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" It came.

The result was signally favourable to American arms and in the highest degree honourable to the Government. It imposed upon us obligations from which we cannot escape and from which it would be dishonourable to seek to escape. We are now at peace with the world, and it is my fervent prayer that if differences arise between us and other Powers they may be settled by peaceful arbitration, and that hereafter we may be spared the horrors of war.

“Entrusted by the people for a second time with the office of President, I enter upon its administration appreciating the great responsibilities which attach to this renewed honour and commission, promising unreserved devotion on my part to their faithful discharge, and reverently invoking for my guidance the direction and favour of Almighty God.

“My fellow-citizens, the public events of the past four years have gone into history. They are too near to justify recital. Some of them were unforeseen ; many of them niomentous and far-reaching in their consequences to ourselves and our relations with the rest of the world. The part which the United States bore so honourably in the thrilling scenes in China, while new to American life, has been in harmony with its true spirit and best traditions, and in dealing with the results its policy will be that of moderation and fairness.

“Our countrymen should not be deceived. We are not waging war against the inhabitants of the Philippine Islands. A portion of them are making war against the United States. By far the greater part of the inhabitants recognise American sovereignty and welcome it as a guaranty of order and security for life, property, liberty, freedom of conscience and the pursuit of happiness. To them full protection will be given. They shall not be abandoned. We will not leave the destiny of the loyal millions in the islands to the disloyal thousands who are in rebellion against the United States. Order under civil institutions will come as soon as those who now break the peace shall keep it. Force will not be needed or used when those who make war against us shall make it no more. May it end without further bloodshed and there be ushered in the reign of peace, to be made permanent by a government of liberty under law!”

Vice-President Roosevelt, on taking the oath of office,

“Great privileges and great powers are ours, and heavy are the responsilities that go with these privileges and these powers. According as we do well or ill so shall mankind in the future be raised or cast down. We belong to a young nation, already of giant strength, yet whose present strength is but a forecast of the power that is to come. We stand supreme in the continent, in a hemisphere. East and west we look across the two great oceans toward the larger world-life in which, whether we will or not, we must take an ever-increasing share. And as, keen-eyed, we gaze into the coming years, duties new and

said :

1901.] United States.--Assassination of President McKinley. [409 old rise thick and fast to confront us from within and from without.

“There is every reason why we should face these duties with a sober appreciation alike of their importance and of their difficulty. But there is also every reason for facing them with high-hearted resolution and eager and confident faith in our capacity to do them aright.

“A great work lies ready to the hand of this generation; it should count itself happy indeed that to it is given the privilege of doing such a work. A leading part must be taken by this, the august and powerful legislative body over which I have been called to preside. Most deeply I appreciate the privilege of my position ; for high indeed is the honour of presiding over the American Senate at the outset of the twentieth century.”

On September 6, while holding a reception in the Temple of Music of the Pan-American Exhibition at Buffalo, President McKinley was shot by Leon Czolgosz, an American anarchist of Polish extraction, and died early on the morning of September 14. The body of the late President was brought to Washington, and a State funeral held in the Rotunda of the Capitol, the interment taking place at Canton, Ohio, the President's former home. Under the provision of the Constitution, Theodore Roosevelt at once took the oath of office, and became the President of the United States. He announced that he would follow the policy of his predecessor, and he requested the members of the McKinley Cabinet to retain their portfolios, which they consented to do. The assassin was placed on trial on September 23 at Buffalo, found guilty and sentenced to death three days later. He was executed by electricity at the State prison at Auburn, New York, October 29.

The area of the United States, not including foreign possessions, is (census of 1900) 3,616,484 square miles, with a population of 76,303,387 as compared with 63,069,756 in the previous decade. There were 9,312,585 “coloured” persons, under that head being enumerated negroes, persons of negro descent, Chinese, Japanese and Indians. The dependencies have a population of 8,083,683 as follows: Philippine Islands, 6,961,339 (estimated); Porto Rico, 953,243; Hawaii, 154,001; Guam, 9,000; American Samoa, 6,100.

For the fiscal year 1901 487,918 immigrants arrived in the United States as compared with 448,572 in 1900. The principal countries sending immigrants to the United States were Italy, 135,996; Austria-Hungary, 113,390; Russia, 85,257; Ireland, 30,561; Sweden, 23,331; Germany, 21,651 ; Great Britain (excluding Ireland), 14,985.

