TifTS INMRU DMESS
Delivered by The New President Upon
The Occasion of Has Inauguration.
Outline of His Policies Clearly
and Forcibly Set Forth.
My Fellow Citizens:
Any one who takes the oath 1
have just taken must feel a heavy
weight of responsibility. If not, he
has no 'conception of the powers and
dufies of the office upon which he is
about to enter, or lie is lacking in a
proper sense of the obligation which
the oath imposes.
I should be untrue tc myself,
to my promises and to the declara
tions of the party platform upon
which I was elected to oliicOj and
to nmy distinguished predecessor
whose reforms arc conspicuous if I
did not make the maintenance and en
forcement of those reforms a most
important feature of my administra
tion. They were directed to the sup
pression of the lawlessness and
abuses of power of the great com
binations of capital invested in rail
roads and in industrial enterprises
carrying on interstate commerce. The
steps which my predecessor took and
the legislation passed on his recom
mendation have accomplished much,
have caused a general halt in the
vicious policies which created pop
ular alarm, and have brought about
in the business affected, a much high
er regard for existing lar.\
To render the reforms lasting.
however, and to seeuteal the same
time freedom from alarm on the part
of those pursuing proper and pro
gressive business methods, further
legislative and executive action are
needed. Relief of the railroads from
certain restrictions of the anti-trust
law have been urged by my predeees-.
sor and will be urged by me. On
the other hand, the administration is
pledged to legislation looking to a
proper federal supervision and re
striction to prevent excessive issues
of bonds and stocks by companies
owning and operating interstate com
merce railroads.
Then, too, a reorganization of the
Department of Justice, of the Bu
reau of Corporations in the Depart
ment of Commerco and Labor and
of the Interstate Commerce Commis
sion looking to effective co-operation
of these agencies, is needed to secure
a more rapid and certain enforce
ment of the laws affecting interstate
railroads and industrial combina
tions. .
I hope to be able to submit, at tlie '
first regular session of the incoming |
"Congress, i;ii December next, definite
suggestions in respect to the needed
amendment'' '» the anti-trust and the
interstate commerce law, and the
changes required in the executive de
'PM'tmcnts concerncif in tl'.eir enforce
nen+. ..
Such plans must he formulated as
-will include the ..right of the people to
&sJail themselves of those methods of
.combining, capital ami effort deemed
necessary to reach the- highest tle
gi •ee of economic efficiency, at the I
same time differentiating between
combinations based upon legitimate
economic reasons and those formed
with the intent of creating monopo
lies and artificially controlling prices.
The work of formulating into prac- >
tical shape such changes in creative
work of the highest order, re
quires all the deliberation possible
in the interval. I believe that the
amendments to be proposed are just
as necessary in the protection of
legitimate business as in the clinch
ing of the reforms which properly
bear the name of my predecessor.
Revision of the Tariff.
A matter of most pressing impor
tance, is the revision of the tariff. In
accordance with the promise of the
platform upon which 1 was elected,
I shall call ( ongreSs into extra ses
sion, to meet -on the 15th dav of
March, in order that consideration
may be at once given to a bill re
vising the Dint-ley Act. This should
secure an adequate revenue and ad
just the duties in such a manner as
to afford to labor and to all indus
tries in this country, whether of the
farm, mine or factory, protection by
tariff equal to the difference, between
the co§t of production abroad and
the cost of production here, and have
a provision which sha)£ put in force
upon executive determination of cer
tain facts, a higher or maximum
tariff against those countries whose
trade policy toward us equitably re
quires such discrimination. It is
thought that the tariff above stated
will permit the reduction of rates in
certain schedules and will reqtairg the
advancement of few, if any.
It is imperatively necessary that a
tariff bill be drawn in good faith in
accordance with promises made be
fore the election by party in power,
and as promptly passed as due consid-
(ration will permit, It is not that the
tariff is more important in the long
.run than the perfecting of the re
forms in respect to anti-trust legis
lation and interstate commerce regu
lation, but the need for action when
the revision of the tariff has been
determined upon is more immediate
to avoid embarrassment of business.
Graduated Inheritance Tax.
