Decatur Daily Democrat, Volume 7, Number 290, Decatur, Adams County, 7 December 1909 — Page 3

»- Mfr (Continues! from paca 2.) V» r ie», f» Common with the vnnea State*. ar® pledged. Relation* With Japan. Onr traditional relations with the Japanese empire continue cordial, as usual. As the representative of Japan hls imperial highness Prince Kunl visited the Hudson-Fulton celebration. The recent visit of a delegation of prominent business men as guests of the chambers of commerce of the Pa clflc slope, whose representatives had been so agreeably received in Japan, will doubtless contribute to the growing trade across the Pacific, ns well as to that mutual understanding which leads to mutual appreciation. The arrangement of 1908 for a co-operative control of the coming of laborers to the United States has proved to work satisfactorily. The matter of a revision of the existing treaty between the United States and Japan which is ter dhiable in 1912 is already receiving the study of both countries. The department of state is considering the revision in whole or In part of the existing treaty with Siam, which was concluded in 1856 and is now, in respect to many of its provisions, out of date. Th* Department of State. I earnestly recommend to the favorable action of the congress the estimates submitted by the department of state and most especially the legislation suggested In the secretary of state’s letter of this date whereby it will be possible to develop and make permanent the reorganization of the department upon modem lines in a manner to make it a thoroughly efficient instrument in the furtherance of our foreign trade and of American Interests abroad. The plan to have divisions of Latin American and far eastern affairs and to institute a certain specialization In business with Europe and the near east will at once commend Itself. These politico-geo-graphical divisions and the detail from the diplomatic or consular service to the department of a number of men who bring to the study of complicated problems in different parts of the world practical knowledge recently gained on the spot clearly is of the greatest advantage to the secretary of state in foreseeing conditions likely to arise and in conducting the great variety of correspondence and negotiation. It should be remembered that such facilities exist in the foreign offices of all the leading commercial nations and that to deny them to the secretary of state would be to place tills government at a great disadvantage in the rivalry of commercial competition. Improved Consular Service. The consular service has been greatly improved under the law of April 5. 1906. and the executive order of June 27. 1906. and 1 commend to your consideration the question of embodying in a statute the principles of the present executive order upon which the efficiency of our consular service is wholly dependent. In modern times political and commercial interests are interrelated, and in the negotiation of commercial treaties, conventions and tariff agreements, the keeping open of opportunities ami the proper support of American enterprises our diplomatic service is quite as important as the consular service to the business interests of the country. Impressed with this idea and convinced that selection after rigoreuft-ex amination, promotion for merit solely and the experience only to be gained through the continuity of an organized service are indispensable to a high degree of efficiency in the diplomatic service, I have signed an executive order as the first step toward this very desirable result. Its effect should be to place all secretaries in the diplomatic service in much the same position as consular officers are now placed and to tend to the promotion of the most efficient to the grade of minister, generally leaving for outside appointment such posts of the grade of ambassador or minister as It may be expedient to fill from without the service. It is proposed also to continue the practice instituted last summer of giving to all newly appointed secretaries at least one month's thorough training in the department of state before they proceed to their posts. Th has been done for some time in regar to the consular service with excel! en results. Under a provision of the act of. ug. 5.1909. I have appointed three officials to assist the officers of the government in collecting information necessary to a wise administration of the tariff act of Aug. 5. 1909. As to questions of customs administration they are co operating with the officials of t “ treasury department and as to mat (rs of the needs and the exigencies o our manufacturers and exporters with the department of commerce and labor n its relation to the domestic aspect or the subject of foreign commerce. 11 the study of foreign tariff treatmen they will assist the bureau of trade relations of the department of state. It is hoped thus to co-ordinate an bring to bear upon this most inipor ai subject all the agencies of the g°' u ” tnent which can contribute anything its efficient handling. . As a consequence of section - 0 tariff act of Aug. 5.1909, it becomes duty of the secretary of state o duct as diplomatic business a negotiations necessary to place ■■■•-■ -■- a position to advise me as to w or not a particular country undu y • criminates against the Unite • < In the sense of the statute refe The great scope and complex! y Work, as well as the obligation all proper aid to our expand ng tnerce, is met by the expansion bureau of trade relations as set In the estimates for the departmei state.

