The Lyttelton Times. FRIDAY, MARCH 18, 1910. AMERICAN FINANCES.

Lyttelton Times, Volume CXXI, Issue 15257, 18 March 1910, Page 6

The Lyttelton Times. FRIDAY, MARCH 18, 1910. AMERICAN FINANCES.

The financial position of the Lnited States has been more or loss unsatisfactory since the end of 1907. and we arc told now that Senator Aldrich has introduced in the Senate a Bill which proposes that a commission should be sot up to inquire into the business methods of the Government, with a view to reducing the expenditure m tho various departments of State. He asserts that a saving of no less than £60,000,000 a year could b© effected by the adoption of mere economical systems of administration. Senator Aldrich is chairman of the Senate. Finance Committee, and last year he took an important part in the framing of the new American tariff. The Republicans had promised to make extensive reductions in the Customs charges, for the purpose of reducing the cost of living to the public, but the concessions actually made were inconsiderable. One reason for this failure to carry into effect election pledges was undoubtedly the general recognition of the Federal Government's financial needs. Tho United States has not, of course, reached tho end oi its resources, but its citizens have shown a deep-rooted dislike to direct taxation. An income tax has been declared by the Supreme Court to be unconstitutional, and the Government has been thrown back on the tariff. The public accounts showed a deficit of over £23,000,000 for the year ended Juno 30, 1908, and last year President Talt had to announce that tho Government had once more to close the annual accounts with an enormous debit balance. 110 took the opportunity to remark that it was imperative that such a condition of affairs should not continue, and that ho would recommend tho application of a graduated inheritance tax. One of the factors in producing this unsatisfactory state of affairs is the remarkable pension law, under which, during tho year 19Q8, 951,687 persons drew pensions based on real or alleged military service. Tho cost of the system for the year was well over £30,000.000. Senator Aldrich is suggesting that the expenditure of the various departments of State could be enormously reduced, and it would not bo surprising to find that be has very good grounds for his suggestion. Every’ country has discovered that unless most careful supervision is exercised the public services become increasingly costly without a corresponding growth in their usefulness, and tho astounding development of the spirit of individualism in the United States makes the republic particularly liable to suffer from extravagance on the part of its permanent officials. Responsible men have stated that the “graft” which permeates business and municipal life has extended to the service of tho Federal Government, and of iato there lias been a very vigorous demand in some quarters for reform of tho House of Representatives, in order that the people may have more direct control ol then own affairs. “The grievance of tho ordinary member of tho House,*' wrote Mr A. Maurice Low in a- recent number of the “National Review,” “is that he has been reduced to a nonentity, • and that the Speaker, who ought to be a judicial, impartial, presiding officer, has become what liis opponents tauntingly term him, a czar and a boss.” The United States system ol government docs not tend to produce economical administration, for the reason that the members of the civil service, from tlie judges down to tho White House charwomen, are appointed by the men in power, and are subject to immediate dismissal if tho party whose patronage they have enjoyed is turned out of office. Probably Senator Aldrich will not venture to suggest any drastic reforms bearing upon this aspect of tlie case, and it is quite possible that the exigencies of party government will prevent any thorough investigation of tho public expenditure being made. Tho leaders of tho Republican Party, however, will have to choose between effecting economics and imposing additional taxation, and they may decide that tho Bill now before Congress offers the easiest way out of the difficulty.