Richmond Palladium (Daily), Volume 35, Number 30, 7 December 1909 — Page 7

PRESIDENTS

To the Senate and the House of Representatives: The relations of tbe United States with all foreign governments have continued upon tbe normal oasis of amity and good understanding and are very generally satisfactory ... .. Europe. Pursuant U- tbe provisions of tbe general treat; of arbitration concluded between the United States and Great Britain, April 4, 1908, a special agreement was entered into between tbe two counties on Jan. 27. 1909. for tbe submission of questlois relating to tbe fisheries on tbe north Atlantic coast to a tribunal to be formed from members of tbe permanent court of arbitration at Tbe Hague. In accordance with tbe provisions of tbe special agreement tbe printed case of each government was, on Oct. 4 last, sub-iltted to tbe other, and to the arbitral tribunal at Tbe Hague, and the counter case of tbe United States In now In course of preparation. The Amerlcr.r rights under tbe fisheries article of tbe treaty of 1818 have been a cause of difference between tbe United State and Great Britain for nearly seventy years. Tbe interests Involved are of great Importance to the American: ashing industry, and tbe final settlement of the controversy will remove a source ot constant irritation and complaint. 4. This is the first case involving ucb gteat international questions which has been submitted to the permaneD. court o arbitration at The Hague. ; Tbe treaty between the United States and Great Britain concerning tbe Canadian international boundary, concluded April 11, 1908, authorizes tbe appointment of two commissioners to define and mark accurately the International boundary line between tbe United States and the Dominion of Canada in the waters of tbe Passamaquoddy bay and provides for tbe ex change of briefs within the period of six months. The briefs were duly pre sented within the prescribed period. bat as tbe commissioners failed to agree within six months after the exchange of (be printed statements, as required by tbe treaty, It has now become necessary to resort to the arbitration provided for in the article. The International fisheries commission appointed pursuant to and under the authority of tbe convention of April 11. 1908, between tbe United States and Great Britain has completed a system of uniform and common International regulations for the protection and preservation of tbe food fishes In International boundary waters of the Utited States and Canada. . Tbe regulations will be duly submit, ted to congress with a view to the enactment of such legislation as will be necessary under the convention to put them into operation. The convention providing for tbe settlement of International differences between the United States and Canada. Including tbe apportionment between the two countries of certain of the boundary waters and the appointment of commissioners to adjust certain other questions, signed on the 11th day ot January, 1900, and to the