Jasper Weekly Courier, Volume 52, Number 11, Jasper, Dubois County, 17 December 1909 — Page 7

TAFT'S MESSAGE IS

SENT TO CONGRESS Currency Reform, Waterways, Creation of Body

L- n..l I7li-L IMiAH.tnu P

and Other Topics Handled.

Government Expenditures and Revenues a Most Important Question Relations with Other Nations, Nicaragua Excepted, Are Declared To Be Generally Satisfactory.

Washington. Dec. 7. Tho president (4,.) tuuismlttod to congress a mes8uii. substantially as follows: To the Senate and Houbo of Hepresentatives: . .. uiuns of tho United States with a tii governments havo continued , n.irmal basis of utility and good . mi. tine, and uro very uetierully .j a' ury. Europe. I' .rs "t to the provisions of the gen(l , ,iy i arbitration concluded be- . trilled Statt.-s and Groat Brl- . Ai-il 4. 1W3, u special agreement w r i d Into betwun tho two coun- , i ,, January 27, VJ09. for the submlsf , : i .. iiutis relating to tho lis lie rt . t North Atlantic coast to a trlbu- . .. x ! l". med from members of tho j court of arbitration at Tho J! - 1 i r.lanoe with tho provisions of t e .: agreement the printed caae . , t-rnmeut wuh, on October 4 i , 5 tted to the other and to the Miunal at Tho I Initio, nnd the . r - of the Unitod Status Is now i f preparation. ; rtian rights under the flsher,.s f tlie tioaty of ISIS have boon B f difference between the United s i . ! ireat Britain for nearly 70 v i i interests Involved ure of fc ' j'.irtanco to the American fishing ii i.t Mie final settlement of tho - r -.v ulll romovn n snurc nf rnnr -.'itiMn and complaint. This la t - Involving such great Int . , questions which has been subr ' ".. permanent court of arbltra- ' lUgue, I.. -resident tells of tho sending of a. i.iinlsslon to Investigate the of the United States and Its 'i- :u Liberia, the commission's : n.'W bing under examination i . i .irtmcnt of state. 1 -o notes tho invitation extendf . Norwegian government to , ,rt In an International confert year to devise means to r v . xistlng conditions in the S . : o n islands, and of Its acceptu .'. . r certain reservations. Menf r. v - ado of several international . $, and then the president - i nt provision ho made for ' in :artiolpation in tho world's if r . i.pHsfis next year. The quest irivin out of the Belgian an- . - i of the Congo Free State, ho i Si h, .:) in a more hopoful stage. Latin America. . lhe message speaks with enthusl8". nf the settlement of tho bouniisjiute betweon Bolivia and v l of the fourth Pan-American o, to be held In Buenos Aires t' .' .'v Mention is made of the Av o republic's great Internationa -j. .!tural exhibition, which is to May, 1910, and the president T. more than ever before, Amerl- ' ' I Is seeking Investmont In fortnrs and American products are ' I m ire Renorally scokln forolpn r ' As a consequence. In all cotin- ' -re are American citizens and -i, Interests to bo protected, on y their government. Thoso "t r,f iien, of cnpltnl and of -s tiring pooplos and govern r " - ... r tugether and so form bonds " nd mutual dependency, as thoy r -t , .., naturally soinotlmos make i ' i 'nts of friction. The resultant inevitably Impose, upon this f i' -it astly Increased rosponslbltl- " s administration, through tho . t t.t of state and the foreltjn sor- - " linK all propor support to lef md benedclal American entor- ; - f reisn eountrlos, the degree of ' i 'Tt beltiK measured by the nn- ' - intakes to b expected. A oltlr -if annot by contract or othor- ' et himself of the rlRht. nor can I k ri nient escapo the obligation of I ' turn In his personal nnd prop- " y is when these are unjustly in- ' k' in a foreign country. To avoid ' vexatlon3 it Is propor that in 'K whether American enterprlso e eneouniRed or supported In a r country. tho Kovernment - ve full welKht not only to the t t t as opposed to the Individual " accrue, but also to the fact r . r not tho government of tho ( In question Is In Its ndmlnlstra- ( I In its diplomacy faithful to ' pies of moderation, equity and , n which alono depend intcrna- ' ' feJit, in diplomacy as well as In r p in-American policy of this coverns l,.ni been ilxed In Its principles 1 ' "ins unchanRCd. With tho ' k ) irrumstances of the Unitod Y '' t of tho republics to tho south ' st of which havo jrreat natural a stab'e government and pro- ' Ideals, the apprehension which ' -Mi tho Monroo doctrine may bo ;V 1 nearly disappeared and nel5 ' o 1 1. trine as It exists nor any oth-r-r ' ot American policy Bhould bo f i to opernte for tho perpetuation i nsit,ie government, the escapo 1 gallons or tho Insidious allega- , ' Hnatlng ambition on the part or ' i ted States. ,,e fundamental doctrines of our 'i-an policy there havo grown tk' a zntion of political Interests, k r ' of institutions nnd Ideals am! w, - ng commerce. All these bonds - greatly strengthened as Vtw goes a i .n.reased facilities, such as tho " ta"l soon to be established In '' "rira, supply tho means for t s 'P tho colossal Intercontinental e of the future. V r,,,.UnK wth j,rea(lent Dlai and t iT.g exchanged on both American ''an soll served, 1 hope, to slgw " ri-e nnd cordial relations well bind together this republic f Bieat republic Immediately to tho r. v lviiicii inoru is K Of mateHnt Inlnrn.l. wmcn inoro is so vast a 1 Hi. happy to say that all but one of

