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The Bishop was a fine specimen of the Church militant, a stout fiery man of sixty, in full-furred robes, and a black velvet cap. His energetic denunciations of the lawless appropriations of Milosh, had for many years procured him the enmity of that remarkable individual; but he was now in the full tide of popularity.

After satisfying the appropriations made by law for the support of the civil Government and of the military and naval establishments, embracing suitable provision for fortifications and for the gradual increase of the Navy, paying the interest of the public debt, and extinguishing more than $18 millions of the principal, within the present year, it is estimated that a balance of more than $6 millions will remain in the Treasury on the first day of January applicable to the current service of the ensuing year.

In this I think a great mistake of policy was made, and I urgently recommend that this Congress make up for the mistake of the last session by appropriations authorizing the construction of three battleships, in addition to destroyers, fuel ships, and the other auxiliary vessels as shown in the building program of the general board.

As I have said, I shall continue to review the war authorizations and from time to time recommend excess balances for repeal. As in recent years, detailed recommendations concerning most appropriations for the national defense program are postponed until the spring.

I look forward, however, to the time in the not distant future, when annual appropriations, wholly covered by current revenue, will enable the work to proceed under a national plan.

The constantly recurring "River and Harbor Bill," with its enormous sum total of appropriations, is a striking object lesson of the vicious character of such methods. In the light of what has been suggested, the wisdom displayed in the establishment of the bicameral, or two-chamber system, in our legislative scheme, is strikingly apparent.

A mere policy of economy without any instrumentalities for putting it into operation would be very ineffective. The Congress has wisely set up the Bureau of the Budget to investigate and inform the President what recommendations he ought to make for current appropriations.

The first task was to make out detailed schedules and estimates of what would be needed to equip ten thousand men for the field. This was a unit which could be used by the governor and legislature in estimating the appropriations needed then or subsequently. Intervals in this labor were used in discussing the general situation and plans of campaign.

I do not favor the making of appropriations from the National Treasury to be expended directly on local education, but I do consider it a fundamental requirement of national activity which, accompanied by allied subjects of welfare, is worthy of a separate department and a place in the Cabinet. The humanitarian side of government should not be repressed, but should be cultivated.

I invite the attention of Congress to the recommendations made by the Secretary of the Interior with regard to the preservation of the timber on the public lands of the United States. The protection of the public property is one of the first duties of the Government. The Department of the Interior should therefore be enabled by sufficient appropriations to enforce the laws in that respect.