When we assembled here on the 4th of March, 1897, there was great anxiety with regard to our currency and credit. None exists now. Then our Treasury receipts were inadequate to meet the current obligations of the Government. Now they are sufficient for all public needs, and we have a surplus instead of a deficit. Then I felt constrained to convene the Congress in extraordinary session to devise revenues to pay the ordinary expenses of the Government. Now I have the satisfaction to announce that the Congress just closed has reduced taxation in the sum of $41,000,000. Then there was deep solicitude because of the long depression in our manufacturing, mining, agricultural, and mercantile industries and the consequent distress of our laboring population. Now every avenue of production is crowded with activity, labor is well employed, and American products find good markets at home and abroad. Our diversified productions, however, are increasing in such unprecedented volume as to admonish us of the necessity of still further enlarging our foreign markets by broader commercial relations. For this purpose reciprocal trade arrangements with other nations should in liberal spirit be carefully cultivated and promoted. The national verdict of 1896 has for the most part been executed. Whatever remains unfulfilled is a continuing obligation resting with undiminished force upon the Executive and the Congress. But fortunate as our condition is, its permanence can only be assured by sound business methods and strict economy in national administration and legislation. We should not permit our great prosperity to lead us to reckless ventures in business or profligacy in public expenditures. While the Congress determines the objects and the sum of appropriations, the officials of the executive departments are responsible for honest and faithful disbursement, and it should be their constant care to avoid waste and extravagance. Honesty, capacity, and industry are nowhere more indispensable than in public employment. These should be fundamental requisites to original appointment and the surest guaranties against removal. Four years ago we stood on the brink of war without the people knowing it and without any preparation or effort at preparation for the impending peril. I did all that in honor could be done to avert the war, but without avail. It became inevitable; and the Congress at its first regular session, without party division, provided money in anticipation of the crisis and in preparation to meet it. It came. The result was signally favorable to American arms and in the highest degree honorable to the Government. It imposed upon us obligations from which we cannot escape and from which it would be dishonorable to seek 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.