tho cases which for so long vexed our relations with Venezuela have been settled within the pant fow months nnd that, undor tho enlightened regime now directing the government of Vnezuuln, provision has boon made for arbitration of tho remaining: case before The Hague tribunal. On Jury 30. 11, tho government of Panama agroed, after considerable negotiation, to indemnify tho relatives of the American oillcers and sailors who woro brutally truated, one of them having. Indeed, been killed by the Panama police this year. Tho sincere doslre of the government of Panama to do away with a situation whore such an accldont eould occur la manifest In the recent roquest in compliance with which this government has lent tho services of an oflieer of the army to bo employed by tho government of Panama as Instructor of pollco. This govurnment was obliged to intervene diplomatically to bring atout arbitration or settlement of the claim of the Kmery Company against Nicaragua, which it hud long before been agreod should be arbitrated. A settlement of thls troublesome case was reached by tho signature of a protocol on September IS. 1S09. Many years ago diplomatic intervention became necessary to the protection of the Interests in the American claim of Alsop & Co. against tho government of Chile. The government of Chile had frequently admitted obligation In the case and had promised this government to settle It. There had been two abortive attempts to do so through arbitral commissions, which failed through lack of jurisdiction. Now, happily, as the result of the recent diplomatic negotiations, the governments of the United States and of Chile, actuate! by the slncore desire to free from any strain those cordial and friendly relations upon which both set such store, have a Rreed by a protocol to submit the controversy to definitive rettjement by his Iiritannic majesty, Kdward VII. Since tho Washington conventions of 1WT were communicated to the government of the United States as a consulting und advisory party, this government has been almot continuously called upon by one or another, and In turn by all of tho Ave Central American republics, to exert itself for the maintenance of the conventions. Nearly every complaint has buon against tho Zolaya government of Nicaragua, which has kept Central Amorca In constant tension and turmoil. Thy responses made to the representations of Central American republics, as duo from the United States on account of its relation to the Waahington conventions, have been at all times conservative and have avoided, so far as possible, any semblance of interference, although it Is very apparent that the considerations of geographic proximity to tho Canal Zone and of tho very substantial American Interests In Central America give to tho United States a special position In tho -one of thoso republics and the Caribbean sea. I noed not rehearse here the patient efforts of this government to promote peace and welfare among these republics, efforts which are fully appreciate! by tho majority of them, who are loyal to their true interests, it would bo no le.-s unnecessary to rehearse here the snd tale of unspeakable barbarities and oppression alleged to have boen committed by tho Zelnyn government. Hocently two Americans were put to death by order of President Zolaya himself. They were officers In the organized forces of a revolution which had continued many weeks ami was In control of about half of the republic, and as such, according to the modern enlightened practice of civilized nations, they were entitled to bo dealt with as prisoners of war. At the date when this message Is printed this government has terminated diplomatic relations with the JCelnya government, for reasons made public in a communication to tho former Nicaragua charge d'affaires, nnd is intending to take such future steps as may bo found most consistent with its dignity. Its duty to American interests and Its moral obligations to Contral America and to civilization. The Far East. In the far cast this government preserves unchanged Its policy of supporting the principle of equality of opportunity and scrupulous respect for the Integrity of the Chinese empire, to which policy are pledged the Intorosted powers of both east and west. Mention is made of tho sending of students to America by tho Chinese government, of China's progress toward the eradication of the opium evil, anl of this government's continued cordial relations with the Japanese empire. The Department of State. Favorable action by congress on the estimates submitted by the department of state is urged, especially legislation for tho development and reorganization of the depnrtniotjt to make it efficient In furthering our foreign trade. Improvement In the consular servico is noted. Mr. Taft then says: Under a provision of the net of August S, 1009, I have appointed three otllcinls to assist the oillcers ot the government In collecting Information nccessarv to a wlso administration of the tnrlff act of August 5. 