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VOI XL XO. Hi
OMAHA, WEDNESDAY MOKXIXd, DKTKMIiKK 7, 1D10.
SIXdLK COPY TWO CENTS.
President Taft's Message to the Congress on Public Affairs
Portions of the Document That Deal Directly With Matters of Immediate Domestic Importance
Recommendations for Legislative Action in the Direction of Improved Conditions for the People
RESIDENT TAFT'S annual mes- j B,iat contribution to the means of the
ntiliu H rniiiiui I i ihi iniri v uui ir.
KB HP
J ear
sivo
to the congress Is mis
an unusually enmprchen
doeumcnt. ami much
P
longer t!:an ever before-.lt
deals with a multiplicity of
mailers, tint chief features of which are
herewith presented In full.
The prerliirnt reviews at the outset the
work cf Ihe Hai;ue commlsl"n In the sett'e
ment of tie fisheries dispute with Great
Hiltain. end points out tho usefullness f
tlie tribunal, lie also rcites the relations
between the United States and the other
power of the world, and finds that Ameri
can Interests are being well looked after
everywhere. The Latin American govern
ments pet considerable attention, especially
relating to the difficulties in Nicaragua and
Honduras, where American lntere-ts were
seriously Involvi d. ,
Taking up affairs at home, the president
begins with the tariff, and tays:
For many reasons I car not too strongly
urge upon the congress the passage of a
measure by mall tulsldy or other sub
vention adequate to guarantee the estab
lishment and rapid development of an
American merchant marine, the restoration
of the American flag to its ancient plate
upon the seas.
Of course such aid ought only to be given
under conditions of publicity of each bene
ficiary's business and accounts, which
would show that the aid received was
needed to maintain the trade and was prop
erly used for that purpose.
Protection fur Aliens.
With our Increasing International Inter
course It becomes lticumLent upon me to
repeat more emphatically than ever the
recommendation which I made In my In
augural address that congress shall at
onco give to the courts of the I'nited States
The new tariff law. In section 2 respecting jurisdiction to punish as a crime the vlola-
te maximum and minimum tarms or tne
United States, which provisions came Into
effect on April 1, 1910. Imposed up n the
president the responsibility of determining;
prior tn that date whether or not any un
due discrimination existed against the
United States and Its products In any
country of the world with which we sus
tained commercial relations.
In the ras of several countries Instances
of apparent undue discrimination against
American commerce was found to exist.
These discriminations were removed by
negotiation. Trior to April, 1, 1910, when
the maximum tariff w as to come Into opera
tion with ."esped to Importations from all
t'xise countries In w ho e favor no proclama
tion applying the minimum tariff should be
Issued by te president. 134 such proclama
tions were Issued. This series of procla
mations embraced the entire commercial
world, and hence Ihe minimum tariff of the
T'nlted Slates has been given universal
application, thus testifying to the satisfac
tory character of our trade relations with
foreign countries.
I nlleil States (iaine Advantage.
Marked advantages to the commerce cf
the 1'nlted States were obtained through
these tariff settlements. Foreign nations
are fully cognizant of the fact that under
section 2 of the tariff act the president Is
required, whenever ho Is satisfied that the
treatment accorded by them to the products
cf the t'nlted States Is not such as to en
title them to the benefits of the minimum
tariff of the United States, to withdraw
those hencfits by proclamation, giving'
ninety days' notice, after which the maxi
mum tariff will apply to their dutiable
products entering the t'nlted Ftates. In
Its general operation this section of the
tariff law has thus far proved a guaranty
of continued commercial peace, although
there are. however, unfortunately, instances
where foreign governments deal arbitrarily
with American Interests within their Jur--trdlctlnn
In a manner Injurious and In
equitable. i The policy of broader and closer trade
relations with the Dominion of Canada.
'.which was Initiated In the adjustment of
the maximum and minimum provisions of
the tariff act of August, 1909, has proved
mutually beneficial.
, The negotiations were conducted on both
sides In a spirit of mutual accommodation.
The discussion of the common commercial
Interests of the two countries had for Its
object a satisfactory basis for a trade ar
rangement which offers the prospect of a
freer Interchange for the products of the
t'nlted Htates and of Canada. The confer
ences were adjourned to be resumed In
Washington In' January, when It Is hoped
that the aspiration of both governments
for a mutually advantageous measure of
reciprocity will be realized.
All these tariff negotiations ao vital to our
commerce and Industry, and the duty of
Jealously guarding the equitable and Just
treatment of our products, capital, and In
dustry abroad devolve upon the Department
of Mate.
Important tnutrarti "reared
The Argentine battleship contracts, like
the subsequent Important one for Argentine
railway equipment, and those for Cuban
government .vessels, were secured for our
manufacturers largely through the good
offices pf the Department of State.
