The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1909-12-10

place this government at a great disad-
vantage in the rivalry or commercial
competition.
The consular service has been i'm
proved under the law OF April 5, 1906,
and the executive order of June "a, 1906,
and commend 10 your consideration the
question OF embodying in 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 suffi-
cheney of revenue. The deficit OF the
last fiscal year. and the certain deficit
OF the current year. prompted congress
to throw 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, IL is made the duty of the presi-
dent to recommend the method by
which such deficit can be met.
Inc report OF the SECRETARY SHOWS
that the ordinary expenditures for the
current fiscal year ending June 80. 1910.
will exceed the estimated receipts by
s34075.62 If to this deficit is added
the sum to be disbursed for the Pan
anna Canal. amounting to $4,000. 900.
and 100000 TO be paid on the public
debt, the deficit OF ordinary receipts
and expenditures will be increased to
a total deficit of $73.075.620. This def
icit the secretary proposes to meet by
the proceeds of bonds issued to pay
the cost OF constructing the Panama
Canal. 1 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 as possible consistent with i'm
perative governmental necessity.
Civil Pensions.
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 II has always been the policy
OF our government to assume; but /
am strongly convinced that no other
practical solution of the difficulties
presented by the approximation of
civil Servants CdH DC lOuiu llldh Nldl
of a system of civil pensions.
Frauds In the Collection Of Customs.
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 and other departments were di-
rectly concerned, and I'm which the
beneficiaries were the American Sugar
ID
frauds consisted in the payment OF
duty on underweights of sugar. 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 suit 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 same.
Criminal prosecutions are now pro-
ceeding against a number of the gov
eminent officers. The treasury de-
partment and the department OF jus
ticc 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. 1t 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 II
the executive finds such laws and prac-
tices not to Nbe unduly discriminatory
against the United States the mini
mum duties provided in the bill are to
go into force. Unless the president
makes such a finding. then the maxi
mum duties provided in the bill, that
is. an increase of % per cent. ad valo-
rem over the minimum duties are to
be In force. Fear has been expressed
that this power conferred and duty
imposed on the executive is likely to
lead to tariff war. / beg to express
the hope and belief that no such result
need be anticipated.
The discretion granted to the execu-
tive by the terms "unduly discrim-
inatory" is wide. In order that the
maximum duty shall be charged against
the imports from n country, IL is neces-
sary that he shall find on the part of
that country not only Determinations
in its laws or the practice under them
against the trade of the United States.
but that the determinations found
shall be undue; that is. without good
and fair reason. ] conceive that this
power was reposed in the president
with the hope that the maximum du-
ties might never be applied in any case,
but that the power to apply them would
enable the president and the state de-
partment through friendly negotiation
to secure the elimination from the laws
and the practice under them OF any
foreign country of that which Is un-
duly discriminatory. No one is seek
ing tarin war or a condition in which
the spirit OF retaliation shall be
aroused
Needs Of the Navy.
The return OF the battleship feet from
It's voyage around the world, in more
efficient condition than when IL started,
was noteworthy event of interest alike
TO our citizens and the naval authorities
of the world. Besides the beneficial and