WHEN we assembled here on the 4th of March, 1897, there was great
anxiety with regard to our currency and credit. None exists now. Then
our Treasury receipts were inadequate to meet the current obligations
of the Government. Now they are sufficient for all public needs, and we
have a surplus instead of a deficit. Then I felt constrained to convene
the Congress in extraordinary session to 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