banks of the
smaller class, while Texas, Oklahoma, Indian Territory, and the middle
and western sections of the country have also availed themselves largely
of the privileges under the new law.

A large increase in national-bank-note circulation has resulted from the
provision of the act which permits national banks to issue circulating
notes to the par value of the United States bonds deposited as security
instead of only 90 per cent thereof, as heretofore. The increase in
circulating notes from March 14 to November 30 is $77,889,570.

The party in power is committed to such legislation as will better make
the currency responsive to the varying needs of business at all seasons
and in all sections.

Our foreign trade shows a remarkable record of commercial and industrial
progress. The total of imports and exports for the first time in the
history of the country exceeded two billions of dollars. The exports are
greater than they have ever been before, the total for the fiscal year
1900 being $1,394,483,082, an increase over 1899 of $167,459,780, an
increase over 1898 of $163,000,752, over 1897 of $343,489,526, and
greater than 1896 by $511,876,144.

The growth of manufactures in the United States is evidenced by the fact
that exports of manufactured products largely exceed those of any
previous year, their value for 1900 being $433,851,756, against
$339,592,146 in 1899, an increase of 28 per cent.

Agricultural products were also exported during 1900 in greater volume
than in 1899, the total for the year being $835,858,123, against
$784,776,142 in 1899.

The imports for the year amounted to $849,941,184, an increase over 1899
of $152,792,695. This increase is largely in materials for manufacture,
and is in response to the rapid development of manufacturing in the
United States. While there was imported for use in manufactures in 1900
material to the value of $79,768,972 in excess of 1899, it is reassuring
to observe that there is a tendency toward decrease in the importation
of articles manufactured ready for consumption, which in 1900 formed
15.17 per cent of the total imports, against 15.54 per cent in 1899 and
21.09 per cent in 1896.

I recommend that the Congress at its present session reduce the
internal-revenue taxes imposed to meet the expenses of the war with
Spain in the sum of thirty millions of dollars. This reduction should be
secured by the remission of those taxes which experience has shown to be
t