Messages and Papers of William McKinley V.2. by William McKinley

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Despite all these drawbacks the contribution of the United States was
not only the largest foreign display, but was among the earliest in
place and the most orderly in arrangement. Our exhibits were shown in
one hundred and one out of one hundred and twenty-one classes, and more
completely covered the entire classification than those of any other
nation. In total number they ranked next after those of France, and the
attractive form in which they were presented secured general attention.

A criterion of the extent and success of our participation and of the
thoroughness with which our exhibits were organized is seen in the
awards granted to American exhibitors by the international jury, namely,
grand prizes, 240; gold medals, 597; silver medals, 776; bronze medals,
541, and honorable mentions, 322--2,476 in all, being the greatest total
number given to the exhibit of any exhibiting nation, as well as the
largest number in each grade. This significant recognition of merit in
competition with the chosen exhibits of all other nations and at the
hands of juries almost wholly made up of representatives of France and
other competing countries is not only most gratifying, but is especially
valuable, since it sets us to the front in international questions of
supply and demand, while the large proportion of awards in the classes
of art and artistic manufactures afforded unexpected proof of the
stimulation of national culture by the prosperity that flows from
natural productiveness joined to industrial excellence.

Apart from the exposition several occasions for showing international
good will occurred. The inauguration in Paris of the Lafayette Monument,
presented by the school children of the United States, and the designing
of a commemorative coin by our Mint and the presentation of the first
piece struck to the President of the Republic, were marked by
appropriate ceremonies, and the Fourth of July was especially observed
in the French capital.

Good will prevails in our relations with the German Empire. An amicable
adjustment of the long-pending question of the admission of our
life-insurance companies to do business in Prussia has been reached. One
of the principal companies has already been readmitted and the way is
opened for the others to share the privilege.

The settlement of the Samoan problem, to which I adverted in my last
message, has accomplished good results. Peace and contentment prevail in
the islands, especially in Tutuila, where a convenient administration
that has won the confidence and esteem of the kindly disposed natives
has been organized under the direction of the commander of the United
States naval station at Pago-Pago.

An Imperial meat-inspection law has been enacted for Germany. While it
may simplify the inspections, it prohibits certain products heretofore
admitted. There is still great uncertainty as to whether our well-nigh
extinguished German trade in meat products can revive under its new
burdens. Much will depend upon regulations not yet promulgated, which we
confidently hope will be free from the discriminations which attended
the enforcement of the old statutes.

The remaining link in the new lines of direct telegraphic communication
between the United States and the German Empire has recently been
completed, affording a gratifying occasion for exchange of friendly
congratulations with the German Emperor.

Our friendly relations with Great Britain continue. The war in
Southern Africa introduced important questions. A condition unusual
in international wars was presented in that while one belligerent had
control of the seas, the other had no ports, shipping, or direct trade,
but was only accessible through the territory of a neutral. Vexatious
questions arose through Great Britain's action in respect to neutral
cargoes, not contraband in their own nature, shipped to Portuguese South
Africa, on the score of probable or suspected ultimate destination to
the Boer States.

Such consignments in British ships, by which alone direct trade is kept
up between our ports and Southern Africa, were seized in application of
a municipal law prohibiting British vessels from trading with the enemy
without regard to any contraband character of the goods, while cargoes
shipped to Delagoa Bay in neutral bottoms were arrested on the ground
of alleged destination to enemy's country. Appropriate representations
on our part resulted in the British Government agreeing to purchase
outright all such goods shown to be the actual property of American
citizens, thus closing the incident to the satisfaction of the
immediately interested parties, although, unfortunately, without a broad
settlement of the question of a neutral's right to send goods not
contraband _per se_ to a neutral port adjacent to a belligerent
area.