ratification of which the senate gave its advice and consent on March 3, 1909. has not yet been ratified on the part of Great Britain. Commissioners have been appointed on the part of theTJnlted States to act jointly with commissioners on the part of Canada in examining into the question of obstructions In the St. John river between Maine and New Brunswick and to make recommendations for the regulation of the uses thereof and are now engaged In this work. Protecting the Seals. ' Negotiations for an International conference to consider and reach an arrangement providing for the preservation and protection of the fur seals In the north Pacific are in progress with the governments of Great Britain, , Japan , and Russia. The attitude of the governments interested leads me to hope for a satisfactory settlement of this question as the ultimate outcome of the negotiations. .The second peace conference recently held at Tbe Hague adopted a convention for tbe establishment of an International prise court upon tbe joint proposal of delegations of tbe United States. France, Germany and Great Britain. The law to be observed by the, tribunal In the decision of prize cases was, however, left In an uncertain and therefore unsatisfactory state. Article 7 of the convention provided that tbe court , was to be governed by the provisions of treaties existing between the belligerents, but that "In the. absence of snch provisions the court shall apply the rules of International law. If no generally recognised rule exists the court shall give judgment in accordance with tbe general principles of justice and equity." As, however, many questions In international maritime law are understood differently and therefore interpreted differently in various countries, it was deemed advisable not to Intrust legislative powers to the proposed court, but to determine tbe rules of law properly applicable in a conference of the representative maritime nations. Pursuant to an invitation of Great Britain a conference was held at London from Dec. 2, 1903, to Feb. 26. 1909, in which tbe following powers participated: The United States. Austria-Hungary, France. Germauy. Great Britain. Italy. Japan, tbe Netherlands. Russia and Spain. The conference resulted in the declaration of London, unanimously agreed to and signed by the participat ing powers, concerning, among other matters, the highly important subjects of blockade, contraband, the destruction of neutral prizes aud continuous voyages. The declaration of London is an eminently satisfactory codification of the International maritime law, and it is hoped that its reasonableness and fairness will secure its general adoption, ns well as remove one of the difficul ties stauding in tbe way of tbe establishment of ait international prize court Under the authority given In the sundry, civil appropriation act. approved March 4. 1909. ', tbe United States was r .presented at tbe Inter national conference oa maritime law at Brussels.: The conference met on