1909. As to questions ot customs administration they are cooperating with tho oMclals of the trensury department nnd as to matters of the needrf and tho exigencies ot our manufacturers ard exporters, with the department o commerce and lnbor. In It." relation to tho domestic nspect of the subject of foreign commerce. In the study of forelg-n tariff treatment they will assist tho bureau of trade relations of tho department of state. It Is hoped thus to co-ordinate and bring to bear upon this most Important atibject all the agencies of the government which can contribute anything to Its elllclent handling. Aa a consequence of Section 2 of the tariff act of August 5. 1909. It becomes tho duty of tho secretary of state to conduct an diplomatic business nil the negotiations necossnry to place him in a position to advise me as to whether or not a particular country unduly discriminates against the

t nlted Stste, ln the sene of the Statut referred to. The great ttcpe and complexity of this work, as well hs th obligation to lend hII proper aid to our expanding commerce. Is met by the vxtMnaion of the bureau of tndt relations as rt forth In the stimatea for the department of statu. Government Expenditures and Revenues. Perhaps the moat important question presented to this administration is that of economy in expenditures and sumeienoy of revenue. The deficit of the last fiscal year, and tho certain deficit or the current year, prompted enngresn to throw a stealer responsibility on the executlvo and the secretary of the treasury than had heretofore boen declared by statute. Thla declaration imposes upon the secretary of tho treasury the duty of asaernblliiK all tha estimates of the executive departments bureaus, and oUlces. of the expenditures neeeasary ln the ensuing fiscal year, and of making an estimate of the revenues of the government for tho same period; and If a probable deficit Is thus shown. It is made tho duty of the president to recommend the method by which such detlclt can be met. The report of the secretnry shows that the ordinary expenditures for the current fiscal year ending June 30. 1910. will exceed the estimated receipts by 134.07S.620. If to this detleit Is added the sum to be disbursed for the Panama Canal, amounting to 1.-S.000,000. and 1.000.009 to be paid on the public debt, the deficit of ordinary receipts and expenditures will be increased to a total detlclt of 73.075 020. This deficit the secretary proposes to meet by tho proceeds of bonds Issued to pay the cost of constructing the Panama Canal. I approve this proposal. Tho policy of paying for the construction of the Panama Cannl. not out of current revenue, but by Iwnd Issues, was adopted In tho Spooner act of 1S90. and there seems to be no good reason for departing from tho principle by which a part at least of tho 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 cannl. which is now half clone and vhleh will be completed anuary 1. 1915, shows that tho cost of engineering- and construction will be 1297.76C.0OO. Instend of f 189.706.200. ns originally estimated. In addition to engineering and construction, the other

expenses. Including sanitation and government, and tho amount paid for tho properties, the franchise, and the privilege of building the canal. Increase the rout of $75 130. 000. to a total of $375.201.000. The Increase In tho cost of engineering and construction Is due to a substantial enlargement of the plan of construction by widening tho cannl 100 feet in tlie Culebra out and by Increasing the dimensions of the locks, to the underestimate of tho quantity of the work to be done under the original plan, and to an underestimate of the cost of labor and materisls. both of which have greatly enhanced In price since the original estlmmate was made. In order to avoid a dericlt for the ensuing fiscal year. I directed tho 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 for the expenses of the government for the next nsal year ending June 3. 1911. are less than the appropriations for this current fiscal year by $42 Sis.000. So far as the secretary of the treasury Is able to form a judgment as to future Income and compare It with the expenditures for the next fiscal yvnr ending June 30. 