The work of marking certain provisional boundary points, for convenience
of administration, around the head of Lynn Canal, in accordance with the
temporary arrangement of October, 1899, was completed by a joint survey
in July last. The _modus vivendi_ has so far worked without
friction, and the Dominion Government has provided rules and regulations
for securing to our citizens the benefit of the reciprocal stipulation
that the citizens or subjects of either power found by that arrangement
within the temporary jurisdiction of the other shall suffer no
diminution of the rights and privileges they have hitherto enjoyed. But
however necessary such an expedient may have been to tide over the grave
emergencies of the situation, it is at best but an unsatisfactory
makeshift, which should not be suffered to delay the speedy and complete
establishment of the frontier line to which we are entitled under the
Russo-American treaty for the cession of Alaska.

In this relation I may refer again to the need of definitely marking
the Alaskan boundary where it follows the one hundred and forty-first
meridian. A convention to that end has been before the Senate for some
two years, but as no action has been taken I contemplate negotiating a
new convention for a joint determination of the meridian by telegraphic
observations. These, it is believed, will give more accurate and
unquestionable results than the sidereal methods heretofore independently
followed, which, as is known, proved discrepant at several points on
the line, although not varying at any place more than 700 feet.

The pending claim of R.H. May against the Guatemalan Government has been
settled by arbitration, Mr. George F.B. Jenner, British minister at
Guatemala, who was chosen as sole arbitrator, having awarded $143,750.73
in gold to the claimant.

Various American claims against Haiti have been or are being advanced to
the resort of arbitration.

As the result of negotiations with the Government of Honduras in regard
to the indemnity demanded for the murder of Frank H. Pears in Honduras,
that Government has paid $10,000 in settlement of the claim of the
heirs.

The assassination of King Humbert called forth sincere expressions of
sorrow from this Government and people, and occasion was fitly taken to
testify to the Italian nation the high regard here felt for the memory
of the lamented ruler.

In my last message I referred at considerable length to the lynching of
five Italians at Tallulah. Notwithstanding the efforts of the Federal
Government, the production of evidence tending to inculpate the authors
of this grievous offense against our civilization, and the repeated
inquests set on foot by the authorities of the State of Louisiana, no
punishments have followed. Successive grand juries have failed to
indict. The representations of the Italian Government in the face of
this miscarriage have been most temperate and just.

Setting the principle at issue high above all consideration of merely
pecuniary indemnification, such as this Government made in the three
previous cases, Italy has solemnly invoked the pledges of existing
treaty and asked that the justice to which she is entitled shall be
meted in regard to her unfortunate countrymen in our territory with the
same full measure she herself would give to any American were his
reciprocal treaty rights contemned.

I renew the urgent recommendations I made last year that the Congress
appropriately confer upon the Federal courts jurisdiction in this class
of international cases where the ultimate responsibility of the Federal
Government may be involved, and I invite action upon the bills to
accomplish this which were introduced in the Senate and House. It is
incumbent upon us to remedy the statutory omission which has led, and
may again lead, to such untoward results. I have pointed out the
necessity and the precedent for legislation of this character. Its
enactment is a simple measure of previsory justice toward the nations
with which we as a sovereign equal make treaties requiring reciprocal
observance.

While the Italian Government naturally regards such action as the
primary and, indeed, the most essential element in the disposal of the
Tallulah incident, I advise that, in accordance with precedent, and in
view of the improbability of that particular case being reached by the
bill now pending, Congress make gracious provision for indemnity to the
Italian sufferers in the same form and proportion as heretofore.

In my inaugural address I referred to the general subject of lynching in
these words:

Lynching must not be tolerated in a great and civilized country like the
United States; courts, not mobs, must execute the penalties of the law.
The preservation of public order, the right of discussion, the integrity
of courts, and the orderly administration of justice must continue
forever the rock of safety upon which our Government securely rests.

This I most urgently reiterate and again invite the attention of my
countrymen to this reproach upon our civilization.

The closing year has witnessed a decided strengthening of Japan's
relations to other States. The development of her independent judicial
and administrative functions under the treaties which took effect July
17, 1899, has proceeded without international friction, showing the
competence of the Japanese to hold a foremost place among modern
peoples.

