The Montgomery advertiser., 1909-12-08

States letter of this date whereby " win be possible to develop and make department upon modern lines in 6 manner to make 1t thoroughly efn- cient instrument In the furtherancs or our foreign trade and of American Divisions of Latin n-American and Far Eastern Affairs and to institute cer- tam specialization in business with Europe and the Near East will at once commend itself These politico-kev- graphical divisions and the detail from the diplomatic or consular service to tho department of number or men who bring to the study of conlpiicat- ed problems in different parts of the world practical knowledge recently gained on the spot, clearly IS or ths greatest advantage to the secretary of State In foresceing conditions likely to arise and In conducting the great variety or correspondence and nego. tiation. It should be remembered that such facilities exist In the Foreign or. fices of the leading commercial na- tons and that to deny them to the Secretary of State would be to place vantage in the rivalry or commercial competition. e
 The consular service has been great iy improved. under the Jaw of April :. 1906. and the Executive Order of June 27. 1908. and l commend to your coa- sideratIon the question of embodying in a statute the prfniipies of the pres ent Executive Order upon which the efficiency of cur consular service IS wholly dependent.
 In modern times political and com. mercial interests are inter-related. an9 in the negotiation of commercial, treaties. conventions and tarift agree ments the keeping open of opportu. nities and the proper support or American enterprises, our diplomatic service Is quite as important as the consular service to the business inter ests of the country. Impressed With this Idea and convinced that selection after rigorous examination. promotion for merit solely and the experience only to be gained through the contin- nity of an organized service are indis- pensable to R high degree of efficien- cy in the diplomatic service. have signed an Executive Order as the hrst step toward this very desirable result. It's effect should bs to place all secre- taries in the diplomatic service in much the same position as consular or ficers are now placed and to tend to the promotion of the most eff1cient co the grade of minister, generally leav- ing for outside appointment such posts of :he grade of ambassador or minis ter as it may be expedient to fill from without the service. It Is proposed also to continue the practice .institut- appointed secretaries at least one months thorough training In the De- partment of State before they proceed to their posts. This has been done for some time In regard to the consul lar service with excellent results. { Under a provision of the Act of August 5. 1909, have appointed thre~ officials to assist Lhe officers of the government in collecting information necessary to a wise administration of the tariff act of August 5, 1909. As to questions of customs administration they are cooperating with the officials of the Treasury Department and as to matters of the needs and the exigen- cies of our manufacturers and export CTS. with the Department Of Commerce and Labor, in it's relation to the do- mestic aspect of the subject of for eign commerce. In the study Of for eign tarin treatment they will assist the Bureau of Trade Relations of the Department of State. It is hoped thus to co-ordinare and bring to bear upon this most important subject all the agencies of the government which can contribute anything to it's efficient handling.
 AS a consequence Section of the tariff of August 5, 1909, 1t becomes the duty of the Secretary of State to con- duct as diplomatic business all the ne-' gotiations necessary to place him in a position to advise me as to whether n95 sGSgtfy yhasa nsdulg tse ss in the sense Of the statute referred to. The great scope and complexity of this work, as well as the obligation to lend all proper aid to our expanding com merce is met by the expansion of the Bureau of. Trade Relations as set forth in the estimates for the Depart ment of State.
 Other Departments.
 I have thus in some detail describ- ed the important transactions of the State Department since the beginning of this administration for the reason l,aA fhAr fo Van statute or custom for a formal report by the Secretary of State to the Pres ident or to Congress, and President ial message is the only means by lations Is brought to the attention oS Congress and the public.
 In dealing with the affairs of the other departments, the heads of which all submit annual reports, shat touch only those matters that seem to me to call for special mention on my part without minimizing in any way the recommendations made by. them for legislation affecting their rsspe" tive departments, in all of which wish to express my general concur renee.
 Government Expenditures and Reve-
 nues.
 Perhaps the most important ques. ton presented to this administration is that of economy in expenditures
 
 of the last fiscal year, and the cer- tain deficit of the current year prompted Congress to throw greater responsibility on the Executive and the Secretary of the Treasury than had heretofore been declared by stat ute 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 ma king an estimate of the revenue of the government for the same period; and if a 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 1910, will exceed the estimated re. ceipts by $34.075.62O. If to this de. felt is added the sum to be disbursed for the Panama Canal. amounting to s3S, 0O0, 900 and $1,000,000 to be paid on the public debt. the deficit of or, be increased to a total deficit of $73,- 075.620. This deficit the Secretary proposes to meet by the proceeds of bonds issued to pay the cost of com structing the Panama Canal. l ap- prove thls proposal.
 The policy of paying for the con- struction of the Panama Canal, not out of current revenue, but by bond is- sues, was adopted in the Spooner Act of 1902, and there seems to be no good reason for departing from the princiF' ple by which a part at least of the burden of the cost of the canal shall fan upon our posterity who are to en- ioy it: and there Is all the more req son for this view because the actual cost to date of the canal which Is now