The Holly chieftain., 1912-12-13
CONGRESS HEARS
SECOND MESSAGE
President Tells Of Treasury and
Ar...y Affairs.
PHILIPPINES ARE INCLUDED
Bill for Natives Independence De.
nouneed ~ remature-Proaress
Of Panama Canal.

OF PANAMA Sah1t.
Washington. Dec 6-Congress today re-
ceived from President Taft the second of
his messages to tho short session. 1t
deals with fiscal. military. insular and
judicial affairs and in part Is 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
wide 1eld of new Investment. the recov-
cry 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 Is
now on a solid basis. Credits are not
unduly extended and every phase of the
situation seems In state of prepared
ness for period of unexampled prosper
ity. Manufacturing concerns are running
At their full capacity and the demand for
labor was never so constant and growing
The foreign trade of the country for this
year will exceed A.0Oo. 900 900. while the
balance in our fayor-that of the excess
of exports over imports-will exceed $780,
100000 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 year OF
bumper crops; the total money value Of
farm products will exceed 50. 500. 100000 1t
Ia 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 $1,000 900. 600
than we have known in our history.
Condition Of the Treasury.
The condition Of the treasury is very
satisfactory The total interest-bearing
debt is ss63,7T7.77o. of which 1874, ,s3l9so con-
stiute the Panama canal loan. The nom
interest bearing debt is $37S. .3o1 ,2si 80. in
ciuding s3i6. s7l .ol6 of greenbacks We have
In the treasury $3.50, 100000 in gold coin as
q reserve against the outstanding green
backs: and in addition we have a cash
balance In the treasury as q general fund
of $167, l52. SO, or an increase of $685.
sb2 over the general fund last year.
Receipts and Expenditures.
For three years the expenditures of the
government have decreased under the in
f1uence 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
30. 1914 indicates that they will amount
to $iT0, ,0Oo, 600. 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 s732. 600 900. indicating a
deficit of s22, 5000. For the year ending
June 90 1913, similarly estimated receipts
were s66i 100000. while the total CORE
spending estimate of expenditures for that
year. submitted through the secretary of
the treasury to congress, amounted to
e65S. 900 600. This shows an increase of
SIC. 600. eco In the estimates for 1914 over
the total estimates of 1913. This is due to
an increase of SIS 100000 in the estimate
for rivers and harbors for the next year
ur,H pt,tt Nv
congress; to an increase under the new
pension bill of s32.5Oo.o00; and to an in
crease In the estimates for expenses of
the navy department of $24.000,0o0. The
estimate for the navy department for the
year 1913 included two battleships. 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 un-
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 to this must be added the additional
cost of construction imposed by the
change in the eiglt-hour law which
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 s5.oo0.000
The estimates for Panama canal con-
struction for 1914 are s17. 900 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
standpoints 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 new con-
Eress has been elected on platform
of tariff for revenue only.
Army Reorganization.
Our small army now consists of SO ,sos
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 n mobile army
of only about $500 men. This little force
must be still further drawn upon to sup
ply the new Sarrisons 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-
manning in the United States are now
scattered In nearly fifty posts. situated
for variety of historical reasons in
twenty-four states. These posts contain
only fractions of regiments. averaging
less than 100 men each. In time Of peace
IT 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