The Richmond palladium and sun-telegram., 1909-12-07

necessary In the ersnln9
ascai year and OF making an estimate
II the revenues Of the government for
the same period. aud II probafie del.
cit is thus shown II h made the duty
of the president 10 recommend the
method by which such deficit can b
met
Estimated Deficit $73o7Aeoa
thar the ordinary expenditures for the
current fiscal year ending June 81
1910. will exceed the estimated re-
ceipts by $S4.Osa620 II to this defScie
are added the sum to b disbursed foe
the Panama canal. amounting to $3S.-
100000. and sl.OO0OOO to be paid ON
the public debt. the dencit Of ordinary
receipts and expenditures viii be In
creased to q total deficit Of $53.O71.620
This dedcit the secretary prOpoaeo to
mest by the proceeds Of bonds issued
to pay the cost Of constructing the
Panama canal I 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 Spoonee oct
Of l9oc. and there seems TO be no good
reason for departing from the princi-
pie by which q part at least Of the
burden Of the cost Of the canal shall
fall upon our posterity. who ere 10
enjoy 1t. and there b all the more rea-
son for this view because the actual
cost to date Of the canal. which b now
half done and which win Be completed
Jan. I. 1915. shows that tho cost Of
engineering and construction win be
$287. .766.00O instead Of $lS0. .T06. 300. ~
originally estimated. In addition to
engineering and construction, tho 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 $7SlS5.OOO TO q
total OF 75.2Ol 900. The increase In
the cost Of engineering and construc.
tion II due to q suboeAntial enlarge.
ment Of the plan Of constFuction BY
widening the canal 100 feet I'm the Gu
Zebra cut and BY Increasing the di-
mensions 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 Ia
Dor and materials. both OF which have
greatly enhanced In price since The
original estimate WAS made.
In order to avoid q de6cit for the
ensuing fiscal year directed the
heads Of departments In the prepara-
tion Of their estimates to make them
~ low N possible consistent with i'm
perative governmentAl necessity. Ths
result has been, a. am advised by
the secretary Of the treasury. that ths
ernment for the fiscal year ending
June 50. l91l-that b. for the next
fiscal year-ars less BY $56.0oS00o
than the total Of appropriations for
the current fiscal year and less By
$04. 900. 900 than the estimates for that
year. So far - the secretary o3 the
treasury is able to form 5udgment %
to future income and compare it with
the expenditure for the next fiscal
year ending June 50. 1911. Including
the payments ON account Of the Pan.
anna canal and the public debt thers
win be no deficit In the year ending
June 80. 1911. but . small suFplus ol
$4,000.
In the present estimates the needs
Of the departments and Of tho gov
ernment have been cut to the quick,
SO to speak. and any assumption on
the part Of congress. % often made "a
/ AhAA -
been prepared with the expectatiou
/ that they may be reduced win result
in seriously hampering proper admin.
istr1tion.
The secretary Of the treasury points
out. what should be carefully noted d
respect to this reduction In govern.
mental expenses for the next 0scal
year, that the economies are Of two
kinds-hrst, there II q saving In thu
|, permanent administration OF tho de-
| partments. bureaus and oQSces Of the
government. and. second, there = {
present reduction In expenses By {
postponement Of projects and i'm
provements that ultimately win have
to be carried out. but which are now
delayed with the hope that additions
revenue In the future win permit thell
execution without producing . ds0cit
Wesisin0 Fer 9es0sMy.
It has been Impossible In the pgspara
ton Of estimates greatly TO reduce thl
cost Of permanent adminlDtYat1oa
This cannot be done without . thor
ough reoeganixatioo OF bureaus. oe
fces and departments. For tAe pw
pose oe securing infoFmatjoa whScl
may enable the executive and he Deg
islative branches 20 unite In . plan 6ol
the permanent reduction Of the cost ol
governmental administrati0n the treas
ury department. has Instituted N d
vestigation By one oe tie most saElllet
expert accountants IN the Unleot
States The result Of this WORK IN tn
or three bureaus. which. n exnsndet
to the entire government must occupy
two Or more years. has 6een b show
much room for impsovenent and op
portunity for substantfal reduet1oos II
the cost and increased e@eie0y o( a
ministration. Tie object ol the inves
tigat3on b to devise means to inctoaol
the average efficiency Of each employees
There - great room for improvemen