The efforts of that department to secure
for citizens of the United States equal ou-
port unities In the markets of the world
and to expand American commerce have
been moet successful.
The volume of business obtained In new
fields of c-irnpetltlon and upon new lines
Is already very great and congress la urged
to continue to support the Department of
State In Its endeavors for further trade ex
panslon.
Our foreign trade merits the best sup
ron or tne government and the most
earnest endeavor of our manufacturers and
merchants, who, If they do not already In
all cases need a foreign market, are cer
lain soon to uecome aepenaent on it.
Therefore, now Is the time to secure a
strong position In this field.
I can not leave this subject without em
phaslzlng the necess.ty of inch legislation
as will make possible and convenient Ihe
rstahllahment of American banks and
; branches of American banks in foreign
countries. Only by such means can our
tion of the rights of aliens secured by
treaty with the United States, In order
that the general government of the United
States shall be able, when called upon by
a friendly nation to redeem Its solemn
promise by treaty to secure to the citizens
or subjects of that nation resident In the
United States freedom from violence and
due process of law In respect to their life,
liberty and property
I also and for thj same general reasons
strongly commend to the favorable action
of the congress the enactment of a law
applying to the diplomatic and consular
service the principles embodied In section
1753 of the revised statutes of the United
States, In the civil service act of January
IS, 183, and tho executive ordera of June
27, 1906, and of November 26, 1909.
Economy In Kxnendltores.
Every effort has been made by each de
partment chief to reduce the estimated cost
of his department for the ensuing fiscal
year ending June 30, 1912. I say this In
order that congress may understand that
these estimates thus made present the
smallest sum which will maintain the de
partments, burea is and offices of the gov
ernment and meet its other obligations
under existing law, and that a cut of
these estimates would result In embarrass
ing the executive branch of the govern
ment In the performance of Its duties. This
remark does not apply to the river and
harbor estimates, except to those for ex
penses of maintenance and meeting of ob
ligations under authorized contracts, nor
dees it apply to the public building bill
nor to the navy building program. Of
course, as to these congress could with
hold any part or all of the estimates for
them without Interfering with the dis
charge of the ordinary obligations of the
government or the performance of the
functions of Ita departments, bureaus end
offloes.
The final estimates for the year ending
June 30, 1912, as they have been sent to
the treasury, on November 29 of this year,
for the ordinary expenses of the govern
ment, Including those for public buildings,
rivers and harbors and the navy building
program, amount to I630.4S4.013.12. This Is
152,864. S)(7.36 less than the appropriations for
the fiscal year ending June 30, 1911. It is
$10,883,153.44 less than the total estimates,
Including supplemental estimates submitted
to congress by the treasury for the year
1911. and la $8,574,659.39 less trail the orig
inal estimates submitted by the treasury
for 1911.
These figures do not Include the appro
priations for the Panama canal, the policy
in respect to which ought to be and la to
spend as much each year as can be eco
romlcally and effectively expended In
order to complete the canal as promptly
as possible, and, therefore, the ordinary
motive for cutting down the expense of
the government does not apply to appro
priations for this purpose. It will be noted
that the estimates for the Panama canal
for the ensuing year are more than $56,
000,000, an Increase of $20,000,000 over the
amount appropriated for this year a dif
ference due to the fact that the estimates
for 1912 Include something over $19,000,0(10
for the fortification of the canal.
Against the estimated expenditure, $830,
4iH.013.12, the treasury estimated receipts
for next year $680,000,000, making a prob
able surplus of ordinary receipts over or
dinary expenditures of about $60,000,000, or,
taking Into account the estimates for the
Panama canal, which are $56,920,847.69, and
which will ultimately be paid in bonds, it
will leave a deficit for the next year of
about $7,000,000, If congress shall conclude
to fortify the canal. The cost of the for
tifications Is about $19,000,000. Should there
be no appropriations this year for forti
fications then there would be. even Includ
ing the Panama cana. appropriation, a sur
plus of about $12,000,000. according to the
treasury estimates.
Chief Features of the President's Message
Recommendations for Reformatory Legislation Mado by Mr. Taft to Congress.
THE outstanding features of President Taft'a mes
sage, sent to congress today, are these:
lie deolares it Is time to stop legislating with
reference, to regulation of corporations and to
witness the effect of a vigorous execution of the laws
already on the statute wioxj. The exact limitation upon
business methods Imposed by law will doubtless be
made clearer by pending decisions of the supreme court.