the 28tb of September last and resulted In tbe signature ad referendum of a convention for tbe unification of cer tain regulations with regard to maritime assistance and salvage and a convention for the unification of certain rules with regard to collisions at sea. Two new projects of conventions which hava not heretofore been consl"red In a diplomatic conference namely, one concerning tbe limitation o tbe responsibility of shipowners aud tbe other concerning marine mortgages and privileges have been submitted by the conference to tbe different governments. ' The conference adjourned to meet again on April 11. 1910. Tbe international conference for tbe purpose of promoting uniform legislation concerning letters of exchange, which ww called by tbe government of the Netherlands to meet at The Hague In September, "1909. has been postponed to meet at that capital in June. 1910. Tbe United States will be appropriately represented in this conference under tbe provision therefor already made by congress. Tbe cordial Invitation of Belgium to be represented by a fitting display of ; American progress in the useful arts and inventions at the world's fair to be held at Brussels in 190 remains to be acted upon by tbe congress. Mindful of tbe advantages to accrue to our artisans and producers in competition with their continental rivals, I renew tbe recommendation heretofore made that provision be made for acceptance of the invitation and adequate representation in the exposition. Tbe question arising out of the Belgian annexation of the Independent State of the Kongo, which bas so long and earnestly preoccupied tbe attention of this government and enlisted the sympathy of our best citizens, Is still open, but in a more hopeful stage. This government was among tbe foremost In the great work of uplifting the uncivilized regions of Africa and urging the extension of the benefits of civilization, education and fruitful open commerce to that vast domain and is a party to treaty engagements of all the Interested powers designed to carry out that great duty to humanity. Tbe way to better tbe original and adventitious conditions, so burdensome to tbe natives and so destructive to their development, bas been pointed out, by observation and experience, not alone of American representatives, but by cumulative evidence from all quarters and by the Investigations of Belgian agents. The announced programs of reforms, striking at many of tbe evils known to exist; are an augury of better things. The attitude of the United States Is one of benevolent encouragement, coupled with a hopeful trust that tbe good work, responsibly undertaken and zealously perfected to tbe accomplishment of the results so ardently desired, will soon justify the wisdom that Inspires them and satisfy the demands of humane sentiment throughout the world. German Patents. A convention between the United States and Germany, under which the nonworking provisions of the German patent law are made inapplicable to the patents of American citizens, was concluded on Feb. 23, 1909, and is now in forces Negotiations for similar con ventions , looking to the placing of American inventors on tbe same footing as nationals have recently been initiated with other European govern ments whose laws require tbe local working of foreign patents. Under an appropriation made at tbe last session of the congress a commission was sent on American cruisers to Monrovia to investigate tbe Interests of tbe United States and its citizens in Liberia. Upon its arrival at Monrovia the commission was' enthusiastically received and during its stay in Liberia was everywhere met with tbe heartiest expressions of good will for the American government and people, and the hope was repeatedly expressed on all sides that this government might see Its way clear to do something to relieve tbe critical position of the republic arising In a measure from external as well as Internal and financial embarrassments. v The Llberian government afforded every facility to the commission for ascertaining the true state of affairs. Tbe commission also had conferences with - representative citizens, interested foreigners and the representatives of foreign governments in Monrovia. Visits were made to various parts of the republic and to tbe neighboring British colony of Sierra Leone, where the commission was received by and conferred with the governor. Helping Liberia. It will be remembered that the interest of the United States in the republic of Liberia springs from tbe historical fact of the foundation of the republic by tbe colonization of American citizens of the African race. In an early treaty with Liberia there is a provision under which tbe United States may be called upon for advice or assistance. Pursuant to this provision and in the spirit of the moral relationship of the United States to Liberia that republic last year asked this government to lnd assistance in the solution of certain of their national problems, and hence tbe commission was sent. Tbe report of our commissioners has just been completed and Is now under examination by the ' department of state. It is hoped that there may result some helpful measures, in which case it may be my duty again to invite your attention to this subject The Norwegian government, by a note addressed on Jan. 26, 1909, to the department of state, conveyed an invitation to the government of the United States to take part in a conference whlcb it Is understood will be held In February or March. 1910, for the purpose of devising means to remedy existing conditions In the Spitsbergen islands. This invitation was conveyed under tbe reservation that the question of altering the status of the Islands as countries belonging to no particular state and as equally open to the citizens and subjects of all states should not be raised. , ... The European powers Invited to this