The regular Army of the United States, including coloured troops, is limited to a maximum strength of 100,000 enlisted men, but at the present time 3,820 officers, line and staff, and 77,287 enlisted men, exclusive of coloured troops, constitute the military establishment. The Army Act of February 2, 1901,

reorganised and increased the Army. Provision was made for 15 regiments of cavalry, an artillery corps of 30 batteries of field artillery and 126 companies of coast artillery, 30 regiments of infantry, a corps of engineers, a signal corps and the usual Staff departments, Pay, Medical, Subsistence, etc. Provision was also made for the organisation of a native Porto Rican regiment officered by Americans, and the employment of native scouts in the Philippines, at the discretion of the President.

At the close of the year 1901 the United States Navy comprised 225 vessels of all classes in commission, or available for service, and 60 vessels under construction. The vessels in commission or in reserve were: 10 battleships, 2 armoured cruisers, 15 protected cruisers, 6 unprotected cruisers, 9 harbourdefence vessels, 70 gunboats, 27 torpedo boats, 1 submarine boat, and 85 auxiliaries-colliers, supply ships, tugs, etc.

Under construction were 8 battleships, 6 armoured cruisers, 9 protected cruisers, 1 gunboat, 4 coast-defence vessels, 16 torpedo-boat destroyers, 9 torpedo boats and 7 submarine boats. Congress is expected to make the usual appropriations for new construction in accordance with the recommendations of the Secretary of the Navy. These appropriations will not be available until the end of the fiscal year, June 30, 1902.

During the year two battleships, the Illinois and the Wisconsin, were commissioned, sister-ships of 11,525 tons displacement, and engines of 10,000 I.H.P. working twin screws. These vessels are protected by an armour belt of 161 in., and carry two 13-in. guns in turrets fore and aft, fourteen 6-in. R.F. guns, sixteen Q.F. 6 pounders, six 1 pounder R.F., four Colts, and two 3-in. R.F. field. The Kearsarge and the Kentucky, of the same tonnage, but with 11,954 and 12,318 I.H.P. respectively, while carrying the same guns in their main battery and the same armour protection, are distinguished by having superposed turrets on their main turrets, in which are four 8-in. guns, the barbette guns being 5-in. Q.F., instead of 6 in., as in the Illinois, with secondary batteries similar to the Illinois. The Maine, Missouri and Ohio, under construction, with a displacement of 12,500 tons, will carry four 12-in. B.L.R., sixteen 6-in. R.F. guns, six 3-in. R.F., eight 3 pounder R.F., six 1 pounder R.F., two Colts, and two 3-in. R.F. field. They will have 11 in. of armour on their sides, and 12 in. on their turrets, and, with engines capable of developing 16,000 horsepower, will have a speed of 18 knots under natural draft: speed and great coal endurance were the objects aimed at in the construction of these vessels. The Georgia, New Jersey and Nebraska, also under construction, will displace 15,000 tons, and with 18,000 I.H.P. are expected to steam 19 knots. Four 12-in., eight 8-in. and twelve 6-in. quick-firers with the usual number of rapid fire and automatic guns in the secondary battery will constitute the armament. They will carry 11 in. of armour on their sides and turrets. The California class of armoured

United States.Exports and Imports.

[411 cruisers now building includes the Pennsylvania and West Virginia, with a displacement of 14,000 tons and 23,000 I.H.P. These vessels will carry four 8-in., fourteen 6-in. R.F. guns, eighteen 3-in R.F., twelve 3 pounder R.F., eight 1 pounder R.F., two 3-in. R.F. field, two machine and six automatic, and will have a speed of 22 knots, with sides protected by 6 in. of armour. The St. Louis class of protected cruisers will have a displacement of 9,600 tons, with engines of 21,000 I.H.P., capable of developing 22 knots. They will be armed with fourteen 6-in. Q.F. guns and a powerful secondary battery, and will have 3 in. of armour worked over the vitals. Six vessels of the Chattanooga class are building, of 3,100 tons and 4,700 I.H.P., giving them a speed of 16.5 knots. They will be armed with ten 5-in. Q.F., eight 6 pounder R.F., two 1 pounder R.F., and four Colt automatic guns.

The personnel of the Navy consists of 1,439 officers of all ranks, 403 petty and warrant officers, and 19,541 enlisted men. The marine corps consists of 199 officers and 6,000 enlisted men.

There are 997,735 persons on the pension rolls at an annual charge of $139,582,231.98. Pensions are paid not only to those persons who actually took part in any war of the United States, and who incurred any disability while in active service, but also to their widows and minor children.