Juki at this time, the president says, he believes
tiie attlvltles of the government. In addition to enforce
ment of the laws, should be directed toward economy
of administration, the enlargement of opportunities for
foreign trade, the building up of home Industry and the
strengthening of confidence of capital in domestic
Investment.
He recommends strongly some form of ship sub
sidy to Increase American shipping, especially to South
America
The tariff board is 'not ready to submit a report on
any of the schedules of the Payne law, and Mr. Taft
says he will not recommend any tariff legislation until
the new congress convenes In December, 1911.
He urges that the tariff board be made permanent
and that all future revisions be made schedule by
schedule. He vigorously opposes another general re
vision. 1 ne Panama cnnal should be fortified. An appro
priation of $19,000,000 Is recommended for this purpose.
The; must be no more "pork barrel" methods In
river and harbor and public building bills. The latter
should be based upon the report of a commission 6f ex
perts. In the past congress has appropriated too much
for tulldlngs not needed and not enough for buildings
badly needed.
1'erommendatlon for antl-lnjunctlon and federal In
corporation laws aro renewed.
It Is proposed that second-class mall rates shall be
readjusted so as to charge magazines a much higher
rate on their advertising sections.
Strong representations are made for the establish
ment of o new banking and currency system.
Two new battleships and several auxiliary vessels
are urged for the navy.
The president recommends that coal, phosphate and
oil 1 1-nd si and water power sites be disposed of in the
future by leaning.
Estimates for government expenditures during the
next fiscal year have been cut to $630,494,013.12, which
1s $52,964,887.36 less than the actual appropriations for
me current year. The estimated receipts for the next
fiscal year are $680,000,000.
The president urges the extension of the civil ser
vice principle to the diplomatic and consular corps and
the acquisition by the government of residences and of
fices for its diplomatic officers.
Some criticisms of the Payne tariff act are Just,
say tho president, but more are unfounded.
Tr.ere should be more officers for the army; engi
neer corps should be increased by sixty.
The fortifications at Corregldor Island, Manila bay
and et Pi-nrl harbor. Hawaii, should be carried to early
completion.
Regarding the Panama canal the president says:
"The progress of tho work Is most satisfactory. It
w 11 be completed well within the time set, January 1.
l.ili, and within the estimated cost ol $375,000,000. The
s'iiies Ir t'ulebra cut offer no great reason for delay."
Failure to fortify the cunal would leave the United
Slates ptv.erless! to enforce the universal and equal
use cf the waterway asalnstJt desperate and Irresponsi
ble enemy and would defeat the object of the canal In
Ircreaslng the military ef fectl eness of the American
navy
The tells should not exceed $1 per net ton. The
I'l'evlilt nt should be authorized to adjust tho rates as
necessity arises. The government should include In Its
lmimiKrment of tho cnnal the furnishing not only to
the imvv. but to the public as well, drydock and repair
facilities, and the sale of coal, oil and other ship ,
supplies.
Interstate railroads should be prevented from own
ing oe controlling ships trading through the canal.
Regarding the courts, the president declares the cry
ing need of the United States In cheapening the cost
of litigation by simplifying Judicial procedure and expe
diting final Judgment. The supreme court should be
relieved from unnecessary appeals. The salaries of fed
eral Judge.i should be Increased.
Postal savings brinks will be established In a num
ber of cities January 1. A parcels post on rural delivery
routes Is recommended. Postmaster (Jeneral Hitchcock
!s given high praise for putting the Postofflce depart
ment on a self-sustaining basis. The extension of the
civil service to Include all classes of postmasters and
Ihns taking these officials entirely out of politics Is
urged.
" The president recommends congress to give some
fitting recognition of the polar discoveries of Com
mander Robert E. Peary. The secretary of the now
sugsests that Peary be made a rear admiral and placed
on the retired list.
The stupendous value of the agricultural products,
amounting to $S, 926, 000,000 this year. Indicates good
prospect for business throughout the country.
The present census promises to be the best ever
taken, but it Is not perfect. The census padders are to
be vigorously prosecuted.
A bureau of health should be established.
The Southern Pacific railroad should be reimbursed
for its expenditures in fighting the flood In the Im
perial valley of California several years ao.
Heavier fines should bo Imposed against steamship
companies for violating the Immigration laws. The
facilities at Ellis Island, N. Y., should not be so In
creased as to offer an Inducement to steamship com
panies to concentrate their immigrant business at one
port. Immigrants are needed in the rural districts.
Some provision should be made for retiring super
annuated government clerks.
The only amendments suggested in the Interstate
commerce law are an appropriation to enable the Inter
state Commerce commission to ascertain the valuation
of railroads and fixing the responsibilities of public
carriers in the issuance of bills of lading.