conference by tbe government of Norway were Belgium. Denmark. France, Germany. Great Britain, Rossis, Sweden and tbe Netherlands. . The department of state. In view of proofs filed with It in 1906. showing the American possession, occupation

and working of certain coal bearing lands in Spitsbergen, accepted the invitation under the reservation above stated and under the further reservation that all interests in those islands already vested should be protected and that there should be equality of opportunity for the future, it was further pointed out that membership in the conference on the part of the United States was qualified by the consideration that this government would not become a signatory to any conventional arrangement concluded by the European members of the conference which would imply contributory participation by the United States in any obligation or responsibility for tbe enforcement of any scheme of administration which might be devised by the conference for the islands. The Near East. His majesty Mehmud V., sultan of Turkey, recently sent to this country a special embassy to announce bis accession. The quick transition of the government of tbe Ottoman empire from one of retrograde tendencies to a constitutional government with a parliament and with progressive modern policies of reform and public improvement is one of the important phenomena of our times. Constitutional government seems also to have made further advance in Persia. These events have turned the eyes of tbe world upon tbe near east. In that quarter the prestige of the United States has spread widely through the peaceful influence of American schools, universities and missionaries. There is every reason why we should obtain a greater share of the commerce of the near east since tbe conditions are more favorable now than ever before. Latin America. One of the happiest events in recent pan-American diplomacy was the pacific, independent settlement by the governments of Bolivia and Peru of a boundary difference between them, which for some weeks threatened to cause war and even to entrain imbitterments affecting other republics less directly concerned. From various quarters, directly or indirectly concerned, the Intermediation of the United States was sought to assist in a solution of tbe controversy. Desiring at all times to abstain from any undue mingling in the affairs of sister republics and having faith in the ability of the governments of Peru and Bolivia themselves to settle their difference in a manner satisfactory to themselves which, viewed with magnanimity, would assuage all imbitterment, this government steadily abstained from being drawn into the controversy and was much gratified to find its confidence justified by events. On the 9th of July next there will open at Buenos Aires the fourth panAmerican conference. This conference will have a special meaning to the hearts of all Americans because around its date are clustered the anniversaries of the independence of so many of the American republics. It is not necessary for me to remind the congress of the political, social and commercial importance of these gatherings. You are asked to make liberal appropriation for our participation. If this be granted it is my purpose to appoint a distinguished and representative delegation qualified fittingly to represent this country and to deal with the problems of intercontinental Interest which will there be discussed. The Argentine Republic will also hold from May to November. 1910. at Buenos Aires a great International agricultural exhibition, in which the United States has been invited to participate. Considering the rapid growth of the trade of the United States with the Argentine Republic and the cordial relations existing between the two nations, together with the fact that it provides an opportunity to show deference to a sister republic on the occasion of the celebration of its national independence, the proper departments of this government are taking steps to apprise the interests concerned of the opportunity afforded by this exhibition. In which appropriate participation by this country Is so desirable. The designation of an official representative is also receiving consideration. Today more than ever before American capital is seeking investment in foreign; countries, and American products are more and more generally seeking foreign markets. As a consequence In all countries there are American citizens and American interests to be protected on occasion by their government These movements of men. of capital and of commodities bring peoples and governments closer together and so form bonds of peace and mutual dependency, as they must also naturally sometimes make passing points of friction. The resultant situation inevitably imposes upon this government vastly increased responsibilities. This administration, through the department of state and tbe foreigu service, is lending all proper support to legitimate and beneficial American enterprises in foreign countries, the degree of such support being measured by tbe national advantages to be expected. A citizen himself cannot by contract or otherwise divest him self of the right, nor can this govern ment escape tbe obligation, of bis protection in his personal and property rights when, these are unjustly infringed In a foreign country. To avoid ceaseless vexations it Is proper that in considering whether American enterprise should be encouraged or supported In a particular country the govern ment should give full weight not only to the national as opposed to the Individual benefits to accrue, but also to tbe fact whether or not the government of the country In question is in its administration and In its diplomacy faithful to tbe principles of moderation, equity and justice upon which alone depends International credit In diplomacy as well as in finance. The pan-American : policy of this government bas long been fixed In its principles and remains unchanged. With tbe changed circumstances of the United States and of the republics to tbe south of us. most of which have great natural resources, stable government and progressive Ideals, the apprehension which gave rise to tbe Monroe doctrine may be said to have

