The citizen. [volume] (Berea, Ky.) 1899-1958, 1909-12-09


printed this government has terminated
diplomatic relations with the Zelaya gov
ernment 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 its dignity. its duty to
American interests and Its moral obliga-
lions to Central America and civiliza-
ton.
Department Of State.
] 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 Il will be
possible TO develop and make permanent
/ the reorganization OF the department
] upon modern lines in a manner TO make
/ IL 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
I 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
I
the spot. clearly IL OF the greatest ad-
vantage TO the secretary OF state In
foreseeing conditions likely TO arise and
In conducting the great variety OF corre-
spondence and negotiation. II should be
remembered that such facilities exist in
the foreign offices OF all the leading COM
mercial nations and that to deny them
10 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 Inn
proved under the law OF April g. 1906
and the executive order OF June a. 1906
and commend to 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 sum
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
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 n a probable dehcit Is thus
shown. IL is made the duty OF the presi-
dent TO recommend the method by
which such dencit 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
S34.07562 II 20 this deficit Is added
the sum to be disbursed for the Pam
anna Canal. amounting to s3S. 600. 600.
and 100000 TO be paid on the public
debt. the deficit OF ordinary receipts
and expenditures will be increased 20
total deficit OF s73.O75.s2O. This def
lett the secretary proposes TO meet by
the proceeds OF bonds issued TO pay
the cost OF constructing the Panama
Canal. approve this proposal.
In order 20 avoid deficit for the
ensuing fiscal year I directed the
heads OF departments In the prepare
tion OF their estimates TO make them
as low as possible consistent with i'm
perative governmental necessity.
Civil Pensions.
am aware that there r. n strong
feeling in both houses OF congress. and
possibly in the country. against tho
that this has naturally grown out OF
the heavy burden OF military pensions.
which 10 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.
7 60 60 Far 80 81
discovery OF extensive frauds in the
collection OF the customs revenue at
New York city in which n number OF
the subordinate employees in the weigh |
ing and other departments were d.
rectly concerned. and in which the /
benefciaries were the American Sugar |
Refining Company and others The |
frauds consisted in the payment OF |
duty on underweights OF sugar. The /
government has recovered from the |
American Sugar Refining Company all /
that IL is shown 10 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 10 /
Criminal prosecutions are now pro- !
ceeding against 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 II 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 II 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 be unduly dscriml natory
against the United States. the mini
mum duties provided in the bill are to