American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1912-12-12
CONGRESS HEARS
SECOND MESSAGE
President Tells of Treasury and
Army Affairs.
PHILIPPINES ARE INCLUDED
Bill for Natlves' Independence De
nounced AZ Premature-Prooress
Of Panama Canal.

Bill for Natlves' Independence De-
nounced az Premature-Progress
Of Panama Canal.
Washington. Dec. 6.-Congress today re-
ceived from President Taft the second of
his messages to the short session. 1t
deals with fiscal. military. insular and
judicial affairs and in part is as follows:
The condition Of the country with ref
erence to business could hardly be better.
While the four years of the administra-
ton now drawing to a close have not de-
veloped great speculative expansion or a
wide field Of new investment, the recov-
Dry and progress made from the depress-
Ing conditions following the panic of 1907
have been steady and the Improvement
has been clear and easily traced in the
statistics. The business of the country IL
now on a solid basis. Credits are not
unduly extended and every phase of the
situation seems in a state of prepared
ness for a period Of unexampled prosper
ity. Manufacturing concerns are running
at their full capacity and the demand for
labor YVES never SC constant and growing.
The foreign rad of the country for this
rear will exceed 1900. 900. 900, while the
balance In our favor-that of the excess
Of exports over imports-will exceed $780,
600. 900. More than half our exports are
manufactures or partly manufactured
material, while our exports of farm pro-
ducts do not show the same increase OF
domestic consumption. 1t Is a year of
bumper crops; the total money value Of
farm products will exceed 81, $780, 00, 900. 1t
II a year when the bushel or unit price
Of agricultural products has gradually
fallen, and yet the total value Of the en-
tire crop Is greater by over 81, 100000
than we lave known in our history.
Condition Of the Treasury.
The condition of the treasury il very
satisfactory. The total interest-bearins
debt is 1888. ~. ITO. of which 1874. 6s1 $50 con-
stiute the Panama canal loan. The nom
interest-bearing debt Is 1878, 301 ,2s4. 90. In
Guiding $346. Gil, Ole of greenbacks. We have
In the treasury $3.50, 900, 900 in gold coin as
q reserve against the outstanding green
backs; and in addition we have q cash
balance in the treasury as a general fund
of $167, 162. 1889. or an Increase of $685.
E2 over the general fund last year.
Receipts and Expenditures.
For three years the expenditures Of the
government have decreased under the in
duence of an effort to economize. This
| year presents an apparent exception. The
estimate by the secretary of the treasury
Of the ordinary receipts, exclusive of pos
tai revenues, for the year ending June
90, 1914, indicates that they will amount
to $170, 900, 900. The sum of the estimates
of the expenditures for that same year,
exclusive of Panama canal disbursements
and postal disbursements payable from
postal revenues is $732, o00. 900, indicating a
deficit of $22, 600, 900. For the year ending
June 80, 1918, similarly estimated receipts
were 1861, 0Oe, 600. while the total corre-
spending estimate of expenditures for that
year, submitted through the secretary OF
the treasury to congress-. amounted to
1855. 900, 000. This shows an increase of
SIC, COO, GOO In the estimates for 1914 over
the total estimates of 1913. This Is due to
an increase of $25. 900 900 in the estimate
for rivers and harbors for the next year
on projects and surveys authorized by
congress- to an Increase under the new
pension bill Of $32. 100000; and to an In
crease in the estimates for expenses OF
the navy department of $24, 900. 600. The
stinpate for the navy department for the
year 1918 included two b~attleships. Con-
gress made provision for only one battle
ship, and therefore the navy department
has deemed 1t necessary and proper to
make an estimate which includes the first
years expenditure for three battleships
In addition to the amount required for
work on the uncompleted ships now under
construction. In addition to the natural
increase IN the expenditures for the I'M
completed ships, and the additional bat
tleship estimated for, the other increases
are due to the pay required for 1000 or
more additional enlisted men in the navy,
and 70 this must be added the additional
cost of construction Imposed by the
change in the eight-hour law which
makes It applicable to ships built in prt-
vate ~shipyards.
with the exceptions Of these three
items. the estimates show a reduction
this year below the total estimates for
1918 Of more than 5,000.000.
The estimates for Panama canal con-
struction for 1914 are 81. ooo.o 600 less than
for 1918.
The president then explained at some
length the national reserve association
system recommended by the monetary
commission and urged congress to ex-
anime the plan impartially from all
s%tandpoints and then to adopt some
plan which will secure the benefits de-
sired.
Concerning the tariff he had little to
say in view Of the fact that a new con-
gress has been elected o n a platform
of tariff for revenue only.
Army Reorganization.
Our small army now consists of 1873
men. excluding the 5000 Philippine scouts.
Leaving out of consideration the coast
artillery force. whose position Is fixed in
our various seacoast defenses. and the
present garr'sons of our various insular
possessions, we have today within the
continental United States a mobile army
Of only about IS, 900 men. This little force
must be stil further drawn upon to sup
ply the new garrisons for the great naval
base which Is being established at Pearl
Harbor, In the Hawaiian islands. and to
protect the locks now rapidly approaching
completion at Panama. The forces re-
naming in the United States are now
scattered In nearly fifty posts, situated
for a variety of historical reasons in
t~wenty-four states. These posts contait
only fractions of regiments, averaging
less than 100 men each. In time of peace
1t has been our historical policy to ad-
minister these units separately by a geo
graphical organization. In other words
our army in time of peace has never beer
a united organization but merely scat
tered groups Of companies. battalions an
regiments, and the first task In time OF
wal has been to create cut of these scat
tered units an army fit for effective team
work and cooperation
Time He Went.