The Forrest City times., 1909-12-10


 to the secretary of state would be to place th1s government at a great disad- vantage in the rivalry of commercial competition
 The consular service has been im- proved under the law of April D. 1906. and the executive order of June 27 1906 and commend to your consideration the question of emhodytng in statute the rrtHeiples of the present executive order upon which the efficiency of OUT consular service k wholly dependent
 Expenditures and Revenues.
 Perhaps the most important question presented to this administration Is that of economy in expenditures and sufi- cieneN 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 estimates of the executive departments 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 if a probable deficit is thus shown 1t is made the duty Of the prcsf- dent to recommend the method by when such dgHCit can he met.
 The report of the secretary shows that the ordinary expenditures for the current fiscal year ending June 90. 1910. will exceed the estimated receipts by s34 075,620. If to this deficit is added the sum to be disbursed for the Pan anna Canal amounting to 3S.000 00e. and $l.o00000 to be paid on the public debt. the deficit of ordinary receipts and expenditures will be increased to a total deficit of s73075.620 This def icit the secretary proposes to meet by the proceeds of bonds issued to pay the cost of constructing the Panama Canal. I approve this proposal.
 In order to avoid q deficit for the ensuing fiscal year. directed the heads of departments Tn the prepara- tion of their estimates to make them IS low as possible consistent with inn perative governmental necessity.
 Civil Pensions.
 am aware that there Is a strong feeling in both houses of congress. and possibly in the country. against the establishment of civil pensions. and that this has naturally grown out of the heavy burden of military pensions which it 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 superannuatfon of civil servants can be found than that of a system of civil pensions.
 Frauds in the Collection of Customs.
 I regret to refer to the fact of the discovery of extensive frauds in the collection of the customs revenue at New York city. in which a number of the subordinate employees in the weigh ing and other departments were di- rectly concerned, and in which the henefciaries 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 1t Is shown to 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 to the same.
 Criminal prosecutions are now pro- ceeding against a number of the gov ernment officers The treasury de- pertinent 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 prfvy to the fraud. It would seem to me that an investigation of the frauds by con gress at present. bending the probing by the treasury department and the department of justice. as proposed might by giving immunity and other wise prove an cmbarrassmen in secur- ing conviction of the guilty parties.
 The Tariff Act
 
 call for special reference. By virtue of the clause known as the "maximHm and minimum" clause it 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 if the executive finds such laws and prac- tices not to be unduIy discriminatory against the United States. the mini mum duties provided in the bill arc 10 go into force. Unless the president makes such a finding then the maxi mum duties provided in the bin. that is, an increase of 9 per cent. ad yalo- rem over the minimum duties are 10 be in force. Fear has been expressed that this power conferred and duty imposed on the executive Is likely to lead to a tariff war l beg to express the hope and belief that no such result need be anticipated
 TLe discretion granted to the execu- tive hy the terms "unduly dfscrian- inatorY' is wide In order that the maximum duty shall be charged against the imports from a country. 1t is ncces- sary that he shall find on the part of that country not only discriminations in it's laws or the practice under them ag7inst the trade of t3fo United States. bat that the dtseriuinatf ons found shall be uuduc; that is, without good and fair re8son- conceive that this power was r1oaScd in the president with tfe hone that t#e H38xiraum au- tes 1IEHt never he applied Iu any ease but that the power te ar9s$ them tta4taa enable the nreaia nit and the state de partment through frz ndiv ncgotiation to secure the elimination from the laws and the practice under them of any foreign country Of that which is un- duly discri minatory No ono is seek ing tavif war or condition in which the spirit of retaliation shall be aroused
 Needs of the Navy.
 The return of the battleship fleet from It's voyage around the world fn more efficient condition than when it started a D. g.f