The Prescott daily news., 1910-12-06

mun!oation with the countries of Latin America adequate to meet the requirements of rapidly increasing appreciation of the reciprocal depen- dence of the countries of the western hemispb"r" upon each others prod ucts, sympathiss and assistance.
 ''l alluded to this most important subject in my last annual message: 1t has often been before you and need not recspitulate the reasons for it's recomm endation. Unless prompt ac- ton be tskeR the completion of the Panama canal will find this the only great commercial nation unable tc avail in international maritime busi. ness of this great contribution to the means of the worlds commercial in. tercourse
 Governmental Expense.
 To nc. one subject does he devote more space than to the expense of conducting the various government departments and the urgent need for economy, and In this connection he says:
 Every effort has been made by each department chief to reduce the estimated cost of his department for the ensuing fiscal year ending June 30, 1912. l say this in order that con. gress may understand that these esti. mates thus made present the smallest sum which will maintain the depsrt. ments, bureaus and offices of the gov. ernment and meet its other obliga. tions under existing law, and that a cut of these estimates would result in embarrassing the executive branch of the government In the performance of its duties. This remark does not apply to the river and harbor esti- mates, except to those for expenses of maintenance and the meeting of obli- cations under authorized contracts. nor does 1t apply to the public build ing bill nor 10 the navy building pro. gram. Of course. as to these con. gress could withhold any part CT all of the estimates for them without in terfering with the discharge of the or dinary obligations of these functions of it's departments, bureaus and of. fees.
 The final estimates for the year ending June 20, 1912. as they have been sent to the treasury on Novem- Der % of this year, for the ordinary expenses of the government, including those for public buildings, rivers and harbors, and the navy building pro- gram, amount to s630,494,013.12. This is $52,964 ,SS7.36 less than the an propriations for the fiscal year end. ing June 30, 1911. It is s1e.SS3153.44 less than the total estimates, includ ing supplemental estimates submitted to congress by the treasury for the year 1911, and is t5,574,s5s.3e less than ths original estimates submitted by the treasury for 1911.
 These fugres do not include tbe appropriations for tho Panama canal the policy in respect to which ought to se. and is. to spend as much each year as can be economically and of. fectively expended in order to com. piete the canal as promptly as possj ble, and therefore, the ordinary mo- tive for cutting down the expense of the government does not apply to ap- propriations for this purpose
 Against the estimates of expendi. lures, s640, 0,494 ,01312, we have estimat. ed receipts for next year $6S0 OO0 900 making a probable surplus of ordinary receipts over ordinary expenditures of about s50,0000OO, or taking into ac- count the estimates for the Panama canal, which are .92O,S4769. and which will ultimately be paid in bonds 1t will leave a deficit for the next year of about $7OO0,O00. if congress shall conclude to fortify the canal"
 The Tariff.
 The President devotes but little space to the subject of the tariff law and of it he says
 "The schedules of the rates of duty in the Payne tariff act have been sub jected to a great deal of criticism. some of it just, more of it unfounded. and 10 much misrepresentation. The net was adopted in pursuance of q declaration by the party which is re sponsible for it that customs bin should be a tariff for the protection of home industries, the measure of the protection to be the difference be. tween the cost of producing the i'm. ported article abroad and the cost of producing it at home, together with such addition to that difference as might give a reasonable profit to the home producer. The basis for the criticism of this tariff is that in re- spect to number of the schedules the declared measure was not follow