devise revenues to pay the
ordinary expenses of the Government. Now I have the satisfaction to
announce that the Congress just closed has reduced taxation in the sum
of $41,000,000. Then there was deep solicitude because of the long
depression in our manufacturing, mining, agricultural, and mercantile
industries and the consequent distress of our laboring population. Now
every avenue of production is crowded with activity, labor is well
employed, and American products find good markets at home and abroad.

Our diversified productions, however, are increasing in such
unprecedented volume as to admonish us of the necessity of still further
enlarging our foreign markets by broader commercial relations. For this
purpose reciprocal trade arrangements with other nations should in
liberal spirit be carefully cultivated and promoted.

The national verdict of 1896 has for the most part been executed.
Whatever remains unfulfilled is a continuing obligation resting with
undiminished force upon the Executive and the Congress. But fortunate as
our condition is, its permanence can only be assured by sound business
methods and strict economy in national administration and legislation.
We should not permit our great prosperity to lead us to reckless
ventures in business or profligacy in public expenditures. While the
Congress determines the objects and the sum of appropriations, the
officials of the executive departments are responsible for honest and
faithful disbursement, and it should be their constant care to avoid
waste and extravagance.

Honesty, capacity, and industry are nowhere more indispensable than in
public employment. These should be fundamental requisites to original
appointment and the surest guaranties against removal.

Four years ago we stood on the brink of war without the people knowing
it and without any preparation or effort at preparation for the
impending peril. I did all that in honor could be done to avert the war,
but without avail. It became inevitable; and the Congress at its first
regular session, without party division, provided money in anticipation
of the crisis and in preparation to meet it. It came. The result was
signally favorable to American arms and in the highest degree honorable
to the Government. It imposed upon us obligations from which we cannot
escape and from which it would be dishonorable to seek escape. We are
now at peace with the world, and it is my fervent prayer that if
differenc