EXPENDITURES AND REVENUES Deficit For Current Fiscal Year $73,075,600—80nd Issue Proposed. 1 have thus in some detail described the Important transactions of tho state department since the beginning of this administration for the reason that there is no provision either by statute or custom for a formal report by the secretary of state to the president or to congress, and a presidential message is the only means by which the condition of our foreign relations is brought to the attention of congress and the public. In dealing with the affairs of the other departments, the heads of which all submit annual reports, I shall touch only those matters that seem to me to call for special mention on my part without minimizing In any way the recommendations made by them for legislation affecting their respective departments, in all of which I wish to express my general concurrence. Perhaps the most important question presented to this administration is that of economy in expenditures and sufficiency of revenue. The deficit of the last fiscal year and the certain deficit of the current year prompted congress to throw a greater responsibility on the executive and the secretary of the treasury than had heretofore been declared by statute. This declaration imposes upon the secretary of the treasury the duty of assembling all the estimates of the executive departments, bureaus and offices of the expenditures necessary in the ensuing fiscal year and of making an estimate of the revenues of the government for the same period, and if a probable deficit is thus shown it Is made the duty of the president to recommend the method by which such deficit can be met. Estimated Deficit $73,075,600. The report of the secretary shows that the ordinary expenditures for the current fiscal year ending June 30. 1910, will exceed the estimated receipts by $34,075,620. If to this deficit are added the sum to be disbursed for the Panama canal, amounting to $38.000,000, and $1,000,000 to be paid on the public debt, the deficit of ordinary receipts and expenditures will be increased to a total deficit of $73,075,620. This deficit the secretary proposes to meet by the proceeds of bonds issued to pay the cost of constructing the Panama canal. I approve this proposal. The policy of paying for the construction of the Panama canal not out of current revenue, but by bond Issue, was adopted in the Spooner act of 1902, and there seems to be no good reason for departing from the principle by which a part at least of the burden of the cost of the canal shall fall upon our posterity, who are to enjoy it, and there is all the more reason for this view because the actual cost to date of the canal, which is now half done and which will be completed Jan. 1, 1915, shows that the cost of engineering and construction will be $297,766,000 instead of $139,705,200. as originally estimated. In addition to engineering and construction, the oth er expenses, including sanitation and government and the amount paid for the properties, the franchise and the privilege of building the canal, increase the cost by $75,435,000 to a total of $375,201,000. The increase in the cost of engineering and construction is due to a substantial enlargement of the plan of construction by widening the canal 100 feet in the Culebra cut and by increasing the dimensions of the locks, to the underestimate of the quantity of the work to be done under the original plan and to an underestimate of the cost of labor and materials, both of which have greatly enhanced tn price since the original estimate was made. In order to avoid a deficit for the ensuing fiscal year I directed the heads of departments in the preparation of their estimates to make them as low as possible consistent with imperative governmental necessity. The result has been, as I am advised by the secretary of the treasury, that the estimates of the expenses of the government for the fiscal year ending June 30. 1911-that is. for the!next fiscal year-are less by $00.663.000 than the total of appropriations for the current fiscal year and less by $94 000.000 than the estimates for that Lar So far as the secretary of the treasury is able to form a judgment as to future income and compare it with the expenditure for the next fiscal year ending June 30. 191 . « the payments on account of the Pan Ima clnal and tho public debt, there whl be no deficit in the year ending June 30. 1911. but a small surplus o present estimates the needs of the departments and of the gov- . ivivo been cut to tho quick, ernment • assumption on \ Ot ° n rt o congress, so often made in ? that the estimates have I,re C"y wffi C St ta a ser\owly m hamperi n g proper adminI istratlon. treasury points out. whatdffi reductton in governrespect to th nejt llgca | mental t tat r t e he S economies are of two year, that the ec ju tb _ klnds-flrst, '• .. . , lon o f the dePerraa ” e ta bureaus and offices of the Partmento. bu secondj thero a governmen . expenses by a present reduetlo P, and lm . postponement f u) P inately w , u bave provements th t ffUch aro now delayed with I Producing a deficit.

