New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-24
Jersey HALLS TAFT
Continued from first page.

believe. as ! have said. that your recep-
ton to-day and tonight Is sincere, ana
I take II as fiattering JUNCTION to my soul
AS | go back to Washington, and avoid
the newspapers
You see. therefore, that when l came
here to-day / was in frame of mind
which made your welcome as balm TO
my soul and / carry away sense IF
gratitude that viii never depart from
my memory
In his formal speech the President
said
When ! accepted the invitation to come
pleasure of being fellow guest with my
friend Senator Lodge, and that he was TO
take up the question OF high prices, qaes-
ton which has occupied the attention OF
all the people and has invited the ihNesux
,gation into its causes OF the congress ol
the United States and some OF the state
legislatures For my part Of the evening
/ should Ike TO direct your attention 20
more prosy subject, to the question VI
government expenses and government rev
enues and the possible economies, ana
what expenditures are eSSentlal al Wlat-
In the first place, il should be said that
we have been so far from eNhausting the
resources of national taxation. and teoeIai
revenues have been collected so easily. anu
in such an amount, that we have failed III
the past TO adopt budget system which
is practised in every other civilized coun-
try Bv budget system / mean a refer
ence of proposed expenditures and receipts
to some one authority or tribunal. winch;
after determining what the revenues VIII
be- must also determine what the eXpeh-
ditures can be and make budget without
a deficit.
the revenue and authorizes the eXpendi-
lures, time was when the Committee on
Ways and Means. on the one mana, deter
mined the revenues of the government or
provided the laws for raising them and, on
the other hand, determined the appropTnid.
lions and measured the expenditures But
for many years in our Congress these iufc-
tons have been divided. The revenues are
provided by the Ways and Means Sohi-
nittee of the House and the Finance Con-
mittee of the Senate and submitted 10 tneIl
respective houses, while the appropriations
are made by the Appropriation committees
of the House and Senate and, in too many
instances. without apparent reference 10
the revenues which are to be aValiaoie ~
meet the appropriations
It has so happened that III many years
of the past the revenues have lncFeased
rapidly than the expenditures rs d mta
there has been surplus During the III. me
of the Dingley bill, which carried rs from
1896 TO 1908. the revenues eXcee oae me
expenditures by about S5o.00.Ooo pu'
the surplus took place in the earlier years,
so that in 1908 we had deflcit, ana III
1909 we had deficit. The pinchlng ehect
continuances of the expenditures at the
same rate attracted the attention or - on
greSS. so that row preliminary unlS -
thrown upon the Secretary Of the Treas
ury TO make a budget; that is. by law ne
is required to receive all the estimates OF
all the departments h mn rayen NJ and if
his calculations show defclt 10 .tconi
mend legislation for additional taAauon OF
the raising Of money by bonds su01clehl 10
meet il.
CURRENT YEARS DEFICIT.
Mir. Taft said that the Secretary OF
the Treasury had for the present year
shown that the deficit was likely to be
-S34. 600 900 in respect to ordinary re-
ceipts and expenditures, and added:
[ am glad to sa,- that the operation OF
the new tariff bill has been SO much more
the current year is likely TO be consideranely
reduced In addition, however, 10 me oIul-
nary deficit. we have to ado the falaila
Canal expenditure for immediate pfoNlS lo
of s3S 600 COO or what was estimated TO be a
total deficit of s72,000,oOe is now reduced
nsideraby by the better rates under the
present tariff bill.
By meeting the expenditures on the Pan
anna Canal with the proceeds OF polo rs
sues we have enough cash in the treasury
TO meet the deficit in our oTolitdi "a
penses for the current year, ana II W
Canal for the following year. we sna az
have a surplus of s35eo0.o00: or. II ttle
revenue producing capacity OF tne me-; nes
tis s heg MAY be increased 100000
on the other hand. if the Congress PROPOSES
TO add to the expenditures OF the soFS -
Tnent over those estimated for. for new
enterprises in the River and itafpor psti
and for the construction of the LeGefal
-5 hui Under a building act, il viii be
very easy so consume or exceed the entire
surplus. .-.,.,, &c no
: yjdfng for the payment of the canal eS-
f.: penditure by bonds. The Original act ina 'is
I,.tI31 tI1e amount therein estimated was far
short of the actual cost the pollcy OF ne
government in suPpiTla ing s sufIit de-
clared This is a work OF perfhaitrenL
character for the millions who come a tet
MS and il seems only TAR that tlal
which we provide in such generous meas
,Ire for posteritv should be paid for in
part. at least. by posterltE-
ISSUING OF PONDS.
The President then argued that not
only is the application OF such pr1h-
ciple lust and right in the case OF an
enterprise like the Panama Canal but
that il seemed to him wise and appro-
Driate to adopt it with reference to other
projects which commend themselves to
Congress, and the economical completion
of which requires the issuing Of bonds.
Continuing, he said:
I refer to those definite projects that
have been agreed upon IN respect to the
Improvement of our inland waterways.
would not begin the expenditure OF any
money on any project the wisdom OF which
had not beer fully indicated by experts
and the cost of which had not been fully
ascer tanned by the most experienced en-
gineers: but having determined 10 put
through the Improvement it ought not 10
be done by fits and starts, but II ought TO
be done as one job. and provision for its
completion ought 10 be MADE by the lSsu-
ing of bonds. unless the current revenues
afford a sufficient amount to complete 1t
within an economical time
This statement has peculiar appilcatlQn
10 the river anC harboF bill. -Whlch now
has passed the House. There the ONO
River Improvement to cost 500, oOO,oVo Is
entered upon and an appropriation made
Tor its continuing 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 MIS-
souri, River from Kansas City 10 St Louis
These projects seem 10 be warranted ny
the traffic in sight.
While / am dealing with the Panama
Canal however l ought to refer to the
DISCREPANCY between the estimated cost OF
the enterprise and the actual cost as we
are now able to fix ii with very consld-
er;.lle accuracy. within four or five wears
of its completion. The estimated cost OF
the engineering and construction OF lie
canal was ,$139, 100000. Its AERIAL cost iot
engineering and construction VIII De Vs.
oCGoG0 an Increase of about S07.309.o0o
PANAMA CANALS COST
MI Taft explained the increase as
due. first, TO the very great appreclas
ton in the cost of labor and material
between the time when the estimate was
made in 1906 and The time when the
work was done, between 1904 and 1909,