1911. and excluding payments on account of the Panama Canal, which will doubtless bo taken up by bond, there will be a surplus of t JS.P31.000. In the present estimates tho needs of the departments and of the government have been cut to the quick, so to speak, and any assumption on the part of congress, so often made in times past, that the estimates have been prepared with tho expectation that they may bo reduced, will result In seriously hampering proper administration To reduce the cost of permanent administration, says the president, a thorough reorganization of bureaus, offices and departments would bo necessary. An expert accountant has been making an investigation into this matter and the result of his work shows opportunity for both substantial reductions in cost and Increase of efficiency. Frauds In the Collection of Customs. I regret to refer to the fact of tho discovery of extensive frauds In the collection of the customs revenue at New York city. In which a number of the subordinate employes In tho weighing ami other departments were directly concerned, and In which the benetlelarles were the American Sugar Kenning Company and others. The frauds consisted In the payment of duty on underwelRhts of sugar. The government has recovered from the American Sugar Tteflnlng Company all that It Is shown to have been defrauded of. The sum was received In full of the amount due. which might have beon recovered by civil suit against the beneficiary of the fraud, but there was an express reservation In the conlrnrt of settlement by which the settlement should not Interfere with, or prevent the criminal prosecution of everyone who was found to be subject to tho snme. Crlminnl prosecutions are now proceeding against a number of the Kovernment officers. Tho treasury department and tho department of Justice are exerting every effort to discover all the wroncdoers. Including the officers and employes of tho companies who may have been privy to the fraud. It would seem to me that an Investigation of the frauds by congress at present, pending the probing by tho treasury department nnd the department of Justice, as proposed, might by giving immunity and otherwise prove an embarrassment In securing conviction of the guilty parties. Maximum and Minimum Clauso In Tariff Act. Two features of the new tariff act cll for special reference, lly virtue ot the clause known as the "maximum nnd minimum" clause. It Is the 1uty of the executive to consider the laws nnd practices of other countries with referenco to the Importation Into those countries of the products and merchandise of the United States, and If tho executive finds such laws nnd practices not to be unduly discriminatory against tho United States, the minimum duties provided In the bill are to go Into force. Unless tho president makes such a finding, then tho maximum duties provided In the bill, that is, an Increase of 25 per cent, ad valorem over the minimum duties, nro to be In force. Tcnr has been expressed that this power conferred and duty Imposed on tho executive Is likely to lead to a tariff war. I beg to express the hope nnd belief thnt no such result need bo anticipated. The discretion granted to the executive by the terms "unduly discriminatory" la wide. In order thnt the maximum dutr shall be charged against the Imports from a country. It Is necessary that ho shall find on the pft of thnt country not only discriminations In Its laws or tho practice tinder thorn against the trade of tho United Stntos. but that tho discriminations round shall bo undue; that Is, without good and fair reason. I conceive

that this power was repined In the president with Hie bop that the maximum duties mlichi net er I applied In any case, but that tbe powrr to apply them would enable the president and the state department throuKh fr ndiy negotiation to seeuro the elimination from the laws and the pra. tl . in.Vr them of nny foreign umr of u..,t which is unduly discriminatory. No one is seeking a tariff war or a comütion In which tho spirit of retaliation shall be aroused. The new tariff law enables mo to appoint a tariff board to nsslst me ln connection with the department of state In the administration of tho minimum nnd maximum . lause of the act and also to asstst otilcera f th government In the administration of the entire law. An examination of the law and an understanding of the nature of the farts which should be considered In discharging the function Imposed Upon the executive show that I have the iwwer to direct the tariff lioard to make a comprehensive glossary and encyclopedia of the terms used and articles em bra rod In the tariff law, and to erure information as to the cost of production of such goods in this country and the cost of their production In foreign countries. I havo therefore appointed a tariff board consisting of three members and have directed them to porform all the duties above described. This work will perhaps take two or threo yeats. and I ask from congress a continuing annual appropriation equal to that already made for Its prosecution. I believe thnt the work of this board will be of prime utility and Importance whenever congross shall deem It wine again to