Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-24

/ low Re is required TO receive all the
estimates of all the departments, him.
self to make an estimate Of the prob
able revenues and if his calculations
show a deficit, to recommend legisla-
ton for additional taxation or the
raising of money by bonds sufficient to
meet it.
1.-THE calculation of the secretary of
the treasury for the present year
showed that the deficit was likely to
be 54.GCo,00) in respect to ordinary re-
ceipts and expenditures. / am glad to
say that the operation of the new tar
| iff bin has been so much more proGuc-
! tive Of income that this deficit FOR the
current wear is likely to be consider
ably reduced. In addition, however to
the ordinary deficit we have to add the
Panama canal expenditure for INN
diate revision of sc9Gj0040 or what
was estiT ated 10 be a total dctic't o.
$72 G Q. eco is now reduced considerably
by the better rates under the present
tariff hill.
"By meaEng the expenditures on the
Panama canal with the proceeds of
bond issues we have enough cash in
the treasury to meet the deficit in our
ordinary expenses of the current year,
and if we meet the expenditures on
the Panama canal for the following
year we shall have surplus of $685.
900, DOC, or if the revenue producing ca
pacity Of the new tariff keeps up to
It's present indication, this surplus may
be increased to $50, 000 900. On the other
hand. if the Congress proposes to add
to the expenditures Of the government
over those estimated for for new enter
prises in the river and harbor bill and
for the construction of the federal
buildings under building act, it will
be very easy to consume or exceed the
entire surplus.
Everyone must admit the wisdom
of providing for the payment OF the
canal expenditure by bonds. The orig
inal act made provision for the issu-
ing Of bonds, and while the amount
therein estimated was far short of the
actual cost the policy of the govern
ment in supplying funds for the enter
prise nv bonds was sufficiently de-
clared. This is a work Of permanent
character for the millions who come
after US and it seems only fair that
that which we provide in such gener-
Gus measure for rosterity should be
Not only is the application of such
a principle just and right In the case
of an enterprise like the Panama canal,
but it seems to me wise and appro-
pirate to adopt it with reference to
other projects which commend them
selves to Congress, and the economical
completion Of which requires the is
suing of bonds. refer to those
definite projects that have been agreed
uron in respect to the improvement Of
cur inland waterways. l would not be-
gin the expenditure of money on any
project the wisdom of which had not
been fully indicated by experts and
the cost of which had not been fully
ascertained by the most experienced
engineers but having determined to
put through the improvement it ought
not to be done by fits and starts, but
it ought to be done as one job and
provision for it's completion ought to
be made by the issuing Of bonds. I'M
less the current revenues afford a suf-
fcient amount to complete it within
an economical time.
This statement has peculiar appli-
cation to the river and harbor bill
which now has passed the House
There the Ohio river Improvement, tC
cost s63.000,000 is entered upon and
an appropriation made for its con-
tinuing. The same thing is true of the
Improvement of the Mississippi from
st. Paul to ST. Louis and the same
river from st. Louis to Cairo; and OF
the Missouri river from Kansas City
to st. Louis. These projects seem te
be warranted by the traffic in sight
While l am dealing with the Panama
canal, however, ought to refer to the
discrepancy between the estimated cost
of the enterprise and the actual cost
as we are now able to fix 1t with very
considerable accuracy within four OF
five years OF it's completion. The es-
timated cost of the engineering and
construction will be 1921, 900, 900, an
increase of about $157 100000. This in.
crease is to be explained first by the
very great appreciation in the cost O
labor and material between the tim,
when the estimate was made in 19Ot
and the time when the work was don,
between 1904 and 1903; second. by tn,
fact that the canal has been enlarged
substantially beyond the original di.
mansions estimated for. In addition
to this the cost of sanitation and gov.
eminent, without which the canal coul(
not have been built, will be about $73,.
100000 and will carry the entire cos,
of the canal to s373.00O.00O.
TO return to the state Of finances
| repeat that the surplus for the veal
ending June 80, 1911, for which we are
now making provisions in this Con-
gress by appropriation win be about