Toward the Balkans

In Southeastern Europe the Emperor Francis Joseph still holds sway with a talent for the exercise of royal power that no other living monarch possesses. Amidst much internal discord the Dual Monarchy has been strengthened by the complete annexation of Bosnia and Herzegovina, Servia having been obliged by the pressure of the great powers to recede from her intention to oppose this transfer at the point of the sword. An impending war between Turkey and Greece was averted late in this last year by joint action of the powers in regulating the status of Crete. It will be remembered that ten years ago Crete had attempted to repudiate Turkish overlordship and become annexed to Greece. As the result of war and tumult Crete remained nominally Turkish, with an administration jointly supervised by several of the great European powers under a governor appointed by the King of Greece. Recent difficulties have resulted in a renew ing of the arrangement of ten years ago, so that Crete continues to be technically a part of Turkey, while order is to be maintained by the great powers and Greece is to name the governor.

Europe

Spain's troubles in Morocco, reat acting upon conditions at home, Large resulted in the death of Ferrer and in the overthrow of a cabinet. Portugal, with her boy king, has shown some signs of awakening to a sense of her laggard place among the states of Europe. Italy bears heavy burdens with good cheer, and Sicily recuperates. The Dutch have rejoiced in the birth of an heir to the throne, and are deeply united in the sentiment of "Netherlands for the Netherlanders." Russia keeps its sad, chastened course of inevitable progress. Scandinavian lands grow richer in civilization. Belgium's new king is a modern type, with promise of useful service.

Great Names of Last Year

The year 1909 was notable for the celebration of the centenaries of a number of famous people, including Abraham Lincoln, William E. Gladstone, Charles Darwin, Edgar Allan Poe, Alfred Tennyson, Mrs. Browning, Mendelssohn, and Chopin. There were also celebrations of historic occurrences as well as of notable personalities. Our obituary records have never in any previous year contained the names of so many celebrities as we find in looking over last year's list. Great is the number of those in the forefront of letters and art who died in the year 1909. Many were the names of statesmen and publicists, captains of industry, inventors, and leaders of thought and public opinion. We are the heirs of their living books, their noble buildings, their pictures and statues, their railroads and established industries, their useful laws, their social reforms, their contributions to science and invention, and their discoveries for the relief of human pain and disease.

The President's Views

President Taft's first regular message to Congress was naturally awaited with much interest

and concern. When it appeared there were some surprises, chiefly by reason of expected things left out, though also there were other surprises by reason of wholly unexpected things put in. The subjects which were originally to have had the chief place in the message were omitted altogether, with the promise that they would be presented in additional messages to be sent to Congress in the immediate future. These special messages are to deal with (1) changes in the laws regulating interstate commerce, (2) amendments of the Sherman Anti-Trust law, (3) the conservation of the national resources, and (4) the proposed revision of laws governing army organization in war time. Thus Mr. Taft's formal recommendations to the Sixty-first Congress at its first regular session will comprise these additional documents, as well as that which was made public on December 7. Mr. Taft keeps up the recent fashion of very long messages. His discussion of numerous topics is by way of an address to the country as well as to the law-making chambers. The document as a whole is reassuring and constructive. It fills somewhat less than twelve newspaper columns. The first five of these are devoted to foreign relations and the Department of State. As respects the other departments

Copyright, 1909, by Harris & Ewing

SECRETARY KNOX

improvements in the administration of the Congo State, of European conventions for the better protection of American patents, of our attempt to be of use to Liberia, and of our intention to assist in the conference that is to give the far northern islands of Spitzbergen some political status. Mr. Taft commends the recent progress of the Ottoman Empire, and in turning to Latin America offers congratulation on the settlement by diplomacy of the boundary trouble between Bolivia and Peru. Attention is called to the Pan-American Conference and the International Exhibition, both to be held in the coming summer at Buenos Aires. Mr. Taft's presentation of the Pan-American policy of this Government is generous and sound and will be reassuring throughout Latin-America. A fortunate view is presented of progress in Cuba, and of improved political and economic conditions in Santo Domingo as a result of our handling of the customs revenues. The situation in Nicaragua is stated in a just and lucid way, and it is obvious that President Taft will proceed in that quarter with a view not only to the protection of American interests, but also with a desire for the permanent welfare of Central America. Referring to matters in the far East, Mr. Taft

of the President's message)

ernment to support the principles of equality, of opportunity, and of scrupulous respect for the integrity of the Chinese Empire. The reasons for American participation in the Chinese railroad loans are presented with convincing clearness. It is gratifying to oe informed of the plans of the Chinese Government for sending students to this country in consequence of our remitting a part of the indemnity fund. It is not less gratifying to be assured of the progress of China toward lessening the opium evil, and of the success of the conference held at our invitation at Shanghai last spring on that subject. There is an agreeable statement to the effect that our Government has a perfect understanding. with both China and Japan regarding the much-talked-of treaty relating to mining privileges in Manchuria. Our relations with Japan are pronounced entirely cordial, and we are told that "the arrangement of 1908 for a co-operative control of the coming of laborers to the United States has proved to work satisfactorily." Secretary Knox's reorganization of the Department of State is explained and commended. Our readers have already been told of the plan of special bureaus in the Department to deal

with Lacin-American, Far-Eastern, and other especial fields. Explanation is also made of the plan for putting the diplomatic service upon a basis of merit and promotion.

