File No. 27/251.

Minister McCreery to the Secretary of State.

No. 139.]

Sir: I have the honor to report that President Caceres presented his annual message to the Dominican Congress at its opening, on the 27th ultimo.

The message is practical and sensible. It appeals to the common sense of the Dominican people.

The President refers to the return to the Republic of the majority of Dominicans absent from political causes.

Reference is made to the cordial relations existing between the Republic and all nations. The boundary question with Haiti is mentioned and the confident opinion expressed that the good sense of the two Governments will find a satisfactory solution.

The question of the ownership of church edifices, which has recently arisen between the Roman Catholic Church and the Government, is submitted to the Congress.

Improvements in the administration of justice and the public school system are recommended.

A new tariff will soon be submitted to the Congress by the Executive.

The receipts of the Government during the past year amounted to $4,019,172.69, of which $3,232,889.93 were customs dues. The obligations of the Governemnt, both foreign and domestic, were promptly met. The value of exports was $9,595,320.96 and of imports $4,905,171.67. About $1,700,000 of the debt contracted before the bond issue of $20,000,000 remains unpaid for the reason that certain creditors have not accepted payment. The balance remaining of the $7,564,823 now on deposit in New York to the credit of the Republic, after the liquidation of outstanding credits and the purchase of certain concessions, will be employed in public works.

The President states that this balance should be employed in the economic development of the country only after serious studies and surveys have been made. The President gives the assurance that this money will be honestly expended in public works.

The message recommends more stringent sanitary measures; changes in the laws relating to municipalities; improvements in the army, republican guard, and navy; the passage of a banking law, and the encouragement of agriculture and immigration.

I have, etc.,

Fenton R. McCreery.