nearly disappeared. and neither the doctrine as It exists nor any other doctrine of American policy should be permitted to operate for the perpetuation of Irresponsible government, tbe escape of just obligations or the insidious allegation of dominating ambitions on the part of the United States, i. Beside the fundamental doctrines of our pan-American policy there have grown up a realization of political interests, community of institutions and ideals and a flourishing commerce. All these bonds will be greatly strength

ened as time goes on and increased facilities, such as tbe great bank soon to be established in Latin America, supply the means for building up the colossal intercontinental commerce of the future. My meeting with President Diaz and the greeting exchanged on both American and Mexican soli served. I hope, to signalize the close and cordial relatlons which so well bind together this republic and the great republic immediately to the south, between which there is so vast a network of material interests. I am happy to say that all but one of the cases which for so long vexed our relations with Venezuela have been settled within the past few months and that, under tbe enllght ened regime now directing the govern ment of Venezuela, provision has been made for arbitration of tbe remaining case before The Hague tribunal On July 30. 1909, the government of Panama agreed, after considerable ne gotjation, to indemnify the relatives of tbe American officers and sailors who were brutally treated, one of them having, indeed, been killed, by the Panaman police this year. The sincere desire of the government of Panama to do away with a situation where such an accident could occur is manifest in the recent request in compllance with which this government has lent the services of an officer of the army to be employed by the government of Panama as instructor of police. The sanitary improvements and public works undertaken in Cuba prior to the present administration of that government in the success of which the United States is interested under the treaty, are reported to be making good progress, and since the congress provided for the continuance of the reciprocal commercial arrangement be tween Cuba and the United States assurance has been received that no negotiations Injuriously affecting the situation will be undertaken without consultation. The collection of the customs of the Dominican Republic through the general receiver of customs appointed by the president of the United States to accordance with tbe convention of Feb. 8. 1907. has proceeded in an uneventful and satisfactory manner. The customs receipts have decreased owing to disturbed political and economic conditions and to a very natural curtailment of imports in view of the anticipated revision of tbe Dominican tariff schedule. The payments to the fiscal agency fund for the service of tbe bonded debt of the republic, as provided by the convention, have been regularly and promptly made, and satisfactory progress bas been made In carrying out the provisions of the convention looking toward the completion of the adjustment of the debt and the acquirement by the Dominican government of certain concessions and monopolies which have been a burden to tbe commerce of the country. In short the receivership has demonstrated It ability, even under unfavorable economic and political conditions, to do the work for which it was intended. This government was obliged to Intervene diplomatically to bring about arbitration or settlement of the claim of the Emery company against Nicaragua, which it had long before been agreed should be arbitrated. A settlement of this troublesome case was reached by the signature of a protocol on Sept 18. 1909. Claim Against Chile. Many years ago diplomatic intervention became necessary to the protection of the interests in the American claim of Alsop & Co. against the 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 tbe United States and of Chile, actuated by the sincere desire to free from any strain those cordial and friendly telatlons upon which both set such store, have agreed by a protocol to submit the controversy to definitive settlement by bis Britannic majesty Edward VII. Since the Washington conventions of 1907 were communicated to the government of the United States as a consulting and advising parfy this government has been almost contiguously called upon by one or another and in turn by all of the five Central American republics to exert itself for the maintenance of tbe conventions. Nearly every complaint has been against the Zelaya government of Nicaragua, which has kept Central America in constant tension or turmoil. The Responses made to the representations of Central American republics as due from the United States on account of its relation to the Washington conventions have been at all times conservative and have avoided, so far as possi ble, any semblance of interference, although, it is very apparent that tbe considerations of geographic proximity to the canal sone and of the very substantial American Interests In Central America give to the United States a special position in the zone of these republics and tbe Caribbean sea. I need not rehearse here tbe patient efforts of this government to promote peace and welfare among these republics, efforts which are fully appreciated by the majority of them who are loyal to their true interests. It would be no less unnecessary to rehearse here the sad tale of unspeakable barbarities and oppression alleged to have been committed by .the Zelaya government Recently two Americans were pot to death by order of President Zelaya himself. They were officers In the organized forces of a revolution which had continued many weeks and was In control of about half of the republic, and as such, according to - the modern enlightened practice of dvfllxed nations, they were

entitled to be dealt with as prisoners j of war. , I

At tbe date when this message is printed this government bas tertnlnaled diplomatic relations with the Zelaya government for reasons made public In a communication to tbe former Ntearaguan charge d'affaires and

Is Intending to take such future steps Tbe department of state is consideras may be found most consistent with ing tbe revision In whole or In part of

