The San Francisco call., 1909-12-08


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 i'm
poses upon the secretary OF the treas
ury the duty of assembling all the esti-
mates of the executive departments.
bureaus and Offices, Of the expenditures
necessary in the ensuing fiscal year.
and of making an estimate OF the reve-
period; and if a probable deficit is thus
shown. it is made the duty of the presi-
dent to recommend the method by
which such deficit can be met.
The report OF the
/ seer ary shows
expenditures that the ordinary
expenditures for the
IN Excess OF current fiscal year
len Ing June 80.
i the ReceiDfS H910, will exceed
1 the estimated re-
by s34075.-
$40. If to-this deficit is added the
CANAL amounting to $3S, 900. and
$l.OOO,O0O to be paid on the public
debt the deficit of ordinary receipts
and expenditures will be increased to
total deficit of S73.075,62O This den
cit the secretary proposes to meet bv
the proceeds of bonds issued to paw the
cost of constructing the Panama canal
approve this proposal.
The policy of paying for the con-
struction of the Panama canal not ont
OF current revenue, but by bond issues,
was, adopted in the SpOoneF act OF 1902
and there seems to be no good reason
for departing from the principle by
which part at least of the burden OF
the cost of the canal shall fall upon
our poster1ty who are to enjoy il: and
there is all the more reason for this
view. because the cost TO date of the
canal, which is now half done and
which will be completed January l.
1915, shows that the cost of engineer
ing and constructing will be S297.766.-
600. instead Of s139.7O5.2O0 as origin
engineering and construction the
other expenses. including santa
ton and government: and the amount
paid for the properties. the franchise
and the privilege of building the canal
increase the cost by $75,435, 600, TO a
total of $s73,201, 900
The increase IN the cost of engineer
ing and construction is due TO sub
stantial enlargement of the plan of
construction by widening the canal 100
feet in the Culebra cut and by in
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 have greatly enhanced in price
since the original estimate was made.
In order to avoid a deficit for the
ensuing fiscal year / - lected the heads
of departments in the preparation of
their estimates to make them as low
as possible, consistent with impera-
tive governmental necessity. The re-
suit has been. as / -. advised by the
secretary Of the treasury. that the es-
Inmates for the expenses of the gov
ernment for the next fiscal year ending
June 80. 1911. are less than the appro-
priatlons for this current fiscal year by
$42.S1S OO0- So far as the secretary of
the treasury is able to form a judg-
ment as to future income and compare
it with the expenditures for the next
fiscal year ending June 80. 1911. and
excluding payments on account of the
Panama canal, which doubtless will be
taken up by bonds, there will be a
surplus of $35, ,931 900