Cushing, with whose gallant act in blowing up the ram Albemarle during the Civil War Admiral Sampson compares Mr. Hobson's sinking of the Merrimac, received the thanks of Congress, upon recommendation of the President, by name, and was in consequence, under the provisions of section 1508 of the Revised Statutes, advanced one grade, such advancement embracing 56 numbers. The section cited applies, however, to line officers only, and Mr. Hobson, being a member of the staff of the Navy, could not under its provisions be so advanced.

In considering the question of suitably rewarding Assistant Naval Constructor Hobson for his valiant conduct on the occasion referred to, I have deemed it proper to address this message to you with the recommendation that he receive the thanks of Congress and, further, that he be transferred to the line of the Navy and promoted to such position therein as the President, by and with the advice and consent of the Senate, may determine. Mr. Hobson's transfer from the construction corps to the line is fully warranted, he having received the necessary technical training as a graduate of the Naval Academy, where he stood No. 1 in his class; and such action is recommended partly in deference to what is understood to be his own desire, although, he being now a prisoner in the hands of the enemy, no direct communication on the subject has been received from him, and partly for the reason that the abilities displayed by him at Santiago are of such a character as to indicate especial fitness for the duties of the line.

WILLIAM McKINLEY.

SECOND ANNUAL MESSAGE.

EXECUTIVE MANSION, December 5, 1898.

To the Senate and House of Representatives:

Notwithstanding the added burdens rendered necessary by the war, our people rejoice in a very satisfactory and steadily increasing degree of prosperity, evidenced by the largest volume of business ever recorded. Manufacture has been productive, agricultural pursuits have yielded abundant returns, labor in all fields of industry is better rewarded, revenue legislation passed by the present Congress has increased the Treasury's receipts to the amount estimated by its authors, the finances of the Government have been successfully administered and its credit advanced to the first rank, while its currency has been maintained at the world's highest standard. Military service under a common flag and for a righteous cause has strengthened the national spirit and served to cement more closely than ever the fraternal bonds between every section of the country.

A review of the relation of the United States to other powers, always appropriate, is this year of primary importance in view of the momentous issues which have arisen, demanding in one instance the ultimate determination by arms and involving far-reaching consequences which will require the earnest attention of the Congress.

In my last annual message[12] very full consideration was given to the question of the duty of the Government of the United States toward Spain and the Cuban insurrection as being by far the most important problem with which we were then called upon to deal. The considerations then advanced and the exposition of the views therein expressed disclosed my sense of the extreme gravity of the situation. Setting aside as logically unfounded or practically inadmissible the recognition of the Cuban insurgents as belligerents, the recognition of the independence of Cuba, neutral intervention to end the war by imposing a rational compromise between the contestants, intervention in favor of one or the other party, and forcible annexation of the island, I concluded it was honestly due to our friendly relations with Spain that she should be given a reasonable chance to realize her expectations of reform to which she had become irrevocably committed. Within a few weeks previously she had announced comprehensive plans which it was confidently asserted would be efficacious to remedy the evils so deeply affecting our own country, so injurious to the true interests of the mother country as well as to those of Cuba, and so repugnant to the universal sentiment of humanity.

The ensuing month brought little sign of real progress toward the pacification of Cuba. The autonomous administrations set up in the capital and some of the principal cities appeared not to gain the favor of the inhabitants nor to be able to extend their influence to the large extent of territory held by the insurgents, while the military arm, obviously unable to cope with the still active rebellion, continued many of the most objectionable and offensive policies of the government that had preceded it. No tangible relief was afforded the vast numbers of unhappy reconcentrados, despite the reiterated professions made in that regard and the amount appropriated by Spain to that end. The proffered expedient of zones of cultivation proved illusory. Indeed no less practical nor more delusive promises of succor could well have been tendered to the exhausted and destitute people, stripped of all that made life and home dear and herded in a strange region among unsympathetic strangers hardly less necessitous than themselves.