Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-08

what form of return would be adopted
He says 1t must be assumed by the de-
partment that the single purpose of the
law was to tax at l per cent the actual
net profits of a corporation, as net profits
are understood. and that the term met
income was used that there might be
no confusion.
The improved conditions I'm bank exami-
nation by the office of the controller of
the currency are noted in the report, but
no recommendations are made along this
line.
Mr. Macveagh urges the need of a con-
tingent fund-probably 500, O00-for his
department.
Retrenchment the Keynote.
Retrenchment Is the keynote in the es-
Inmates Of expenditures for the executive
departments OF the government for the
fiscal year 1911. embodied in the report.
This is milne with President Tafts de-
clared policy of greater economy In ad-
ministering the affairs of the government.
With the reduced estimates he looks Tor
surplus in the next fiscal year of S33.-
931.327, excluding payments on account
of the Panama canal and the public debt.
Secretary MacVeagh, emphasizing the
hard rigidty of the present revenue
system, with it's recurrent economical
agitations and its long intervals OF nix
ity," says 1t will be necessary to meet
these deficits to sell either bonds or GER
tticates OF Indebtedness In due
course" he adds! lit would seem that 1t
must be made practicable to both esti-
mate receipts. with a close approXlnla-
ton to the actual. and to provide for
their annual rise or fall by some ffeXl-
BILE factors in our annual taxation
How the Cut Is Made.
Reductions In the present estimates.
Mr.. MacVeagh declares. result from i'm
nS
and the postponement of expenditures
which can be delayed in an effort to ad-
just Immediate expenses and receipts. 4.e
sounds warning. however. that the re-
auctions in appropriations will be disap-
pointing unless equal attention is given
to other important savings.
Secretary MacVeagh reviews the organ.
ization, or rather lack of organization. on
the fiscal responsibilities of the executive
and legislative branches of the govern
ment and the reorganization thereof now
in progress. He voices the hope that
there will be constant progress away
from the extreme disorganization of the
past" and observes that even IL ouI
country is rich it cannot afford to be
wholly unscientific in its appropriations
Examining Into Efficiency.
Secretary MacVeagh refers to the
efficiency investigation in progress in the
department as follows:
THE matter of efficiency in the admin
istration OF the Treasury Department is
also being inquired into. This is not ar
inquiry that can be quickly concluded II
it is to be productive of results. There
should be, of course in every great
executive organization, constant and
almost automatic efficiency test with
practical results; and in any prosperous
| private business this obtains. But even
then a periodical set investigation is
necessary, especially III government Of
| fees. In the inquiries now being made in
the Treasury Department there is nc
| further intention than the ordinary one
of finding out whether the work Is done
| under the most effective system and with
reasonable individual efficiency, OIL
whether improvements can be made, hav-
| ing. of course, in view the normal rela-
! ton between efficiency and economy and
between efficiency and morale. The more
| efficiency you can secure In system and In
personnel the less the cost will be. The
saving, however, would show itself prob
| ably more in forestalling increase in ex-
penditure than in reducing present totals
for the increase in public business is as
certain and unavoidable as the increase
in the private business of the country"