Heforms In Treasury Department
The Treasury department Is one of the
original departments of the government
With the changes In the monetary system
made from time to time and with the crea
tion of national banks, It was thought
necessary to organize new bureaus and
divisions, which were added In a somewhat
, " : . . 1, . haphazard way and resulted In a duplica
tor trade be favorably financed, nee of outl ,hlcn ml(fht w. now b.
siary credits be arranged and proper avail I , A
at all why the surveyor of ths port, who
really acts for the collector, should not be
a subordinate of the collector at a less
salary and directly under his control, and
there Is but little reason for the existence
of the naval officer, who Is a kind of local
auditor. His work Is mainly an examina
tion of accounts which is conducted again
In Washington and which results in no
greater security to the government. The
naval officers in the various ports are
presidential appointees, many of them
drawing good salaries, and those offices
should be abolished or with reduced force
made part of the central auditing system.
There are entirely too many customs dis
tricts and too many customs collectors.
These districts should be consolidated and
the collectors In charge of them, who draw
good salaries, many of them out of pro
portion to the collections made, should be
abolished or treated as mere branch offices.
In accordance with the plan of the Treasury
department, which will be presented for
the consideration of congress. As an Illus
tration, the cost of collecting $1 of revenue
at typical small porta like the port of
York. Me., was $50.04. At the port of
Annapolis, Md., It cost $309.41 to collect $1
of revenue; at Natchez, $52.76; at Alex
andria. Va., $122.49.
A reorganization of the special customs
agents has been perfeced with a view to
retaining only those who have special
knowledge of the customs laws, regulations
and usual methods of evasion, and with
this Improvement there will be no danger
to the government from the recommended
Consolidation and abolition of cusoms districts.
from the method of appropriation, which
hos been so much criticised In connection
with our rivers and harbors. .Some method
should be devised for controlling the sup
ply of public buildings, so that they will
harmonize with the actual needs of the
government. Not only are buildings appro
priated for by congress which are not
needed, and buildings left unappropriated
for by congress which are needed, but
when It comes to the actual construction
there has been In the past too little study
of the building plans and sites with a view
to the actual needs of the government.
Postofflce buildings which are In effect
warehouses for the economical handling of
transportation of thousands of tons of
mall have been made monumental struc
tures, and often located far from the con
venient and economical spot. In the actual
construction of the buildings a closer scru
tiny of the methods employed by the gov
ernment architects or by architects em
ployed by the government have resulted In
decided economies. It Is hoped that more
time will give opportunity for a more thor
ough reorganization. The last public build
ing bill carried authorization for the ulti
mate expenditure qjf 13,011,600 and I ap
pioved It beeause of the many good fea
tures It contained, Just as I approved the
river and harbor bill, but it was drawn
upon a principle that ought to be aban
doned. It seems to me that the -wiser
method of preparing a public building bill
would be the preparation of a report by a
commission of government experts whose
duty It should be to report to congress the
government's needs in the way of the con
struction of public buildings In every part
growing out of the frauds there discovered
and are now awaiting hearing In the fed
era! courts.
Too Man Mints,
D made or commercial opportunities In
foreign countries, and most especially in
l-alln America.
Ship sjaltaidy Commended.
Another Instrnmentallty Ind spensable to
the unhampered and natural development
of American commerce Is merchant marine.
All maritime and commercial natlqns rec
ognise the importance of this factor. The
greatest commercial nations, our compel
;tors. Jealously foster their merchant ma
rine. Perhaps nowhere Is the need for
rapid and direct n.ail. passenger and
freight communication quit so urgent as
Uuwnen the United States aud I-atln
America. We can secure In no other quar
ter of the world such Immediate benef ts
In friendship and commerce as would flow
from the establishment of direct lines of
coiiimun ration with the countries of Iitln
America adequate to meet the requirements
of a rap dly Increasing appreciation of the
reciprocal dependence of the countries of
the western hemisphere upon each other's
products, sympathies and assistance.
i alluded to this moat Important subject
in my Wat annual message; It has often
leen before you and 1 need not recapitulate
the reasons for Its recommendation. Un
ix prompt action be taken the completion
of the i'snaina canal will f.nd this the only
trial commercial nation unable to avail
lu InUrnaLoual maritime business of this
ended
This lack of system and economle co
ordination has attracted the attention of
the head of that department -who has been
giving his time for the last two years,
with the aid of experts and by consulting
his bureau chiefs, tn its reformation. He
has abollshrd K places In the civil service
without Impairing Ita efficiency.
The auditing system In vogue Is as old
as the government and the methods used
are antiquated. A '-areful plan Is being
devised and will be presented to congress
with the recommendation that the force of
auditors and employes under them be
greatly reduced, thereby effecting sub
ktantlal economy.