readjust the customs duties. If the facts secured by the tnrlff board are of such a character as to show generally that the rates of duties imposed by the present tnrlff law are excessive under tho principles of protection as described In the platform of the successful party at the late election. I shall not hesitate to Invite the attention of congress to this fact and to the necessity for action predicated thereon. Nothing, however, hnlts business and Interferes with the course of prosperity bo 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 underlukon. It seems to mo unwise to nttempt it. The nmount of misinformation that creeps into arguments pro and con ln 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 ln 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, I have required a reduction In the estimates of tho war department for the coming fiscal year, which brings tho total estimates down to an amount fortylive millions less than the corresponding esllmutes for last year. This could only bu accomplished 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 bo more than temporary to last until our revenues are In better condition and until the whole question of the expediency of adopting a delinlte military policy can be submitted to congress, for I am sure that the interests of the military establishment are seriously In need of careful consideration by congress. The laws regulating the organisation of our armed forces In the event of war nd to be revised In order thnt the organization can be modi (led so ns to produce a force which would be more consistently apportioned throughout Its numerous branches. To explain tho circumstances upon which this opinion Is based would necessitate a lencthy discussion, ami I postpone it until the first convenient opportunity shall ariso to send to congress a special massage upon this subject. Of the changes recommended by tho secretary of war, the president especially urges the passage of a bill that will permit the elimination of the less efficient officers. He concurs ln the opinion of the military and naval joint board In favor of making an extensive naval base at Pearl Harbor, near Honolulu, and not ln the Philippines. Tha Navy. The return of the battleship fleet from Its voynße 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 bcneflcinl and fnrreachlng effect on our personal ami diplomatic relntions In the countries which the fleet visited, the marked success of the ships in steaming around the world In all weathers on srhedute time has -Increased respect for our navy and hni added to our national prestige. Karly ln the coming session n comprehensive plan for the reorganization of the oinVers of all corps of tho navy will be presented to congress, nnd I hoi It will meet with nctlon suited to Its urgency. Owing to tho necessity for economy In expenditures. I hove directed the curtailment of recommendations for naval appropriations so Hint they are thirty-eight millions less than tho corresponding estimates of Inst year, and the request for new naval construction Is limited to two first-class battleships and one repair vessel Mr. Taft urges upon congress that the naA-al observatory be dedicated to sclonce undor control of some eminent astronomer. Expedition In Legal Procedure. The deplorable delays In the administration of civil nnd criminal law have received the attention of committees of the American Bar associntlon and of many state bar associations, as well as the considered thought of Judges nnd jurists. In my judgment a change In Judicial procedure, with a view to reducing Its expense to private litigants In civil cases and facilitating tho dlspatrh of business and final decision in lolh civil nnd criminal cases constitutes tho greatest need In our American Institutions. I do not doubt for one moment that much of the lawless violence and cruelty exhibited in lynchlngs Is directly due to the uncertainties and Injustice growing out of the delays In trials. Judgments and the executions thereof by our courts. Of course these remarkB apply quite as well to the administration of Justice in state courts as to that In federal courts, and without making Invidious distinction It Is perhaps not too much to say thnt. speaking generally, the defects are less In the federal courts than In tho state courts. But they are very great In the federal courts. The expedition with which business is disposed of both on the civil and the criminal side of English courts under modern rules of procedure makes the delays In our courts seem archaic and barbarous. The procedure In the federal courts should furnish an example for tho state courts. I presume It Is Impossible, without an amendment to the constitution, to unite under one form of action the proceedings at common law and proceedings In equity lt the federal cotirts, but It Is certainly not Impossible by a statute to simplify nnd make short and direct tho procedure both at law and In equity In thoso courts. It Is not Impossible to cut down still more than It Is cut down, the Jurisdiction of tho supreme court, so ns to confine It almost wholly to statutory and constitutional questions. Under the present statutes the equity and admiralty procedure In the federal courts U under tho control of tho su

