expenses attending
pension distribution, amounted to $142,206,550.59, or within a very
small fraction of one third of the entire expense of supporting the
Government during the same year. The number of new pension certificates
issued was 90,640. Of these, 40,374 represent original allowances of
claims and 15,878 increases of existing pensions.

The number of persons receiving pensions from the United States, but
residing in foreign countries, at the close of the last fiscal year was
3,781, and the amount paid to them during the year was $582,735.38.

The sum appropriated for the payment of pensions for the current fiscal
year, ending June 30, 1897, is $140,000,000, and for the succeeding year
it is estimated that the same amount will be necessary.

The Commissioner of Pensions reports that during the last fiscal year
339 indictments were found against violators of the pension laws. Upon
these indictments 167 convictions resulted.

In my opinion, based upon such statements as these and much other
information and observation, the abuses which have been allowed to creep
into our pension system have done incalculable harm in demoralizing our
people and undermining good citizenship. I have endeavored within my
sphere of official duty to protect our pension roll and make it what it
should be, a roll of honor, containing the names of those disabled in
their country's service and worthy of their country's affectionate
remembrance. When I have seen those who pose as the soldiers' friends
active and alert in urging greater laxity and more reckless pension
expenditure, while nursing selfish schemes, I have deprecated the
approach of a situation when necessary retrenchment and enforced economy
may lead to an attack upon pension abuses so determined as to overlook
the discrimination due to those who, worthy of a nation's care, ought to
live and die under the protection of a nation's gratitude.

The Secretary calls attention to the public interests involved in an
adjustment of the obligations of the Pacific railroads to the
Government. I deem it to be an important duty to especially present this
subject to the consideration of the Congress.

On January 1, 1897, with the amount already matured, more than
$13,000,000 of the principal of the subsidy bonds issued by the United
States in aid of the construction of the Union Pacific Railway,
including its Kansas line, and more than $6,000,000 of like bonds issued
in aid of the Centra