Asin. l me collection of the revenues,
especially the customs revenues, a very
great Improvement has been effected and
further Improvements are contemplated.
By the detection of frauds In weighing
sugar upwards of $3,400.00 have been re
covered from the beneficiaries of the fraud,
and an entirely new s stem free from the
possibilities of such abuse has been devised.
The department has perfected ths method
of collecting duties at the port of New
York so as to save the government up
wards of $10,0u0,0u0 ur $11, 0m). 000; and the
same spirit of change and reform has been
Infused Into the other customs offices of
ths country.
The methods used at many places are
archaic. There would seem to be no reason
An Investigation of the appraising system,"' " ' l"" """y "'
. . . - , . . make report with reference to the utility
now in vogue in New York C ty has shown' , . . . , V ull"lJ'
. , l of proposed Improvements in rivers and
under-appralsement and a sacrifice of the h.K,.r .i,v, ,T . . I!, V .
....... , harbors, with the added function which I
interests of the government, which is to , have wtnmenanl for tne a erig,neera
the course of being remedied by reorganlza- 0f including In their recommendation the
tlon and the employment of competent ex- relative Importance of the various projects
pert. Prosecutions have been Instituted found to be worthy of approval and execu
tion.
Collections of Revenue.
As the Treasury department Is the one
Very great Improvements have been made ' nt coi1((Cled. pnd ... Mn(.nrtltrM
In respect to the mints and assay offices. I disbursed, this seems a proper place to
l'"m""" oe., ca, consider the operation of the existing tariff
bill, which became a law August 6, lima. As
an Income-producing measure, the existing
tariff bill has never been exceeded by any
customs bill In the history of the country.
The corporation excise tax, proportioned
to the net income of every business corpora
tion In the country, has worked well. The
tax has been easily collected. Its prompt
payment Indicates that the Incidence of
the tax has not been heavy. It offers,
moreover, an opportunity for knowledge by
the government of the general condition
and business of all corporations, and that
means by far the most Important part of
the business of the country. In the original
act provision was made for the publication
of returns. This provlflon was subsequently
amended by congress, and the matter left
to the regulation t.f the president. I have
directed the !sue of the needed regulations,
and have made It possible for the public
generally to know from an examination of
the record, tho returns cf all corporations,
the stock of w hich Is listed .n any public
stock exchange or l. offered for rale to the
general public by advertisement or other
wise. The returns of these corH, rations
whose sunk Is not so listed or offered for
sale are directed to be own to the inspec
tion and examination of creditors and
stockholders whose record Is sought. The
returns of all corporatims are subject to
the inspei lion of any government officer, or
to the examination of any ccuit in which
the return made by the corporation Is rele
vant and competent evidence.
for those whose continuance la unneces
sary, and this year's estimate of expenses
is $.36,000 less than two years ago. There
la an opportunity for further saving In the
abolition of several mints and assay offlcea
that have now become unnecessary. Dur
ing the last year 100 unnecessary employes
have been dropped from the Philadelphia
mint. Modern machinery has been In
stalled there, mors and better work has
been done, and tho appropriations have
been consequently diminished.
In the bureau of engraving and printing
great economies have been effected. Use
Ices divisions have been abolished with the
result of saving $440,000 this year In the
total expenses of the bureau despite in
creased business.
The treasurer a office and that of the dl- j
vision of public moneys in purt cover the
same functions and this Is also true of the
office of the register and the division ot
loans and currency. Plans for tho elimi
nation of the duplication In these offices
will be presented to congress.
The office of the comptroller of the cur
rency Is one mort Important In the preser.
vallon of proper banking methods In the
national banking system of the l ulled
Stales, and the present comptroller has Im
pressed his subordinates with the necessity
of so conducting their Investigations as to
establish the principle that every bank fall
ure Is unnecessary because proper Inspec
tion and notice of threatening conditions to
the responsible directors and officers can
prevent It.
la our public ' buildings we still suffer
great deal of criticism, some of It Just,
more of It unfounded, and to much mis
representation. The act was adopted In
pursuance of a declaration by the party
which is responsible for it that a customs
bill Bhould be a tariff for the protection
of home Industries, the measure of the pro
tection to be the difference between the cost
of producing the Imported article abroad
and the cost of producing It at home, to
gether with such addition to that difference
as might give a reasonable profit to the
home producer. The basds for the criti
cism of this ta,riff Is that In respect to a
number of schedules, the declared measure
was not followed, but a higher difference
retained or Inserted by way of undue dis
crimination in favor of certain Industries
and manufactures. Little, If any, of the
criticism of the tariff has been directed
against the protective principle above
stated; but the main body of the criticism
has been based on the charge that the at
tempt to conform to the measure of protec
tion was not honestly and sincerely ad
hered to.
