New-York tribune., 1908-12-10
HR. CORTELYOU'S REPORT.

The need Of economy this year gives special
pertinency TO Secretary Cortelyous recommends
tions regarding the regulation Of the national
budget. The Secretary calls attention TO the
fact that, excluding the interest the public
debt the ordinary expenditures Of the govern
ment have risen from S135OOOOOO in 1873 to
S63S 100000 in 1908. nearly 400 per cent in
generation. and he says that if the time comes
when session Of Congress is given over largely
"to the consideration Of ways and means TO re-
"duce the operating expenses Of the government
and patriotic and discriminating judgment IS
brought to bear on the problem we shall see
Saving of many millions of dollars, with no sac
.rifice of efficiency of administration"
great cause of extravaganza, IN the Secre-
tary's opinion, Is the lack of system in the prep
aration Of the budget which Is subject to no
businesslike control. The Executive has in
f1uence over it except TO veto it whole or
sign it as a whole. The Treasury Department,
which is charged with the responsibility Of meet
ing its demands. has nothing to say regarding its
preparation. 1t is made up by Congress without
particular regard for prospective revenues being
the result largely Of logTOIling among members
who combine to further their own local appro-
priations In a word. being prepared by the
Legislature Il has the weakness Of the Legislative
system about it: that is to say, too much regard
for local considerations and too little for ma
tional considerations enter into its determlna-
ton. Each Congressman has everything to
gain by spending money in his district and
nothing to gain by saving money for the country
at large.
Mr. Cortelyou suggests that Congress vest IN a
Joint committee the power TO revise the budget
with reference TO the prospective revenue of the
year and with regard TO the relative Importance
OF the objects fer which appropriations are
sought Perhaps this would insure for the bud
get such consideration as the finance minister
under ministerial government bestows, but it
would be hard TO lift such joint committee as
Mr.. Cortelyou proposes above the local point Of
view so powerful in Congress. Budgets pre-
pared as they are because economy has never in
this country become pressing necessity and a
political issue so as to cause parties to be held
responsible for the amount of expenditure. When
that condition comes, II II ever does come party
discipline will subordinate the local TO the gen
eral interest. Then such regulation of the budget
as Mr.. Cortelyou urges will be accomplished,
perhaps, in a way somewhat similar to that
which he proposes
On the subject Of currency reform Mr.. CorteI-
you has made a stride forward in the last year.
1t will be remembered that in last years report
he declared himself convinced of the need Of IN
elastic currency, and described succinctly and
clearly the objects which such currency should
seek 10 accomplish; but he wrote that he had
no pride Of opinion as, to how the needed
quality should be impaired. This year he says
that conditions call for the ultimate establish
'ment. if il can be safeguarded so as to keep 1t
"Out Of the domain Of politics the one hand
and the control of great moneyed interests on
the other Of a central institution Of issue and
reserve Mr.. CortelyOu thus ranges himself
among the advocates Of central IA ttonaI bank,
in favor Of which there is undoubtedlysa 81 grow
ing sentiment among public men in Washington.
Another suggestion in this interesting and
thoughtful report, that regarding the possibility
of reducing international gold movements Obvi-
the extraordinary shipments It entailed. Mr..
CortelyOu suggests that an international gold
certificate" would be a desirable and economical
substitute for the metal itself in many Of these
movements But preliminary TO anything Of that
sort this country must get its own currency sys-
TEN in order. and when have a proper cur
rency system the need of such a substitute for
gold on its international travels will be greatly
reduced for the United States has been the
worst offender among the nations in importing
gold whenever its rigid currency was unequal to
the demands Of business. If this country had
such a central bank of issue and reserve as Mr..
Cortelyou advocates the gold movement would
fall off Of itself, and such bank could coop
crate with the great banks Of Europe in efrecting
such further economies in international eX-
change might be found practicable