Lower coast gazette., 1909-12-11

according to tho modern enlightened
practice Of civilized nations, they were
entitled to be dealt with as prisoners of
war.
At the date when this message Is
printed this government has terminated
diplomatic relations with the Zelaya gov
eminent, for reasons made public in a
communication to the former Nicaragua
charge d'affaires, and IS intending to take
such future steps as may be found most
consistent with ita dignity, It's duty to
American interests and its moral bbliga=
tons to Central America and to e~iviliza-
ton,
Department of State.
I earnestly recommend to the favor
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 it will be
possible to develop and make permanent
the reorganization of the department
upon modern lines in a manner to make
1t a thoroughly efficient instrument in
the furtherance Of our foreign trade and
of American interests abroad. The plan
to have divisions of Latin-American and
Far Eastern affairs and to institute a
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 a 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. It 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 a great disad-
vantage In the rivalry of commercial
competition.
The consular service has been i'm
proved under the law of April 5, 1906,
and the executive order of June q, 1906,
and l commend to our 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 sufi-
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 a probable deficit is thus
shown, 1t is made the duty of the presi-
dent to recommend the method by
which such deficit can be met.
The report OF the secretary shows
that the ordinary expenditures for the
current fiscal year ending June 80. 1910,
will exceed the estimated receipts by
s34,075.620. II to this deficit is added
the sum to be disbursed for the Pan
m Canal, amounting to s3S, 600, 900.
and $1,000, 900 to be paid on the public
debt, the deficit Of ordinary receipts
and expenditures will be increased to
a total deficit Of s73.075.62O This def
lett 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 a deficit for the
ensuing fiscal year. I directed the
heads of departments in the prepara-
ton of their estimates to make them
as low IS possible consistent with i'm
perative governmental necessity.
Civil Pensions.
I am aware that there Is a strong
feeling in both houses of congress-, and
possibly in the country, against the
establishment Of civil pensions, and
that this has naturally grown out of
the heavy burden of military pensions,
which it has always been the policy
OF our government to assume; but I
am strongly convinced that no other
practical solution of the difficulties
presented by the approximation of
civil servants can be found than that
Of a system Of civil pensions.
Frauds in the Collection Of Customs.
I regret to refer to the fact Of the
discovery of extensive frauds in the
collection Of the customs revenue at
New York city, in which a number Of
the subordinate employees in the weigh
ing n other departments were d.
rectly concerned, and in which the
beneficiaries were the American Sugar
Refining Company and others. The
frauds consisted in the payment of
duty on underweights of uga The
government has recovered from the
American Sugar Refining Company all
that 1t Is shown to have been defraud-
ed OF. The sum was received in full
OF the amount due. which might have
been recovered by civil sui against
the beneficiary Of the fraud. but there
was an express reservation in the con-
tract Of settlement by which the settle
ment should not interfere with, or pre-
vent the criminal prosecution of every
one who was found to be subject to
the anne
Criminal prosecutions are now pro-
ceeding against a 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, including
the officers and employees Of the com
panies who may have been privy to
the fraud. 1t would seem to me that
an investigation of the frauds by con-
gress at present, pending the probing
by the treasury department and the
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 act
call for special reference. By virtue
of the clause known as the maximum
and minimum clause. it Is the duty
Of the executive to consider the laws
and practices Of other countries with
reference to the importation into those
countries of the products and mer-
chandise OF the United States, and If
the executive finds such laws and prac-
tees not to be unduly discriminatory
against the United States, the mini
mum duties provided in the bill are to
go into force. Unless the president