preme court, hut In the pressure of business to which thnt court is subjected It in Impossible to hope that a radical nnd proper reform of tho föderal equity procod ure can be brought about. 1 therefore recommend loglslutlon providing for the uppolntment by the president of n commtsnlon with authority to examine tho law and equity procedure of tho federal courts of first Instance, the law of appeals from those courts to the courts of appeals ami to tho supremo court, nnd the costs Imposed ln such procedure upon the private litigants and upon the public treasury and make rocommundatlona with n iw to simplifying and expediting the procedure as rar as possible and mnklng it as Inexpensive ns may be to tho litigant of little means. Injunctions Without Notice. The platform of the successful pnrty In tho last election contained tho following: 'The Republican party will uphold at all times the authority and Integrity of the courts, state nnd federal, and will over Insist thnt their powers to enforco their process and to protect lifo, liberty nnd property shall be preserved Inviolate. We believe, however, that the rules of procedure In tho federal courts with respect to the Issuance of the writ of Injunction should be moro accurately defined by statute and that no Injunction or temporary restraining order should be Issued without notice, except where Irreparable Injury would result front delay, in which case a speedy hearing thereafter should be granted." I recommend that In compliance with the promise thus made appropriate legislation be ndopted. Tho ends of Justice will best bo mot and tho chief cause of complaint against Ill-ronsUered Injunctions without notice will be removed by the enactment of a statute forbidding hereafter the Issuing of any Injunction or restraining order, whether temporary or permanent, by any federal court, without previous notice and a reasonable opportunity to bo heard on behalf of tha parties to bo enjoined: unless it shall appear to the satisfaction of the court that tho delay necessnry to give such notice and hearing would result In irreparable injury to the complainant and unless also tho court shall from tho evidence make a Titten finding, which shall bo spread upon tho court tnlnutos. that Immediate and Irreparable Injury Is likely to ensue to the complainant, and shall define tho Injury, state why It Is lrrepnrable and shall also Indorse on the order Issued the date and the hour of tho lssuanco of the order. Moreover, every such Injunction or restraining order Issued without previous notice and opportunity by the defendant to be hard should by force of the statute expire and he of no effect after seven days from the issuance thereof or within any time loss than that period which the court may fix, unless within such seven days or surh less period the injunction or order Is extended or ronewed after previous notice and opportunity to be heard. My judgment Is that the passage of such an act which really embodies tho best practice ln equity and Is very like the rule now ln force In some courts will prevent the Issuing of Illadvised orders of Injunction without notice nnd will render such orders when Issued much less objectionable by the short time ln which thoy may remain effective. New Laws Needed. The Jurisdiction of tho genoral government over Interstate commerce has led to the passage of the so-called "Sherman nntl-trust lnw" and the "Interstate commerce law" nnd Its amendments. The developments In the operation of thoso laws, as shown by Indictments, trials. Judicial decisions, and other sources of information, call for a discussion and some suggestions na to amendments. These I prefer to emlvody In a special message Instead of including them In the present communication, and I shall avail myself of the first convenient opportunity to bring these subjects to the attention of congress. Second-Class Mail Matter. The deficit every year In the postofllce duimrtment Is larjgoly caused by the low rote ot postage of 1 cent a pound charged on second-class mnll matter, which Includes not only newspapers but mngazlnes and miscellaneous periodicals. The actunl loss growing out of the transmission of this second-clnss mall matter at 1 cent a pound amounts to about $03.000.000 a year. The average cost of the transportation of thla matter Is more than 9 cents n pound. It appears that the average distance over which newspapers nre delivered to their customers Is 291 miles, while the average haul of mngazlnes Is 1.049. nnd of miscellaneous periodicals 1.128 miles. Thus, tho average hnul of the mngazlne Is three and one-half times