The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1909-12-09

United States in the eense Of the stat
ute referred to. The great scope and
completely of this work, as we'll as
the obligation to lend all proper aid
to our expanding mmerce is met by
the expansion of the bureau OF trade
relations as set forth in the estimates
for the department of state.
Government Expenditures and Reeve.
nues.
Perhaps the most important question
presented to this administration is that
OF economy in expenditures and sufi-
cheney of revenue. The deficit of the
last fiscal year. and the certain deficit
or the current year, prompted congress
to throw a greater responsibility on
the executive and the secretary Of the
treasury thar had heretofore been de-
clared by statute This declaration
imposes upon the secretary of the
treasury the duty Of assembling all the
estimates of the executive departments
bureaus. II offices. of the expendi-
lures necessary in the ensuing fiscal
year, and of making an estimate of
the of the government for
the same period; and if a probable
delclt is thus shown. it 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 80. 1910,
VIII exceed the estimated receipts by
S34,o13.G2o. If to this deficit is added
the sum to be disburscd for the Pan
anna Canal. amounting to $3S. OOO, 900,
and 100000 to be paid on the public
dept, the deficit of ordinary receipts
and expenditures will be increased to
a total deficit of s73.O75.G2O. This de-
nett the secretary pos to meet by
the proceeds of bonds issued to pay
the cost of constructing the Panama
Canal. l approve this proposal.
The policy of paying for the con-
struction OF the Panama Canal, not out
OF current revenue. but by bond issues.
was adopted in the Spooner act of
1870, and there seems to be no good
reason for departing from the prin-
ciple by which a part at least of the
burden of the cost of the canal shall
fail upon our posterity who are to en-
JOY it: and there is all the more rea-
son TOR this view because the actual
cost to date of the canal. which is now
half done and which will be completed
anuarE l. 1915. shows that the cost of
engineering and construction will be
S2'1.I66.OOO. instead of $3.50, 7O5. 200, as
originally estimated. In addition to
engineering and construction. the other
expenses. including sanitation and gov
and the amount paid for the
properties. the franchise. and the privi-
lege of building the canal. increase the
cost of S13.435.O0O. to a total of $685.
-el.0oO. The increase in the cost of
engineering and construction is due to
Il substantial enlargement of the plan
of construction by widening the canal
100 feet in the Culebra cut and by in
arc i y Sr t6n - ~ - 49,
to the underestimate of the quantity Of
the work to be done under the orig
ina plan, and to an underestimate Of
the cost or 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. I directed the
heads of departments in the prepara-
ton of their estimates to make them
as low as possible consistent with i'm
perative governmental necessity. The
result has been. as I am advised by the
secretary of the treasury, that the es-
Inmates for the expenses of the gov
for the mex fiscal year end
ing June 80. 1911, are less than the APP
preparations for this current fiscal
year by s42.SlS. 900. So far as the sec
Rotary of the treasury is able to form
a judgment as to future income and
compare it with the expenditures for
the next fiscal year ending June 80,
1911. and excluding payments on &C
count of the Panama Canal. which will
doubtless be taken up by bonds, there
will be a surplus of s35. 1881. 900.
In the present estimates the needs
of the departments and of the govern
ment 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
istration.
To reduce the cost of permanent
administration, says the president, a
thorough reorganization of bureaus,
offices and departments would be nee
essary. an expert accountant has
been making an investigation into this
matter and the result of his work
shows opportunity for both substan-
tial reductions in cost and increase of
efficiency.
Frauds in the Collection Of Customs.
I ree.et to refer to the fact of the dis
covery OF extensive frauds in the collec-
ton OF the customs revenue at New York
city. Ia which a number Of the subor-
dinate employees in the weighing and
other departments We're directly con-
cerned, and in which the beneficiaries
were abe American Sugar Refining Com
and others. The frauds consisted
in the :1ayment of duty on underweights
of sugar. The government has recovered
from :he American Sugar Refining Com
pany al that it is shown to ave been de-
frauGuId Of. The sum was received in full
of tho amount due, which might have
been recovered by civil suit against the
Of the fraud, but there was
an cypress reservation in the contract of
by which the settlement should
not interfere with, or prevent the Grim
inal prosecution of everyone who was
fou..i to be subject to the same.
CEmlnal prosecutions are now proceed
ing against n number Of the government
Officers. The treasury department and the
Department Of justice are exerting every
cfftrt to discover all the ~wrongdoers, in
cl*eling the officers and employees of the
companies who may nave been privy to
tlie fraud. 1t would seem to me that an
:HIestigation OF the frauds by congress at
%lSesdnt, pending the probing by the treas
NY department and the department of
Justice, as proposed, might by giving i'm
t1uI:ty and otherwise prove an embar-
in securing conviction of the
guilty parties.
Maximum and Minimum Clause In
Tariff Act.
f.1,D Foo 70 ~ 1850. I'LL - ~