Working For Economy. It has been Impossible In the preparation of estimates greatly to reduce the cost of permanent administration. This cannot be done without a thorough reorganization of bureaus, offices and departments. For the purpose of securing information which may enable the executive and the legislative branches to unite In a plan for the permanent reduction of the cost of governmental administration the treasury department has instituted an investigation by one of the most skilled expert accountants in the United States. The result of this work in two or three bureaus, which. If extended to the entire government, must occupy two or more years, has been to show much room for improvement and opportunity for substantial reductions in the cost nnd Increased efficiency of administration. The object of the Investigation is to devise means to Increase the average efficiency of each employee. There Is great room for Improvement toward this end, not only by the reorganization of bureaus and departments nnd In the avoidance of duplication, but also In the treatment of the individual employee. Under the present system it constantly happens that two employees receive the same salary when the work of one Is far more difficult and Important and exacting than that of the other. Superior ability is not rewarded or encouraged. As the classification is now entirely by salary, an employee often rises to the highest class while doing the easiest work, for which alone he may be fitted. An Investigation ordered by my predecessor resulted in the recommendation that the civil service be reclassified according to the kind of ■work, so that the work requiring most application and knowledge and ability shall receive most compensation. I believe such a change would be fairer to the whole force and would permanently improve the personnel of the service. More than this, every reform directed toward the improvement In the average efficiency of government employees must depend on the ability of the executive to eliminate from the government service those who are inefficient from any cause, and as the degree of efficiency In all the departments is much lessened by the retention of old employees who have outlived their energy and usefulness it Is indispensable to any proper system of economy that provision be made so that their separation from the service shall be easy and Inevitable. It is Impossible to make such provision unless there is adopted a plan of civil pensions. Most of the great Industrial organizations and many of the well conducted railways of this country are coming to the conclusion that a system of pensions for old employees and the substitution therefor of younger and more energetic servants promote both economy and efficiency of administration. I am aware that there is a strong feeling iu both houses of congress and possibly in the country against the establishment of civil pensions and that this has naturally grown out of the heavy burden of military pensions which it has always been the policy of our government to assume, but I am strongly convinced that no other practical solution of the difficulties presented by the superannuation of civil servants can be found than that of a system of civil pensions. . Increase In Expenditures. The business and expenditures of the government have expanded enormously since the Spanish war. but as the revenues have increased In nearly the same proportion as the expenditures until recently the attention of the public and of those responsible for the government has not been fastened upon the question of reducing the cost of administration. We cannot, in view of the advancing prices of living, hope to save money by a reduction in the standard of salaries paid. Indeed, if any change is mad® in that regard an Increase rather than a decrease will be necessary, and th® only means of economy will be in reducing the number of employees and in obtaining a greater average of efficiency from those retained in tho service. Close Investigation and study needed to make definite recommendations In this regard will consume at least two years. I note with much satisfaction the organization in the senate of a committee on public expenditures, charged with the duty of conducting such an investigation, and I tender to that committee all the assistance which the executive branch of the government can possibly render. NO TARIFF WAR PROBABLE. Further Revision to Wait on New Tariff Board’s Recommendations. 1 regret to refer to the fact of the discovery of extensive frauds in the collection of the customs revenue at New York city, in which a number of the subordinate employees in the weighing and other departments were directly concerned and in which the beneficiaries were the American Sugar Refining company and others. The frauds consisted in the payment of duty on underweights of sugar. The government has recovered from the American Sugar Refining company all that It Is Shown to have been defrauded of. The sum was received in full of the amount duo which might have been recovered by civil action against the beneficiary of the fraud, but there was an express reservation In the contract of settlement by which the settlement should not Interfere with or prevent the criminal prosecution of every one who was found to be subject to the same. Criminal urosecutlona are now. oro-