Its dignity. Its duty to American Interests and Its moral obligations to Central America and to civilization. It may later be necessary for me to bring this subject to tbe attention of tbe congress in a special message. Bureau of American Republics. The international bureau of Aroerlean republics bos carried on an lmpar-1 tant and Increasing work during tbe last year. In tbe exercise of Its perul- ; lar functions as an international agen-1 cy. maintained by all the American republics for tbe development of peti American commerce and friendship. It ' has accomplished a great . practical good which could be done in the same j way by no Individual department or bu reau of one government and is there fore deserving of your liberal support Tbe fact that it Is about to enter a new building, erected through the munificence of an American philanthropist and the contributions of all tbe American nations, where both its efficiency of administration and expense of maintenance will naturally be much augmented, further entitles it to special consideration. In the far east this government preserves unchanged Its policy of supporting the principle of equality of opportunity and scrupulous respect for tbe Integrity of the Chinese empire, to which policy are pledged tbe interested powers of both east and west By the treaty of 1903 China bas un dertaken tbe abolition of llkin with a moderate and proportionate raising of the customs tariff along with currency reform. These reforms being of manifest advantage to foreign commerce as well as to tbe interests of China, this government Is endeavoring to facilitate these measures and tbe needful acquiescence of tbe treaty powers. When it appeared that Chinese llkin revenues were to be hypothecated to foreign bankers in connection with a great railway project it was obvious that the governments whose nationals held this loan would have a certain direct interert In tbe question of tbe carrying out by China of tbe reforms In question. Because this railroad loan represented a practical and real application of tbe open door policy through co-operation with China by literested powers, as well as because of its relations to the reforms referred to above, tbe administration deemed American participation to be of great national Interest Happily, when it was as a matter of broad policy urgent that this opportunity should not be lost, the Indispensable Instrumentality presented Itself when a group of American bankers of International reputation and great resources agreed at once to share in the loan upon precisely such terms "s this government should approve. The cbief of those terms was that American railway material should be upon an exact equality with that of the otber nationals joining in tbe loan in tbe placing of orders for this whole railroad system. After months of negotiation the equal participation of Americans seems at last assured. It Is gratifying that Americans will thus ake their share in this extension of these great highways of trade i.nd to believe that such activities will give a real Impetus to out commerct and will prove a practical corollary to our historic policy In the far east. The imperial Chinese government in pursuance of its decision to devote funds from the portion of tbe indemnity remitted by the United States to the sending of students to this country has already completed arrangements for carrying out this purpose, and a considerable body of students have arrived to take up their work in our schools and universities. No one can doubt tbe happy effect that the associations formed by these representative young men will have when they return to take up their work in - the progressive development of their country. The results of the opium conference held at Shanghai last spring at tbe invitation of the United States have been laid before tbe government The report shows that China is making remarkable progress and admirable efforts toward tbe eradication of : tbe opium evil and that tbe governments concerned have not allowed their commercial interests to Interfere with a helpful co-operation in this reform. Collateral investigations of tbe opium question In this country lead me to recommend that tbe manufacture, sale and use of opium and Its derivatives in tbe United States should be so far as possible more vigorously controlled by legislation. In one of tbe Chinese-Japanese conventions of Sept 4 of this year there was a provision which caused eons'derable public apprehension In that upon its face it was believed in some quarters to seek to establish a monopoly of mining privileges along the South Mancburlan and Antung-Muk den railroads and thus to exclude Americans from a wide field of enter prise, to take part In which they were by treaty witb China entitled. Arte? a thorough examination of tbe conven tions and of tbe several contextual documents the secretary of state reached the conclnsion that no snch monopoly was Intended or accomplished. However, In view of tbe widespread discussion of this question, to confirm tbe view it had reached this government made Inquiry of the Imperial Chinese and Japanese governments and received from each official assurance that tbe provision had no purpose Inconsistent with the policy of equality of - opportunity to which tbe signatories. In common witb the United States, are pledged. Relations WHh Japan. Our traditional relations with the Japanese empire continue cordial, as usual. As the representative of Japan his Imperial highness Prince Knni visited the Hudson-Fulton cetebratlov. Tbe recent visit of a delegation of prominent business men as guests of the chambers of commerce of the Pacific slope, whose representatives had been so agreeably received in Japan, will doubtless contribute to tne crowing trade across the Pacific, as well as to that mutual understanding which leads to mutual appreciation. The ax-