The tlma in which the tariff was pre
pared undoubtedly was so short as to
make It Impossible for the congress and
lis experts to acquire the Information nec
essary strictly to conform to the declared
measure. In ord-jr to avoid criticism of
this kind tn the future and for the purpose
of more nearly conforming to the party
promise, congress at Its last session made
provision at my request for the continu
ance of a, board created under the author
ity of the maximum and minimum clause
of the tariff bill, ai... authorised this board
to expend the money appropriated under
my direction for the ascertainment of the
cost of production at home and abroad of
the various articles Included In the sched
ules of the tariff. The tariff board thus
appointed and authorized has been diligent
In preparing itself for the necessary In
vestigations. The hope of those who have
advocated the use of the board for tariff
purposes is that the question of the rate
of a duty Imposed shall become more of a
business question and lees of a political
question, to be ascertained by experts of
long training and accurate knowledge. The
halt In business and the shock to business
due to the announceinmt that a new tariff
bill Is to be prepared and put In operation
will be avoided by treating the schedules
one by one as oc.-aslon shall arise for a
change in the rates of each, and only after
areport upon the schedule by -the tariff
board competent : make such a report.
It Is not likely that the board will be able
to make a report during the present ses
sion of congress on any of the schedules,
because a proper examination Involves an
enormous amount of detail and a great
dfal of care; but I hope to be able at the
opening of the new congress, or at least
during the session of that congress, to
bring to Its alUntion the facts In regard to
those schedules In the present tariff that
may prove to need amendment. The carry
ing out of, this plan, of cjume. Involves tho
full co-upc-ratlon of congress In limiting the
consideration in tariff matter to one
schtdulo at a time, because If a proposed
amtndmeiit to a tariff bill Is to involve
u complete consideration of all the sched
ules and another revision, u.en we shall
only repiac tho evil from which the buU
ness of this country hai In ilm.
-
for t of the people than the elimination of
Instances of Injustice in the tariff.
Permanent Tariff Commission.
The Inquiries which the members of the
tariff board made during the last summer
into the methods pursued by oilier gov
ernments with reference to the fixing of
tariffs and the determination of their effect
upon trade, show that each government
maintains an office or bureau, the officers,
and employes of which have made their
life work the study of tariff matters, of
foreign and home prices and cost of tariff,
and the effect of the tariff upon trade, so
that whenever a change Is thought to be
necessary In the tariff law this office is
the source of the most reliable infor
mation as to the propriety of the change
and Its effect. , I am strongly convince 1
that we need In this government Just such
an office, and that It can be secured by
making the tariff board already appointed
a permanent tariff commission, with sucn
duties, powers, and emoluments as It nuy
seem wise to congress to give, it has been
proposed to enlarge the board from :h eo
to five. The present number Is convenient,
but I do not know that an Increase of
two members would be objectionable.
Whether or not the protective policy is
to be continued, and the degroe o! pro
tection to be accorded to our Home In
dustries, are questions which the peop'n
must decide through their chosen represen
tatives; but whatever policy is adopted, it Is
clear that the necessary legislation i-hoald
be based on an Impartial, thorough nnJ
continuous study of the facts.
Ranklns; and t orrency ncform.
The method of Impartial scientific study
by exports as a preliminary to legislation
which 'I hope to see ultimately adopted ns
our fixed national policy with respect to
the tariff, rivers and harbors, waterways
and pubi c buildings, also Is being pursued
by the nonpartisan monetary commission
of congress. An exhaustive and most val
uable study of the banking and currency
systems of foreign countries has been com
pleted. A comparison of the business methods
and institutions of our powerful and suc
cessful commercial rivals with our own, is
sure to be of Immense value. I urgo upon
congress the importance of a nonpartisan
and disinterested study and consideration
of our banking and currency system.
It Is idle to dream of commercial ex
pansion, and of the development of our
national trade on a scale that measures up
to our matchless opponents, unless we can
lay a solid foundation In a sound and en
during banking and currency system. The
problem Is not partisan. Is not sectional-
it Is national.
Wnr Drpsrtmrnt.
The War department has within its Ju'ls
diction the management of the army, nnd,
in connection therewith, the coast defenses,
the government of the dependencies 'if the
Philippines and of Porto Rico; the recom
mendation of plans for the Improvement of
harbors and waterways, and their execution
when adopted; and, by virtue of an exocv
tlve order, the supervision of the construc
tion of the Panama canal.
