CONTINGENT FUND.

The contingent fund which I asked for a year ago as giving sufficient freedom of action on the part of the Secretary of the Treasury to be consistent with the importance of his administrative duties, and which was granted by the Congress, has proved to be very useful to the service; and has enabled me to carry on improvements of importance that could not have been otherwise undertaken; and which have already produced savings that will be perpetual, repeating themselves annually.

BONDING OF OFFICIALS.

There will be proposals made to Congress for the revision of the bonding of certain financial officials, including the Treasurer and the assistant treasurers. The heads of these offices are heavily bonded, while no provision is made for the bonding of their subordinates in whose hands the money is. This is a subject worthy of the attention of Congress.

ASSAY OFFICE AT NEW YORK.

The assay office in New York, whose building is being enlarged and practically rebuilt, is undergoing a general revision and a general reorganization of its operation along effective business lines.

TARIFF BOARD.

The Tariff Board is more than justifying the expectations that were entertained of its usefulness and its ability. We have at last arrived at the possibility of a scientific treatment of tariff legislation. We have arrived where the interests of all concerned-those of the manufacturer, those of the merchant, those of the consumer, and those of the Government-can receive fair, scientific, competent, and nonpartisan consideration on the basis of reliable facts and knowledge. The trustworthy assistance this board can afford will soon enable Congress, whenever it is ready to legislate on the tariff, to proceed confidently.

FINANCES.

I have the honor to now call attention to the following statements showing receipts, disbursements, estimates, and the condition of the Treasury:

RECEIPTS AND DISBURSEMENTS.

Fiscal year 1910.

(See details in tables, pp. 31-35.)

The receipts and disbursements of the Government in the fiscal year ended June 30, 1910, were as follows:

For civil establishment, including foreign inter-
course, public buildings, collecting the reve-
nues, District of Columbia, grants from the
Treasury for deficiencies in the postal revenues,
$8,495,612.37, and miscellaneous expenses................ $180, 076, 442. 16
For military establishment, including rivers and
harbors, forts, arsenals, seacoast defenses, and
expenses on account of war with Spain and in
the Philippines, and miscellaneous..........
For naval establishment, including construction
of new vessels, machinery, armament, equip-
ment, improvement at navy-yards, expenses on
account of war with Spain and in the Philip-
pines, and miscellaneous...

For Indian Service..........

For pensions...

For interest on the public debt

Total......

155, 911, 705. 93

123, 173, 716. 68
18, 504, 131. 60
160, 696, 415. 88
21, 342, 978. 83

659, 705, 391. 08

15, 806, 323. 94

Excess of ordinary receipts over ordinary disbursements..

PANAMA CANAL.

Receipts-No bonds were issued during the year for canal expendi

tures.

Disbursements-Paid from the general fund of the Treasury...

Excess of Panama Canal disbursements over receipts.......

33, 911, 673. 37

33, 911, 673. 37

Total disbursements, exclusive of postal, except postal deficiencies

by grants from the Treasury............

726, 666, 759.95

Excess of all disbursements over all receipts.....

19, 480, 752. 43

126, 375, 428. 10

Total balance in general fund June 30, 1909.......
Total balance in general fund June 30, 1910........... 106, 894, 675. 67

Decrease in 1910....

19, 480, 752. 43

The securities redeemed on account of the sinking fund were as follows:

CONDITION OF THE TREASURY, JUNE 30, 1910.

The public debt of the United States at the close of the fiscal year as stated in the debt statement of June 30, 1910, is set forth in detail, as follows: