The Neshoba Democrat., 1912-12-12
CONGRESS HEARS
SECOND MESSAGE
President Tells Of Treasury and
Army Affairs.
PHILIPPINES ARE INCLUDED
Bill for Natives Independence De-
nounced as remature-Progress
of Panama Canal.

Bill for Natives Independence De-
nounced as Premature-Progress
of Panama Canal.
Washington Dec. 6.-Congress today re-
eeived 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
srence to business could hardly be better.
While the four years Of the administra-
uon now drawing to close have not de-
veloped great speculative expansion or a
wide field 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 solid basis. Credits are not
unduly extended and every phase of the
situation seems Mn a state of prepared
ness for period of unexampled prosper
ty. 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 $4,000. 900 600, while the
balance in our favor-that of the excess
Of exports over lmports-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, 900 600. 1t
Is 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 81 900 000, 600
man we have known In our history.
Condition of the Treasury.
The condition Of the treasury Is very
satisfactory The total interest-bearing
debt is 1868, ITO, of which s134 631 $50 con-
stiute the Panama canal loan. The nom
mterest-bearing debt Is s37S;3o1, 80, in
oluSing s346, ,67l ,O16 of greenbacks. We have
In the treasury $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 general fund
Of slG7 152 500, or an increase Of $685.
H2 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 econom!ze. 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, 100000. 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 S722 900. 900, indicating a
deficit Of S220 600 For the year ending
June 80, 1918, similarly estimated receipts
were s667 100000 while the total corre-
spending estimate of expenditures for that
year, submitted through the secretary of
the treasury to congress, amounted to
e656, 900 900. This shows an increase Of
sc, 900, COO 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 by
congress; to an increase under the new
pension bill of s32, 600; and to an in
crease in the estimates for expenses Of
the navy department of s24000,00o. The
estimate for The navy department for the
year 1918 included two battleships Con-
srsss made provision for only one battle
shtY. and therefore the navy department
has aeemed 1t necessary and proper to
make IN estimate which includes the first
years expenditure for three battleships
In addi,ton to the amount required for
work on she 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 to 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 pri-
vate shipyards.
With the exceptions of these three
items. the estimates show a reduction
this year below the total estimates for
ls13 of more than s5,ooo,ooO.
The estimates for Panama canal con-
struction for 1914 are s17.0Oe,OoO less than
Tor 1913.
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-
gress has been elected on platform
sf tariff for revenue only.
Army Reorganization.
Our small army now consists of az 200
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 garrlsons of our various insular
possessions We Nave today within the
continental United States a mobile army
Of 1n1y about 35 900 men. This little force
must be still further Drawn upon to SUD-
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
Tor a variety of historical reasons in
twenty-four states. These posts contain
Snly fractions of regiments, averaging
less than 200 men each. In time of peace
has been our historical policy to ad
minister these units separately by a geo
graphical organization. In other words,
eur army in time Of peace has never been
united organization but merely scat
tered groups of companies. battalions ana
regiments, and the first task in time OF
war has been to create out of these scat
tered units an army At for effective team
work and corporations