and that of tho miscellaneous periodical nearly four times the haul of the dally newspaper, yet all of them pay the same postnge rate of 1 cent a pound. The statistics of 1907 show that serond-clnss mnll matter constituted 63.91 per cent of the weight of all the mall, and yielded only S.19 per cent of tho revenue. The figures given nre startling, and show the payment by the government of nn enormous subsidy to the newspapers, mngazlnes nnd periodicals, and congress may well consider whether rndlcal stops should not be taken to reduce the deficit In the post-olMce department caused by this discrepancy between the actual cost of transportation and the compensation exacted therefor. A great saving might be made, amounting to much more than half of the loss, by Imposing upon magazines nnd periodicals a higher rate of postage They nro much heavier than newspapers, and contain a mtich higher proportion of advertising to reading matter, and the nvernge distance of their transportation Is three and a half times as great. The total deficit for the last fiscal year In the postofllce department amounted to $17.500.000. Tho branches of Its business which it did nt a loss were the second-class mail service, In which the loss, ns already said, was $63,000,000. and the frco rural delivery in which tho loss Avas J2S.ax),0O. Those losses were In part offset by tho profits of tho letter postage and other sources of Income. It would seem wise to reduce tho loss upon second-clnss mall matter. at least to the extent of preventing a deficit In the total operations of tho postoffice. I commend the whole subject to congress, not unmindful of the spread of Intelligence which a low charge for carrying newspapers and periodicals assists. I very much doubt, however, the wisdom of a policy which constitutes so large a subsidy nnd requires additional taxation to meet It. Postal Savings Banks. The second subject worthy of mention In the postofllce department Is the rcnl necessity and entire practicability of establishing postal savings banks. The successful pnrty nt the last election declared In favor of postal savings hanks, nnd although tho proposition finds opponents In many parts of tho country. I am convinced that the people desire such banks, and am sure that when the banka nre furnished they will be productive of the utmost good. The postal savings banks nro not constituted for tho purpose of creating competition with other banks. The rate of Interest upon deposits to which thoy would be limited would be so small as to prevent their drawing deposits away from other banks.

I believe them to be neeesMry In order to offer a proper Inducement to thrift and saving to a great many people of small means who do not now have banking facilities, and to whom such a system would offer an opportunity for tho accumulation of capital. They will furnish n satisfactory substitute, based on sound principle and actual successful trial In nearly nil the countries of tho world, for the system of government guaranty of deposits now being adopted In several western statos. which with deference to those who advocate tt seems to me to have In It tho seeds of demoralization to conservative banking and certain financial disaster. Ship Subsidy. Following the course of my distinguished predecessor. I earnestly recommend to congress tho consideration and passage of a ship subsidy bill, looking to tho establishment of lines between our Atlantic seaboard and tho eastern coast of South America, as well ns lines from the west coast ot the United Stntes to South America. China, Japan and the Philippines. Tho profits on foreign mails are perhaps a sufficient measure of the expenditures which might first be tentatively applied to this method of Inducing American capital to undertake the establishment of American lines of steamships In those directions In which wo now feel It most Important that we should have means of transportation controlled ln the Interest of tho expansion of our trade. The president recommends the admission of New Mexico and Arizona ns separate states, and strongly opposes legislation looking to the election of a territorial legislature for Alaska. Conservation of National Resources. In several departments there Is presented the necessity for legislation looking to the further conservation of our nntlonnl resources, and the subject Is one of such Importance ns to require a more detailed and extended discussion than enn be entered upon In this communication. For thnt reason I shall take an early opportunity to send a special message to congress on the subject of the Improvement of our waterways, upon the reclamation and Irrigation of nrld. seml-arld. and swamp lands; upon the proservatlon of our forests and the reforesting if sultablo areas; upon the reclassification of tho public domain ith a view of separating from ngrh rnl settlement mineral, coal, and phosphate lands and sites belonging to the government