paring plans for the improvement and management of the revenue, and under this provision must keep Congress advised of the state of the revenues and of an impending deficiency should one be in prospect. The several Departments make up annual estimates of the amounts which it is anticipated will be needed for expenses during the coming fiscal year which begins on July 1st, and these estimates are transmitted to Congress together with the proper comparisons of appropriations and expenditures for the preceding year. This compilation, known as the book of estimates, is the basis on which Congress makes appropriations for the expenses of the government for the fiscal year following that in which the session of Congress is held. In addition the Secretary of the Treasury is required to make quarterly a statement of the whole receipts and expenditures of the quarter, and also to publish the weekly statement of the Treasurer of the United States, showing the amounts of money on hand and the outstanding drafts.

The Secretary of the Treasury is the head of the monetary system of the United States and is the direct regulating power of the volume of the currency. The various conditions relating to trade, both domestic and international, are held to require the action of the United States in increasing the volume of the circulating medium, when for any reason there is an extra demand for such means of commercial intercourse. The basis of such a circulating medium is the amount of gold in the possession of the country as a whole. Provision is made by which any person may deposit gold, either as bullion or as coin in the United States Treasury or in one of its Sub-Treasuries, receiving therefor the certificates of the United States. The gold thus deposited becomes the basis of interchange not only between the various sections of the United States, but between the United States and foreign countries as well, and the certificates of the government showing an equivalent amount actually held in reserve, are of equal value in facilitating the interchange of commodities with the payment of the coin itself.

In order to meet the expenses of the government at a time when the expenditures are largely in excess of the receipts, Congress has authorized from time to time the issue of bonds, being the promise

of the United States to pay the amount stated on a given date, and, in the meantime, to pay a stipulated amount of interest for the use of the money. These bond issues are made by the Secretary of the Treasury, and the processes incidental to the interest paying and final redemption are carried out by his direction, under the provision of law which imposes upon him the care of the public credit. With the securities thus issued and guaranteed by the credit of the United States as a basis, a national banking system is maintained, by which individuals form themselves into stock companies, and having placed a sufficient amount of money, represented by bonds and similar securities under the control of the Secretary of the Treasury, are permitted to issue notes of hand which are secured by such deposits and which form a portion of the circulating medium of the country. This system of banks covering the United States, is controlled under the direction of the Secretary of the Treasury, who is responsible for their continued solvency, and who in case of loss to depositors must require the stockholders to reimburse the losers as provided by law. Another portion of the circulating medium, under the direction of the Secretary of the Treasury, consists of notes issued by the United States, based upon the stock of coin, either gold or silver, which has been paid into the Treasury of the United States, and which is there held as a reserve for the retirement of such notes, this form of circulating medium being a more convenient means of transacting business than the payment of the actual coin.

The whole of the circulating medium thus made available for the operations of commerce is regulated through the machinery of the office of the Comptroller of the Currency, and by virtue of accumulations in the Treasury of the United States, which under certain conditions of trade are larger than at other times, can be made flexible through the action of the Secretary of the Treasury in placing considerable sums from such accumulations on deposit in the various national banks of the country, where the money so deposited becomes available for increasing the ready stock of cash, by which commercial transactions may be carried on. The effects. of a tight money market may in this manner be ameliorated by the

Secretary of the Treasury, when in his judgment it would be for the common good to increase the volume of the circulating medium readily accessible for commercial purposes. When, on the other hand, it appears that no general good would be subserved by such action on the part of the Secretary of the Treasury, and that the apparent stringency is speculative only, his refusal to participate in the situation has the tendency to bring about an earlier liquidation and of restricting the volume of trade within safe limits. tremendous power is thus placed in the hands of the Secretary of the Treasury, upon whose conservatism and accurate appreciation of commercial conditions may sometimes depend the safety of the country from a serious financial panic.

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The Secretary of the Treasury is also the directive officer in the production of the coins of the United States and of the paper currency certificates and securities utilized as mediums of exchange. The operations of the various mints of the United States assay offices are under his jurisdiction, as well as the Bureau of Engraving and Printing in Washington, where all paper money and securities, as well as postage stamps, are printed.

