Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-07
EXPENSES AND REVE-
NUES.

submit annual reports. I shall touch
only those matters that seem to me to
call for special mention on my part with
out minimizing in any way the recon-
mendations made by them for legislation
affecting their respective Departments.
in all of which I wish to express my
general concurrence.
Perhaps the most important question
presented to this Administration is that
of economy in expenditures and suffici-
ency of revenue. The deficit of the last
fiscal year. and the certain deficit OF
the current year, prompted Congress TO
Executive and the Secretary of the
Treasury than had heretofore been de-
clared by statute. This declaration i'm
poses upon the Secretary Of the Treasury
the duty of assembling all the estimates
of the Executive Departments, bureaus.
and offices, Of the expenditures neces-
sary in the ensuing fiscal year, and OF
making an estimate of the revenues of
the Government for the same period:
and If a probable deficit is thus shown,
it is made the duty of the Pres dent to
recommend the method by which such
deficit can be met.
Bonds to Meet Deficit.
The report of the Secretary shows
that the ordinary expenditures for the
current fiscal year ending June 80. 1910,
will exceed the estimated receipts by
s34, O75. $40. II to this deficit is added
the sum to be disbursed for the Panama
Canal, amounting to $3S,OOO 900. and ST.
OOO, 900 to be paid on the public debt,
the deficit of ordinary receipts and ex-
penditures will be increased to total
deficit Of $7s,o75,82O This deficit the
Secretary proposes to meet by the pro-
ceeds Of bonds issued to pay the cost
Of constructing the Panama Canal l
approve this proposal.
Posterity to Pay Part.
The policy of paying for the construc-
ton Of the Panama Canal, not out of
current revenue, but by bond issues,
was adopted in the Spooner Act of 1902,
and there seems to be no good reason
for departing from the principle by
which a part at least of the burden of
the cost OF the canal shall fall upon
our posterity who are to enjoy It; and
there is all the more reason for this view
because the actual cost to date of the
canal, which is now half done and which
will DE completed January ]. 1915, shows
that the cost of engineering and con-
struction will be $297. 1856 900. instead Of
$3.50, 7Oo, 200. as originally estimated. In
addition to engineering and construction,
the other expenses, including sanitation
for the properties, the franchise, and the
privilege Of building the canal increase
the cost by $75. 49,. 600. to a total of
1915, POI 600.
Causes Of Canals Cost.
The increase in the cost of engineering
and construction is due to a substantial
enlargement of the plan Of construction
by widening the canal 100 feet in the
Culebra cut by increasing the dimensions
of the locks, to the underestimate of
the quantity of the work to be done
under the original plan. and to an I'M
derestimate of the cost of labor and ma
terials, both of which have greatly en-
HANGED in price since the original esti-
mate was made.
Estimates Cut to the Quick.
In order to avoid deficit for the en-
suing fiscal year 1 directed the heads Of
departments in the preparation of their
estimates to make them as low as pos
sble consistent with imperative govern
mental necessity. The result has been, as
am advised by the Secretary Of the
Treasury, that the estimates for the ex-
penses of the government for the next
fisca. year ending June 80, 1911. are less
than the appropr atoms for this current
fiscal year by $42. $4,000. SO far as the
Secretary of the Treasury is able TO form
judgment as to future Income and COM
pare 1t with the expenditures for the
next fiscal year ending June 80. 1911, and
excluding payments on account of the
Panama canal which will doubtless be
taken up by bonds. there will be sur
plus of $50, 931 900.
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 expectation that they may be reduced,
will result in seriously hampering proper
administration.
Two Kinds Of Economy.
The Secretary Of the Treasury points
out what should be carefully noted in re-
spect to this reduction in governmental
expenses for the next fiscal year. that the
economies are Of two kinds-frst, there
is a saving In the permanent administra-
ton of the Departments, bureaus and Of
fees of the Government, and, second,
there is present reduction In expenses
by a postponement OF projects and i'm
provements that ultimately will have TO
be carried out, but which are now delayed
with the hope that additional revenue in
the future will permit their execution
without producing a deficit.
II has been impossible in the prepara-
ton of estimates greatly to reduce the
cost OF permanent administration. This
cannot be done without thorough reor-
ganization Of bureaus. Offices and depart
ments.