It is imparative that the deficit of the
fast year »f $100,000,000 shall not
continue, and the framers of the
tariff bill must of course have iri
mind the total revenues likely to be
produced by it, and so arrange the
duties as to secure an adequate in
come. Should it be impossible to do
so by import duties, new kinds of
taxation must be adopted, and among
these I recommend a graduated in
heritance ta.x, as correct in principle
and as certain and easy of collec
tion.
The obligation on the part of those
responsible for the expenditures
made to carry on the government, to
be as economical as possible, and to
bake the burden of taxation as light
as possible, is plain and should be
affirmed in every declaration of gov
ernment policy. This is especially
trire when we are face to face with a
heavy deficit. But when the desire
to win the popular approval leads to
the cutting off of expenditures
really needed to make the govern
ment effective, and to enable it to
accomplish its proper objects, the .re
sult is as much to bo condemned ns
the waste of government funds in un
necessary expenditure. The scope of
a modern government in what it can
and ought to accomplish for its peo
ple has widened far beyond the prin
ciples laid down bv the old laissez
fairc school of political writers, and
this widening has met popular
approval. s
In the Department of Agriculture,
the use fof «n : ent'""
on a large scale, and the spread of
information derived tiom them for
Hie improvement of general agricul
ture, must go on.
The importance of supervising
business of great railways and indus
trial combinations, and the necessary
investigation and prosecution of
unlawful business methods, are an
other necessary tax upon government
which did not exist half a century
ago.
Ccncenration of Our Resources.
The puffing into force of laws
which shall secure the conservation
of our resources, so far as they may
be within the jurisdiction of the
Federal Government, including the
most important work of saving and
restoring our forests, and the great
improvement of waterways, are all
proper government functions which
must involve large expenditure* if
properly performed. While some of
them, like the reclamation of arid
lands, are made to pay for them
selves. others are of such an indirect
benefit that this cannot be expect
ed of tliern. A permanent improve
ment, like .the Panama Canal, should
be treated ns a distinct enterprise,
and should be paid for by the pro
ceeds of bonds, the issue of which
will distribute its cost between the
present and future generations in
accordance with the benefits derived.
It may well he submitted to the
serious consideration of Congress
whether the deepening and control of
the channel of a crreat river system,
1 iKe that of the Ohio or of the Mis
sissippi. when definite and practical
plans for the enterprise have been
approved and determined upon,
should not be provided for in the
same way.
The Army and the Navy.
Then, too, there are expenditures
of government absolutely neeessnry
if our country is to maintain its'
proper plaee among tlie nations of
the world, and is to exercise its pro
per influence in defense of its own
trade interests, in the maintenance
of traditional American policy
against the colonization of European
monarchies in this hemisphere, and
in the promotion of peace and inter
national morality. I refer to the cost
of maintaining a proper Army, a
proper Navv and suitable fortifica
tions upon the mainland of the TJnit
ed States and in its dependencies.
We should have an Army so or
ganized, and so officered as to he cap
able in time of emergency, in co
operation with the National Militia,
and under the provisions of a proper
national volunteer law. rapidly to ex
pand into a force sufficient to resist
all probable invasion from abroad
and to furnish a respectable expedi
tionary force, if necessary, in the
maintenance of our traditional Amer
ican policy which bears the name of
President Monroe.
Our fortification* an yet in a state
of only partial completeness, and the
number of men to man them is in
sufficient. In a few years, however,
the usual appropriations for our
coast defenses both on the mainland
and in the dependencies, will make
them sufficient to resist all direct
attack, and by that time we may
hope that the men to man them will
be provided as a necessary adjunct.
What has been said of the Army
may be affirmed in even a more
emphatic way of the Navy. A modern
navy cannot be improvised. It must
be built and in existence when the
emergency arises which calls for its
use and operation. My distinguished
predecessor has in many speeches
and messages set out with great force
and striking language the necessity
for maintaining a strong navy com
mensurate with the coast line, the
governmental resources and the for
eign trade of our nation; and I wish
to reiterate all the reasons whieh he
has presented in favor of the policy
of maintaining a strong navy as the
hot conservator of our peace with
other nations and the best means of
securing respect for the assertion of
our rights, the defense of our in
terests and the exercise of our in
fluence in international matters.
The Maintenance of Peace.
