The Montgomery advertiser., 1909-12-08
BY MACVEAGH
SECRETARY OF TREASURY URGES
 RETRENCHMENT.
Annual Report Is in Line With Pres fdent sTaft,s Policy of More Economy i'm Affnirs of
 Government.

washington, Dec. 7--Retrenchment ! ia the keynote in the estimation of expenditures for the executive depart ments Of uthe government for the fis- | cal year 1911. embodied in the annual report of Franklin MacVeagh as Sec- retary of the Treasury. made pus nc today. This is in line with Presi- dent Taft's declared policy of greater economy in administering the affairs Iof the government.
 The total estimates for 1911 are ls684l32.1s7. including the naval build | ing yrogram. Excluding the decrease | in the Panama Canal estimates. the crease of s57,244,493.S9 under the ap- preparations for 1910.
 Including the increase in the Pana- ma Canal estimates. the total esti- mates for 1910 show a decrease of $42,81S,969.19 under the appropriations for 1910. The ordinary estimated re- ceipts for the current year are $64S,- 100000 and the ordinary disburse- ments at s682,075,620. leaving defic- 1t in ordinary receipts of $s4.07s.620. When the payments on account Of the Panama Canal and the public debt are added. the total deficit of the fiscal year 1910 is estimated at s73,075,- 620.12. The estimated ordinary re- ceipts for 1911 are $672,o00. 900 and the estimated ordinafy appropriations s636, ,o6S,672.51 or surplus in ordi- nary..receipts of $35,s31. 327.49. When the Panama Canal estimates for 1911 are added the surplus is turned into a deficit of s12.132, 197.21.
 For the fiscal year 1910 the naval building program was not Sncluded in the estimates submitted to the Con- gress. When the naval program Is eliminated from the estimates for 1910 and 1911. the total estimates for 1911 are $94.001, ,492.92 less than the total estimates for 1910.
 Secretary MacVeagh. emphasizing the hard rigidity of the present rev. enue system, with its recurrent econ omical agitations and its long inter Kvals of fixity," says it will be neces- sary to meet these deficits to sell either bonds or certificates of in- debtedness 'In due course" he adds, 'it would seem that 1t must be made practicable to both estimate re- ceipts. with a close approximation to the actual. and to provide for their annual rise or fall by some flexible factors in our annual taxation"
 Reductions In the present estimates, MT. MacVeagh declares, result from improved handling of the government work and the postponement of expen- ditures which can be delayed in an
 
 and receipts. He sounds a warning. however, that the reductions in ap- propriations will be disappointing un- less equal attention Is given to other important savings.
 Secretary MacVeagh reviews the or- ganization, Or rather lack. of organi- zation. of the fiscal responsibilities of the executive and legislative branches of the government and the reorgani- zation thereof now in progress. He voices the hope that there will be constant progress away from the extreme disorganization of the past" and observes that even If our country Is rich it cannot afford to be wholly unscientific in it's appropriations"
 Probably the most important re- eommendauon made by the secretary is that the tax on bank circulation secured by United States bonds here after deposited bearing interest high CT than 2 per cent shall be increas- ed in exact proportion to the increase in the rate of interest above two per cent. He advises continuance of the rate of one-half of one per cent for circulation based on two per cent. bonds. MT. MacVeagh says that if the Panama bonds authorized by the law of August 5. 1909, should be is- sued at 3 per cent, they would have much better circulation privilege than the outstanding two per cents. the tax being only one per cent. MT. MacVeagh would make the tax on them 1 1-2 per cent; otherwise the al-