In the treatment of the difficult Chinese problems Japan has acted in
harmonious concert with the other powers, and her generous cooperation
materially aided in the joint relief of the beleaguered legations in
Peking and in bringing about an understanding preliminary to a
settlement of the issues between the powers and China. Japan's
declarations in favor of the integrity of the Chinese Empire and the
conservation of open world trade therewith have been frank and positive.
As a factor for promoting the general interests of peace, order, and
fair commerce in the Far East the influence of Japan can hardly be
overestimated.

The valuable aid and kindly courtesies extended by the Japanese
Government and naval officers to the battle ship _Oregon_ are
gratefully appreciated.

Complaint was made last summer of the discriminatory enforcement
of a bubonic quarantine against Japanese on the Pacific coast and of
interference with their travel in California and Colorado under the
health laws of those States. The latter restrictions have been adjudged
by a Federal court to be unconstitutional. No recurrence of either cause
of complaint is apprehended.

No noteworthy incident has occurred in our relations with our important
southern neighbor. Commercial intercourse with Mexico continues to
thrive, and the two Governments neglect no opportunity to foster their
mutual interests in all practicable ways.

Pursuant to the declaration of the Supreme Court that the awards of
the late Joint Commission in the La Abra and Weil claims were obtained
through fraud, the sum awarded in the first case, $403,030.08, has been
returned to Mexico, and the amount of the Weil award will be returned in
like manner.

A Convention indefinitely extending the time for the labors of the
United States and Mexican International (Water) Boundary Commission has
been signed.

It is with satisfaction that I am able to announce the formal
notification at The Hague, on September 4, of the deposit of
ratifications of the Convention for the Pacific Settlement of
International Disputes by sixteen powers, namely, the United States,
Austria, Belgium, Denmark, England, France, Germany, Italy, Persia,
Portugal, Roumania, Russia, Siam, Spain, Sweden and Norway, and the
Netherlands. Japan also has since ratified the Convention.

The Administrative Council of the Permanent Court of Arbitration has
been organized and has adopted rules of order and a constitution for the
International Arbitration Bureau. In accordance with Article XXIII of
the Convention providing for the appointment by each signatory power
of persons of known competency in questions of international law as
arbitrators, I have appointed as members of this Court, Hon. Benjamin
Harrison, of Indiana, ex-President of the United States; Hon. Melville
W. Fuller, of Illinois, Chief Justice of the United States; Hon. John W.
Griggs, of New Jersey, Attorney-General of the United States; and Hon.
George Gray, of Delaware, a judge of the circuit court of the United
States.

As an incident of the brief revolution in the Mosquito district of
Nicaragua early in 1899 the insurgents forcibly collected from American
merchants duties upon imports. On the restoration of order the
Nicaraguan authorities demanded a second payment of such duties on the
ground that they were due to the titular Government and that their
diversion had aided the revolt.

This position was not accepted by us. After prolonged discussion a
compromise was effected under which the amount of the second payments
was deposited with the British consul at San Juan del Norte in trust
until the two Governments should determine whether the first payments
had been made under compulsion to a _de facto_ authority. Agreement
as to this was not reached, and the point was waived by the act of the
Nicaraguan Government in requesting the British consul to return the
deposits to the merchants.

Menacing differences between several of the Central American States have
been accommodated, our ministers rendering good offices toward an
understanding.

The all-important matter of an interoceanic canal has assumed a new
phase. Adhering to its refusal to reopen the question of the forfeiture
of the contract of the Maritime Canal Company, which was terminated for
alleged nonexecution in October, 1899, the Government of Nicaragua has
since supplemented that action by declaring the so-styled Eyre-Cragin
option void for nonpayment of the stipulated advance. Protests in
relation to these acts have been filed in the State Department and are
under consideration. Deeming itself relieved from existing engagements,
the Nicaraguan Government shows a disposition to deal freely with the
canal question either in the way of negotiations with the United States
or by taking measures to promote the waterway.