Our international policy is always
to promote peace. We shall enter
into any war with a full conscious
ness of the awful consequences that
it always entaijs, whether successful
or not, and we, of course, shall make
every effort, consistent with national
honor and the highest national in
terest, to avoid a resort to arms. We
favor every instrumentality, like
that of The Hague Tribunal and ar
bitration treaties made with a view
to its use in all international contro
versies, in order to maintain peaee
and to avoid war. But we should be
blind to existing conditions, and
should allow ourselves to become fool
ish idealists, if we did not realize
that with all the nations of the world
armed and prepared for war, we
must be ourselves in a similar con
dition in order to prevent other na
tions from taking advantage of us
and of our inability to defend our
interests and assert our rights with
a strong hand. In the international
controversies that are likely to arise
in the Orient, growing out of the
question of the open door and other
issues, the United States can main
tain her interests intact and ccn se
cure respect for her just demands.
She will not bo able to do so, how
ever, if it is understood that slie
never intends to back up her asser
tion of right and her defense of hej"
interest by anything but mere verbal
protest and diplomatic note. For
these reasons, the expenses of the
army and navy and of coast defenses
"hould always he considered as some
liing whieh the government must
pay for, and they should not.be cut
off through mere consideration of
economy. Our Government is able
to afford a suitable army and a suit
able navy. It may maintain them
without the slightest danger to the
Republic or the cause of free insti
tutions, and fear of additional tax
ation ought not to change a proper
policy in this regard.
Protection of Americans in Foreign
The policy of the United State i,i
the Spanish War and since, has given
it a position of iiffluence among the
nations that it never had before, and
should be constantly exerted to se
curing to its bona fide • citizens,
whether native or naturalized) re
spect for them as such in foreign
countries. We should make every
effort to prevent humiliating and de
grading prohibition against any of
our citizens wishing temporarily to
sojourn in foreign countries because
of race or religion.
Immigrants.
The admission of Asiatic immi
grants who can not be amalgamated
with our population 'has 1>; n made
the subject either of prohibitory
clauses in- our treaties nml statutes,
or of st rict adniinisl[nil iyc logulu
fiori secured by diplomatic negotia
tion. I sincerely liopo that wo may
continue to minirfiizo the evils likely
to arise from such immigration with
out unnecessary friction ami by mu
tual concessions between self-respect
ing governments. Meantime, we must
lake every precaution to prevent, or,
Tailing that, to punish outbursts of
•ace feeling among our people
igainst foreigners of whatever nat
onality who may have by our grant
\ treaty right to pursue lawful bns
ness here and to be protected
igainst lawless assault or injury.
Protection of Foreigners,
This leads me to point out a seri
ous defect in tho present Federal
jurisdiction which ought to be rem
edied at once. Having assured to
other countries by treaty the pro
tection of our laws for such of their
subjects or citizens as we permit to
conic within our jurisdiction, we now
leavo to a State or a city, not un
der the control of the Federal Gov
ernment. tlie duty of performing our
international obligations in this re
spect. By proper legislation we may,
and ought to, place in the hands of
tho Federal Executive the moans of
enforcing the treaty rights of such
aliens in the courts of the Federal
Government. It puts our govern
ment in a pusillanimous position to
make definite engagements to pro
tect aliens and then to excuse the
failure to perform those engafjements
by an explanation that the duty to
keep them is in States or cities, not
within our control. If we would
promise, we must put ourselves in «
position 10 perform our promise. We
cannot permit the possible faijiigc of
justice due to local prejudice in'tny
State or municipal government to fix-'
pose us to the risk of a war which
might be avoided if Federal juris
diction was asserted by suitable leg
islation by Congress and carried out
proper proceedings instituted by
tho Execiltive. in the Courts of the
National Government.
Monetary and Banking.
One of the reforms to be carried
out during the incoming Administra
tion is a change of our monetary and
banking laws, so as to secure great
er elasticity in forms of currency
available for trade and to prevent
the limitations of law from operat
ing to increase the embarrassments
of a financial panic. The Monetary
Commission lately appointed ia giv
ing full consideration to existing con
ditions and to all proposed remedies,
and will doubtlen suggest one that
will meet the requirements of busi
ness and of public interest. We may
hope that the report will embody
neither the narrow view of those who
believe that the sole purpose of the
new system should be to secure a
large return on banking capital of
of those who would have greater ex
pansion of currency with little re
gard to provisions for its immediate
redemption or ultimate security.