rangement of 1908 for a co-operative control of tbe coming of laborer to

tbe United States has proved to work satisfactorily. The matter of a revtsion of the existing treaty between tb United States and Japan which is ter minable In 1912 ts already receiving tne study of both countries. the existing treaty with Slam, whlcb was concluded in 1S56 and Is now. in respect to many of Its provisions, out of date. The Department ef State. I earnestly recommend to the favor able action of tbe congress tbe estl ! mates submitted by tbe department of state and most especially tbe legislation suggested in tbe secretary of state's letter of this date whereby It will be possible to develop and make permanent the reorganisation of the department upon modern lines in manner to make it a thoroughly efficlent instrument in tbe furtherance of our foreign trade and of American Interests abroad. Tbe plan to have divisions of Latin American and far eastern affairs and to Institute a cer tain specialisation in business with Europe and the near east will at once commend itself. These politico-geographical divisions snd the detail from tbe diplomatic or consular service to tbe department of s number of men who bring to the study of complicated problems In different parts of the world practical knowledge recently gained on tbe spot clearly Is of the greatest ad' vantage to tbe secretary of state In foreseeing conditions likely to arise and In conducting tbe great variety of correspondence and negotiation. It should be remembered that such facil ities exist In tbe foreign offices of all tbe leading commercial nations and that to deny them to the secretary of state would be to place this government at a great disadvantage In the rivalry of commercial competition. Improved Consular Scrviee. The consular service has been greatly Improved under tbe 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 tbe efficiency of our consular service Is wholly dependent In modern times political snd commercial Interests are Interrelated, and in tbe negotiation of commercial treaties, conventions and tariff agreements, tbe keeping open of opportunities snd tbe proper support of American enterprises our diplomatic service Is quite as Important as tbe consular service to tbe business Interests of the country. Impressed with this Idea and convinced that selection after rigorous ex amination, promotion for merit solely and tbe experience only to be gained through the continuity of an organised service are Indispensable to a high degree of efficiency In tbe diplomatic service. I have signed sn 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 tbe promotion of the most efficient to the grade of minister. generally leaving for outside appoint ment such posts of the grade of ambassador or minister as It msy be exnedfent to fill from without th- serv ice. It Is proposed also to continue the practice instituted last summer of giving to all newly appointed secre taries at least one month's tnorougn training in tbe department of state before tbey proceed to their posts. This has been done for some time In regard to the consular service with excellent results. - Under a provision of the act of Aug. 5. 1900. I have appointed three officials

to assist tne omcers or me govemmcoi j year tbMt tbe economies are of two in collecting Information necessary to klndaflrati there Is a saving In the a wise administration of the tariff act pQt administration of the deof Aug. 5, 1909. As to questions of, ..A fl. nf tfa.

customs administration they are co operating with tbe officials of the treasury department and as to matters Its relation to tbe domestic aspect of tbe subject of foreign commerce. In tbe study of foreign tariff treatment tbey will assist tbe bureau of trade relations of tbe department of state. It is hoped thus to co-ordinate and bring to bear upon this most important subject all the agencies of the government which can contribute anything to Its efficient handling. As a consequence of section 2 of the tariff act of Aug. 5. 1908, It becomes tbe duty of tbe secretary of state to conduct as diplomatic business all the negotiations necessary to place him In a position to advise me as to whether or not a particular country unduly discriminates against the United States in tbe sense of tbe statute referred to. Tbe great scope and complexity of this work, as well as tbe obligation to lend all proper aid to our expanding commerce, is met by the expansion of the bureau of trade relations as set forth In tbe estimates for the department of state. I have thus In some detail described tbe Important transactions of the state department since tbe 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 tbe president or to congress, snd a presidential message Is tbe only means by which the condition of our foreign relations ts brought to tbe attention of congress and tbe public In dealing with tbe affairs of the otber departments, tbe heads of which all submit annual reports. I snail 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, tn ail of which I wish to express my general concurrence. Government Expenditures and Rev ,, enues. - , ; .. - Perhaps the most Important question presented to this administration Is that of economy in expenditures and sufficiency of revenue. The deficit of tbe last fiscal year and tbe certain deficit of tbe current year prompted congress to throw a greater responsibility on the executive and the secretary of the treasury than bad heretofore been declared by statute. This declaration Imposes upon the riilsij of the treasury the duty of aaeembUag aD the estimates of the executive departments, bureaus and otScea of the

