| Show j 11 TAFT FAVORS I e I BUDGET SYSTEM i i i I All Nations but Our Own Have It ItI I I I Our Method Being Rather Haphazard tj ECONOMY IS NECESSARY j l p 0 d ld t T II III I Jh Needed If H J i 1 i fl I Newark N J 7 Feb s j Taft prefaced his prepared address be beI b blore f I l 1 lore fore the th Newark Board of oC Trade to toj tot I night with a statement o or orI j t t I I j II Ins f after atter beinG t 1 scar In the th i II Whito House brought thu tho audi audit t enc ene to Its Ils feet with cheers lIe took too toot I r t I to pay his to the thet th t f he hC was going home 1 I i to to avoid thorn them themI I Former Coy Gov Franklin Murphy In In Int Introducing I i t Ii PresIdent ent Tat Taft predicted th thc f c I 1 president would make mako good and ho aillo 1 took a flIng at c the tho J I 1 I I had bad not Intended to say anything I first In the tho thoI I 1 J on the lie subject of my 1 I l but butI f I White House Hous the tho president fi I I after what Gov Murphy has haR so glae giac i i 1 I busty said I cannot refrain from lOm II a per par peri pari word or two i i I i i AS TO NEWSPAPERS 1 It Is truo I told him I wanted to tor r 1 it r m make ce good l a year 0 11 ago I am not car cerI carI tam or of doing it now Ho He saM said some someI I I i I thing the When hen henI I 01 I f J I the tho newspapers are to criticism Ii and unIto In hammering i 11 t I your administration It sometimes some ii times with contemptuous disdain n and rJ C q sometimes with patronizing friendship I I II It is II hard to overcome the feeling that you oU ought ht to begin alt all over 1 i 1 I again I In view ot of aU all that to havo received t 1 1 I I I th tha which I did today gives a 0 aj J j little littie hope that perhaps tho newspapers fi I all ot of pub I dont carry In iii their pockets I lie opinion and that perhaps the b I I American people are arc able to see sea I I through something ot of hypercriticism something ot of the hysteria and some someI I 1 l 1 thin thing of hypocrisy and to have real realI I 1 I sympathy with Ue the man who under a 11 aI I Is doing the c best ho can il demon Tho 8 say that sometimes r I arc m but I sun am go goj goIng j Ing to bellove as I have said Mid that J J your our reception t and amI tonight Is IsI I I 1 sincere and I am going to take lake that I pi I flattering unction to m may soul as I goback go back to Washington and avoid the I 1 newspapers III You see therefore that when hen henI came no beta toda I was In a frame of I I mind which made your welcome a I to m my soul and I carry away a aI I 11 I sense ense ot of gratitude that will novel nover tic de 1 part from Crom m my memory I IIi TAFTS ADDRESS j I j President Taft l t after acknowledging I I I the pleasure ot of being afforded the op opi j i I I 1 to speak to time the business men menI said 4 ot of Ne Now York t I I J I accepted the tho Invitation to tot toL L I I come here hore I learned that I was to have havet t t the Ule pleasure ot of being a 0 fellow guest I with m friend Senator Lodge and that I he was to take tako up UI the o of high I prIces s 11 a question that has lias occupied the attention ot of all the people and has In InI I f I the investigation Into Its cause b bI by bythe I I the Congress Con ss ot of tho United States and andI I I b by some somo ot of time the state legislatures For ForI I 11 my part of time the evening I should like hike t II j to direct your Our attention to a more prosy 1 subject to the tho question ot of government I expenses and government revenues fI r I l anti and time tho POssible economies economics and what i r expenditures are essentIal at whatever 11 I burden ot of taxation i III the first place It should ho bo said I that vo 0 have been so far Car from rom exhaust exhausting I ing InA the or of national taxation I I j and federal revenues B have been en collect cI I i I cd so easily I 1 and In such an amount I t r that we have tailed failed in III the thc past to toI toj i r j I adopt a budget system which Is I Used In every other civilized countrY i II Dy By a budget system I mean macan a reference e eI I of proposed expenditures and receipts I I to some ome ono one or tribunal I 1 1 which after determIning the ther revenues will be must also determine r what time the expenditures can be and andi i mako a budget without a deficit I q I In our legislative bod body which pro prof f Ii the revenue and authorizes the expenditures time was when time the corn com comI I I on ways and means on tho ono hand determined the revenues of the government or provided tile the laws for raisIng them and on the other hand determined the appropriatIons appropriation and m measured the But for or man many years ears In our Congress these have been divided The fhe revenues are arc provided b by the ways and means committee ot of the Ule house and the finance com committee mil tee of the end submitted to their re respective houses house while the appropriations are mode made by bythe bytho the tho appropriations committees committee ot of th the house and senate and In too many manyi i without apparent to the revenues whIch are arc to be avail available able to meet the appropriations It has so 50 happened that In many years ears of the tho past the revenues have In increased creased more rapidly than the expendi