The Chanute times., 1912-12-13

his messages to the short session. II
deals with fiscal, military insular anu
judicial affairs and in part Is as toliows'
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 close have not de-
veloped great speculative expansion or
wide field of new investment the recoV-
cry and progress made from the depress-
ing conditions following the panic OF 1871
have been steady and the Improvement
has been clear and easily traced In the
statistics The business of the country is
now on n solid basis. Credits are not
unduly extended and every phase OF the
situation seems in state or prepareu-
ness for period of uneXampled prosper
ity. Manufacturing concerns are running
at their full capacity and the demandIior
labor was never constant and growlng'
The foreign trade of the country for TINS
year will exceed $4,000, 100000, while the
balance in our favor-that of the excess
of exports over imports-will exceed SoOo'-
600 900 More than half our exports are
manufactures or, partly manu1actureu
material, while our exports or farm pro-
ducts do not show the same increase Oh
domestic consumption. 1t Is year OF
bumper crops; the total money value OF
farm products will exceed 81 5O0,0OO.OOO. IL
ia a year when the bushel or unit price
of agricultural products has gradually
fallen md vet the total value of the en-
tire CROP Is greater by over 81 900, 100000
than we have known in our history
Condition of the Treasury.
The condition of the treasury is very
satisfactory. The total interest-pearlng
debt is 1868 TITO, of which $lS4 GIL ,sSo con-
stiute the Panama canal loan. The non
interest bearing debt is sS7S, ,S01 ,2S49O, In
cIuding s346. .67l O16 of greenbacks. We nave
in the treasury $50 100000 In gold coin as
a reserve against the outstanding green
backs; and In addition we have a cash
balance in the treasury as general fund
! of $167 152, 1889, or an increase OF Szo'''o'
s52 over the general fund last year
Receipts and Expenditures.
For three years the expenditures OF the
government have decreased under the IN
fiuence OF an effort to economize. rms
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 endlng June
30. 1914 indicates that they Will amount
to $40 0O0, ,OO0 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 1872 900 900. indicating
deficit of 500 ,0OO For the year ending
June 30 1913 similarly estimated receipts
were 1861 900 600, while the total corre-
amending estimate of expenditures for that
year submitted through the secretary OF
the treasury to congress. amounted TO
sG56 900 OO0 This shows an increase or
s76 oo0 OOO in the estimates for 1914 over
the total estimates of 1918. This Is due TO
an increase of S25. 900 900 in the estimate
Tor rivers and harbors for the next year
on projects and surveys authorized py
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 S24,OOOOOO. The
estimate for the navy department Tor the
wear 1913 included two battleships. Con-
gress made provision for only one battle
rhip. and therefore the navy department
has deemed Unnecessary and proper to
make an estimate which includes the frst
years expenditure for three battleshlps
In addition to the amount required TOT
work on the uncompleted ships now under
construction. In addition to the natural
incrcase In the expenditures for the un-
completed ships, and the additional bat
tleship estimated for, the other increases
are due to the pay required Tor 4VVO OF
more additional enlisted men in the navy,
and to this must be added the additional
cost Of construction imposed by the
change in the eght-hour law which
nakes II Applicable to ships built In pri-
vate shipyards.
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
standpoints and then to adopt some
plan which will secure the benefits de-
sired. @
Concerning the tariff he had little to
saw in view of the fact that new con-
gress has been elected on pr-rror1n
of tariff for revenue only.
Army Reorganization.
Our small army now consists OF SO 500
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 garrisons of our various insular
possessions, we have today within the
continental United States mobile army
of ONLY about IS 900 men. This little force
must he still further drawn upon to sup
NV the new garrisons for the great naval
base which is being established at Pearl
Harbor, in the Hawaiian Islands. and to
pro-ect the locks now rapidly approaching
completion at Panama. The forces re-
naming I'm the United States are now
scattered in nearly fifty posts, situated
Tor a variety of historical reasons in
twenty-four states. These posts contain
only fractions of regiments, averaging
less than 700 men each. In time of peace
II has been our historical policy to ad-
minister these units separately by geo
graphical organization. In other words,
our army in time of peace has never been
a united organization but merely scat
tered groups OF companies. battalions and
regiments and the first task in time of
war has been to create out of these scat
tered units an army flt for effective team
work and cooperation.
To the task of meeting these patent
defects. the war department has been ad-
dressing itself during the past year.
comprehensive plan of reorganization was
nrenared by the war college division of
the general staff. This plan was thor
oughly discussed last summer at a series
of open conferences held by the secretary
or war and attended by representatives
from all branches of the army and from
congress. In printed form 1t has been
distributed to members OF congress and
throughout the army and the national
guard. and widely through institutions OF
learning and elsewhere In the United
states. In It, for the first time, we nave
a tentative chart for future progress.
The National Guard.
Under existing law the national guard
constitutes, after the regular army, the
first line OF national defense. Its or