Weekly journal-miner., 1909-12-08

quantity of the work to be done under the original plan, and to an underestimate of the cost of labor and materials, both of which have greatly enhanced in price since the original estimate was made.
 In order to avoid a deficit for the ensuing fiscal year, I directed the heads of departments in preparation of their estimates to make them as low as possible consistent with i'm perative governmental necessity. The result has been, as I am advised by the secretary of the treasury, that the estimates of the expenses of the government for the fiscal year ending June 30, 1911-that is, for the newt fiscal year-are less by $55,663,000 than the total of appro- priatiOns for the current fiscal year, and less by $94,OO0,OOO than the es- inmates for that year.
 So far as the secretary of the treasury is able to form a judgment as to future income and compare it with the expenditure for the next fiscal year, ending June 30, 1911, in cluding the payments on account or the Panama canal and the public debt, there will be no deficit in the year ending June 30, 1911, but a small surplus of $712,O0O.
 In the present estimates the needs for the departments and of the gov ernment have been cut to the quick, so to speak, and any assumption on the part of the congress, so often made in times past, that the esti- mates have been prepared at the ex- planation that they may be reduced and will result in seriously hamper ing the proper administration.
 The secretary of the treasury points out what should be carefully noted in respect to this reduction in gov ernmental expenses for the next fiscal year, that the economies are of two kinds-frst, there is a saving in the permanent administration of the de- partments. bureaus and offices of the government; and second, there is 8 present reduction in expenses by a postponement of projects and i'm prOvements that have to be carried out but which are now delayed with the hope that additional revenue in the future willy permit their exeeu- tion without producing a deficit.
 It has been impossible in tine pre- paratiOn of estimates greatly to re- duce the cost of permanent admins traUion. This cannot be done with out a thorough reorganization of bureaus, offices and departments. For the purpose of securing information which may enable the executive and the legislation branches to unite in Ia plan for the permanent reduction of the cost of governmental admin istration, the treasury department has instituted an investigation by one of the most skilled expert ac- countants in the United States. The result of his work in two or three bureaus, which if extended to the entire government must occupy two or three years, has been to show much room for improvement and or- portunity for substantial reductions in the costs and increased efficiency of administration. The object of the investigation is to devise means to increase the average efficiency of each employe. There is great room for improvement toward these ends, not only by the reorganization of bureaus and in the avoidance of duplication but also in the treat ment of the individual employe. Under the present system it con- stantly happens that two employees receive the same salary when the work of one is far more difficult and important and exacting that that of the other.
 Superior ability is not rewarded is now entirely by salary, an employe often rises to the highest class while doing the easiest work for which alone he may be fitted. The investi- gatiOn ordered by my predecessor re- suited in the recommendation that the civil service be reclassified ac- cording to the kind of work so that the work requiring most application and knowledge and ability shall re- ceive most compensation. I believe such a change would be fairer to the whole force and would perman- ently improve the personnel of the service.
 More than this, every reform di- rected toward the improvement in the efficiency of government employees must depend on the ability of the executive to eliminate from the gov ernment service those who are in efficient from any cause and as the degree of efficiency in all the de- partments is much lessened by the retention of old employees who have outlived their energy and usefulness it is indispensable to any proper system of economy. that provision be made so that their separation from the service shall be easy and inevit- able. It is impossible to make such