Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1909-12-17

reports ana upon the course IN the prem
ises most consistent with Its dignity. Its
duty to American interests and Its moral
obligations to Central America n to
civilization.
Tho Far East.
In the far east this government pre-
serves unchanged Its policy of support
Ing the principle of equality of opportun-
ity n ~scrupulous respect for the integ-
rity OF the Chinese empire, to which pol.
Icy are pledged the interested powers OF
BY the treaty of 1903 China has under
taken the abolition Of likin with a mod
crate and proportionate raising OF the
customs tariff along with currency re-
form. These reforms being of manifest
advantage TO foreign commerce as well
ssnm 60 the e interests inter- so,o OF s. oh IN c;,t th rs geys
measures and the needful acQuiescence OF
treaty powers. When 1t appeared that
Chinese lfkin revenues were to be hypoth-
ecated to foreign bankers in connection
with a great railway project, it was OBJ
vious that the governments whose ma
tionals held this loan would have a GER
carrying out by China of the reforms in
question. Because this railroad loan rep
resented a practical and real applica-
operation with CHINA by Interested pow
ers as well as because Of it's relations to
the reforms referred to above, the admin
istratlon deemed American participation
to, be of great national interest. Happily,
when 1t was as a matter OF broad policy
urgent that this opportunity should not
be lost, the indispensable ins~trumentality
presented itself when a group of Amer
lean bankers, of international reputation
and great resources, agreed at once to
share In the loan upon precisely such
terms as this government should approve.
The chief Of those terms vas that Amer
lean railway material should he upon an
exact equality with that of the other ma
tionals joining in the LOAF in the placing
OF orders for this whole railroad system:
After months OF negotiation the qua
participation, Of Americans seems at last
assured. 1t is gratifying that Americans
sion of these great highways of trade,
and to believe that such activities will
give a real impetus to our commerce and
S MIST Rc0y poli e pf in tSe fs epre east TO our
In one Of the Chinese-Japanese con-
yentions OF September 4 of this year
there was a provision which caused con-
upon Its face It was believed In some
quarters to seek to establish a monopoly
OF mining privileges along. the South
roads, and thus to exclude Americans
from e. wide field Of enterprise, to take
part in which they were by treaty with
China entitled. After a thorough exam
nation OF the conventions and of the
several c~ontextual documents, the secre-
tary Of state reached the conclusion that
no such monopoly was intended or ac-
widespread discussion OF this question, to
confirm the view 1t had reached, this
government made inquiry or the impe-
rial Chinese and Japanese governments
and received from each official assurance
that the provision had no purpose incon-
sistent with the policy of equality OF OPP
portunity to which the signatories, in
common with the United States, are
pledged.
Our traditional relations with the Jap
anese empire continue cordial as usual.
The arrangement of 1908 for a o-opera-
tive control of the coming of laborers to
the United States has proved to work
satisfactorily. The matter Of revision Of
States and Japan which Is terminable in
1912 is already receiving the study Of both
countries.
Department of State.
1 earnestly recommend to the favorable
action of the congress the estimates sub
mitted by the department of state n
most especially the legislation suggested
in the secretary of states letter of this
date whereby it will be possible to devel-
op and make permanent the reorganiZa-
ton Of the department upon modern lines
In a manner to make II a thoroughly eff
ficient instrument in the furtherance Of
our foreign trade and of American In
terests abroad.
The consular service has been greatly
improved under the Law of April 5, 1906,
and the executive order of June q, 1906.
and | commend to your consideration the
question Of en3odying In a statute the
principles OF che present executive order
upon which the ef1ciency or our consular
service is wholly dependent.
Government Expenditures.
Perhaps the most important question
presented to this administration Is that of
economy in expenditures and sufficiency
Of revenue. The deficit of the last fiscal
year, ard the certain deficit of the cur
rent year, prompted congress to throw a
greater responsibility on the executive
and the secretary of the treasury than
had heretofore been declared by statute.
This drClq RI tfOD innOSpS InOn tho Can-
rotary of the treasury the duty of assem-
bling all the estimates OF the executive
departments bureaus. and offices, of the
expenditures necessary in the ensuing ifs
cal year, and of making an estimate of
the revenues of the government for the
same period; and If a probable deficit is
thus shown, 1t is made the duty of the
president to recommend the methods by
which such deficit can be met.
The eport of the secretary shows that
the ordinary expenditures for the current
fiscal year ending June 80, 1910, will ex-
coed the estimated receipts by $S4, 075, $40.
If to this deficit is added the sum to be
~disbursed for the Panama canal, amount
ing to S3S, Co., 900, and $1,000 900 to be paid
on the public debt, the deficit of ordinary
receipts and expenditures will be in
creased to a total deficit Of $73, O75. $40.
meet by the proceeds of bonds issued to
pay the cost of constructing the Panama
canal. I approve this proposal.
The policy of paying for the co%nstruc-
ton Of the Panama canal, not out of cur
rent revenue, but by bond issues, was
adopted in the Spooner act Of 1902, and
there seems to be no good reason for de-
parting from the principle by which a
part az least OF the burden Of the cost
or the canal shall fall upon orr postertty
who are t. enjoy It; and there is all the
more reason for this view because the
actual cost to date of the canal, which
Is now half done and which will be COM
pleted by January 1, 1915, shows that the
cost of engineering and construction will
be 1921. 766, 900. instead Of $139, 705, 200, as
originally estimated. In addition to en-
cheering and construction, the other ex-
penses. Including sanitation and govern
ment, and the amount paid for the prop
critics, the franchise, and the privilege
of building the canal, increase the cost
by $75, 4S5, 900, to a total Of 1915. POI 600. The
increase in the COST OF engineering and
construction Is due to a substantial err
largement Of the plan Of construction by
widening the canal 100 feet in the Guile
bra cut and by increasing the dimensions
Of the locks, to the underestimate OF the
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 a greatly enhanced III price
since the original estimate was made.
Low Estimates Made.
In order to avoid a deficit for the ensu-
ing fiscal year, l = directed the heads OF de-
partments In the preparation of their esti-
mates to make them as low as possible