bordering on streams suitable for tho utilization of water power. The White Slave Trade. I greatly regret to have to say that tho Investigations mado In the burenu of Immigration and other sources of Information lead to the view that there Is urgent necessity for nddltlonal legislation and greater executlvo activity to suppress tha r-rrultlng of the ranks of prostitutes from the stream of Immigration Into this country on evil which, for want of a better name, has been called "The Whlto Slnve Trade." I believe it to be constitutional to forbid, under penalty, the transpnrtntlou of persons for purposes of prostitution nrross nntlonnl nnd state lines; and by appropriating a fund of fSO.OO) to be used by the secretnry of commerce and labor for the employment of speclnl Inspectors It will be possible to bring those responsible for this trade to Indictment and conviction under a federal law. Bureau of Health. For a very considerable period a movement has been gathering strength, especially among the members of the medical profession, ln favor of a concentration, of the Instruments of tho national government which have to do with the promotion of public health. In the n at urn of things, the medical department of tha army and the medical department of tho navy must be kept separate. But there seems to be no reason why nil the other bureaus ami offices ln tho genoral government which have to do with the public health or subjects akin thereto should not be united In a bureau to no called tho "bureau of public health." This would necessitate the transfer of the marinehospital service to such a bureau. I am awuretthnt there Is a wide field In respect to tho public health committed to the states In which the federal government cannot exercise Jurisdiction, but wo have sjen In the agricultural department the expansion Into widest usefulness of n department giving attention to agriculture when that subject Is plainly ono over which the stntes properly exercise direct Jurisdiction. The opportunities offered for useful research and the spread of useful Information ln regard to tho cultivation of the soil and tho breeding of stock and the solution of many of the Intricate problems ln progressive agriculture havo demonstrated the wisdom of establishing thnt department. Similar reasons, of equal force, can be given for the establishment of a bureau of health that shall not only exercise the police jurisdiction of tho federal government respecting quarantine, but which shall also afford an opportunity for Investigation and research by competent experts Into questions of health affecting the whola country, or Important sections thereof, questions which. In the absence of federn! governmental work, are not likely to bo promptly solved. Political Contribution. I urgently recommend to congress that a law bo passed requiring that candidates In elections of members of the houso of representatives nnd committees In chargo of their candidacy and campaign file In a proper office of the United States government a statement of the contributions received nnd of the expenditures Incurred In tho campaign for such elections and thnt similar legislation bo enacted In respect to all other elections which are constitutionally within the control of congress. Conclusion. I havo thus. In a message compressed as much as the subjects will permit, reforred to many of the legislative needs of tho country, with tho exceptions already noted. Spc.iklng generally, tha country is In a high state of prosperity. There Is every reason to bellcvo that wa ar on the eve of a suDS'unttiu c-uslne expnnslon and wo havt Just garnered a harvest unexnmpled In tho market value of our agricultural products. The high prices which such products bring mean great prosperity for tho farming community, but on tho other hand they mean a very considerably Increased burden upon those classes In tho community whoso yearly compensation .Iocs not expand with the Improvement In business and tho general prosperity. Vartoua reasons arc given for tho high prices. The proportionate Increase ln tho output of gold, which to-day Is the chief medium of exchange nnd Is In some respects a measure of value, furnishes a substantial explanation of at least part ot the Increase In prices. The Increase ln population and tho more expensive mode of living of the people, which have not been nccompanled by a proportionate Increase In ncreago production, may furnish a further reason. It Is well to noto that tha Increase In the cost of living is not confined to this country, but prevails tha world over and that thoso who would charge Increnscs In prices to the existing protective tariff must meet the fact that the rise In prices has taken place almost wholly In thoso products of tho factory and farm ln respect to which there has been either no Increase In tho tariff or In many Instances a very considerable reduction. WM, II, TAFT. Tho Whlto House, December 7, 1909.