ceeding against a number of the government officers. The treasury department and the department of justice ure exerting every effort to discover all tho wrongdoers, Including the officers and employees of the companies who may have been privy to the fraud. It would seem to mo that an Investigation of the frauds by congress at present, pending tho probing by the treasury department and the department of justice, as proposed, might by giving immunity and otherwise prove an embarrassment in securing conviction of the guilty parties. Two features of the new tariff act call for special reference. By virtue of the clause known as the ‘•maximum and minimum” clause It is the duty of the executive to consider the laws and practices of other countries with reference to the importation into those countries of the products and merchandise of the United States, and if the executive finds such laws and practices not to be unduly discriminatory against the United States the minimum duties provided in the bill are to go Into force. Unless the president makes such a finding, then the maximum duties provided in the bill—that is, an Increase of 25 per cent ad valorem over the minimum duties—are to be in force. Fear has been expressed that this power conferred and duty Imposed on the executive are likely to lead to a tariff war. I beg to express the hope and belief that no such result need be anticipated. ' The discretion granted to the executive by the terms "unduly discriminatory” is wide. In order that the maximum duty shall be charged against the imports from a country it is necessary that be shall find on the part of that country not only discriminations In its laws or the practice under them against the trade of the United States, but that the discriminations found shall be undue—that is, without good and fair reason. I conceive that this power was reposed in the president with the hope that the maximum duties might never be applied in any case, but that the power to apply them would enable the president and the state department through friendly negotiation to secure the elimination from the laws and the practice under them of any foreign country of that which is unduly discriminatory. No one is seeking a tariff war or a condition in which the spirit of retaliation shall be aroused. Uses of the New Tariff Board. The new tariff law enables me to appoint a tariff board to assist me in connection with the department of state in the administration of the minimum and maximum clause of the act and also to assist officers of the government in the administration of the entire law. An examination of the law and an understanding of the nature of the facts which should be considered in discharging the functions imposed upon the executive show that 1 have the power to direct the tariff board to make a comprehensive glossary and encyclopedia of the terms used and articles embraced in the tariff law and to secure information as to the cost of production of such goods in tills country and the cost of their production In foreign countries. I have therefore appointed a tariff board consisting of three members and have directed them to perform all the duties above described. This work will perhaps take two or three years, and I ask from congress a continuing annual appropriation equal to that already made for its prosecution. I believe that the work of this board will be of prime utility and importance whenever congress shall deem it wise again to readjust the customs duties. If the facts secured by the tariff board are of such a character as to show generally that the rates of duties imposed by the present tariff law are excessive under the principles of protection as described in the platform of the successful party at the iate election I shall not hesitate to invite tho attention of congress to this fact and to the necessity for action predicated thereon. Nothing, however, halts business and interferes with the course of prosperity so much as the threatened revision of the tariff, and until the facts are at hand, after careful and deliberate investigation, upon which such revision can properly be undertaken, it seems to me unwise to attempt it. The amount of misinformation that creeps into arguments pro and con in respect to tariff rates Is such as to require the kind of investigation that I have directed the tariff board to make, an investigation undertaken by It wholly without respect to the effect which the facts may have In calling for a readjustment of the rates of duty. War Department. In the interest of immediate economy and because of the prospect of a deficit 1 have required a reduction in the estimates of the war department for the coming fiscal year which brings the total estimates down to an amount forty-five millions less than the corresponding estimates for last year. This could be accomplished only by cutting off new projects and suspending for the period of one year all progress in military matters. For the same reason I have directed that the army shall not be recruited up to its present authorized strength. These measures can hardly be more than temporary—to last until our revenues are in better condition and until the whole question of the expediency of adopting a definite military policy can be submitted to congress—for 1 am sure that the Interests of the military establishment are seriously in need of careful consideration by congress. The laws regulating the organization of our armed forces in the event of war need to be revised in order that the organization can be modified so as to produce a force which would be more consistently apportioned throughout its numerous branches. To explain tho cir-

