The searchlight., 1912-12-13
CONGRESS HEARS
SECOND MESSAGE
President Tells Of Treasury ard
Army Affairs.
PHILIPPINES ARE INCLUDED
eiii for Natives Independence De-
nouneed a. Premature-Prooress
Of Panama Canal.

Washington Dec. e.-Congress today re-
ceived from President Taft the second OF
his messages to the short session. IL
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
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 a solid basis. Credits are not
unduly extended and every phase of the
situation seems In state OF prepared
ness for a 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 Aoco.coeoo. while the
balance in our favor-that of the excess
OF exports over imports-will exceed $780,
coo. 600 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. II Is year OF
bumper crops: the total money value OF
farm products will exceed $e.5oo.ccoon. IL
Is 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 H.ooooco.oco
than we have known in our history.
Condition Of the Treasury.
The condition OF the treasury Is very
satisfactory. The total interest hearing
debt IL $685. al, no of which Si3a s3l $50 con-
stiute the Panama canal loan. The nom
- alzt.s L.
ciuding ss4s. .s7i .o1s of greenbacks. We have
in the treasury $50 600 In gold coin as
n reserve against the outstanding green
backs; and in addition we have cash
balance in the treasury as general fund
Of si61. .15s 1850. or an increase OF s2s.s'5.-
E2 over the general fund last year.
Receipts and Expenditures.
For three years the expenditures OF the
government have decreased under the In
| huence OF an effort TO economtze. 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
| % 1914 indicates that they will amount
1 TO si70 90, 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 sI52. 100000. indicating
| deficit of 81, 10000. For the year ending
|
were s6s7 ooo.0oO while the total corre-
| sponding estimate of expenditures for that
| year, submitted through the secretary OF
| the treasury to congress. amounted 10
| $3.50 900 o00 This shows an Increase OF
| SO. COO 600 In the estimates for 1914 over
| the total estimates of 1919 This Is due To
an increase of ss5.oo0coo 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 So. 10000: and to an In
| crease In the estimates for expenses OF
| the navy department of ssi.00o.ooo. 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 II necessary and proper 10
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 1900 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 eight-hour law which
makes it.applicable to ships built In prt'
vate shipyards.
items the estimates show a reduction
this year below the total estimates fol
1918 of more than s5.ooo.oOo.
The estimates for Panama canal con
structIon for 1914 are si7,coo,ooo less thar
for 1913.
The president then explained at sons
length the national reserve association
system recommended by the monetar,
commission and urged congress to ex
anime the plan impartially from al
standpoints and then to adopt SOM
plan which will secure the benefits de
sired.
Concerning the tariff he had little Z,
say in view of the fact that a new con
gress has been elected on a platform
of tariff for revenue only.
Army Reorganization.
Our small army now consists of 50. N
men, excluding the 5000 Philippine scouts
Leaving out OF consideration the coas
artillery force. whose position Is hxed Il
our various seacoast defenses. and tn
present garrisons of our various insuia
possessions, We have today within tn
continental United States n mobile arm
of only about 5000 men. This little fore
must be stili further drawn upon to sup
ply the new garrisons for the great nava
base which is being established at Pear
Harbor. In the Hawaiian islands. and I
protect the locks now rapidly approachin
completion at Panama. The forces re
naming In the United States are no'
scattered Ia nearly fifty posts. situate
for a variety Of historical reasons
twenty-four states. These posts contai
only fractions of regiments. averagin
less than 100 men each In time of peac
Il has been our historical policy to ad
minister these units separately by q gee
! graphical organization. In other word
our army In time Of peace has never bee
q united organization but merely scat
~. MI haf AN
| regiments, and the FIRST task In time {
| war has been TO create out of these sea