In the army of tho United States, in ad
dition to the regular forces and the mllttla
forces which may be summoned to the de
fense of the nation by the, president, there
Is also the volunteer force, which made up
a very large part of the army In the civil
war, and which In any war of long contin
uance would become its most important
constituent. There is an act which dates
from the civil war, known aa the volun
teer act, which makes provision for the en
listment of volunteers tn the army of the
United States In time of war. This was
found to be so defective In the Philippine
war that a special act for the organiza
tion of volunteer regiments to take part in
that war was adopted, and It was much
better adapted to the necessities of the
case. There is now pending in congress a
bill repealing the present volunteer act and
making provision for the organization ot
volunteer forces In time of war, which is
admirably adapted to meet the exigencies
which would be then presented. Tho pas
sage of the bill would not entail a dollar's
expenseiupon the government at this time,
or In the future, until war comes, but
when War does come the methods therein
directed are in accordance with tho best
military Judgment as to what they ought
to be, and the act would prevent the ne
cessity for the discussion of new legislation
and the delays Incident to Its considera
tion and adoption. I earnestly urge the
passage of this volunteer bill.
Reforms for the Army.
I further recommend that congress estab
lish a commission to determine as early as
practicable a comprehensive policy for Che
organization, mobilization and administra
tion of the regular army, the organized mi
litia and the volunteer forces in the event
of war.
In order that the militia of eacii state
should bo properly drilled and made more
like tho regular army officers should be
detailed to assist the adjutant general of
each state in the supervision of the state
militia, but this Is Impossible unless pro
vision Is made by congress for a very con
siderable Increase in tho number of com
pany und field officers of the army. A bill
was pending in the last session of congress
for this purpose and I earnestly hope that.
In the interest of the proicr development
of a republcan army, an ui rny, small in
the time of peace but possible of prompt
and adequate enlargement in time of war,
shall becomu possil le under Ihj laws of
the United State.
A bill, the strong argument for which
can le based on the ground quite similar
to that of the Increased offlcirs bill,
the bill for the increase of six y In the
trmy engineers The army engineers arc
largely tpiployed In the exper ulime of the
nioneyn apiropriated for the Improvement
of rivers and harbors. This In addition to
their military duties, which Includes the
construction of fortification both of our
rum and In our dependencies, together
with the iumlr used In the Panama cinal
work, requires many more engineers than
ihe aimy has; und this shortness of supply
in sucli officers delays Impoitunt rivr and
risiDor uf ana important fortification
at rear! Harbor In the Hawaiian Islands
should be expedited as much as possible.
The proposition to make Olongapo and
Publg liny the naval base for the Pnclfio
was given up and It Is to be treated merely
as a supply station, while the fortification
In the Philippines are to he largely con
fined to Corregldor Island and the adja
cent Islands which command entrance to
Manila Pay and which are being rendered
Impregnable from land and sea attack. Ths
Pacific naval base hr.s been transferred to
Pearl Harbor In the Hawaiian islands.
This necessitates the heavy fortification of
the harbor and the establishment of an
Important mllltnry station near Honolulu,
lurge that all the estimates made by ths
W ar department for these purposes be ap
proved by congressional appropriation.
Philippine Islands.
Inning the last summer, at my request,
the secretary of wnr visited the Philippine .
Islands and has described his trip In his
report. He found the Islands In a state
of tranquillity and growing prosperity, due
largely to the change in the tariff laws,
which has opened tho markets of America
to tho products of the Philippines, and has
opened Ihe Philippine, markets to American
manufactures. The rapid Increase In the
trade between the two countries is shown
In the following table of Philippine export
for the fiscal years 190S-1910 (exclusive ot
gold and silver):
1WN
l'.'oi
1H1
Untied
States.
.$lt'.;-U.l,233
1.I5.M1
1H.741.77I
Other
Countries.
$2,.'.493.:i34
iUiis.zX:
21,1-'J.S'S
Total.
$iV.'.SHi.57
;.;n3u
3t.St4.15
show ex-
Note Latest monthly returns
ports for the year ending Amrust. 1H10. to
the United States lio.Oiio.we. or 49 per cent
or me 4i.u.o.,;a total, against $11,0,11,275 li
the United States, or 34 ner cent of the
$:-'. 183,871 total for the year ending August
I'JUl.
Philippine Imports for fiscal years 190S
l'Jlfl (exclusive of gold and silver and gov
ernment supplies):
1TOS
lHOil
li'lfl
Untied
States.
$ 6.07!.4n7
4,il,7;o
1U.7i5.301
Other
Countries.
$25.tlS.S70
23. 100.627
2ti.2K2.329
Total.
,30. 9 IK. $57
27.792.:i!7
37,067.610
Ths Par us Tariff Act.