There is no subject of economic dis
cussion so intricate and so likely to
evoke differing views and dogmatic
statements as this one. The Com
mission in studying the general in
fluence of currency on business and
of business on currency, have wisely
extended their investigations in Eu
ropean banking and monetary meth
ods. The information that they have
derived from such experts as they
have found abroad will undoubtedly
be found helpful in the solution of
the difficult problem they have in
hand .
Postal Savings Bank.
The incoming Congress should
promptly fulfill the promise of the
Republican platform and pass a
proper Postal Savings Bank bill.. It
will not be unwise or excessive pater
nalism. The promise to repay bv the
Government will furnish an induce
ment to savings deposits which pri
vate enterprise cannot supply, and at
such a low rate of interest as not to
withdraw/ custom from existing
banks. It will substantially increase
the funds available for investment as
capital in useful enterprises. It will
furnish the absolute security which
makes the pioposed scheme of gev
ornment guaranty of deposit so allur
ing without its pernicious results.
Our Foreign Trade.
I sincerely hope that the incoming
Congress will be alive, as it should
be, to the importance of onr foreign
trade and of encouragin? it in every
way feasible. The possibility of in
creasing this trade in the Orient in
the Phillipincs and in South America
are known to everyone who has
given the matter attention. The di
rect effect of free trade between this
country and the Phillipincs will be
marked upon our sale of cotton, ag
ricultural machinery and other man
ufactures. The necessity of the es
tablishment of direct lines of steam
ers between North and South Am
erica has been brought to the at
tention of Congress by my predeces
sor, and by Mr. Root before and after
liis noteworthy visit to that continent
nnd I sincerely hope that Congress
may be induced to see the wisdom of
a tentative effort to "»tablish such
lines by the use of mail subsidies.
The importance which the Depart
ment of Agriculture and of Com
merce and Labor may play in ridding
the markets of Europe of prohibi
tions and discriminations against the
importation of our products is
fully understood, and it is hoped that
the use of the maximum and mini
mum feature of our tariff law to be
soon passed will bo effective to re
move many of those restrictions.
The Panama Canal.
Tlie Panama Cannl will have a
most important bearing upon the
trade bet weed the eastern and the
far western sections of our country,
Mid will greatly increase the facili
ties for transportation between the
eastern and, the western seaboard,
and may possibly revolutionize the
transcontinental rates with respect
to bulky merehanidse. It will also
have a most beneficial effect to in
crease the trade between the eastern
seaboard of Hie United States and
the western coast of South America,
and, indeed, with some of the im
portant ports on the east coast of
South America reached by rail from
the west coast. The work on the
canal is making most satisfactory
progress. The typo of the canal as
a lock canal was fixed by Congress
after a full consideration of the con
flicting reports of the majority and
minority of the consulting board, and
after the recommendation of the
War Department and the Executive
upon those reports. Recent sugges
tion that something had occurred on
the Isthmus to make the lock types
of the canal less feasible than it was
supposed to be when the reports were
made and the policy determined on,
led to a visit to the Isthmus of a
board of competent engineers to ex
amine the Gatun dam and locks
which are the key of the lock type.
The report of that board shows that
nothing has occurred in t|io nature
of newly revealed evidence which
should change the views once froined
in the original discnssion. The con
struction will go on under a most
effective organization controlled by
.Colonel Goethals and his fellow army
engineers associated with him, and
will certainly be completed early in
tho next Administration, if not be
fore. —, —
Some type of eanal must be con
structed. The lock type has been
selected. We are all in favor of hav-*
ing it built as promptly as possible.
We must not now, therefore, keep
up a fire in the refer of the agents
whom we have authorized to do our
work" "on ~ the Isthmus. Wo musrt
hold up their hands, and speaking
for the incoming Administration, I
wish to say that I propose to devote
all the energy possible and under
my control, to the pushing of this
work on the plans which have been
adopted, and to stand behind the men
who are doing faithful hard work
to bring about the early completion
of this, the greatest constructive en
terprise of modem timet.
Our Dependencies.
The government of our dependent
cies in Porto Rico and the Philip
pines are progressing as favorably
as could be desired. The prosperity
of Porto Rico continues unabated.