Overtures for a convention to effect the building of a canal under the
auspices of the United States are under consideration. In the meantime,
the views of the Congress upon the general subject, in the light of the
report of the Commission appointed to examine the comparative merits of
the various trans-Isthmian ship-canal projects, may be awaited.

I commend to the early attention of the Senate the Convention with Great
Britain to facilitate the construction of such a canal and to remove any
objection which might arise out of the Convention commonly called the
Clayton-Bulwer Treaty.

The long-standing contention with Portugal, growing out of the seizure
of the Delagoa Bay Railway, has been at last determined by a favorable
award of the tribunal of arbitration at Berne, to which it was
submitted. The amount of the award, which was deposited in London
awaiting arrangements by the Governments of the United States and Great
Britain for its disposal, has recently been paid over to the two
Governments.

A lately signed Convention of Extradition with Peru as amended by the
Senate has been ratified by the Peruvian Congress.

Another illustration of the policy of this Government to refer
international disputes to impartial arbitration is seen in the agreement
reached with Russia to submit the claims on behalf of American sealing
vessels seized in Bering Sea to determination by Mr. T.M.C. Asser, a
distinguished statesman and jurist of the Netherlands.

Thanks are due to the Imperial Russian Government for the kindly aid
rendered by its authorities in eastern Siberia to American missionaries
fleeing from Manchuria.

Satisfactory progress has been made toward the conclusion of a general
treaty of friendship and intercourse with Spain, in replacement of the
old treaty, which passed into abeyance by reason of the late war. A new
convention of extradition is approaching completion, and I should be
much pleased were a commercial arrangement to follow. I feel that we
should not suffer to pass any opportunity to reaffirm the cordial ties
that existed between us and Spain from the time of our earliest
independence, and to enhance the mutual benefits of that commercial
intercourse which is natural between the two countries.

By the terms of the Treaty of Peace the line bounding the ceded
Philippine group in the southwest failed to include several small
islands lying westward of the Sulus, which have always been recognized
as under Spanish control. The occupation of Sibutu and Cagayan Sulu by
our naval forces elicited a claim on the part of Spain, the essential
equity of which could not be gainsaid. In order to cure the defect of
the treaty by removing all possible ground of future misunderstanding
respecting the interpretation of its third article, I directed the
negotiation of a supplementary treaty, which will be forthwith laid
before the Senate, whereby Spain quits all title and claim of title to
the islands named as well as to any and all islands belonging to the
Philippine Archipelago lying outside the lines described in said third
article, and agrees that all such islands shall be comprehended in the
cession of the archipelago as fully as if they had been expressly
included within those lines. In consideration of this cession the United
States is to pay to Spain the sum of $100,000.

A bill is now pending to effect the recommendation made in my last
annual message that appropriate legislation be had to carry into
execution Article VII of the Treaty of Peace with Spain, by which the
United States assumed the payment of certain claims for indemnity of its
citizens against Spain. I ask that action be taken to fulfill this
obligation.

The King of Sweden and Norway has accepted the joint invitation of the
United States, Germany, and Great Britain to arbitrate claims growing
out of losses sustained in the Samoan Islands in the course of military
operations made necessary by the disturbances in 1899.

Our claims upon the Government of the Sultan for reparation for injuries
suffered by American citizens in Armenia and elsewhere give promise of
early and satisfactory settlement. His Majesty's good disposition in
this regard has been evinced by the issuance of an irade for rebuilding
the American college at Harpoot.

The failure of action by the Senate at its last session upon the
commercial conventions then submitted for its consideration and
approval, although caused by the great pressure of other legislative
business, has caused much disappointment to the agricultural and
industrial interests of the country, which hoped to profit by their
provisions. The conventional periods for their ratification having
expired, it became necessary to sign additional articles extending the
time for that purpose. This was requested on our part, and the other
Governments interested have concurred with the exception of one
convention, in respect to which no formal reply has been received.

