Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-12-07
EXPENDITURES and REVENUES
Deficit For Current Fiscal Year $73,
O75, 800-Bond Issue Proposed.


department since the beginning of this
administration for the reason that
there Is no provision either by statute
or custom for a formal report by the
secretary of state to the president or
TO congress, and presidential message
Is the only means by which the con-
dition of our foreign relations Is
brought to the attention of congress
and the public
In dealing with the affairs OF the
other departments, the heads OF which
ell submit annual reports, shall touch
only those matters that seem to me to
call for special mention on my part
without minimizing in any way the
recommendations made by them for
legislation affecting their respective
departments, in all of which I wish to
express my general concurrence.
Perhaps the most important Ques-
ton presented to this administration
is that of economy in expenditures and
sufficiency of revenue. The deficit of
the last fiscal year and the certain
deficit Of the current year prompted
congress to throw a greater RESPONSE
bility on the executive and the secre-
tary OF the treasury than had hereto
fore been declared by statute. This
declaration imposes upon the secretary
T Of the treasury the duty of assembling
all the estimates Of the executive de-
partments, bureaus and offices of the
expenditures necessary In the ensuing
fiscal year and of making an estimate
OF the revenues of the government for
the same period. and If a probable def
icit is thus shown it Is masss~the duty
Of the president to recommend the
method by which such deficit can be
met
Estimated Deficit $73o75, SOC.
The report Of the secretary shows
that the ordinary expenditures for the
current fiscal year ending June So
1910, will exceed the estimated re-
ceipts by So. GO. If to this deficit
are added the sum to be disbursed for
the Panama canal. amounting to $685.
100000, and $1,0O0,Oo0 to be paid on
the public debt, the deficit of ordinary
receipts and expenditures Will be in
creased to a total deficit of $73,075, 620
This deficit the secretary proposes TO
meet by the proceeds of bonds issued
to pay the cost of constructing the
Panama canal. 1 approve this pro-
posal.
The policy of paying for the con-
struction 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 princi-
pie by which a part ct least of the
burden of the cost of the canal shall
fall upon our posterity, who are to
enjoy 1t. 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. 1, 1915. shows that the cost of
engineering and construction will be
$297 .766. 600 instead Of $139. 705, 200. as
originally estimated. In addition TO
engineering and construction. the 9th
er expenses. including sanitation and
government and the amount paid for
the properties. the franchise and the
privilege of building the canal, In
crease the cost by $T5,435, 600 to n
total of $3T5.201 900. The increase in
the cost of engineering and construc
ton Is due to a substantial enlarge
ment of the plan of construction by
widening the canal 100 feet in the Gu
Zebra cut and by increasing the d.
mansions 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 la
Dor and materials, both of which have
greatly enhanced in price since the
original estimate was made
In order to avoid a deficit for the en-
suing fiscal year, directed the heads
OF departments in the preparation of
their estimates to make them as low
as possible consistent with imperative
governmental necessity. The result
has been, as am advised by the Sec
rotary Of the treasury, that the esti- |
mates for the expenses of the govern |
ment for the next fiscal year ending |
June 80, 1911, are less than the appro- |
priations for this current fiscal year
by 1885, 900. 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 will doubtless be |
taken up by bonds, there will be a sur
plus OF $35,s31, 900.
In the present estimates the needs
OF the departments and of the gov
eminent have been cut to the quick,
so to speak, and any assumption on
the part Of congress, so often made In
times past. that the estimates have
been prepared with the expectation
that they may be reduced will result
in seriously hampering proper admin
istradon.
The secretary Of the treasury points
out, what should be carefully noted in
respect to this reduction in govern
mental expenses for the next fiscal
year, that the economies are Of two
there IS saving in the
permanent administration Of the de-