The exports and imports for the fiscal year ending June 30, 1901, were :-Exports, $1,487,764,991 ; imports, $823,172,165, as compared with $1,394,483,083 exports, and $849,941,184 imports for the previous year, or leaving an apparent balance of trade in favour of the United States for the current fiscal year of $664,592,826. The balance of trade, however, is more apparent than real, and is a problem that has long puzzled the greatest authorities on the subject of foreign commerce. While, on the surface, Europe is heavily indebted to the United States, it is admitted that much of this indebtedness has been cancelled by the money paid for ocean freights and insurance, money spent in Europe by American tourists, and American loans negotiated in London and other great monetary centres ; invisible balances which do not appear in the returns, and which cannot be taken up in statistical statements. A large share of the apparent balance of trade is also doubtless explained by the undervaluation of imports and the overvaluation of American exports, the statement having been frequently made, and it is believed on reliable authority, that many articles of American manufacture are sold at lower prices abroad than at home, but in the trade statistics the domestic value is the basis of calculation.

The principal articles of import were :-Sugar, $90,487,800 ; hides and skins, $48,220,013; chemicals, $53,508,157 ; coffee, $62,861,399; unmanufactured silk, $30,051,365 ; manufactures of cotton, $40,246,935; manufactures of silk, $26,842,138 ; iron and steel, $17,874,789 ; unmanufactured wool, $12,529,881 ;

manufactures of wool, $14,585,306 ; jewelry and precious stones, $24,216,407; tin (bars, blocks or pig), $19,805,551 ; tobacco, $16,290,387; wines, $8,219,236; tea, $11,017,876; fruits and nuts, $19,586,703; leather and manufactures of, $11,887,012.

The countries from which these imports originated, with their values, were :-Great Britain, $143,388,501 ; British North America and all other British possessions, $120,964,120; Germany, $100,445,902; France, $75,458,739 ; Italy, $24,618,384 ; Switzerland, $15,799,400; Russia, $7,030,892 ; Central and South America and Mexico, $143,925,496; China, $18,303,706 ; Japan, $29,229,543; the Netherlands, $20,598,799.

The principal exports and their values were :-Breadstuffs, $248,759,022 ; animals, $52,058,876 ; cotton, raw and manufactured, $333,945,861 ; manufactures of iron and steel, $117,319,320; leather and manufactures of, $27,923,653 ; oils, $91,166,905 ; provisions and dairy products, $196,959,637 ; tobacco, $32,779,078; wood and manufactures of, $52,445,585.

The chief purchasers of American goods were:—Great Britain, $631,177,157; British North America and all other British possessions, $189,478,367 ; Germany, $191,780,427 ; France, $78,714,927 ; Italy, $34,473,189 ; Denmark, $16,175,235 ; Spain, $15,480,288; Central and South America and Mexico, $85,037,612 ; China, $10,405,834 ; Japan, $19,000,640 ; Belgium, $49,389,259; the Netherlands, $84,356,318; Sweden and Norway, $11,844,152; Russia, $8,084,228.

Great Britain is the best customer of the United States. Practically one-third (33:52 per cent.) of the entire foreign trade of the United States is with Great Britain, and 42:42 per cent. of America's exports are taken by Great Britain, no other nation approaching this, the nearest being Germany with 12-89 per cent. of exports. If to the English figures are added the trade of Canada and the other British possessions, it will be seen that in round numbers one-half of the entire foreign trade of the United States is with England and her colonies, and that almost 60 per cent. of all the exports are absorbed by the British Empire.

The report of the Secretary of the Treasury for the fiscal year 1901 showed that the total receipts of the Government from all sources were $699,316,530.92 and expenditures, $621,598,546.54, leaving a surplus of $77,717,984.38. The principal receipts during the year were : -Customs, $238,585,455 ; inland revenue, $307,180,663 ; postal service, $111,631,193 ; profit on coinage, bullion deposits, etc., $12,731,256 ; consular fees and letters patent, $3,414,933; tax on national banks, $1,681,473 ; sales of public lands, $2,965,119. The principal expenditures were :-Civil establishments, including foreign intercourse, $117,327,240; military establishment, $144,615,697 ; naval establishment, $60,506,978 ; postal service, including deficiency, $116,585,955 ; pensions, $139,323,621 ; interest on public debt, $32,342,979 ; redemption of public debt, on account

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