The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-24
Government Economy Is Subject
Taken Up and Discussed
Very Fully
BUSINESS METHODS ARE
NEEDED BY GOVERNMENT
The President Shows Where Appro-
priatiOns Are TO BE Cut Down But
BIg BattIeship Policy Is to Be
Continued for Years


| Newark, n. j. February 2s.-President
Taft, the first chief executive since
Grant to visit Newark. tonight addressed
one of the largest and most enthusiastic
dinner audiences he has met in all his
travels. The banquet was rendered here
| by the Newark board of trade, and more
than 800 members and guests were gath
cred about the long tables in Kruger's
auditorium.
Mr.. Taft took for his theme the homely
subject of governmental economy and
told of the efforts being made by his ad-
ministration to cut down appropriations
wherever possible. In addition to this.
the President declared he shared the hope
that the commission which is to be ap-
pointed to revise the business methods
of the big departments at Washington
may effect a saving approximating $780,
900 a year
The President detailed to some extent
just where the decreases in appropriations
are to occur. Speaking of the navy. he
said it had been decided to continue the
policy of two big battleships a year up
to the time the Panama canal is COM
| pltltu Wilel IL NOuiQ lItH pt tillle 10
start decrease in the programme
Mr.. Taft left here at II D. m. for Jer-
sey City. where his car was switched to
the midnight train for Washington.
| He came to Newark this afternoon by
automobile from New York. From the
suburbs of Harrison into the heart of this
city the President passed through dense
crowds, which the police had some trou-
BILE in handling. Hundreds of persons
crowded about the open automobile in
which the President was riding with
former Gov. Franklin Murphy, seeking
to shake hands with him.
! At Harrison the school children halted
the Presidents car and one little fellow
made patriotic speech. Mr. Taft re-
sponded and thanked the children for
their welcome.
| Senator Lodge of Massachusetts, Gov
ernor Fort of New Jersey and the Presi-
dent were the principal speakers at the
| banquet.
The Presidents Address
| The President. after acknowledging the
pleasure of being afforded the opportuni-
ty to speak to the business men of New
Jersey, said:
when l accepted the invitation to
come, I learned that I was to have the
pleasure of being fellow-guest with my
friend, Senator Lodge, and that he was
to take up the question of high prices,
| a question which has occupied the atten-
ton of all the people and has invited the
| investigation into its cause of the Con-
| gIess of the United States and some of
| the state legislatures For my part of the
evening | should like to direct your at
| tention to more prosy subject, to the
question of government expenses and
government revenues and the proposed
| economies. and what expenditures are es-
| sential at whatever burden of taxation.
I'm the first place, it should be said
that we have been so far from exhaust
| ing the resources of national taxation
and of the general revenues which have
been collected so easily and in such an
amount that we have failed In the past
| to adopt a budget system which is prac-
| ticed In every other civilized country.
| BY a budget system | mean reference
of proposed expenditures and receipts to
some one authority or tribunal, which,
after determining what the revenues Will
be, must also determine what the expen-
| ditures can be, and make a budget with
out deficit.
| s'In our legislative body, which provides
| the revenue and authorizes the expendi-
| tures time was when the committee on
| ways and means, on the one hand. deter
| mined the revenues of the government, or
provided the laws for raising them, and
on the other hand. determined the appro-
priations and measured the expenditures.
| But for many years in our Congress these
functions have been divided. The reve-
nues are provided by the ways and means
committee OF the House, and the finance
! committee of the Senate, and submitted
| to their respective houses, while the ap-
preparations are made by the appropria-
| tions committees of the House and Sem
ate. and in too many instances, without
apparent reference to the revenues which
are to be available to meet the appropri-
ations.
| Increase of Revenue
| ''Tt has so happened that in many years
OF the past, the revenues have Increased
more rapidly than the expenditures, and
there has been a surplus. During tho
life of the Dingley bill, which carried us
| from 1896 to 1908, the expenditures ex-
ceeded the revenues by about $3.50. 0oo 600;
but the surplus took place In the earlier
years. so that In 1905 we had dencit.
and In 1909 we had dehcit.
"The pinching effect of tho falling
/ Off OF the revenues and discontinuances
of the expenditures at the same rate
attracted the attention of Congress 50
that now a preliminary duty Is thrown
upon the Secretary of the Treasury to
make a budget; by law he is required
to make all estimates OF the depart
ments himself. To make an estimate
of the probable revenues and II his
calculations show deficit to recon-
mend legislation for additional tax
alton or the raising of money by bonds
sufficient to meet.
'"The calculation of the Secretary of
the Treasury for the present year
showed that the deficit was likely to
be SS4, 100000 in respect to ordinary
receipts and expenditures. 7 am glad
/ to say that the operation of the rev
! tariff bill has been so much more pro-
ductive OF income that this deficit for
the current year is likely to be con-
siderably reduced. In addition, how
ever, to the ordinary deficit we have
to add the Panama canal expenditure
for immediate provision OF $sS.o0ocOo.
or what was estimated to be a total