On the whole the finances of the Government are most satisfactory.

For the first time during my term of office we face that contingency.

The United States Government was trying to fix the price of silver by law, which, of course, was bound to fail.

The main reason for this has been the sound foundation on which it stands.

Although we are well aware that in the immediate past, and perhaps even now there are certain localities where our citizens would be given over to pillage and murder but for the presence of our military forces, nevertheless it is the settled policy of our Government to deal with other nations not on the basis of force and compulsion, but on the basis of understanding and good will.

I suggested to them that it is always necessary to use care in the raising and expending of the revenue of the government.

Under our standard we do not expect the Government to support trade; we expect trade to support the Government.

Under free governments trade must be free, and to be of permanent value it ought to be independent.

Governments do not have commercial relations.

Our Government has usually been too remiss, rather than too active, in supporting the lawful rights of its citizens abroad.

There is another matter of general concern, and that is this—that when our relations with a foreign country are in the condition that our relations with some of the Chinese are in at the present time, it is in danger of being quite harmful if the press resorts to speculation about the attitude of this Government.

I therefore return the bill without my approval.

To take on a permanent obligation of the nature that I understand is contemplated in the suggestion of President Diaz would be, I think, a little farther than this Government would wish to go.

Our Government stands also thoroughly committed to the policy of avoiding competition in armaments.

I think that in the past few weeks I have detected some evidences that in the coming session of Congress a good many efforts are going to be put forth to secure considerable expenditures of money.

There is one problem that I have to keep under constant emphasis, and that is economy and government expenditures.

Now, it is very important that this country keep down its expenditures.

But I think generally speaking over practically the whole of Mexico there is a very good condition of order.