New-York tribune., 1909-12-08
GOVERNMENT ExPEND1-
TURES AND REVENUES.

economy in exnenditures and suncisncy
of revenue. The deficit Of the last nsesi
year. and the certain deficit of the current
year prompted Congress 20 throw srea'@r
responsibility on The Executive ana the
Secretary Of the Treasury than had mere
tofore been declared by statute 1nis dec-
laration imposes upon the Secretary or tne
Treasury the duty Of assembling All tne
estimates OF the executive departments
bureaus and orcss. OF the expenditures
necessary in the ensuing fiscal year. ana
of making an estimate Of the revenues OF
the government for the same period; ana
If a probable defcit is thus shown. ~ -
made the duty OF the President 20 recon-
mend the method by which such dencit
can be met
The report OF N. Secretary shows that
the ordinary expenditures for the current
fiscal year ending June 20. 1910. viii exceed
the estimated receipts by s34o15s2 $50 " 70
this deficit is aided the sum 20 be dis-
bursed for the Panama canal. amounting
70 $4,000 90 and 100000 TO be paid on the
public debt. the deficit OF ordinary receipts
and expenditures will be increased 20 a total
deficit OF s73O75.sso. This deficit the Secre-
tary proposes 10 meet by the proceeds OF
bonds issued 10 pay the cost Of constructing
the Panama Canal I approve this proposal
THE PANAMA lanai
The policy OF paying for the construction
of the Panama Canal. not out OF current
revenue. but by bond issues. vas adopted
in the Spooner act of 1902. and there seems
10 be no good reason for departing from
the principle by which a part at least or
the burden OF the cost Of the canal shall
fall upon our posterity who are 20 enjoy N;
and there il all the more reason for this
view because the actual cost 20 date Of the
canal. which is now half done and which
will be completed January I. 1915, shows
that the cost OF engineering and cOnstruc-
tion Will be s2s7.7s6.0no instead OF SasIoS.-
300, as originally estimated In addition 20
engineering and construction. the other ex-
penses, including sanitation and govern
ment. and the amount paid for the prop
critics. the franchise and the privilege ~
building the canal increase the cost by
S75.435.0oo. to a total OF $3.50 900 The in
crease In the cost OF engineering and con-
structiOn Is due 70 a substantial enlarge
ment OF the plan of construction by widen
ing the canal 100 feet in the Culebra cut
and by increasing the dimensions OF the
locks 10 the underestimate OF the quantity
OF the work 20 be done under the original
plan. and 70 an underestimate OF the cost
OF labor and materials. both OF which have
greatly enhanced in price since the original
estimate was made
ESTIMATES REDUCED.
In order to avoid a deficit IN the ensuing
fiscal year I directed the heads OF depart
ments in the preparation OF their estimates
to make them as low as possible consistent
with Imperative governmental necessity.
The result has been. I am advised by
the Secretary OF the Treasury. that the
Of
ment for the next fiscal year. ending June
50. 1911. are less than the appropriations for
this current fiscal year by s4o.slso11. So far
as the Secretary OF the Treasury is able 20
form a Judgment as 20 future income and
compare IL with the expenditures for the
next fiscal year. ending June 80. 1911, and
excluding payments on account OF the Pan
ANA Canal which will doubtless be taken
up by bonds there will be a surplus OF
Sc. .ss1. .ooo.
In the present estimates the needs OF
the departments and OF the government
have been cut 20 the quick. 80 10 speak, and
any assumption on the part OF Congress,
so often made I'm times past. that the esti-
mates have been prepared with the ex-
pectation that they may be reduced will re-
suit I'm seriously hampering proper ad-
minlstration.
what should be carefully noted in respect
to this reduction in governmental ex-
penses for the next fiscal year. that the
economies are OF two kinds-1rst. there
is a saving in the permanent administra-
tion of the departments. bureaus and Of
fees of the government; and. second. there
is a present reduction in expenses by a
pOstpOnement OF projects and improve
ments that ultimately will have 10 be car
ried out. but which are now delayed with
the hope that additional revenue in the
future will permit their execution without
producing a deficit.
REORGANIZATION OF BUREAUS.
IL has been impossible In the prepara-
tiOn of estimates greatly 20 reduce the
cost Of permanent administration. This
cannot be done without a thorough reor-
ganizatiOn of bureaus Offices and DEPART
ments. For the purpose of securing in
formation which may enable the executive
and the legislative branches 20 unite In a
plan for the premanent reduction OF the
cost OF governmental administration the
Treasury Department has instituted an
investigation by ono of the most skilled
expert accountants in the United States.
The result of his work in two or three
bureaus. which If extended 20 the entire
government must occupy two or more
years. has been TO show much room for
Improvement and opportunity for sub
stantial reductions in the cost and in
creased efficiency Of administration. The
object OF the investigation is te devise
means 10 increase the average efficiency of
each enplOye. There Is great room for
improvement toward this end not only by
the reorganization OF bureaus and depart
ments and i'm the avoidance OF dupIica-
tiOu but also in the treatment Of the in-
dividuaI employe.
Under the present system "a constantly
happens that two employees receive the
same salary when the work OF one is far
more d'ffleult and Important and exacting
than that of the other. Superior ability Is
not rewarded or encouraged. "A the cIassi-
fcatiOn is now entirely by salary, an en-
ploye often rises 20 the highest class
while doing the easiest work. for which
alone he may be fitted An Investigation
ordered by my predecessor resulted in the
recommendation that the Civil Servics ba
reclsssihed according TO the kind OF work
so that the work requiring most applics-
ticn and knowledge and ability shall re-
ceive most compensation. I believe such
change would be fairer to the whole
force and would permanently improve the
personnel OF the service
More than this. every reform, dfr.ct-d
toward the improvements In the av.rass