For the purpose of maintaining a proper supervision along the coast and for the purpose of preventing smuggling, he is at the head of a semi-military organization, the Revenue Cutter Service, which besides is also utilized for assisting the Merchant Marine in event of disaster, and for the enforcement of maritime laws. An allied service under the direction of the Secretary of the Treasury is the Public Health and Marine Hospital Service, which has charge of the hospitals for the care of the sailors of the Merchant Marine, and also of questions of public health which do not come under the jurisdiction of the States of the Union. For the purpose of preventing frauds in the Customs and Internal Revenue Services, and also for the protection of the coin and currency of the United States, the Secretary of the Treasury has under his jurisdiction a Secret Service Bureau, comprising special agents, whose duty it is to collect evidence for the prevention and punishment of such offenses. As an adjunct of the Revenue Cutter Service, the Secretary of the Treasury has under his jurisdiction a Life-Saving Service intended

to ameliorate the disastrous effects of wrecks along the seacoast and on the shores of the internal waters of the United States.

In many of the cities and towns of the United States it has been found to be economical for the government to erect its own buildings rather than to pay rent to private persons. The erection of public buildings outside of Washington, and their care and maintenance after completion is under the jurisdiction of the Secretary of the Treasury, through the office of the Supervising Architect of the Treasury.

The Secretary of the Treasury is charged with the custody of the bonds of the officials of the United States receiving and disbursing moneys, including those of the officials of the Congress having to do with financial matters, and is charged with the examination of bonds, their approval, and of carrying out the provisions of law relating to the review and renewal of bonds biennially.

THE SECRETARY OF WAR.

The Secretary of War is appointed by the President by and with the advice and consent of the Senate, and receives a compensation of $12,000 dollars a year. The Secretary of War ranks third in the order of precedence in the Cabinet and performs such duties as may be intrusted to him by the President. Relative to military affairs, he has the custody of the authority of the President as Commanderin-Chief of the Army, and may exercise such power in accordance with the President's direction to do all things relating to the command and control of the Army and its munitions, including the transportation of troops, their stores, and all munitions of war. In the administration of this branch of the functions of the War Department the Secretary of War is assisted by the General Staff, which under the current statutory provisions practically administers all the details of military operation and administration. There are, however, some semi-independent bureau organizations still maintained, although subordinate to the administration of the General Staff, and which have important functions in the manufacture and purchase of arms, clothes, food and other provisions for the mainte

nance of the Army. Over the whole of this organization the Secretary of War maintains a directive and controlling power in matters of policy, even though many matters of detail carried out in his name are not originated by him. The strictly military side of the War Department is but a portion of its total activities. Since the inception of the system of seacoast and internal improvements in the first quarter of the nineteenth century, the War Department, through the Corps of Army Engineers, has supervised and directed the operations for the improvement of harbors on the seacoast, of facilities for navigation on the great lakes, and for the deepening of the channels of navigable rivers. All contracts for such work are carried out under the direction of the War Department, and in connection with this work the Secretary of War is given the custody of the Federal authority over certain portions of navigable waters, so that bridges or other obstructions to free navigation cannot be installed or maintained except under rules prescribed by the Secretary of War. When special authorization is given for a bridge or similar construction affecting the navigation of a body of water, it is generally coupled with the proviso of inspection by the War Depart

ment.

The Secretary of War is also charged with the duty of stating to Congress facts relating to the promotion of the general commerce of the country by improvements proposed, and has the duty not only of reporting on the practicability and cost of various river and harbor improvements, but must also report as to the practical value and benefit to commerce of the expenditure desired. As a part of the work on the great lakes and in connection with surveys made for the purpose of improving conditions of navigation, the War Department maintains a permanent survey force on the lakes, and publishes charts for the use of lake commerce. It is charged as well with the maintenance of improvements, and the operation by Federal employes of undertakings of this character requiring manipulation.

A large part of the force under the jurisdiction of the Secretary of War is engaged in maintaining the records of the soldiers in the wars of the United States for the use of the Pension Office, which is under the jurisdiction of the Interior Department. The various