The business conditions in the Phil
ippines are not all that we could
wish them to be, but with the pas
sage of the new tariff bill permitting
free trade between the United States
and the Archipelago, with such limi
tations in sugar and tobacco as shall
prevent injury to the domestic in
terests on those products, we cab
count on an improvement in business
conditions in the Philippines and the
development of a mutually profitable
trade between this country and the
Islands.
Position Towards the South, i
I look forward with hope to in
creasing the already good feeling be
tween the South and the other sec
tions of the country. My chief pur
pose is not to effect a change in the
electoral vote of the Southern States.
That is a secondary consideration.
What I look forward to is an in
crease in the tolerance of political
views of all kinds and their advo
cacy throughout the South, and the
existence of a respectable political
opposition in every State; even more
than this, to an increased feeling on
the part of all the 'people in the
South that this Government is their
Governirent, and that its officers in
their States are their officers.
The Sonth and the Negro.
The consideration of this question
cannot, however, be complete and
full without reference to the negro
race, its progress and its present
condition. The 13th Amendment se
cured them freedom; tho 14th
Amendment due process of law, pro
tection of property and the pursuit
of happiness; anjl the 15th Amend
ment attempted to secure the negro
against any deprivation of the priv
ilege to vote. beonußP he was —a ne-
gro. The 13th and 14th Amendments
have been generally enforced nnd
have secured the objects for which
they were intended. While the 15th
Amendment has not been generally
observed in the past, it ought to be
observed and the tendency of South
era legislation today is toward the
enactment of electoral qualifications
Which shall square with that amend
ment. Of course the mere adoption
of a constitutional law is only one
step in the right direction. It must
he fairly and justly enforced as well.
In time both will come. Hence it is
clear to all that the domination of
an ignorant, irresponsible , element
can be prevented by constitutional
laws which shall exclude from voting
both negroes and whites not having
education or other qualifications
thought to be necessary for a proper
electorate. The danger of the con
trol of an ignorant electorate has
therefore passed. With this change,
Hie interest which many of the Sou
thern white citizens take in the wel
fare of the negroes has increased.
The colored men must base their
I'ope on the results of their own in
dustry, self-restraint, thrift and b-is
incss success, as well as upon the
aid and comfort and sympathy which
they may receive from their white
neighbors of the South. There was
a time when Northerners who sym
pathized with the negro in his neces
sary, struggle for better conditions
sought to giv* him the suffrairt as a
protection, and to enforce its exer
cise against the prevailing sentiment
of the South. The movement proved
to be a failure. What remains is_
tte 15th Amendment to the Consti
tution and the right to have statutes
of States specifying qualifications for
electors subjected to the test of com
pliance with that amendment. This
is a great protection to the negro.
It never will be repealed, and it
never ought to he repealed. If it had
not been passed, it might be difficult
now to adopt it; but with it in our
fundamental law, the policy of South
em legislation must and will tend to
obey it, and so jong as the statutes
of the States meet the test of this
amendment and are not otherwise
in conflict with the constitution and
laws of the United States, it is not
the disposition or within the pro
vince of the Federal Government to
interfere with the regulation by Sou
thern States of their domestic affairs.
There is in the South a stronger feel
ing than ever among the intelligent,
well-to-do and influential element in
favor of the industrial education of
the negro and the encouragement of
the race to make themselves useful
members of the community. The pro
gress which the negro has made in
the last fifty years from slavery,
when its statistics are reviewed, is
marvelous, and it furnishes every'
reason to hope that in the next
twenty-five years a still greater im
provement in his condition as a pro
ductive member of society, on the
farm, and in the shop and in other
occupations, |nay come. The negroes
are now Americans. Their ancestors
came here years ago against their
will, and this is their only country
and tHir only flag. They have shown
themselves anxious to live for it and
to die for it. Encountering the race
feeling against them, subjected at
times cruel injustice growing out
of It, they may well have our pro
found sympathy and aid in the strug
gle they are making. We are charg
ed with the sacred duty of making
their path as smooth and easy as we
can. Any recognition of their dis
tinguished men, any appointment to
office from among their number, it
properly taken as an encouragement
and an appreciation of their progress
and this just policy shall be pursued.