expenditures necessary In the

fiscal year and of making an estimate of tbe revenues of the government for the same period, aud If a pro bat ke deficit ts thus show It ts made the duty ' of the president to recommend the method by which such deficit can be met Estimated Deficit S7S7S.)0. The report of the secretary shows that the ordinary expenditure for tbe current fiscal year ending June 30. 1910. will exceed tbe estimated re ceipts by $34,073,020. If to this deficit -are added the sum to be disbursed for the Panama canal, amounting to $33.000.000. and $1,000,000 to be paid on the public debt, the deficit of ordinary receipts aud expenditure will be in creased to a total deficit of $73,075,620. This deficit tbe secretary proposes to met by the proceeds of bonds Issued to pay tbe cost of constructing the Panama canal. I approve this proposal. Tbe 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 tbe 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 tbe canal, which Is now half done and which will be completed Jan. 1. 1915. shows that tbe cost et engineering and construction win be $297,706,000 Instead of $139.705300. as uriKiuaiiT niiuiaini. mo niuiuaB id engineering and construction, the other expenses. Including sanitation and government and the amount paid for the properties, the franchise and the' privilege of build bag tbe canal. In crease the cost by $75,435,090 to a total of $373,201,000. Tbe Increase to the cost of engineering and construe- . tlon is due to a substantial enlarge ment of the plan of construction by widening the canal 100 feet in the Colebra cut and by Increasing tne dimensions of the locks, to the under estimate of the quantity of tbe work to be done under the original plan and to an underestimate of the cost of labor and materials, both of which bare greatly enhanced In price since the original estimate was made. In order to avoid a deficit for the ensuing fiscal year I directed the beads of departments la the preparation of their estimates to make then as low as possible consistent with Imperative governmental necessity. The result has been, as I am advised by the secretary of the treasury, that tbe estimates of the expenses ot the government for tbe fiscal year ending June 30, 1911 that ts, for tbe neat fiscal yearare less by $55.653400 than the total of appropriations for ' the current fiscal year and lees by $94,000,000 than the estimates for that year. So far as tbe secretary of the treasury Is able to form a judgment as to future Income and compare It with the expenditure for tbe - next fiscal year ending June SO, 1911, Including the payments on account of tbe Panama canal and the public debt, there will be no deficit In the year ending June 90, 1911, but a small sarplsjs of $712,000. In the present estimates the needs of tbe 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 the expectation that they may be reduced will result In seriously hampering proper administration. . The secretary of the treasury points out what should be carefully noted to . Mnw.t tn thta rmAm-tUnu In mm, j menUj ezpenses for the next fiscal pertinents, bureaus and offices of the government and. second, there te a d resent reduction in expenses by a ; tpt of projects and lmdelayed with tbe hope that additional revenue In tbe future will permit their execution without producing a deficit Werklfif Fee Uss essay. It has been Impossible In the tlon of estimates greatly to radi cost of permanent admlaistrettoa. This cannot be done without a thorough reorganisation of bureaus, 'of fices and departments. For the nose of securing Info j may enable the executive and the legislatlve branches to unite In a plan for the permanent redaction of the cost of governmental administration the treasury department has Instituted an Investigation by one of the moat stalled States. The result of this work to two or three bureaus, which. If to the entire government two or more years, has been to much room for Improvement am portunlty for substantial red actio In tbe cost and Increased efficiency of administration. Tbe 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 reorganisation of bureaus and departments snd In tbe avoidance of duplication, but also in the treatment of the Individual employee. Under the present system It ly happens that two employee the same salary when the work of one Is far more dlficuit and Important and exacting than that of the other. Superior ability Is not rewarded or encouraged. As tbe classification is now entirely by salary, an employee often rises to the highest class while doing the easiest work, for which alone be may be fitted. An Investigation ordered by my predecessor resulted la the recommendation that the civil servtee be reclassified according to tbe kind of work, so that the work requiring soost application and knowledge and abiaty shall receive most compensation. I believe such a change would be fairer to the whole force and would ly Improve the personnel of the Ice. . .. . More than this, every reform directed toward the Improvement to the average cadency of government etsployees must depend on tbe atSSSf t the executive to sTmlnate front fa goventsMnt iervtc those who in taoCVrtent froo any cause, and aa the of exlrlsa ry to an the

is much leavened by the