Weekly Arizona journal-miner., 1905-12-13
PRESIDENTS MESSAGE (Continued from Page Three.)

(Continued from Page Three.)
 through diplomatic channels, to pre- vent unjust discrimination by foreign
 countries against American insurance
 companies. These negotiations illus
 trated the prOpriety of the congress
 recognizing the national character of
 insurance, for in the absence of Federal legislation the state department could only give expression to the wishes of
 the authorities of the several states, whose policy was ineffective through want of uniformity.
 I repeat my previous recommendation that congress should also consider whether the Federal government has any power or owes any duty with re- spect to domestic transactions in in surance of an interstate character. That state supervision has proved in adequate is generally conceded. The burden upon insurance companies, and therefore their policy holders, of con- mcting regulations of many states, IS unquestioned, while but little effective check is imposed upon any able and unscrupulous man who desires to ex- ploit the company in his own interest at the expense of the policy holders and of the public. The inability of a state to regulate effectively insurance corporations created under the laws of other states and transacting the larger part of their business elsewhere is also clear. As a remedy for this evil of
 conflicting, ineffective, and yet bur densome regulations there has been for many years a widespread demand for Federal supervision.
 The Revenues.
 There is more need of stability than of the attempt to attain an ideal per lection in the methods of raising reve- nue: and the shock and strain to the business world certain to attend any serious change in these methods render such change inadvisable unless for grave reason. It is not possible to lay down any general rule by which to deter mine the moment when the reasons for will outweigh the reasons against such a change. Much must depend, not merely on the needs, but on the desires, of the people as a whole; for needs and desires are not necessarily identi cal Of course no change can be made on lines beneficial to or desired by one section or one state only. There must be something like a general agreement among the citizens of the several states, as represented in the congress, that the change is needed and desired in the interest of the people as a whole; and there should then be a sin cere, intelligent and disinterested eff fort to make it in such shape as will combine, so far as possible, the maxi mum of good to the people at large with the minimum of necessary disre gard for the special interests of To- calities or classes. But in time of peace the revenue must on the average, taking a series of years together, equal the expenditures or else the revenue must be increased. Last year there was a deficit. Unless our expenditures can be kept within the revenues then our revenue laws must be readjusted.
 Economy in Expenditures.
 I earnestly recommend to the con- gress the need of economy and to this end of a rigid scrutiny of appropria tions. As examples merely, I call your attention to one or two specific mat ters. All unnecessary offices should be abolished. The commissioner of the general land office recommends the abolishment of the office of receiver of public moneys for United States land offices. This will effect a saving of about a quarter of a million dollars a year. As the business of the nation grows it is inevitable that there should 1 be from time to time a legitimate in- crease in the number of officials, and | this fact renders it all the more i'm | pOrtant that when officers become i they should be abolished. l In the public printing also large sav- ing of public money can be made. There is constantly growing l tendency to publish masses of | information. It is probably not unfair to say that many tens of thousands of vol umes are published at which no human being ever looks and for which there is no real demand whatever.
 Yet, speaking of economy, must in no wise be understood as advocating the false economy which is in the end the worst extravaganza. 10 cut down on the navy, for instance, would be crime against the nation. To fail to push forward all work on the Panama canal would be as great a folly.
 Business Methods in Departments.
 At various times l have instituted investigations into the organization and conduct of the business of the ex- ecutive department. There is every reason why our executive governmental should be at least as well planned, economical, and efficient as the best machinery of the great busi- ness organizations, which at present is not the case. To make it so is task of complex detail and essentially executive in its nature; probably no legislative body, no matter how wise and able, could undertake it with req ;onable prospect of success. l recom- mend that congress consider this sub- iect with a view to provide by legisla ion for the transfer, distribution, con- 'Olidation and assignment of dutles and executive organizations or parts of or yaniZations, and for the changes in