expenditures tunes tures and there has been a surplus In Inthe Inthe the life of the Dingley bill which ear car carried nod ried us from 1616 toutS time tho appropriations exceeded the expenditures by about but the took place In the tho early years so that In 1003 wo we had a and In 1909 we ha had a deficit DEFICIT LIKELY Time Tho calculations ot of the secretary of time the treasury for the tho present year show showed showed ed that time the deficit mus likely to be In iii to ordinary re and an expenditures I am glad to say that the operations ot of time the now new tariff bill has been bean so much pro productive of Income that this deficit for forthe the tho current year ear Is lIkel likely to be con considerably reduced In addition how however however ever to tho ordinary deficit we havo to add the Panama canal expenditure for or Immediate provision ot of the or 01 what was estimated to bo be a total deficit of Is now no 10 consIderably b by time the bettor belleI rates s under the tho pre nt tariff bill By the expenditures on time the Panama canal with the proceeds proceed of bond Issues we havo enough cash In Inthe the tIlo treasury to m meet t the deficit In our ordinary expenses for Cor time tho current year ear and It we meet time expenditures on th time Panama canal for the following year ear we 10 shall have a surplus ot of or If the tho revenue producing capacity of the new mien tariff keeps up to Its present indications this surplus ma may be In increased creased to On time the other r band if IC the Congress proposes to ad add to the expenditures ot of the tho over those estimated for new enter In the river and harbor bill and for tor the construction of the federal buildings under a 11 building act It will VIl willbe be easy to consume consumo or exceed the en an entire tire surplus Evel Everyone ono must admit the wisdom ot of providing for tIme the payment of time the canal expenditures 1 by bonds This Thill is 13 a work ot of character and It seems only fall fair that that which we In such a measure for fOI posterity should be paid for In pal pait t at least b by posterity Not only onh It is such a principle just In Inthe the caMe like hike the Panama canal but It to be appropriate to adopt It with reference to other projects I refer to those definite projects that havo been agreed lii In respect to lo the timo im m of our waterways I would not begin the expenditure of money on any project time the wisdom It if which had not been fully vindicated but having determined to put through time It ought not tO 6 he done by fits anti and starts start but It ought to lie be done as ono one job This statement has application I cation callon to 0 the river and harbor JIll which now has passed the house Time Tho Ohio improvement to cost Is entered anti an mimetic for its continuation The ame II is truo of oC time the or of orthe time the il from St 51 Paul to St StLouis StLouis Louis and time the same river from St Ious to Cairo and ami of tho from froni Kans City to St These projects project seem to be warranted by bythe time the traffic In sll sIght ht I PAN PANAMA rA CANAl While I ammi am dealing with the ho Pan Panama ama ennui I ought to to the dl discrepancy bet between weon estimated cost of the tho enterprise und the actual I cost nl as we u now able to fix It with considerable accuracy within four Cour or five years of its completion Time The estimated cost or of time till engineer engineering ing and construction of the canal was nS 13 Its actual cost for en and construction wl wili bo be an increase of Tide increase is III to be explained first by the great creat appreciation In time tho cost of oC labor and material h by tito tho time limo wimon whon time the estimate was as In 1000 and time time lime when the work ork was done clone between 1901 and 1909 second by the fact that time canal cammal has imas been beyond the tho dt ti for You kno know that the great wont ot of excavation In the canal lB Is called time tho cut This is 18 where the back hone bono ot of the reduced to lowest Is cut and through fIe miles of that cut which lii Is about nino miles long for or purposes of economy econom time the plan anti estimate th time bottom of the tho canal In the rock wide This would not enable two i c i 1 ot of the limo largest steamers to lo pass each other with safety safet To avoid delay It imos been ht time the bottom width wl vIso e to loin to feet In a place and In mat material that of course makes tim the change So too that the tho lar larcat the canal nut bo be to eat cat size ot of steamers ameno tim tho of the six locks have been Increased from to 1000 length and width This mm s dono nt at time the In Instance stance ot of time the navy department which predicts predict vessels or ol a beam exceeding feet It has hn al also o been found necessary to changO the timo clar of the canal on the limo Pacific side flom a lake with a adam damn dam amid aud locks on time tho shore ot of the bay bayo o of Panama to a canal run ning four miles so as to re remove move mOe the tho locks leeks four our miles inward amid beyond the tho possible reach of oC time tho guns or 01 an aim enemy In Panama ba bay also have added considerably to the tho cost COlt Again It haR been found wise vise to tIme the canal Into Inlo a lake or