The new era., 1909-12-16

United States in the sense of the stat
ute referred to. The great scope and
complexity of this work. as well as
the obligation to lend all proper aid
to our expanding commerce. Is met by
the expansion of the bureau Of trade
relations as set forth in the estimates
for the department of state.
Government Expenditures and Reve-
nues.
Perhaps the most important question
presented to this administration is that
of economy in expenditures and sum
cheney of revenue. The deficit OF th~
last fiscal year. and the certain deficit
of the current year. prompted congress
to throw greater responsibility on
tho executive and the secretary of the
treasury than had heretofore been de-
imposes upon the secretary of the
treasury the duty of assembling all the
estimates of the executive departments
bureaus. and of1ices. OF the expendi-
year. and of making an estimate of
the revenues OF the government for
the same period; and II probable
deficit is thus shown. 1t Is made the
duty of the president to recommend
the method by which such deficit can
be met.
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
| $34.o75.620. If to this deficit is added
the sum to be disbursed for the Pan
anna Canal. amounting to $3s.0o0.00o.
| and 100000 to be paid on the public
debt. the deficit of ordinary receipts
and expenditures will be increased to
total deficit of $73.075.62o. This de-
fcit the secretary proposes to meet by
the proceeds of bonds issued to pay
the cost of constructing the Panama
Canal. approve this proposal
The policy of paying for the con-
of current revenue. but by bond issues.
was adopted in the Spooner act Of
| 1890. and there seems to be no good
reason for departing from the prin-
| ciple by which a part at least Of the
burden of the cost OF the canal shall
| Joy 1t: and there Is all the more rea-
| son for this view because the actual
cost to date Of the canal, which Is now
half done and which will be completed
engineering and construction will be
| $2s7.766,00O. instead of $13s. .705.200. AZ
| originally estimated. In addition to
engineering and construction. the other
expenses. including sanitation and gov
| ernment and the amount paid for the
properties. the franchise. and the privi
| lege Of building the canal. increase the
| cost of $75.435.0O0, to . total Of $375.-
100000. The increase In the cost of
| engineering and construction IL due to
a substantial enlargement Of the plan
of construction by widening the canal
| 100 feet in the Culebra cut and by in
creasing the dimensions of the locks.
to the underestimate of the quantity of
| the work to be done under the orig
| inal plan, and to an underestimate of
the cost of labor and materials. both of
| which have greatly enhanced in price
since the original estimate was made.
In order to avoid deficit for the
ensuing fiscal year. I directed the
heads OF departments In the prepara-
| ton of their estimates to mako them
| as low as possible consistent with i'm
| perative governmental necessity. The
| result has been. as I am advised by the
| secretary of the treasury. that the es-
| Inmates for the expenses of the gov
ernment for the next fiscal year end
| Ing June 80, 1911. are less than the ap-
| propriations for this current fiscal
year by 342.s1s.0oo. So far the Sec
| retary of the treasury Is able to form
| compare 1t with the expenditures for
the next fiscal year ending June 80.
| 1911. and excluding payments on ac-
count of the Panama Canal, which will
| doubtless be taken up by bonds. there
| will be a surplus of $35.931.000.
In the present estimates the needs
of the departments and of the govern
ment have been cut to the quick. SO to
speak, and any assumption on the
| part Of congress. SO often made in
| been prepared with the expectation
| that they may be reduced, will result
in seriously hampering proper admin
| istration.
To reduce the cost of permanent
administration, says the president, a
thorough reorganization Of bureaus.
Offices and departments would be nee
essary. An expert accountant has
been making an investigation into this
matter and the result OF his work
shows opportunity for both substan-
tial reductions In cost and increase of
efficiency.
Frauds In the Collection Of Customs.
regret to refer to the fact of the dis
| covery of extensive frauds in the collec
city. in which number of the subor-
dinate employees in the weighing and
other departments were directly con-
cerned, and in which the benefciaries
| were the American Sugar Refining Com
| pany and others. The frauds consisted
in the payment of duty on underweights
| of sugar. The government has recovered
| from: the American Sugar Refining Com
pany all that 1t is shown to have been de-
frauded 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 contract OF
| settlement by which the settlement should
not interfere with. or prevent the GRIM
inal prosecution OF everyone who was
found to be subject to the same.
Criminal prosecutions are now proceed
ing against number Of the government
officers. The treasury department and the
department OF justice are eNerting every
effort to discover all the wrongdoers. in
Guiding the officers and employees of the
companies who may have been privy to
the fraud. It would seem to me that
investigation Of the frauds by congress at
present, pending the probing by the treas
ury department and the department Of
Justice. proposed. might by giving I'm