But it may well admit of doubt
whether, in ease of any race, an ap
pointment of one of their number to
a local office in a community in which
the race feeling ia so wide-spread
and acute ac to interfere with the
ease and facility with which the local
government business can be done by
the appointee, is of sufficient benefit
byway of encouragement to the race
to outweigh the recurrence and in
crease of race feeling which anch
an appointment is likely to engen
der. Therefore, the Executive, in
recognizing the negro race by aiv
pointments must exercise a careful
discretion nbt thereby to do it more
barm than good. On the other hand
we must be careful not to encourage
the mere pretense of race feeling
manufactured in the interest of in
dividual political ambition.
Personally I have not the slight
est race prejudice or feeling, and
recognition of its existence only
awakens in my heart a deeper sym
pathy for those who have to bear it
or suffer from it, and I question the
wisdom of a policy which is likely
to increase it. Meantime, if noth
ing is done to prevent, a better feel
ing between the negroes and ths
whites in the South will continue to
grow, and more and more of the
white people will come to realize that
tho future of the South is to be much
benefited by the industrial and in
tellectual progress of the negro. The
exercise of political franchises by
those of his race who are intelligent
and well-to-do will be acquiesced in,
and the right to vote will be withheld
only freni the ignorant and irre
sponsible of both races.
Labor, and Protection of Employees.
There is one other matter to which
I shall refer. It was made the sub
ject of great controversy during the
election, and calls for at least a pass
ing reference now. My distinguished
predecessor has given much attention
to the cause of labor, with whose
struggle for better things he has
shown tho sincerest sympathy. At
his instance. Congress has passed the
bill fixing the liability of interstate
carriers to their employes for injury
sustained in the course of employ
ment, abolishing the rule of fellow
servant and the common law rule as.
to contributory negligence, and sub
stituting therefor the so-called rule
of comparative negligence. It has
also passed a law fixing the compen
sation of government employes for
injuries sustained in the employ of
the government through the negli
gence of the superior. It also passed
a model child labor law for the Dis
trict of Columbia. In previous ad
ministrations an arbitration law for
interstate commerce railroads and
their employes, and laws for the ap
plication of safety devices to save
the lives and limbs of employes of
interstate railroads had been passed.
I wish to say that in so far as I
can, I hope to promote the enactment
of further legislation of this char
acter. I am strongly convinced that
the Gorernment should make itself
as responsible to employes injured
in its employ as an interstate rail
way corporation is made responsible
bv federal law of its employes; and
I shall be glad whenever any addi
tional reasonable safetv device can
be invented to reduce the loss of life
and limb among railway employes, 1
to urge Congress to require its adop
tion by interstate railways.
Tho Injunction.
Another labor question has arisen
which has awakened the most excited
discussion. That is in respect to the
power of the Federal courts to
issue injunctions in industrial dis
putes. As to that, my convictions
are fixed. Take away from courts
if it could be taken away, the power
to issue injunctions in labor disputes
and it would create a privileged class
among the laborers and save the law
less among their number from a most
needful remedy available to all men
for the protection of their business
against lawless invasion. The pro
position that business is not a pro
perty or pecuniary right which can
be protected by equitable injunction
is utterly without foundation in pre
cedent or reason. The proposition is
usuallv linked with one to make the
secondary boycott lawful. Such a
proposition is at variance with the
American instinct and will find no
support in my judgment when sub
mitted to the American people. Tha
secondary boycott is an instrument
of tyranny, and ought not to be made
legitimate.
The issuing of a temporary re
straining order without notice has in
several instances been abused by its
inconsiderate exercise, and to remedy
this, the platform upon which I was
elected recommends the
in a statute of the conditions under
which such a temporary restrafaing
order ousrht to issue. A statute can
and ought to be framed to embody '
the best modern practice, srxld cin "
bring the subject so elosely to the
attention of the court as to maka
abuses of the process unlikely in the
future. American peoplfc.-if I under
stand them, insist that the authority
of the courts shall be sustained and
are opposed to any change in the
procedure by which the powers of a
court may be weakened and the fear
less, andeffective administration of
justice be interfered with.
Having thus reviewed the ques
tions likely to recur during my Ad
ministration, and having expressed in
a summary way the position which j
I expect to take in recommedationa
to Congress and in my conduct as an
Executive, I invoke the considerate
sympathy and support of my fellow
citizens, and the aid of Almighty
God in the discharge of my respon
sible duties.