On the other hand, the constitution creates a completely new body, the provincial councilors, whose cooperation with the municipal administration and with the State, and whose intimate connection with the civil governors calls for the enaction without delay of a statutory law regulating their actions. Otherwise, we would have a body without legal conditions for its operations. The councilors, consequently, will, although for an indefinite time, have a nominal existence, and will not be able, therefore, to regulate the procedure of the civil governors, who are subordinate to them in the economic order; but, seeing that in the provincial sphere the civil governors are the highest governing authority, it is proper to authorize the Executive, giving to this branch of the aministration the necessary uniformity, to look after the indispensable expenditures.

The preservation of public order is the first duty of every government, and for assuring this we have to depend only upon the scant personnel of the rural guard and the artillery corps, so that suffice to say that the tranquillity and security of the public rest upon the proper police of the country, in the common confidence and the surpassing interest which we all have in raising to the greatest height the authority and prestige of the nascent Republic.

If the public forces in the outlying districts are to be a firm guaranty for the person and a safeguard for the interests of all, it is indispensable that provision be made as soon as possible for the necessities of this service, duly increasing the rural guard and organizing it under the most rigid discipline.

I acknowledge a debt of justice, very pleasing to me, in recognizing that the American intervention has improved the sanitary condition of Cuba to such a degree that the death rate can even now, without discredit, be compared with that of communities where the sanitary conditions have been arranged according to the most modern and efficacious methods. But it is also incumbent on me to say that, up to this time, there remain to be done certain works absolutely necessary for guaranteeing the present satisfactory conditions. The means taken for procuring the entire disappearance of yellow fever as the exponent of an exceptional sanitary condition, may perhaps be successful, inasmuch as they treat of a programme of such magnitude as not only to relate to the internal welfare, but to claim serious consideration as regards the international well being.

Charitable enterprises shall receive the most careful attention, not only because of the humanitarian duty involved, but because patriotism places us under the obligation of caring for the orphans which the mishaps of war have left unprovided for. This can be accomplished with relative economy, because, through the piety of our people, there have been accumulated considerable resources for the maintenance of asylums and hospitals.

I have to invite attention to the present practice in our penal institutions, which calls for prompt and radical modification. The life of idleness, in community, which is the usual course followed, lends itself more to instruction in vice than to the reformation of moral delinquents.

A very important factor in the development of material and moral interests is the good administration of justice, as this is the first guaranty and the best safeguard of the respect for property and other civil rights. To decree the laws regulating the exercise of the judicial functions and prescribing the principle of permanency of the functionaries of this branch, ought to be one of the first duties of Congress. In this way there could be expected from the judges and magistrates the independence of action which they require in order to proceed, free from all influence, without other desire than the right and honorable application of the laws.

I shall devote myself with especial solicitude to public education in the several divisions of university, high school, and primary instruction.

It is not long since a new plan, intended to give a more practical character to the studies which are pursued in the university, was adopted. In a matter of such transcendental importance to the intellectual growth of our people, I shall proceed with moderation, to the end that due consideration be given, on the application of the improvements introduced, to the results of the experience and the counsels of the wisdom of the university itself. Exponent, as it is, of the highest culture, the Government feels consummate interest in its apogee and splendor, and shall endeavor to provide for its necessities and so make way for the due fulfillment of its high ideals.

There have also been effected in the high schools certain reforms analagous in tendency to those brought to bear in the university. Perhaps a little later, when the conditions of the general instruction shall permit, it will be deemed proper to vary in somewhat its organization, in order to combine it with the primary education. This latter has experienced a radical change. The merited importance has been given to the branch, and I declare it to be my purpose to devote my energies to the

building up of the public schools, convinced as I am that in them lies the future of our country.

The primary education to-day has an administrative and technical organization more adequate to the principles of pedagogy. As a result of these reforms there are now receiving instruction in our schools a number of scholars so largely increased as to find no precedent in the annals of our primary instruction.

It is but just to give tribute of warm applause to the intervening Government for its zeal in the diffusion of education. The number of schools now existing, as compared with those of note prior to 1895, is great; but even the present number is not sufficient, for, in fact, the whole problem of the future of Cuba rests in the school. Wherefore, the Government will look with extraordinary interest to the improvement of this branch, in so far as the economic condition of the country may permit, to the end that the benefits of instruction may reach those places hitherto untouched. Means of communication are essential to the development of the country and indispensable to the easy movement of agricultural products, but the works undertaken and the rapidity of their conclusion are necessarily in closest possible relation to the pecuniary means at disposal. The Government, notwithstanding, will direct its endeavors to conserving in the best condition existing works and to finishing such as are now in course of construction.

It will be your duty to invite the greatest possible exploitation of railroads, giving to the capital invested in them all kinds of guaranties, at the same time stimulating the extension and improvement of the enterprises already on foot, as well as the establishment of new enterprises that may seek to avail of the shelter of the statutes now effective or of such as may hereafter be enacted.

