ARBITRATION.--On this matter he states that the "best sentiment of the civilized world is moving toward the settlement of differences between nations without the horrors of war." He adds that he will give his constant encouragement to all such treaties, provided they do not endanger our interests. THE EXPOSITION OF 1900, which will be held in Paris, also comes in for consideration. President McKinley states that from the reports received from the special commissioner who was appointed to look into the matter, he is of opinion that the coming event in Paris will be one of the most important of the many wonderful expositions which the world has seen. He therefore asks Congress to make a liberal appropriation of money, so that the United States may be properly represented. In regard to THE NAVY, the President says: "The present force of the navy consists of 4 battleships of the first class, 2 of the second, and 48 other vessels, ranging from armored cruisers to torpedo-boats. There are under construction 5 battleships of the first class, 16 torpedo-boats, and 1 submarine boat. No provision has yet been made for the armor for three of the five battleships, as it has been impossible to obtain it at the price fixed by Congress. It is of great importance that Congress provide for the purchase of this armor, as until then the ships are of no fighting value." Considering that five battleships of the largest class are now on the stocks, the President only recommends the building of one more battleship, which shall be for the Pacific Coast. He also asks for several torpedo-boats, in connection with the system of coast defence, and recommends that floating-docks for the repairing of battleships be provided on all our coasts. As to ALASKA, the government of the territory is, the President says, not strong or effective enough to take care of the crowds that have hurried into the country since the discovery of gold. He therefore suggests that a more thorough system of government shall be established. He states that he agrees with General Alger, the Secretary of War, that Alaska also needs a military force for the safety of her citizens. A military post is about to be established at St. Michaels, which, as you probably remember, is on Norton Sound, and is one of the principal seaports of Alaska. THE CIVILIZED TRIBES OF INDIANS were next in consideration. President McKinley recommends that the relations with the five civilized tribes shall be readjusted, giving the Indians citizenship and individual ownership of their lands. The five civilized tribes are the Cherokees, Choctaws, Chickasaws, Muscogees or Creeks, and the Seminoles. (This latter point opens a very interesting subject for us. We have not space to talk about it now, but hope to do so shortly. We should all of us be familiar with the history of the Indians.)