These countries will want our products in greatly increased quantities, and we shall correspondingly need theirs.  The International Bureau of the American Republics is doing a useful work in making these nations and their resources better known to us, and in acquainting them not only with us as a people and with our purposes towards them, but with what we have to exchange for their goods.  It is an international institution supported by all the governments of the two Americas.

Panama canal.

The work on the Panama Canal is being done with a speed, efficiency and entire devotion to duty which make it a model for all work of the kind.  No task of such magnitude has ever before been undertaken by any nation; and no task of the kind has ever been better performed.  The men on the isthmus, from Colonel Goethals and his fellow commissioners through the entire list of employees who are faithfully doing their duty, have won their right to the ungrudging respect and gratitude of the American people.

Ocean mail Liners.

I again recommend the extension of the ocean mail act of 1891 so that satisfactory American ocean mail lines to South America, Asia, the Philippines, and Australasia may be established.  The creation of such steamship lines should be the natural corollary of the voyage of the battle fleet.  It should precede the opening of the Panama Canal.  Even under favorable conditions several years must elapse before such lines can be put into operation.  Accordingly I urge that the Congress act promptly where foresight already shows that action sooner or later will be inevitable.

Hawaii.

I call particular attention to the Territory of Hawaii.  The importance of those islands is apparent, and the need of improving their condition and developing their resources is urgent.  In recent years industrial conditions upon the islands have radically changed, The importation of coolie labor has practically ceased, and there is now developing such a diversity in agricultural products as to make possible a change in the land conditions of the Territory, so that an opportunity may be given to the small land owner similar to that on the mainland.  To aid these changes, the National Government must provide the necessary harbor improvements on each island, so that the agricultural products can be carried to the markets of the world.  The coastwise shipping laws should be amended to meet the special needs of the islands, and the alien contract labor law should be so modified in its application to Hawaii as to enable American and European labor to be brought thither.

We have begun to improve Pearl Harbor for a naval base and to provide the necessary military fortifications for the protection of the islands, but I can not too strongly emphasize the need of appropriations for these purposes of such an amount as will within the shortest possible time make those islands practically impregnable.  It is useless to develop the industrial conditions of the islands and establish there bases of supply for our naval and merchant fleets unless we insure, as far as human ingenuity can, their safety from foreign seizure.