The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1909-12-15

entitled to DO dealt with as prisoners Of
war.
At the date when this message IL
printed this government has terminated
diplomatic relations with the Zelaya gov
eminent, for reasons made public IN q
communication to the former Nicaragua
charge d'affaires, and is intending to take
such future steps as may be found most
consistent with its dignity, its duty to
American interests and its moral obliga-
tons to Central America and to civiliza-
ton.
Department Of State.
I earnestly recommend to the favo--
able consideration of the congress the es-
Inmates submitted by the department of
state and most especially the legisla-
ton suggested in the secrtary Of states
letter of this date, whereby 1t will be
possible to develop and make permanent
the reorganization of the department
upon modern lines in a manner to make
it thoroughly efficient instrument in
the furtherance of our foreign trade and
of American interests abroad. The plan
to have divisions of Latin-American and
ar-Eastern affairs and to institute
certain specialization in business with
Europe and the near east will at once
commend itself. These politico-geograph
ical divisions and the detail from the
diplomatic or consular service to the
department of number of men who
bring to the study of complicated prob
lens in different parts OF the world
practical knowledge recently gained on
the spot, clearly Is of the greatest ad-
vantage to the secretary of state IN
foreseeing conditions likely to arise and
in conducting the great variety of CORE
spondence and negotiation. 1t should be
remembered that such facilities exist in
the foreign offices of all the leading COM
mercial nations and that to deny them
to the secretary of state would be to
place this government at great disad-
vantage in the rivalry OF commercial
competition
The consular service has been i'm
proved under the law of April s, 1906,
and the executive order Of June e. 1906,
and I commend to your consideration the
question of embodying in a statute the
principles of the present executive order
upon which the efficiency of our consular
service is wholly dependent
Expenditures and Revenues.
Perhaps the most important question
| presented to this administration is that
of economy in expenditures and sufl-
cheney of revenue. The deficit of the
last fiscal year, and the certain deficit
Of the current year, prompted congress
| to throw a greater responsibility on
the executive and the secretary of the
| treasury than had heretofore been de-
| clared by statute. This declaration
| imposes upon the secretary of the
| treasury the duty of assembling all the
estimates Of the executive departments,
| bureaus and offices of the expenditures
| necessary in the ensuing fiscal year,
| and of making an estimate OF the reve-
| nues of the government for the same
| period; and II probable deficit is thus
shown, it is made the duty of the presi-
| dent to recommend the method by
| ioh nh, of ho
The report of the secretary shows
that the ordinary expenditures for the
current fiscal year ending June go 1910
| will exceed the estimated receipts by
$34,075,620. If to this deficit is added
!, the sum to be disbursed for the Pan
anna Canal. amounting to $4,000, 900
and s., 100000 to be paid on the public
debt, the deficit Of ordinary receipts
and expenditures will be increased tc
total deficit of $73.o75,s2o. This def
| icit the secretary proposes to meet by
| the proceeds of bonds issued to pay
the cost of constructing the Panama
Canal I approve this proposal.
In order to avoid deficit for the
ensuing fiscal year, directed the
heads of departments in the prepare
ton of their estimates to make then
as low as possible consistent with i'm
perative governmental necessity.
Civil Pensions.
am aware that there IL a strong
feeling in both houses OF congress, ant
possibly in the country, against the
establishment of civil pensions, ant
that this has naturally grown out O.
the heavy burden of military pensions
which 1t has always been the policy
of our government to assume; but
am strongly convinced that no othel
practical solution of the difficultie:
presented by the approximation o
civil servants can be found than tina
of a system Of civil pensions.
Frauds in tho Collection Of Customs
regret to refer to the fact Of tn
discovery of extensive frauds IN tn
collection OF the customs revenue a
New York city, in which a number o
the subordinate employees in the weigh
ing and other departments were di
rectly concerned, and in which tn
beneficiaries were the American Suga
Refining Company and others. TIL
frauds consisted in the payment o
duty on underweights OF sugar. TIL
government has recovered from tn
American Sugar Refining Company al
that it is shown to have been defraud
ed Of. The sum was received In full
Of the amount due. which might hav
been recovered by civil suit agains
the beneficiary Of the fraud, but Their
was an express reservation in the con
| tract OL SelllcIHCHl NY WHlCIl lHc Sclt1c
ment should not interfere with, or pre-
vent the criminal prosecution of ever
one who was found to be subject t
the same.
Criminal prosecutions are now pro
ceeding against number of the gov
eminent officers. The treasury de
partment and the department of jus
tice are exerting every effort to dis
cover all the wrongdoers. includin
the officers and employees of the com
panies who may have been privy t
the fraud. It would seem to me tina
an investigation of the frauds by con
gress at present, pending the probin
by the treasury department and tn
department of Justice, as proposed
might by giving immunity and other
wise prove an embarrassment in secur
ing conviction of the guilty parties.
The Tariff Act.
Two features of the new tariff ae
call for special reference. BY virtu
Of the clause known as the maximum
and minimum clause, 1t is the dut
of the executive to consider the law
and practices of other countries wit
reference to the Importation into thos
| countries of the products and mer