eem them--another interest-bearing debt to redeem a
non-interest-bearing 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 enactment 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 presentation, but when
once redeemed should not thereafter 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 related 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 important. The subject, in all its parts, is commended to
the wise consideration of the Congress.

The annexation of Hawaii and the changed relations of the United States
to Cuba, Puerto Rico, and the Philippines resulting from the war, compel
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 communicating 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 national necessity, and
should be encouraged