The free lance. (Fredericksburg, Va.) 1885-1926, 1909-12-09

It was as matter OF broad policy ur-
gent that this opportunity should not
be lost, the Indispensable instrumental
lty presented Itself when group OF
American bankers Of international
reputation aud great resources agreed
nj once 10 share In the loan upon pre-
clsely such terms as this government
should approve The chief OF those
terms was that American railway ma
terial should be upon an exact equality
with that of the other nationals join
Ing IN the loan IN the placing OF or
dcrs for this whole railroad system.
After months Of negotiation the equal
participation OF Americans seems at
last assured
IN one Of the Chincse-Japanese con
yentiOrs Of Sept. OF this year there
was a provision which caused consid-
crnble public apprehension In that
upon It's face II was believed In some
quarters to seek to establish monop-
oily Of mining privileges along the
South Mancmrian and Antung- Muk-
den railroads and thus to exclude
Americans from wide field Of enter
Prise. 10 take part In which they were
hy treaty with China entitled. After
n thorough examination Of the conven-
tions and of The several cOntextual
documents the secretary OF state reach
cd the conclusion that 20 such monop-
OILY was intended or accomplished.
This government made Inquiry OF the
imperial Chinese and japanese gov
crnmcnts aud received from each Off
cial assurance that the provision mad
no purpose inconsistent with the poll
cy Of equality Of opportunity to which
the slgnatorles. in common with the
United States. are pledged.
our traditional relations with the
JAPANESE empire continue cordial, as
usual. The arrangement Of 1908 for
cooperative control Of the coming
Of laborers to the United States has
proved 10 work satisfactorily The
matter Of a revision Of the existing
treaty between the United States and
Japan which Is tcrminable In 1912 Is
alrendy receiving the study OF both
countries.
The Department OF State.
| earnestly recommend 10 the favor
able action Of the congress the esti-
mates submitted by the department OF
state and most especially the legisla-
tion suggested In the secretary OF
states letter of this date whereby 1t
viii be possible 10 develop and make
permanent the reorganization OF the
department upon modern lines In a
manner to make ii a thoroughly ef-
Ocient instrument IN the furtherance
of our foreign trade and Of American
interests abroad
Under a provision Of the act Of Aug.
>. 1909. have appointed three officials
TO assist the officers Of the government
In collecting information necessary TO
q wise administration Of the tarin act
Of Aug. ,. 1909 As TO questions OF
customs administration they are co
operating with the officials OF the
treasury department and rs TO matters
of the needs aud the exigencles OF our
manufacturers and exporters With the
department Of commerce and labor IN
its relation to the domestic aspect OF
the subject Of foreign commerce.
As n consequence Of section . Of the
tarlT act Of Aug. ., 1909, II becomes the
duty Of the secretary Of state 10 con.
duct as diplomatic business all the
negotiations necessary to place him In
position TO advise me as to whether
Or not a particular country unduly dis
eliminates against the United States
In the sense of the statute referred t.
Government Expenditures and Rev
enues.
Perhaps the most important ques'
ton presented 10 this administration
is that Of economy Ia expenditures and
suiiiciency Of revenue.
The report Of the secretary shows
that the ordinary expenditures for the
current fiscal year ending June 30,
1910. will exceed the estimated re
ceipts by S34.O75.620 II to this deficit
are added the sum 10 be disbursed for
the Panama canal. amounting to S5S.
COO.OOO. and Sl.OOO.OO0 to be paid on
the public debt. the deficit of ordinary
receipts and expenditures will be In
creased to a total deficit Of SI3.OIo.G2O
This deficit the secretary proposes to
meet by the proceeds Of bonds issued
TO pay the cost OF constructing the
Panama canal approve this pro
posal.
The Panama Canal.
The policy Of paying for the con-
structlon Of the Panama canal not
out Of current revenue, but by bond
issue. was adopted In the Spooner act
Of 1902. and there seems to be no good
reason for departing from the princt
pie by which part at least OF tue
burden OF the cost Of the canal shall
fall upon our posierity. who are to
enjoy II. and there Is all the more rea
son for this view because the actual
cost TO date of the canal which Is now
half done and which will be completed
Jan. I. 1918. shows thai the cost Of
engineering and construction will be
s207. 7GG. 600 instead Of $l30. 7OJ 900. as
originally estimated. In addition 10
engineering and construction. the 9th
or expenses. including sanitation ana
government and the amount paid for
the properties, the franchise and the
privilege Of building the canal, In
crease the cost by S75.435.OOO to q
total Of So .201.09O. The Increase In
the cost Of engineering and construc-
tlon Is due TO q substantial enlarge
ment of the plan Of construction by
widening the canal 100 feet In the Gu
Zebra cut end by increasing the dl-
mcnsions Of the locks. to the under
estimate Of the quantity Of the work
TO be done under the original plan and
TO an underestimate Of the cost Of Ia
bor and materials both OF which have
Greatly enhanced In price since the
original estimate was made.
Government Economy.
In order to avoid q deficit for the
ensuing n.cal year directed the
heads Of departments IN the prepara-
ton Of their estimates to make them
as low as possible consistent with I'M
perative goverpmental necessity. The
result has beea. as ! am advised by