The Executive bears in mind the engagements entered into by the revolutionary government with the liberating army, and if at the moment the means for fulfilling them are not at hand, it is only due to the bad economic situation of the country, and ignorance of the actual resources upon which the State may count for meeting the ordinary needs of the administration.

It is indeed lamentable that at this moment it should be impracticable to attend to an obligation so sacred as that of requiting the services of those who struggled arms in hand, and of alleviating the sad condition at present suffered by the widows and orphans of many of those who died so gloriously for the fatherland.

It must be very pleasing to all of us that the Republic of Cuba should have been officially recognized not only by the United States, but by the Governments of Great Britain, Italy, France, Mexico, Guatemala, Nicaragua, Santo Domingo, Ecuador, and Paraguay.

It is to be hoped that other Governments may do likewise, and that we may be able to count upon the good wishes and friendship of the foreign nations.

On our part, we must improve the occasion of cultivating with all of these the most cordial relations, endeavoring to conclude such treaties of friendship and commerce as may be favorable to the interests of Cuba. To the facilitation of this result, we shall have to accredit in the several countries consular agents and such diplomatic representatives as may be deemed essential.

We shall, in addition, take especial pains to secure at all times a perfect understanding between the United States and ourselves, in order that there may never be even the slightest difficulty in the arrangement of those political and economical matters as commonly interest the two countries.

If the benefit of friendly and cordial relations as with other States is universally admitted, it is certainly still more necessary that, within the Republic of Cuba, there be maintained a lofty spirit of unvarying concord which may bind together all the people as a unit, resolutely determined upon the conservation of the Cuban nation for the material and moral progress of the country and the individual and collective welfare of all the inhabitants in the island.

Can anyone deny that unity and mutual agreement among the members of an association are the most certain guaranties for the lasting existence of that association? Hence, among us who have just assumed the responsibilities of an independent people, it is absolutely indispensable that the noble example of harmony, concord, and unity which we have given to the world in these first days of our political existence continue as the normal state maintained by us in our life as a nation. A factor of the most exceptional importance in this much-desired concord is the good understanding which should always subsist between the legislative bodies and the executive power. These constitute the government of the State in accordance with the principles of the constitution now ruling us. The regular conduct of the public administration necessarily depends on the agreement and harmony which may subsist as between the various powers, on the confidence which the senate and house of representatives may have in the patriotism and good faith of the executive body. FR 1902, PT 1-22

Only in this way can there be the most perfect cooperation regarding the needs, true interests, and positive necessities of the Republic. To this end I pray that the Supreme Being may guide us and strengthen our spirit so that there may be observed in all of our actions a constant and discreet prudence and right judgment at the inspiration, pure and disinterested, of our great love for Cuba.

SIR: I have the honor to transmit herewith copy of the President's message to Congress presenting the project of the general budget of expenses and revenues for the year 1903, showing an estimated surplus of $2,614,032.28.

Mr. Palma calls attention to a decrease of $7,157,855.21 in the disbursements during the last fiscal year without making any reduction in services of sanitation, which he points out will yearly call for increased expenditures.

Educational matters are well supported, number of schools being 3,474, with an attendance of 163,348.

An agricultural station is to be organized, at a cost of $75,000.

The statistics submitted show a decrease in imports during the first six months of 1902 amounting to $1,700,000 and of exports $12,300,000, or 5 per cent in the former and 28 per cent in the latter, as compared with the year 1901, due, it is claimed, to the low price of sugar.

Estimated receipts on account of consular fees amount to $250,000, as compared with $850,000 estimated receipts under first consular-fee bill which passed Congress and $550,000 under the amended bill which passed the Senate and is now pending in the House.

It is stated that this is the smallest Cuban budget presented since the middle of the century, and when certain expenses are transferred from the general administration to the provincial or municipal there may be a still further reduction of 25 per cent.

I am, etc.,

[Inclosure.-Translation.] Cuban Presidential Message.

H. G. SQUIERS.

To Congress:

HABANA, November 1, 1902.

I fulfill with true satisfaction the duty imposed upon me under section 5 of article 68 of the constitution, in presenting to Congress the project of the general budget of the nation for the fiscal year of 1903.

For the first time we, as Cubans, exercise the most important of the rights which a people can enjoy—that of freely regulating its revenues and expenses-and this must be for all a cause of true pleasure, because it was one of our most ardent aspirations, which, after bloody sacrifices, we see to-day happily realized. The Government congratulates itself upon contributing on its part to the regulation of the economic life of the State, proposing to the legislative power the estimates for the maintenance of the public services and the revenues deemed necessary to cover them. During the existence of Spanish sovereignty the Cuban budgets were approved, first, without the concurrence of the representatives of the country, and, later, with the intervention of the few who were sent to the Spanish Parliament, and who, by

reason of their small number and other causes, never had any effective influence in favor of interests genuinely Cuban. In the 31 tables accompanying the revenues and expenses are shown in detail which were estimated for Cuba from the year 1850 to 1898, and it may be seen from them what was the total amount of the obligations which were a charge upon the local treasury and the application given to the income which was exacted from the Cuban people, justifying the protest of the same against that system, which was contrary to its legitimate aspirations and most pressing necessities.