Ths schedules of the rates of duty In ths
Payne tariff act have been subjected to a
suffered mort fcrlevously by stagnation aud I work. I earnestly recommend the pasaatre
litirrtulnl V iM,nilnu n .. . . . I . .. ...
. . . , .-.inriuriu or a
law affecting all business directly or in
directly, and the effect of which no wiso
business man would Ignore In new projects
and new investments. I cannot too much
emphasize ths Importance and benefit of
the plan above proposed fur the defects In
an Important law without a disturbance
of buwnes prosperity, which is even more
Important to the happiness and th com-
of this bill, which passed the house at
ths lat session and Is now pending )n
the senate.
Korllf IcatlunJ.
I have directed that the rs'lmates for
appropriation for the Improvement of roast
defenses In the United States should be
reduced to a nilmlmutn. while those for
the completion of ths needed fortifications
at Corral Jor in the Philippine Islands and
Note Latest monthly returns show im
ports for thu rar ending August. 1H10,
from the United States $ll,615,N!i2, or 30 per
cint of the $;!,026,titi7 total, against $5.1H3.4I9
from the United States, or 18 per cent of
the. $2.!'4H,011 total for the year ending Au
gust, 1909.
Porto Rico,
The year has been one of prosperity and
progress In Porto Rico. Certain political
changes are embodied In the bill "To pro
vide a civil government for Porto Rico
and for other purposes," which passed the
house of representatives on June 13, 1910,
at the last session of congress, and Is now
awaiting the action of tho senate.
The Importance of those features of this
bill relating to public health and sanita
tion can not be overestimated.
Tho removal from politics of the Ju
diciary by providing for the appointment
of the municipal Judges Is excellent, and
I recommend that a utep further be taken
by providing therein for the appointment
of secretaries and marshals of these
courts.
I believe that the provision In the bill
for a partially elective senate, the number
of elective members being progressively
Increased, Is unwise, and that the com
position of the senate as provided in the
bill as Introduced In the house far better
meets conditions existing In Porto Rico.
This Is an Important measure and I reo
ommend its early consideration and pas
sage. Rivers and Harbors.
I have already expressed my opinion to
congress in respect to the character of the
river and harbor Mils which should be en
acted Into law; and I have exercised as
much power as I have under the law in
directing the chief of engineers to make
his reports to congress conform to the
needs of the committee framing such a
bill In determining which of the proposed
Improvements Is the more Important and
ought to be completed first and promptly.
Panama Canal.
At the Instance of Colonel Ooethals, tha
army engineer officer In charge of tha
work on the Panama canal, I have Just
made a visit to the iHthmus to Inspect the
work done and to consult with him on tho
ground as to certain problems which are
likely to arise in the near future. The
progress of the work Is most satisfactory.
If no unexpected obstacle presents Itself,
the canal will bo completed well within
the time fixed by Colonel Goethals, to
wlt. January 1, 1915, and within the esti
mate of cost, $375,000,000.
Among questions arising for present so
lution is the decision whether the canal
shall be fortified. I have already stated
to the congress that I strongly favor forti
fication and I now reiterate this opinion
and ask your consideration of the subject
in the light of the report already before
you made by a competent board.
Canal Tolls.
Another question which arises for con
sideration and possible legislation Is ths
question of tolls In the canal. Thi ques
tion Is necessarily affected by the probable)
tonnage which will sTO through the canal,
it Is all a matter of estimate, but one of
tho government commission In 1900 Investi
gated the question and made a report. He
concluded that the total tonnage of the
vessels employed In commerce that could
use the isthmian canal in l'jl4 would amount
to i;,M3.WC tons net register, and that this
truffle would Increase 25.1 per cent per
decade; that It was not probable that alt
commerce Included In the totals would at
once abandon the routes at present followed
and make use of the new canal, and that
It mlyht tke some time, perhaps two
years, to readlrvit trade with reference to
the new conditions which the canal would
establish. H dl"1 not Include, moreover,
the tonnage of war vessels, although It Is
to bo Inferred that such vessels would
make, considerable use of the canal. In
the matter of tolls he reached the conclu
sion that a d.dlar a net ton would not
drive business away from the canal, but
that a higher rate would do so.
In determining what the tolls should be
we certain! ought not to Insist that for a
grod many years to com they should
amount to enough to pay the Interest on
the investment of $4nO.MO,(K, which the
United Slatrs has made In the construction
of the canal. We ought not to do thi.
first, because the benefits to be derived
by the United States from this expendi
ture U not to be measured solely by a re
turn upon the Investment. If it were, then
the construction might well have been left
to private enterprise. It was because an
adequate leturn upon the money Invested
could not be expected Immediately, or In
the near future, and because there re
peculiar advautatge to be derived from the
