I have been associated in the legislative service. Their meeting occurs under felicitous conditions, justifying sincere congratulation and calling for our grateful acknowledgment to a beneficent Providence which has so signally blessed and prospered us as a nation. Peace and good will with all the nations of the earth continue unbroken.

A matter of genuine satisfaction is the growing feeling of fraternal regard and unification of all sections of our country, the incompleteness of which has too long delayed realization of the highest blessings of the Union. The spirit of patriotism is universal and is ever increasing in fervor. The public questions which now most engross us are lifted far above either partisanship, prejudice, or former sectional differences. They affect every part of our common country alike and permit of no division on ancient lines. Questions of foreign policy, of revenue, the soundness of the currency, the inviolability of national obligations, the improvement of the public service, appeal to the individual conscience of every earnest citizen to whatever party he belongs or in whatever section of the country he may reside.

The extra session of this Congress which closed during July last enacted important legislation, and while its full effect has not yet been realized, what it has already accomplished assures us of its timeliness and wisdom. To test its permanent value further time will be required, and the people, satisfied with its operation and results thus far, are in no mind to withhold from it a fair trial.

Tariff legislation having been settled by the extra session of Congress, the question next pressing for consideration is that of the currency.

The work of putting our finances upon a sound basis, difficult as it may seem, will appear easier when we recall the financial operations of the Government since 1866. On the 30th day of June of that year we had outstanding demand liabilities in the sum of 8,868,447.41. On the 1st of January, 1879, these liabilities had been reduced to 3,889,495.88. Of our interest-bearing obligations, the figures are even more striking. On July 1, 1866, the principal of the interest-bearing debt of the Government was ,332,331,208. On the 1st day of July, 1893, this sum had been reduced to 5,037,100, or an aggregate reduction of ,747,294,108. The interest-bearing debt of the United States on the 1st day of December, 1897, was 7,365,620. The Government money now outstanding consists of 6,681,016 of United States notes, 7,793,280 of Treasury notes issued by authority of the law of 1890, 4,963,504 of silver certificates, and ,280,761 of standard silver dollars.

With the great resources of the Government, and with the honorable example of the past before us, we ought not to hesitate to enter upon a currency revision which will make our demand obligations less onerous to the Government and relieve our financial laws from ambiguity and doubt.

The brief review of what was accomplished from the close of the war to 1893, makes unreasonable and groundless any distrust either of our financial ability or soundness; while the situation from 1893 to 1897 must admonish Congress of the immediate necessity of so legislating as to make the return of the conditions then prevailing impossible.

There are many plans proposed as a remedy for the evil. Before we can find the true remedy we must appreciate the real evil. It is not that our currency of every kind is not good, for every dollar of it is good; good because the Government's pledge is out to keep it so, and that pledge will not be broken. However, the guaranty of our purpose to keep the pledge will be best shown by advancing toward its fulfillment.

The evil of the present system is found in the great cost to the Government of maintaining the parity of our different forms of money, that is, keeping all of them at par with gold. We surely cannot be longer heedless of the burden this imposes upon the people, even under fairly prosperous conditions, while the past four years have demonstrated that it is not only an expensive charge upon the Government, but a dangerous menace to the National credit.

It is manifest that we must devise some plan to protect the Government against bond issues for repeated redemptions. We must either curtail the opportunity for speculation, made easy by the multiplied redemptions of our demand obligations, or increase the gold reserve for their redemption. We have 0,000,000 of currency which the Government by solemn enactment has undertaken to keep at par with gold. Nobody is obliged to redeem in gold but the Government. The banks are not required to redeem in gold. The Government is obliged to keep equal with gold all its outstanding currency and coin obligations, while its receipts are not required to be paid in gold. They are paid in every kind of money but gold, and the only means by which the Government can with certainty get gold is by borrowing. It can get it in no other way when it most needs it. The Government without any fixed gold revenue is pledged to maintain gold redemption, which it has steadily and faithfully done, and which, under the authority now given, it will continue to do.

The law which requires the Government, after having redeemed its United States notes, to pay them out again as current funds, demands a constant replenishment of the gold reserve. This is especially so in times of business panic and when the revenues are insufficient to meet the expenses of the Government. At such times the Government has no other way to supply its deficit and maintain redemption but through the increase of its bonded debt, as during the Administration of my predecessor, when 2,315,400 of four-and-a-half per cent bonds were issued and sold and the proceeds used to pay the expenses of the Government in excess of the revenues and sustain the gold reserve. While it is true that the greater part of the proceeds of these bonds were used to supply deficient revenues, a considerable portion was required to maintain the gold reserve.

With our revenues equal to our expenses, there would be no deficit requiring the issuance of bonds. But if the gold reserve falls below 0,000,000, how will it be replenished except by selling more bonds? Is there any other way practicable under existing law? The serious question then is, Shall we continue the policy that has been pursued in the past; that is, when the gold reserve reaches the point of danger, issue more bonds and supply the needed gold, or shall we provide other means to prevent these recurring drains upon the gold reserve? If no further legislation is had and the policy of selling bonds is to be continued, then Congress should give the Secretary of the Treasury authority to sell bonds at long or short periods, bearing a less rate of interest than is now authorized by law.

I earnestly recommend, as soon as the receipts of the Government are quite sufficient to pay all the expenses of the Government, 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 without 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 non-interest-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 interest-bearing debt to redeem a non-interest-bearing debt.

In my view, it is of the utmost importance that the Government should be relieved from the burden of providing all the gold required for exchanges and export. This responsibility is alone borne by the Government, without any of the usual and necessary banking powers to help itself. The banks do not feel the strain of gold redemption. The whole strain rests upon the Government, and the size of the gold reserve in the Treasury has come to be, with or without reason, the signal of danger or of security. This ought to be stopped.

If we are to have an era of prosperity in the country, with sufficient receipts for the expenses of the Government, we may feel no immediate embarrassment from our present currency; but the danger still exists, and will be ever present, menacing us so long as the existing system continues. And, besides, it is in times of adequate revenues and business tranquillity that the Government should prepare for the worst. We cannot avoid, without serious consequences, the wise consideration and prompt solution of this question.

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