During the rule of the intervention budgets were not made, and on this account I requested in the messages which I addressed to the chamber under your worthy presidency on the 11th of June and the 22d of August last the necessary authorization to pay the expenses of the State until these general budgets were approved, indicating in those messages the causes which prevented the realization with the promptness desired of such an important work. A starting point was lacking because of the special organization given by the intervening government to the public services which discharged their duties without any budget, the needs of the State being paid by means of the concession of funds on the request of the disbursing officers of the various departments, in monthly requisitions at first, and afterwards bimonthly. On the cessation of that government on the 20th of May, services which before had an independent organization, or were directly subject to the headquarters of the Department of Cuba, passed over to form part of the departments of the cabinet, and on this account there did not exist any precedents in the departments. It has been necessary, therefore, as a preliminary task, to reorganize and distribute those bureaus in conformity with the new order of things established at the inauguration of the Republic.

In the project which I have the honor to submit to Congress the endeavor has been to establish the greatest economy, in accord with the manifestations which I made in my programme of the 7th of September, 1901, in which I expressed the necessity of organizing the Republic as modestly as was possible, so as to avoid difficulties and embarrassments for lack of foresight, for which reason we should carefully combine the organization of the public services, as well as their allowances of funds, adjusting them to the capacity of the island in the matter of income and resting upon actual data and never upon flattering hopes.

As a consequence of that purpose the expenses have been limited to the necessities which are a charge upon the State, in conformity with the laws and provisions regulating the public services and in accordance with one of the clauses of the appendix of our constitution in what relates to the land and marine sanitary service. The general summary of the project is as follows:

Deducting from $14,899,967.72, the amount of the expenses in the accompanying project, the amount of the services newly created-i. e., Congress, the Presidency, the consular corps, and the increase of the rural guard-amounting to $1,457,947.68; also the amount of the contracts entered into by the military government, which the actual Government has to carry out, aggregating $1,085,271.38, it would result that the expenses for the services before established would amount only to $12,356,748.66, or $7,157,855.21 less than the sum of the disbursements in the past fiscal year of 1901-1902, without making any reduction in the services of sanitation and charities and others of not less importance. These sums, compared with those of the last three years, present the following results:

a Data from the report of the Secretary of War of the United States of America.
b Data from the report of the general treasurer of the island.
c Estimated.

Examining the expenses, it is to be observed that all those of the legislative power, those of the Presidency and Vice-Presidency, and those of the diplomatic and consular corps are of new creation and unavoidable constitutionally, the latter having a permanent character in conformity with the fundamental law, for which reason they constitute a portion of the fixed estimates and should govern until amended by special laws.

The expenses of the administration of justice also have a permanent character; but, as Congress has not yet enacted the organic law for the judiciary wherein those expenses should be definitely assigned, it is the duty of Congress to adopt such measures as it may deem proper in order that the constitutional provision regarding the legality of such expenses be complied with. In the meantime the necessary sums to maintain the actual organization are included in the project as the only existing legal organization. For this reason the allowance for the municipal courts has not been included in this project, because the fixing of its amount is an exclusive attribute of Congress.

In the department of government appear the obligations of a transitory character which the State has taken upon itself, such as those of the provincial governments and of sanitation and charities-the first, because the provincial councils are not yet organized, and the last, because by their own nature they require the tutelary action of the State whenever the local organizations have not the resources to attend to them.

It is possible that the expenses of the provincial government will figure in the actual budget only a few months, taking into account the proximity of the promulgation of the organic provincial law; and those of charities, amounting to nearly $1,000,000, will surely be decreased as soon as the municipal councils are in such condition that the Government can deliver over to them the beneficent institutions of a municipal character.

The cost of the sanitary service, far from decreasing, will increase, inasmuch as on the extension of the organization of the service to the entire country and even beyond it the amount required for its maintenance will have to be greater. Among those expenses appears the project of the establishment of a chemical bacteriological laboratory of a general nature, wherein shall be made the scientific preparations which to-day are very costly to the State, and wherein chemical analyses will be made, which at present are made under heavy expenses; for which reason it may be asserted that this laboratory will not only produce effective saving, but will yield a positive revenue.

Among the new expenses of government are included the cost of the rural guard under the law of October 18, amounting to $1,783,582; the secret police, previously supported in part by the municipality of Habana, and now a charge upon the State because of existing provisions; as well as the subvention assigned to the corps of firemen by order No. 103, series 1902, which is reduced to $6,000 in place of the $12,000 assigned in said order, for which reason the municipality of Habana should contribute a greater amount than the State for the maintenance of that useful institution, as it has been relieved of other expenses of a local character, and it is enabled, therefore, to attend with greater freedom to the municipal expenses.