Questions of Revenue

Touching upon financial matters, the President quotes the Secretary of the Treasury as finding that the Government's expenses will exceed its income by $34,000,000 for the year ending with June 30. There will also be $38,000,000 to pay for current work at Panama. It is now believed that the total cost of the Panama Canal will be $375,000,000. Most of the increased expense is due to radical enlargement of the locks and a widening of the canal itself. It is advised that canal expenses be met by bond sales, and it is of course expected that ordinary revenues in the near future will be equal to appropriations. Meanwhile the departments, under the President's advice, have so industriously pruned their estimates as to make possible a saving of, perhaps, $40,000,000, as against the outlays of the current year. Excellent work is going on for a reorganization of Government bureaus with a view to lessening the cost of administration. We are glad to find that Mr. Taft is prepared to recommend a system of civil pensions for the retirement of superannuated civil servants. Taking up the subject of the frauds practiced for the benefit of the Sugar Refining Company and other importers at the New York Custom House, the President advises Congress that a Congressional investigation would be embarrassing while criminal prosecutions are pending. Mr. Taft does not believe that the maximum and minimum clause in the new Tariff act will lead to so-called tariff wars with foreign countries. He expresses hope that the new Tariff Board may be of great service, and declares that if this board finds facts to justify him he will promptly inform Congress of rates that are excessive. Meanwhile he deprecates tariff agitation in advance of carefully collated information.

dent's message has been received with more favor by the country than his remarks about delays in the administration of civil and criminal law. He asks legislation to authorize the appointment by the President of a commission to advise methods for simplifying federal court procedure. He quotes the injunction clause in the last Republican platform and asks for a law that would prevent the granting of injunctions without previous notice and a reasonable opportunity to be heard, unless for exceptional reasons which are explained. Mr. Taft recommends the admission of Arizona and New Mexico as separate States, but advises care in the preparation of State constitutions. It would seem to us very advisable that the question of admitting these two Territories as States should be postponed until after the completion of this year's census. They have every desirable opportunity for self-government already as Territories, and there is no good reason for haste in allowing them to send four Senators to Washington to govern the rest of the country. They are still in a very early stage of development, with small and scattered population. Reforms in the government of Alaska are very properly recommended. A high compliment is paid to the work of the Department of Agriculture. Reorganizations of bureaus in the Department of Commerce and Labor are recommended. The much-advocated Bureau of Health is supported by Mr. Taft and the reasons for it are convincingly stated.

As respects our ocean commerce Subsidies and Mr. Taft says: "I earnestly Savings Banks recommend to Congress the consideration and passage of a ship-subsidy bill looking to the establishment of lines between our Atlantic seaboard and the eastern coast of South America, as well as lines from the west coast of the United States to South America, China, Japan, and the Philippines." It is proposed to divert the profits on foreign mails to this purpose. The President also strongly advocates the establishment of a postal savings bank system. He does not see any need of delaying this subject until after the report of the Monetary Commission.

it costs the Government to transport and distribute newspapers and periodicals, it does not necessarily follow that the rate ought to be raised. Within the memory of middleaged persons postage on newspapers and periodicals was paid by the subscribers at their local post-offices. The change of law requiring advance payment at pound rates by the publishers shifted the burden from the subscribers and was a convenient reform. It is true that printed matter constitutes the large part of the mail carried by the Government. But the periodicals do more to nationalize literature and public opinion than any other one thing. Furthermore, very much of the profitable business of the Post-Office Department grows directly out of the publicity created by newspapers and magazines. Even the direct transactions with the post-office of a publisher are profitable to the Government, inasmuch as the purchases of postage stamps for the carrying on of correspondence with subscribers, and the other postal business of such an establishment, give the Government far more profit than its handling of the magazines at the rate of I cent a pound can cause it loss.

Advertising and the

Mr. Taft is of opinion that the magazines carry more advertisPost-Office ing in proportion to reading matter than the newspapers. This, as it happens, is an entire mistake. But the suggestion gives opportunity to explain that of all the business done by the Post-Office Department the most profitable is the carrying of advertising. Rather than force magazine advertising out of the mails, the Government could better afford to carry it for nothing. The chief object of the reputable business people who patronize the advertising pages of the periodicals is to provoke correspondence. A single advertisement on one page of a periodical has brought to the advertiser seventeen thousand letters. Each one of these letters starts a return patronage of the mails. The actual carrying of that advertisement has cost the Government an infinitesimal sum. The return received by the Government has been the large profit upon the sale of many thousands of 2-cent stamps. It is impossible properly to consider the rate of postage to be charged by the Government on one class of matter without studying the relation of the rates on different classes to one another. Mr. Taft is actuated by a commendable desire to lighten the burdens of the Government and to introduce

economies. But as a matter of fact the carrying of newspapers and periodicals is not a burden to the Post-Office Department, and it is a great boon to the intelligent public of America.

Is There a Postal Deficit ?

It should be borne in mind that what he calls the deficit in the Post-Office Department is not real. The Post-Office Department is earning a large surplus profit on the business it carries on for its patrons. Even if all publishers and private individuals and firms withdrew their business from the Post-Office Department, the Government would still have its own large distribution of letters and printed material to make for Congress, for the Departments at Washington, and for the official business of several hundred thousand people constituting the civil and military services of the United States. It would probably have to pay from seventy-five to a hundred million dollars a year to carry on its own postal business. Yet the books of the Post-Office Department do not make any account whatsoever of this vast item. It is safe to say that there is no other government in the world whose postal department is not credited with the expense it incurs for handling the business of the other departments. It is a scandal and a public disgrace that business should be done so loosely at Washington that no post-office records are allowed to show what it actually costs to distribute the speeches of congressmen, the documents sent out from the Agricultural and other departments, and the millions of letters relating to Government business. It is just as much a matter of Government expense to transport official documents as to transport troops. The War Department makes record of the cost of transporting troops, but no reports of the Post-Office Department indicate the cost of carrying the Government's own materials.