basin at the toot foot of time tho Galun locks and In whatever variation In time tho plans which experience In time tho has imas demonstrated time tho necessity fOI 01 tho more than timan time the cost ot of con construction and nd engineering has hns been In addition to this time cost of oC sanitation and nd government without which the tho canal could conid not have been built will ho be about and will carry time the entire cost of oC time the canal to STATE STAT OF FINANCES To return to time the state of finances I repeat that tIme the surplus for tor time the year car Juno June 30 1911 1011 and which we all now making provIsion for COI In this Con b by appropriation will wili be about If the estimates made I Ithe by time the departments and transmitted b by time the secretary of oC time the treasury to Con gross grass not exceeded and It if time the revenue from rom the tariff bill bili equals that which the secretary or of time tho Itea treasury ury has estimated It as likely to be This surplus is also upon time tho supposition u I th that t the tho necessary lit III time the construction ot of the Panama canal will mil bo be met by bonds In vi ow ot of time the threatened shortage for the year ending Juno June 30 1911 I 1 dl the timo ot of departments In making rm their estimates to cut them to the tho quick and to avail themselves or of every overy possible economy anti than Uon The result was wall that time tho total of time the estimates forwarded b by the tho see rotary of the treasury was wall less than the tho total ot of the tho appropriations lions for the tho previous year car ending June 30 1910 1010 A and harbor bill has now been Introduced and has passed time the which appropriates nearly 40 O This Is a large lamgo Increase over overtime time tho amount estimated by time the secretary of time the treasury In Iii to lo this thill it Ie the building bill passes Congress appropriating printing or for or time tho cOOling coming fiscal year car there thero still will ho hon 3 n deficit the limo receipts from timo tho tariff bill and the corporation tax ox what was originally estimated from them I am bound to say sa that time the results of time the bill thus flu far indicate a considerable Increase over the estimate ot of the secretary Now Non I would like for tor a moment to toso togo so go Into time tho question or of what It was that thaL we cut down In our estimates for tor time coming coining year In time tho departments REDUCED ESTIMATES rime Tho reduction In the tho estimates of the war department below time the appropriations or of last year amounted to i 1 Time rhe reduction In time the estimates I if th time nay navy department for tor the ex cx of oC tho year ear ending Juno June 30 1811 also to The re ic reduction In timo tho interior department of estimated d expenses cs for 1911 below the appropriations for 1910 amounted to Time The reduction In the treas treasury Ul ury and In time the departments made up the of time the Speaking reference to time tho arm and time navy na the reduction red Is a 0 postponement only ot of expenditures that aro necessary until the Income tax lax shall shah bo sufficient to meet them Lot Lct us take the tue department Thero is III needed at the mouth ot of Chesapeake ba between Cape Henry Henn and Capo Charles an artificial Island upon time tho middle ground which shall command the entrance to bay Chesapeake ba bay itt Is the tho most Important bod body ot of water from froma a 3 na navy standpoint on the tho whole Atlantic coast and It must bo defended PEARL HARBOR So too we have havo determined that time the great naval base hase of oC the tho Pa cilia cills for Cor us Is III to be Pearl harbor near Honolulu For years there was a question nil as to whether Wo would make mako time the naval base baso at ba bay or nt at Ca In Manila bay In time the Philippines By B unanimous consent of naval and military authorities It Is now conceded that we do not need a naval base baJe In inthe the tho Philippines at alt all that wo ought to make moke Corregidor Island at time the mouth of It Manila bay Impregnable and establish a naval supply station In bay but rei rely upon time the Sandwich Islands as our base baso This will all In volvo volo a heavy at Honolu Honolulu lu in hut or the tho present time the amount pr is P small a dge the li we e ha have 0 retained a provision for two battleships of time the large capacity anti ancl we weI I have donO dona this on the tho ground that until th the Panama canal Is III completed we ve ought to go on and add to our na naval naval val strength h The Panama canal certainly will ho bo completed tn In 1916 1915 and andI I if wo we have two battleships a 0 year until that time the tho opening ot of the canal will so double the or of our navy for tor the tho of our Pacific sad At lantto coastS that We w can abato and reduce our expenditures In noW con construction Tho reduction In tilo tho Interior do de pertinent vero I think more of there them therein In the administration than timan In the ox ex for and this watt alec alo the tho case CILIO In tho do de department P PENSIONS Tho rho reduction In time the mont ment was duo due to a reduction In the or of pensions to bo be paid p d dout out edit und we may reasonably hope that U 11 the tho years now |
