The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-12-08


all of which L wish to express my gem
eral concurrence.
Government Expenditures and Reeve
nues.
Perhaps the most important question
presented to this administration is that
of economy in expenditures and suffici-
ency of recenue. 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 Treas
ury than had heretofore been declared
by statute. This declaration imposes upon
the Secretary of the Treasury the duty
of assembling all the estimates of the
executive departments bureaus and Of
fees, of the expenditures necessary in
the ensuing fiscal year, ana of making
an estimate Of the revenues of the gov
eminent for the same period; and IL q
probable deficit is thus shown, 1t Is made
the duty of the President to recommend
the method by which such deficit can be
met
The report of the Secretary shows that
the ordinary expenditures for the current
fiscal year ending June 30, 1910. will ex-
coed the estimated receipts by S34,075. go.
If to this deficit is added the sum to be
disbursed for the Panama canal, amount
Ing to sss. 100000, and $1,00o.0Oo to be paid
on the public debt, the deficit of ordi-
nary receipts and expenditures will be
increased to a total deficit of ,620.
This deficit the Secretary proposes to
meet by the proceeds of bonds issued to
pay the cost of constructing the Panama
canal. I approve this proposal.
The policy of paying for the construc-
ton of the Panama canal, not out of cur
rent revenue. but by bond issues. was
adopted in the Spooner act OF 1902, and
l..
parting from the principle by which q
part at least of the burden of the cost
of the canal shall fall upon our pos
terity who are to enjoy it; and there is
all the more reason for this view be-
cause the actual cost to date of the canal,
which is now half done and which will
be completed January 1. 1915. shows that
the cost Of engineering and construc-
ton will be 1927. $780, instead Of s1S9. 705,-
200, as originally estimated. In addition
to engineering and construction, the 9TH
err expenses, including sanitation and
government, and the amount paid for the
properties. the franchise, and the priv
flege of building the canal, increase the
cost by $75, 900, to total Of $S75, 201--
900. The increase in the cost of engineer
ing and construction is due to a sub
stantial enlargement OF the plan of con-
struction by widening the canal 100 feet
in the Culebra cut and by increasing the
dimensions of the locks, to the underes-
innate 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 en-
hanced in price since the original esti-
mate was made.
In order to avoid difcit for the en-
suing fiscal year I directed the heads of
departments in the preparation of their
estimates to make them as low as posi-
BILE consistent with imperative government
tai necessity. The result has been as I
am advised by the Secretary of the
Treasury that the estimates for the ex-
penses of the government for the next
fiscal year ending June 80, 1911, are less
than the appropriations for this current
fiscal year by $42,81S,000.
So far as the Secretary of the Treasury
is able to form a Judgment as to future
income and compare it with the expendi-
lures for the next fiscal year ending
June 30, 1911, and excluding payments on
account of the Panama canal which will
doubtless be taken up by bonds, there will
be surplus of s35,931,00O.
In the present estimates the needs of
the departments and of the government
have been cut to the quick, so to speak,
and any assumption on the part of Con-
gress, so often made in times past, that
the estimates have been prepared with
the expectation that they may be re-
duced, will result in seriously hampering
proper administration
The Secretary of the Treasury points
out what should be carefully noted in
respect to this reduction In governmental
expenses for the next fiscal year, that
the economies are of two kinds-first,
there is a saving in the permanent adj
ministratfon of the departments. bureaus,
and offices Of the government; and, Sec
<bar 10 In ex-
penses by postponement of projects and
improvements that ultimately will have
to be carried out, but which are now de-
layed with the hope that additional reve-
nue. In the future win permit their exc
cution without producing deficit.
1t has been impossible in the prepara-
ton of estimates greatly to reduce the
cost of permanent administration. This
cannot be done without thorough re-
organization of bureaus, offices and de-
partments. For the purpose OF securing
information which may enable the execu-
tive and the legislative branches to unite
III a plan for the permanent reduction
of the cost of governmental administers
ton the treasury department has insti-
tuted an investigation by one of the most
skilled expert accountants in the United
states. The result of his work In two
or three bureaus, which, If extended to
the entire government, must occupy two
or more years, mas peeH " show hucH
room for improvement and opportunity
for substantial reductions in the cost and
Increased efficiency of administration. The
object of the investigation Is to devise
means to increase the average efficiency
of each employee. There is great room
for improvement toward this end. not
only by the reorganization Of bureaus
and departments and in the avoidance
of duplication, but also in the treatment
of the Individual employe.
Under the present system it constantly