Since my last communication to the Congress on this subject special
commercial agreements under the third section of the tariff act have
been proclaimed with Portugal, with Italy, and with Germany. Commercial
conventions under the general limitations of the fourth section of the
same act have been concluded with Nicaragua, with Ecuador, with the
Dominican Republic, with Great Britain on behalf of the island of
Trinidad, and with Denmark on behalf of the island of St. Croix. These
will be early communicated to the Senate. Negotiations with other
Governments are in progress for the improvement and security of our
commercial relations.

The policy of reciprocity so manifestly rests upon the principles of
international equity and has been so repeatedly approved by the people
of the United States that there ought to be no hesitation in either
branch of the Congress in giving to it full effect.

This Government desires to preserve the most just and amicable
commercial relations with all foreign countries, unmoved by the
industrial rivalries necessarily developed in the expansion of
international trade. It is believed that the foreign Governments
generally entertain the same purpose, although in some instances there
are clamorous demands upon them for legislation specifically hostile to
American interests. Should these demands prevail I shall communicate
with the Congress with the view of advising such legislation as may be
necessary to meet the emergency.

The exposition of the resources and products of the Western Hemisphere
to be held at Buffalo next year promises important results not only
for the United States but for the other participating countries. It is
gratifying that the Latin-American States have evinced the liveliest
interest, and the fact that an International American Congress will
be held in the City of Mexico while the exposition is in progress
encourages the hope of a larger display at Buffalo than might otherwise
be practicable. The work of preparing an exhibit of our national
resources is making satisfactory progress under the direction of
different officials of the Federal Government, and the various States of
the Union have shown a disposition toward the most liberal participation
in the enterprise.

The Bureau of the American Republics continues to discharge, with the
happiest results, the important work of promoting cordial relations
between the United States and the Latin-American countries, all of which
are now active members of the International Union. The Bureau has been
instrumental in bringing about the agreement for another International
American Congress, which is to meet in the City of Mexico in October,
1901. The Bureau's future for another term of ten years is assured by
the international compact, but the congress will doubtless have much to
do with shaping new lines of work and a general policy. Its usefulness
to the interests of Latin-American trade is widely appreciated and shows
a gratifying development.

The practical utility of the consular service in obtaining a wide range
of information as to the industries and commerce of other countries and
the opportunities thereby afforded for introducing the sale of our goods
have kept steadily in advance of the notable expansion of our foreign
trade, and abundant evidence has been furnished, both at home and
abroad, of the fact that the Consular Reports, including many from our
diplomatic representatives, have to a considerable extent pointed out
ways and means of disposing of a great variety of manufactured goods
which otherwise might not have found sale abroad.

Testimony of foreign observers to the commercial efficiency of the
consular corps seems to be conclusive, and our own manufacturers and
exporters highly appreciate the value of the services rendered not only
in the printed reports but also in the individual efforts of consular
officers to promote American trade. An increasing part of the work of
the Bureau of Foreign Commerce, whose primary duty it is to compile and
print the reports, is to answer inquiries from trade organizations,
business houses, etc., as to conditions in various parts of the world,
and, notwithstanding the smallness of the force employed, the work has
been so systematized that responses are made with such promptitude and
accuracy as to elicit flattering encomiums. The experiment of printing
the Consular Reports daily for immediate use by trade bodies, exporters,
and the press, which was begun in January, 1898, continues to give
general satisfaction.

It is gratifying to be able to state that the surplus revenues for
the fiscal year ended June 30, 1900, were $79,527,060.18. For the six
preceding years we had only deficits, the aggregate of which from 1894
to 1899, inclusive, amounted to $283,022,991.14. The receipts for the
year from all sources, exclusive of postal revenues, aggregated
$567,240,851.89, and expenditures for all purposes, except for the
administration of the postal department, aggregated $487,713,791.71.
The receipts from customs were $233,164,871.16, an increase over the
preceding year of $27,036,389.41. The receipts from internal revenue
were $295,327,926.76, an increase of $21,890,765.25 over 1899. The
receipts from miscellaneous sources were $38,748,053.97, as against
$36,394,976.92 for the previous year.

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