cumstances upon which this opinion Is based would necessitate a lengthy discussion, and I postpone it until the first convenient opportunity shall arise to send to congress a special message upon tills subject The secretary of wnr calls attention to a number of needed changes in the army. In nil of which I concur, but the point upon which 1 place most emphasis Is tile need for an elimination bill providing a method by which the merits of otlieers shall have some effect upon their advancement and by which the advancement of all may be accelerated by the effective elimination of a definite proportion of the least efficient. There are in every army and certainly in ours a number of officers who do not violate their duty in any such way ns to give reason for a court martial or dismissal, but who do not show such aptitude and skill and character for high command as to justify their remaining in the active service to be promoted. Provision should be made by which they may be retired on a certain proportion of their pay. increasing with their length of service at the time of retirement There Is now a personnel law for the navy which Itself needs amendment nnd to which 1 shall make further reference. Such a law Is needed quite as much for the army. Coast Defenses. The coast defenses of the United States proper are generally all that could be desired, and In some respects they are rather more elaborate than under present conditions are needed to stop an enemy's fleet from entering the harbors defended. There is. however. one place where additional defense is badly needed, and that Is at the mouth of Chesapeake bay. where it is proposed to tflake an artificial island for a fort which shall prevent an enemy’s fleet from entering this most Important strategical base of operations on the whole Atlantic and gulf coasts. I hope that appropriate legislation will be adopted to secure the construction of this defense. The military and naval joint board have unanimously agreed that it would be unwise to make the large expenditures which at one time were contemplated in the establishment of a naval base and station in the Philippine Islands and have expressed their judgment. in which 1 fully concur, in favor of making an extensive naval base at Pearl Harbor, near Honolulu, and not in the Philippines. This does not dispense with the necessity for the comparatively small appropriations required to finish the proper coast defenses in the Philippines now under construction on the Island of Corregidor and elsewhere or to complete a suitable repair station and coaling supply station at Olougapo, which is the floating dock Dewey. I hope that this recommendation of the joint board will end the discussion as to the comparative merits of Manila bay and Olongapo as naval stations and will lead to prompt measures for the proper equipment and defense of Pearl Harbor. The Navy. The return of the battleship fleet from Its voyage around the world in more efficient condition than when it started was a noteworthy event of interest alike to our citizens and the naval authorities of the world. Besides the beneficial and farreaching effect on our personal and diplomatic relations in the countries which the fleet vised, the marked success of the ships in steaming around the world iu all Weathers on schedule time has Increased respect for our navy and has added to our national prestige. Our enlisted personnel recruited from all sections of the country Is young and energetic and representative of the national spirit. It is, moreover, owing to its intelligence, capable of quick training into the modern man-of-war’s men. Our officers are earnest and zealous in their profession, but it is a regrettable fact that the higher officers are old for the responsibilities of the modern navy, and the admirals do not arrive at flag rank young enough to obtain adequate training in their duties as flag officers. This need for reform In the navy has been ably and earnestly presented to congress by my predecessor, and I also urgently recommend the subject for consideration. (Continued an Page 6.)

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Decatur Furnaces At House Wrecking Prices. We bought 25 Decatur Furnaces at less [than the manufacturer’s costs. To close them out we are offering a number 20 size, which is the best size for a medium siz,ed home,at 0 QC flfi The former wholesale price on this furnace w u JIUU was $60.00. Your Saving is Big You can have a furnace installed in your home at a small additional cost over a base burner and the furnsce is a great deal more satisfactory in many different ways. Let us tell you about the mauy advantages and figure on heating your home. Schafer fFdw 60.

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